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.