The afternoon session on Day 2 of the Asia Society’s ACC began with a keynote address from Jairam Ramesh, India’s Minister of State, Environment and Forests. India faces environmental issues on two conceptual levels: issues which must be resolved in the international arena, such as climate change, and more traditional environmental issues that must be addressed locally, such as air pollution, water pollution, land degradation and others. Mr. Ramesh discussed some of India’s strategies for tackling these challenges.

Mr. Ramesh underscored that environmental issues must be brought to center stage. “We’ve had a goody-goody approach to the environment so far,” he said candidly. “But managing the environment means making tough calls and tough choices. It’s very difficult in our system to make such tough calls.” The sustainability of India’s high economic growth, he stressed, is predicated on obeying the fundamental laws of ecological sustainability. India cannot afford to grow first and clean up later. Moreover, for India to have “inclusive” growth, it must also have sustainable growth.
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The first panel session of ACC Day 2 focused on trade, regional architecture, and strengthening linkages.

Kishore Mahbubani, Dean of the Lee Kuan Yew School of Public Policy, identified an important trade-related aspect of the post-crisis “new normal.” Advanced economies are shying away from free trade- economies that once championed the benefits of free trade to Asians among others. Meanwhile, Asians have gone ahead signing free trade agreements with each other, and trade is growing rapidly, with benefits for all. Victor Z. Gao, Director of the China National Association of International Studies, discussed the relationship between China and India: the two countries are growing neck and neck, but each can find its own way of developing economic growth. This bodes well for each country and the region as a whole. Raja Mohan, Contributing Editor of the Indian Express, discussed ways to improve trade ties with India’s closest neighbors. Levels of trade remain anemic. He suggested that unilateral trade policy coupled with developing physical connectivity could help begin to make up the gap. Hassan Abbas, the 2010 Bernard Schwartz Fellow at the Asia Society and Senior Advisor at the Belfer Center for Science and International Affairs, drew further attention to the trade relationship with Pakistan. There is a long way to go; to get there, policymakers must create avenues for building trust and increasing interaction. Richard Woolcott, Special Envoy for the Prime Minister of Australia, said that Asia’s rising economic clout is being reflected in the changing order of international financial institutions. He also outlined his views on the future of regional institutions in the Asia-Pacific, suggesting that the current framework may not be sufficient.

Following his address to the ACC audience, Assistant Secretary of State for South and Central Asian Affairs Robert O. Blake, sat down to discuss India’s role in promoting intra-regional trade, and the regional stability such trade with promote:

Day two of the Asia Society’s 20th Corporate Conference began with a keynote address from Goh Chok Tong, Senior Minister of Singapore and Chairman of the Monetary Authority of Singapore, the country’s central bank. SM Goh was prime minister of Singapore from 1990 to 2004. Today, he spoke on Asia’s place in the emerging world order, trends emerging in the wake of the global crisis, and the potential for India to shape the contours of a new global architecture.

The global economic crisis has accelerated a shift in the global economic balance from east to west, said SM Goh. Economic indicators point to this, as does President Obama’s decision to replace the G8 with the G20, “In effect, President Obama has acknowledged the end of one era and the beginning of anouther. The formation of the G20 recognizes the reality that the key decisions concerning global economic order can no longer be the preserve of a small elite group of developed economies.”

The severity of the meltdown led many to question the validity of the Western growth model, but Asian hubris must be avoided. In spite of occasional tensions, there are relatively friendly bilateral relations between the major powers in the Asia-Pacific. Economic integration is increasing, and when conflicts have arisen, governments have adopted pragmatic approaches to resolving them.

The main challenge today for the international community is to manage the transition in global architecture while avoiding conflict. India can have a role in shaping the contours of the new global architecture. Domestic difficulties however, such as infrastructure, income distribution, and security issues, may prevent it from reaching its potential. However, India is taking steps to meet each of these challenges.

SM Goh concluded by saying that India must not only look east, it must proactively engage the east, especially Southeast Asia. Trade has grown rapidly in recent years, but it started from a low base. Going forward, increasing regional economic integration will foster stability growth on both sides.

Robert O. Blake, Assistant Secretary, South and Central Asian Affairs of the US State Department, opened the session on trade today at the Asia Society’s Asian Corporate Conference in New Delhi with a keynote address on the strength and importance of the US-India relationship and the significance of India’s economic opening and role in the new world order.

Mr. Blake began by stressing the importance of the US-India bilateral relationship, economically, strategically, and socially. Trade has boomed in the last 20 years and continues to increase- India is the 14th largest trading partner of the US. Prime Minister Manmohan Singh is the only foreign leader since the beginning of the Obama administration who has visited the White House on an official state visit.

Mr. Blake credited much of the success of the US and India’s economic relationship to India’s policy opening in recent years. India has permitted foreign ownership of Indian companies, which has led to job creation as well as technology and knowledge transfer. Interest rate controls and other financial reforms have helped with liberalization, and there is hope that they will continue.

But more can be done. Not only should India seek to further increase market access to foster mutual prosperity, but such policies would certainly help domestic stability. Removing agricultural import barriers would help alleviate pressure on food prices. Barriers to infrastructure development would help ease social pressures caused by rapid urbanization. India must foster development of a long-term capital development market. Tariff and non-tariff barriers to trade can come down further.

Mr. Blake concluded by again encouraging India to open its economy further. This, he said, would help it take its rightful place as a world leader.

US Ambassador to India, Timothy J. Roemer discusses educational partnerships between the US and India, and the need to prepare our children for participation in an international world.

Rajiv Lall, Managing Director and CEO, Infrastructure Development Finance Company (IDFC) spoke to us yesterday afternoon about India’s push for developing sustainable infrastructure both top-down and bottom-up.