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Ministers Attend Meeting on Asia Crisis

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Media Release

MEDIA RELEASE

I am pleased to announce that ministers and other senior representatives from Asian crisis-affected countries, donor countries and international institutions will meet in Sydney on 5 March to discuss developmental challenges facing the Asian region.

I have convened the meeting as a part of Australia's continuing contribution to addressing the persisting impacts of the Asia crisis.

The meeting will focus on the economic and social consequences of the crisis and approaches necessary to achieve longer-term recovery and sustainable development. In particular, it will: focus on priority measures to restore growth, encourage a high-level commitment to addressing economic and social impacts over the medium to longer term, and seek to enhance cooperation and coordination among donors and regional countries.

The meeting will be the first occasion on which ministers and other senior representatives from the region and the broader international community have met to discuss the wider economic impacts of the crisis and long-term strategies for recovery. It will help to maintain the momentum for greater cooperation and coordination, and is also a further demonstration of Australia's leadership in helping to galvanise an effective international response to the crisis.

Despite welcome signs of recovery, East Asia remains vulnerable to economic shocks and is still enduring major social dislocation, especially through increased unemployment and falling incomes. GNP per capita in the worst affected countries (Indonesia, Malaysia, Thailand, and the Philippines) has fallen by 10 per cent since 1997.

Key challenges for regional and partner countries are to restore strong and sustained economic growth and protect and reinforce investments in the social sector, including in basic health and education, welfare and poverty reduction.

The meeting will be attended by regional ministers and senior representatives from donor countries, the World Bank, the Asian Development Bank and the IMF (see list below).

Media contacts:

Innes Willox (Minister's Office): 02 6277 7500/ 0419 206 890

Keith Scott (AusAID): 02 6206 4624/ 0417 689 035

MEETING ON DEVELOPMENT COOPERATION:

RESPONDING TO THE ASIA CRISIS

HEADS OF DELEGATIONS

Australia

The Hon Alexander DOWNER MP

Minister for Foreign Affairs

Brunei

TBA

Cambodia

HE Mr KEAT Chhon
Senior
Minister in Charge of Rehabilitation and Development and Minister of
Economy and Finance

Canada

Senator William ROMPKEY

China

Mr Chong Quan
Deputy Director
General, Department of Asian Affairs

Denmark

HE Mr Kris LUND-JENSEN
Ambassador, Embassy of Denmark

Finland

Mr Glen LINDHOLM
Director
General, Department for International Development Cooperation, Ministry
for Foreign Affairs

France

HE Francois DOPFFER
First
Assistant Secretary, Asia & Oceania, Ministry of Foreign Affairs

Germany

Dr Rainer GOERDELER
A/g
Director-General of Bilateral Cooperation, Ministry of Economic
Cooperation and Development

Indonesia

HE Dr BOEDIONO
State Minister
for the National Development Board

Ireland

Mr Gerry CORR
Counsellor,
Multilateral Aid Policy, Development Co-operation Division, Department of
Foreign Affairs

Italy

TBA

Japan

Dr Tatsuo ARIMA
Special
Government Representative in Charge of Foreign
Affairs

Korea

HE Kee-Bock SHIN
President,
Korea International Cooperation Agency

Laos

HE Mrs Khempheng
PHOLSENA

Vice-Minister, Prime Minister. s Office

Malaysia

Dato WONG See Wah
Deputy First
Finance Minister

Netherlands

HE Mr Albert J.A.M.
NOOIJ

Ambassador, Embassy of the
Netherlands

New Zealand

The Rt Hon Don McKINNON
MP
Minister of Foreign Affairs and Trade

Norway

HE Mr Kjell-Martin
FREDERIKSON

Ambassador, Embassy of Norway

Papua New Guinea

Mr Iairo LASARO MP
Deputy Prime
Minister and Treasurer

Philippines

The Hon Felipe M
MEDALLA
Secretary for Socio-Economic
Planning

Singapore

Dr OW Chin Hock
Minister of
State for Foreign Affairs

Sweden

HE Mr Goran
HASSELMARK

Ambassador, Embassy of Sweden

Thailand

HE Mr PITAK
Intrawityanunt

Minister Attached to the Prime Minister. s
Office

United Kingdom

Mr John VEREKER
Permanent
Secretary of the Department for International
Development

United States

Mr James MICHEL
Counselor,
U.S.AID (former Chair, OECD Development Assistance
Committee).

Vietnam

Mr Vu Huy HOANG
Vice-Minister
for Planning and Investment


Multilateral Organisations

APEC Secretariat

TBA

ASEAN Secretariat

Mr Cho Kah Sin
Assistant
Director, Functional Cooperation Bureau

Asian Development Bank

Mr John
LINTJER

Vice-President

European Commission

Mr Emiliano FOSSATI
Director
for South and South East Asia, Directorate-General

International Finance Corporation

Javed HAMID
Director East
Asia

International Monetary Fund

Mr Shigemitsu SUGISAKI
Deputy
Managing Director

South Pacific Forum Secretariat

Mr Noel LEVI
Secretary
General

United Nations Development
Program

TBA

World Bank

Mr Jean Michel
SEVERINO

Vice-President, East Asia and the
Pacific

BACKGROUND

In the two decades before the crisis in East Asia, economic growth transformed the region. Some 370 million people have been lifted out of poverty since the mid '70s and many millions benefited from gains in life expectancy, declines in infant mortality and improvements in basic education and health.

Since the onset of the 1997 Asia financial crisis - which quickly became a broader economic and social crisis - many of the gains from years of growth in Asia have been set back.

Growth in East Asian crisis countries, 1996-1999 (per cent)
[1]

Country

1996

1997

1998

1999

China

9.6

8.8

7.2

6.6

Indonesia

8.0

4.6

-15.3

-2.8

Korea, Rep. Of

7.1

5.5

-6.5

1.0

Malaysia

8.6

7.9

-5.1

0.5

Philippines

5.7

5.2

-0.5

2.5

Thailand

6.4

-0.4

-7.0

0.3

Vietnam

9.3

8.8

3.5

3.5

ASEAN-4 [2]

7.3

3.8

-9.2

-0.5

[1]
Source: Global Economic Prospects, World Bank,
December 1998. GDP in constant 1987 prices and exchange rates. Forecasts
indicate base-case scenarios for recovery. The figures for 1998 represent
estimates and the figures for 1999 are forecasts. The figures for China
and Vietnam are from the IMF's World Economic Outlook, Oct and Dec
1998.
[2]Indonesia, Malaysia,
Thailand, Philippines.

The international community has
responded to the crisis with assistance from the International Monetary Fund and
the World Bank and increased flows of bilateral aid. However, almost two years
after the financial crisis first struck, its economic and social impacts are
persisting and have significantly changed the development outlook for the
region. It is to help address medium- to long-term development issues arising
from the crisis that the Minister for Foreign Affairs, Mr Downer, has convened a
Meeting on Development Cooperation: Responding to the Asia Crisis, to be held in
Sydney on 5 March. The meeting will be attended by ministers and other senior
representatives from crisis-affected countries, donor countries and
international institutions.

While the unfolding economic and social
impacts of the crisis are complex and heterogenous, it is clear that they have
had adverse and serious consequences for people throughout the region. The
impacts include rising unemployment, rising food prices, increased levels of
poverty, increased school drop outs and reduced access to health care as a
result of reductions in income and increased costs of medicines. Millions of
people in the region have suffered major declines in living standards.

A return to high and sustained economic
growth throughout the region is urgently needed, as is a continued commitment to
address the medium- and long-term social impacts of the crisis. Within this
framework of restoring growth, protecting social gains must remain a focus for
regional countries and donors. Meeting these challenges will require continuing
and strong cooperation. This in turn will require practical mechanisms to ensure
responses are based on sound information and are well coordinated.

The meeting in Sydney will focus on the
development challenges facing the region and what needs to be done to restore
growth. It will seek to deliver a high-level commitment to address economic and
social impacts over the medium to longer terms and to encourage coordination and
cooperation. Key issues to be discussed will include the current state of the
region, major developmental challenges, response priorities, and coordination.

Australia's initiative in convening the
meeting is a further demonstration of our key role in responding to financial,
economic and social impacts in East Asia and in helping to galvanise an
effective long-term response. Australia has been active in helping to address
the immediate impacts of the crisis and in contributing to the longer-term
process of recovery. The Government joined, in 1997, IMF-sponsored support
packages for Thailand, Indonesia and Korea and last year announced substantially
increased aid to Indonesia and Thailand. The Government also established an Asia
Crisis Fund to strengthen economic governance and financial sector reform in the
region and in November the Prime Minister, Mr Howard, announced a $50 million
initiative to help regional countries strengthen economic and financial
management.

Last Updated: 25 February 2013
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