GMA urges Japan to use clout and lead Asian recovery effort

TOKYO (Via PLDT) – President Arroyo has urged Japan yesterday to use its financial and political clout to take the lead in bringing Asian economies out of the global recession as well as in pushing for deeper cuts in greenhouse gas emissions of developed nations.

Mrs. Arroyo made the call in a message to the International Friendship Exchange Council of Japan at the Imperial Hotel here attended by some 400 members including 60 foreign ambassadors and diplomats.

She said the world is experiencing unprecedented economic challenges that have affected both rich and poor nations.

 “This is also a crisis that has taught us all many lessons that will serve us well as we work together to restructure the global economic system.  The most important thing we have learned is that our economies are all closely interconnected.  We sink or swim as one global economy,” Mrs. Arroyo said.

She however said there are signs of hope and “Japan deserves special credit for its role in working to return the world to sustainable economic growth.”

She cited Japan’s “innovative, generous and bold leadership” in the G-7, G-20, ASEAN-3 and East Asian Summit, as well as its early pledge to provide the International Monetary Fund $100 billion for lending to countries facing financial liquidity.

She said the pledge not only provided much-needed support at a very critical time, it also encouraged other large economies to make similar pledges.

Japan’s commitment to global and regional development has been instrumental in tripling the capital of the Asian Development Bank and in increasing to $120 billion the level of funds for the Chiang Mai Initiative Multilateralization, “which is an ASEAN solution to an ASEAN challenge,” she said.

Mrs. Arroyo said Prime Minister Taro Aso’s multi-billion dollar “Growth Initiative towards Doubling the Size of Asia’s Economy” comes at a very crucial time for developing Asia.

 “We in the Philippines will do our part to meet its objectives because we recognize that it  can contribute to enhancing the economic prosperity of East Asia and lead to greater economic stability throughout the world,” Mrs. Arroyo said.

She said many developing nations count on Japan to use its considerable influence to convince other major economies to commit to medium-term targets and the 80 percent 2050 target for emission cuts.

The Philippines would like to  see a meaningful medium-term target and a goal of an 80 percent reduction of  greenhouse gas emissions by 2050, she said.

As Asia’s largest economy and largest source of official development assistance, “Japan is also in a position to work towards or to lead the work towards an Economic Community of Asia, to include South Asia, Southeast Asia, East Asia, the Middle East, Central Asia, Russia and Oceania, to maximize growth, trade, investment and financial stability in the Asian region,” she said.

“Because if we look at the world around us, Asia is the best situated to weather the global crisis and come out the strongest, compared with other regions.  Japan is in a position to convene the regional groups such as the East Asian Summit, the South Asian Association for Regional Cooperation or SARC, the Gulf Cooperation Council, Russia and the Commonwealth of Independent States, and the Southwest Pacific Dialogue to discuss an Economic Community of Asia as a bulwark against economic crisis,” Mrs. Arroyo said.

She said: “We have all learned from the Japanese  experience.  We would do well to remember that in good times and bad, Japan has been there for all of us these last 50 years.  In every endeavor, Japan has helped move mountains, be it in areas of regional peace and security, global economic stability or environmental stewardship.”

“On the part of the Philippines, we will remain on our path of reform and renewal, of  fiscal prudence, targeted investments, and the fight against poverty.  We want to succeed someday as Japan has succeeded.  We need the continued investment, development assistance, and political leadership of Japan now more than ever,” Mrs. Arroyo said.