PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | EVENTS & PROGRAMS | 2002 | IGM | AVAILABLE SPEECHES | STEVE OLSON

Supplements & Quick Reference: · Main Page · Overview · Confirmed Speakers · Available Speeches · Photos · Media Information · Sponsorships   Visit the Official Site: www.pbec2002.com Striving for Growth in a Challenging Environment PBEC 35th International General Meeting Kuala Lumpur, Malaysia May 3-7, 2002 Steve Olson Acting President, PBEC International "Call to Order" Monday, May 6, 2002 Excellencies, PBEC members and chairmen, distinguished guests, ladies and gentlemen, welcome to Kuala Lumpur for the 35th annual International General Meeting of the Pacific Basin Economic Council. We are especially pleased to be here in the beautiful and vibrant city of Kuala Lumpur, where the warm hospitality of our Malaysian hosts has already made each and every delegate feel extraordinarily welcome. When the theme for this year's IGM - Striving for Growth in a Challenging Environment - was first set, few of us could have imagined just how challenging the circumstances would be as we convene this meeting here today. Who could have anticipated the tragic events of September 11th? These events have touched all of humanity to its very foundation, and impacted not only our business environment, but almost every aspect of our lives. Later this morning, a distinguished panel of experts will explore in more detail the economic implications and challenges of the war on terrorism. Serious challenges - some triggered by the events of September 11th, but some with roots planted well before then - continue to confront the regional economy. Profits and stock markets are down, while unemployment is on the rise. Many economies in the region continue to be bogged down by high levels of public debt, and banking systems in a number of economies are struggling with bad loans. Rising crude oil prices are feeding fears of inflation. Ongoing turmoil in the world is damaging investor confidence, while corporate scandals are damaging the public's confidence in the ethics of business. Economic stagnation in Japan poses problems for all its neighbors, and recent trade actions in the US over steel threaten to reawaken protectionist tendencies. Although the economic environment in our Pacific Basin region continues to be tenuous, there are also undeniable signs on the horizon that give us reason for hope … and perhaps even optimism. Indications that the US economy is recovering, and emerging from a milder than expected recession, will brighten prospects for economies in our region which count on exports. According to the World Bank, growth in non-Japan Asia is expected to increase by a healthy 4.5 percent this year. PBEC is pleased that so many of the core principles which this organization has long championed - principles such as corporate governance, transparency, improved financial supervision, and a commitment to the rules-based world trading system - are being increasingly embraced throughout the region. The entry of China into the World Trade Organization brings with it the potential for tremendous opportunities for both China and its neighbors. China's impressive growth rates, along with a greater openness to trade and investment, holds the promise of new markets for China's partners, and a higher standard of living for China's citizens. The agreement in Doha to launch a new round of WTO negotiations was a strong reaffirmation that open economies are now more important than ever. PBEC is gratified to note that there seems to be a growing recognition that the trade agenda must reflect the needs, viewpoints, and aspirations of the entire community of trading nations - both developed and developing. Greater market openness only works, when it works to the advantage of all parties involved. I am happy to report that our weekend policy deliberations here in Kuala Lumpur have been extremely productive. Yesterday, our Board of Directors passed a number of important policy statements in areas such as security, transparency, and food products, which will further solidify PBEC's role as the voice of business in the Pacific. In the challenging environment in which we convene this meeting in today, the mission of PBEC has never been more vital; our objectives have never been more relevant. Because at it core, PBEC is about global understanding - about deepening relationships, and sharing not only products, services, and capital, but also about sharing viewpoints, cultures, and dreams. Once again, I welcome you to Kuala Lumpur, and I wish you a productive and thought-provoking conference.