IMF visit to Malaysia November 2012
Christine Lagarde, Managing Director of the IMF, highlighted the increasing leadership role that Asia plays in the global economy.
During the dark days of the global financial crisis, it was Asia that kept the flame alive, accounting for about two-thirds of global growth, she said in a speech on “Asia and the Global Economy: the Promise of Integration” at the Global Public Lecture hosted by the Malaysia Economic Association. “Clearly, the momentum is here, the dynamism is here, and the future starts here.”
Ms. Lagarde also emphasized the virtues of economic cooperation, particularly trade and finance, within Asia. “There is no question about it: looking ahead, Asia can benefit from opening even more doors to trade.”
She noted that more than 90 percent of ASEAN cross-border portfolio investment flows are with advanced economies outside Asia. “Asia—with its current account surpluses—is simply not investing enough of its savings in itself,” she said.
Greater regional financial integration could open up a host of new benefits. Ms. Lagarde noted that it can boost domestic demand—partly by making it easier for small businesses in countries like Malaysia to gain access to credit. It can make economies safer, by allowing more insurance against volatility and adverse developments. And greater access to financial services by the poor can reduce inequality, she said.
“Here, Asia has a unique opportunity to get financial integration right—avoiding the missteps and excesses of the west,” Ms. Lagarde said.
Asia has a major and highly-respected voice in global economic governance, including through the G20 where it has six members. And Asia also plays an increasingly important role in the IMF.
In this regard, Ms. Lagarde noted that the membership came together to boost the IMF’s firepower by $461 billion—bringing the Fund’s total lending power to over $1 trillion. “I am very appreciative that Asia played such a leading role in building that financial firewall.” “It is a vote of confidence in the Fund,” she said. More than that, it is a vote of confidence in partnership, in solidarity, in the idea that by helping others, you are also helping yourself,” Ms. Lagarde concluded.
Christine Lagarde, Managing Director of the IMF, highlighted the increasing leadership role that Asia plays in the global economy.
During the dark days of the global financial crisis, it was Asia that kept the flame alive, accounting for about two-thirds of global growth, she said in a speech on “Asia and the Global Economy: the Promise of Integration” at the Global Public Lecture hosted by the Malaysia Economic Association. “Clearly, the momentum is here, the dynamism is here, and the future starts here.”
Ms. Lagarde also emphasized the virtues of economic cooperation, particularly trade and finance, within Asia. “There is no question about it: looking ahead, Asia can benefit from opening even more doors to trade.”
She noted that more than 90 percent of ASEAN cross-border portfolio investment flows are with advanced economies outside Asia. “Asia—with its current account surpluses—is simply not investing enough of its savings in itself,” she said.
Greater regional financial integration could open up a host of new benefits. Ms. Lagarde noted that it can boost domestic demand—partly by making it easier for small businesses in countries like Malaysia to gain access to credit. It can make economies safer, by allowing more insurance against volatility and adverse developments. And greater access to financial services by the poor can reduce inequality, she said.
“Here, Asia has a unique opportunity to get financial integration right—avoiding the missteps and excesses of the west,” Ms. Lagarde said.
Asia has a major and highly-respected voice in global economic governance, including through the G20 where it has six members. And Asia also plays an increasingly important role in the IMF.
In this regard, Ms. Lagarde noted that the membership came together to boost the IMF’s firepower by $461 billion—bringing the Fund’s total lending power to over $1 trillion. “I am very appreciative that Asia played such a leading role in building that financial firewall.” “It is a vote of confidence in the Fund,” she said. More than that, it is a vote of confidence in partnership, in solidarity, in the idea that by helping others, you are also helping yourself,” Ms. Lagarde concluded.
