Even if more-developed countries were willing to take part in such a developmental model, developing countries wouldn't necessarily agree to it. They might fear that better-developed countries would seize the opportunity to control and monopolize the assets and properties in developing countries. On the other hand, East Asia's developing countries may not be sufficiently concerned with improving the general standard of living. Often, they are more interested in developing a few showpiece industries in the name of national pride. All countries must learn to set aside their nationalism and antagonism.
Currently the East Asian region -- where better-developed countries and developing countries coexist -- is experiencing a slowing growth of export markets and insufficient resources. Collective development of products for the consumption needs of the low-income population and rapid development of domestic markets -- as well as joint effort to conserve resources -- forms an ideal policy for the region. Practically speaking, some countries are unlikely to abandon their nationalism anytime soon, but cooperative efforts by only some of the countries in the region would be a good start.
A free trade area for industrial products that is open to all APEC members could be established in the East Asian region. The advanced countries participating in this free trade area should promise to at least reinvest their trade surpluses with developing countries. In this way, developing countries may be more willing to open up domestic markets. The success of partial regional cooperation may attract other countries' participation.
The US and the IMF may not have encouraged proposals for financial cooperation in East Asia in order to protect their own interests. To be fair, any East Asian financial cooperation does entail great risk. On the one hand, East Asia lacks powerful leadership. On the other, many countries' financial administrations are still developing. Under the circumstances, regional financial cooperation may suffer the fate of many domestic financial policies -- concealing a crisis rather than preventing it. Although discussions of East Asian financial cooperation are worthwhile, they should be made with caution.
Chen Po-chih (
RSS