PACIFIC BASIN ECONOMIC COUNCIL
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Japan reform said key to Asian prosperity By Akemi Nakamura The Japan Times Thursday, December 21, 2000 Now that the United States has started showing signs of economic slowdown, business leaders in the Asia-Pacific region expect Japan to expedite. full economic recovery and become an engine to ensure continued prosperity in the region, according to an American international business expert. Healthy economic growth in Japan and the U.S. would reinforce Asia's economic recovery from the region's 1997 financial crisis, said Robert Lees, secretary general of the Pacific Basin Economic Council an international business organization founded in 1967. Japan must accelerate deregulation to nurture entrepreneurs and promote structural reforms, reduce government debt and become less dependent on public projects, Lee said at a recent interview in Tokyo. "We are hopeful about Japan's reforms," said Lees, who was here for preparatory work for PBEC's 34th International General Meeting slated for April 4 to 10 in Tokyo. "When Japan joins the United States as an engine of growth, then all of the other members of our Asia-Pacific community will benefit as a result of that." PBEC, based in Honolulu, aims to strengthen economic ties and contribute to the economic and social development of the Asia-Pacific region. It is presently comprised of more than 1,100 corporate members in, 20 economies: Australia, Canada, Chile, China, Colombia, Ecuador, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Peru, the Philippines, Russia, South Korea, Taiwan, Thailand, Singapore and the United States. Since the acute financial crisis in 1997, skeptics have been voicing concerns over Asia's prosperity in the next century. Lees sees things otherwise, believing that Asia's economic recovery is on the right track and will lead economic growth next century. He still harbors anxiety over the region's future, however, saying, "There seem to be storm clouds on the horizon for Asia." High oil prices, declining computer prices, delayed structural reforms and Weak political leadership in some nations have hindered smooth economic development of the region as a whole, he explained. Furthermore, as Lees pointed out, the slowdown of the U.S. economy could be a contributing factor in the deterioration of regional economic prosperity. "A dramatic decline in the U.S. economy would clearly be devastating to Asia's economy," he said. Given all these causes for apprehension, he stressed the need for Japan to revitalize its economy and become an engine for the region. "Without a vibrant and healthy Japanese economy, the rest of Asia cannot prosper. To ensure a healthy economy in the Asia-Pacific region, businesses need to work together with government, and PBEC can provide opportunities to educate both sides, Lees said. At the upcoming Tokyo meeting, about 1,000 business leaders and officials from governments and international organizations 'will discuss various issues, including globalization of trade and investment, corporate responsibility for management transparency and the environment, and prospects for new businesses in areas such as electronic commerce and biotechnology. "(At PBEC meetings) business viewpoints Are being exposed to government, and we also want to hear from political leaders to find out what their 'challenges are because they cannot solve their problems alone and we cannot solve our problems alone," Lees said. Taking advantage of a close working relationship, the private and public sectors can also create more jobs and be. responsive to environmental problems, he added..