Press Release
October 16, 2008

ROXAS CAUTIONS ASEAN NATIONS VS ISOLATIONISM
"WE NEED TO KEEP TOGETHER AS WE HAVE DONE IN THE PAST"

Liberal President Sen. Mar Roxas today cautioned members of the Association of Southeast Asian Nations (ASEAN) against isolationism in the aftermath of the global financial crisis as he urged the regional grouping to work together decisively in finding ways to cushion the crisis' impact on its citizens.

Speaking at the ongoing ASEAN 100 Leadership Forum being held at the Shangri-La Hotel in Makati City, Roxas said integration of the ASEAN economies remains the primary solution to improving the socio-economic condition of millions of citizens in the region in the face of growing challenges posed by the ongoing global financial crisis.

"Given the turbulence, all the more, we need to keep together as we have done in the past. It means being counseled by solidarity rather than fear, trust rather than suspicion, calm rather than hysteria. However painstaking, we must strive to continue integrating our real economies," he said in his keynote speech.

"It is imperative that we strive more than ever to enroll the people in our vision. The imperatives of survival for the hundreds of millions in our neighborhood, living below at $2 per day, will push governments to take an 'every man for himself' approach. We must resist this," he stressed.

The ASEAN 100 Leadership Forum, the fifth to be held, is a highly interactive meeting of minds of the most outstanding Southeast Asian next-generation leaders from government, business and civil society who will chart the future of ASEAN.

Roxas said the governments of ASEAN nations should get together and craft a plan of action that will shield and protect the livelihood of millions in Southeast Asia.

"This global financial and economic crisis will not be easily solved. It will take all nations and their leaders to do the job--all engaged in earnest discourse and dialogue, practicing trust and collaboration, all moving and striking in one direction," he said.

"There is real destruction of lives and dreams. Beyond the ebbs and flows of these trillions of dollars in market valuation are the savings, the hopes and dreams, the security of millions of our people. These people saved, set aside today's gratification in order to provide for tomorrow, only to see what they built up over years wiped out in a matter of days and weeks," he stressed.

"GOVERNMENT IS THE LAST LINE OF DEFENSE"

The Ilonggo senator said the crisis has shown that the government has a role. He urged governments in the region to see clearly its role as the "last line of defense," instead of being "a willing participant of its own enfeeblement."

"Until this crisis, we all believed that financial markets were there to enable the economy to serve the greater good in the most efficient and equitable way. But we have seen the gross inability of Governments to regulate finance in line with that role, in a global context. The need for balance and restoration is so compelling that it has forced the wealthiest nations to band together for a consolidated plan of action, if only to save their economies," he said.

"Government, clearly, is the last line of defense. It is ironic that it has had to assume this role as lifeguard of last resort because of its absence over the last several years. The path of deregulation was such that government not only stood idly by, but it was a willing participant to its own enfeeblement," he said.

"It is a mistake to continue to think about government role along only this dialectic. The question is not, 'Do we need more or less government?' The question is whether government is properly engaged.. The question is one of transparency and accountability," he said.

He also called on governments to ensure that "finance is not too far removed from the real economy" and that transparency and accountability accompany all its financial dealings. This, as he said, "clearly the excesses of Wall Street are extreme. There is a need to find means to prevent these excesses."

"What brought us to this mess is subjectivity in the discretion parameter and opacity in the transparency parameter - the lack of brakes and proper regulation. At times, it came down to a lack of common sense," he said.

"For at the end of the financial machinations, at the end of all the abstractions and equations, there is a sack of rice, a home, a small business, a grocery list, and one term's tuition fees for the kids," he said.

Roxas said that the global financial and economic crisis will not be easily solved: it will "take all nations and leaders to do the job" and in practicing trust and collaboration among nations.

In this light, he said "The ASEAN Charter will not deliver instant results. Nor will it bring immediate economic relief to our poor peoples. But it paves the way for deeper trust and partnership among our governments and peoples. Its value will be more evident in the long run, especially in times of political or economic crisis."

News Latest News Feed