Measures to Meet Economic Crisis Agreed Upon by ASEAN

In Hua Hin, Thailand, it was reported that the leaders of the South East Asian nations finally gave their individual agreements to uplift the monetary policy as well as resist protectionism. This comes in the light of their attempts to fight the global financial crisis which is putting a considerable damper on their economies, which are export dependent. The ASEAN or the Association of South East Asian Nations is a ten-member group which has expressed its commitment to working with the bigger group called the Group of 20 as they all tackle the issue of reforming the international financial institutions.

Need for More Coordinated Measures

The draft letter regarding the summit also mentions that the ASEAN had agreed for a counter-cyclical as well as a coordinated macroeconomic sense of coming up with policies. This, they mentioned, are the best responses they could come up with when it comes to addressing the global financial crisis. There are also some governments that have acted swiftly and implemented their own fiscal stimulus packages in order to further encourage their domestic demand as well as accommodative monetary policy which will then enable the entire banking sector to resume their function. Such a statement by their leaders also stated that they will resist any sort of protectionist measures which could put a damper on the entire functioning of global trade and thus slow down their travel on the road to economic recovery. They also urge the many players of the WTO or the World Trade Organization by bringing out their early conclusion from the Doha round.

Severe Testing

Abhisit Vejjajiva, the Prime Minister of Thailand, also mentioned during Saturday’s summit opening in the Hua Hin resort of Thailand, that they will all be severely tested. This will be both as a group as well as being part of the wider Asian region. As this financial crisis continues to deepen, the entire world will then look at them and expect them to act in order to restore and spur confidence. The ASEAN has been moving steadily to become one community comprised of around five hundred and seventy million people as well as a combined gross domestic product of around two trillion dollars in six years’ time.

However, the leaders of the different nations are also worrying over the ever-rising rate of unemployment. There are other countries that are busy preparing for their elections now and in the coming year. Thailand, for example, has had around four officials in the previous year. This teaches its neighboring countries that there are some dangers involved when it comes to fostering the political rifts in their ever-deteriorating economic conditions. The summit has been scheduled in Bangkok around December and was then postponed and therefore moved to the Hua Hin region because of the street protests which also includes the main airport of Bangkok being seized.