SHF2015丨Takao Ochi

When we think about where the dynamism ofthe Asian-Pacific region comes from, what is remarkable is that, the threelargest economies of the world, namely US, China and Japan, are in encirclingtheir region itself. To put it simple, this is why this region is the mostdynamic part over the world, which draws the greatest attention from the restof the world.

This region continues to grow, havingovercome multiple challenges, such as the Asia financial crisis in the 1990s, andglobal money contraction in the 2008, and natural disasters like tsunamis,earthquakes and typhoons. On the other hand, this region is fighting manychallenges which are not easy to prevent or resolve, such as extremism, terrorism,climate change, infectious disease, natural disasters, and the threat ofnuclear proliferation. We strongly believe that the peace and stability of Asiamust not be undermined by these challenges. To this end, we must be moreclosely coordinated and more strongly connected.

Japan-China relationship is one of the mostimportant bilateral relationships. The two countries share great responsibilityfor the peace and prosperity of the region and the international community. Iexpect that many neighboring countries would welcome the advancement ofJapan-China cooperation. We think that a more highly integrated, prosperous andstable Asia is extremely important for peace and stability throughout theentire region. Japan will strengthen assistance for Asia to forge Asiancommunity, and will contribute to the promotion of FTAAP, free trade area ofAsia-Pacific. In the will of achieving this broad and comprehensivepartnership, we will constructively promote TPP, RCEP and the Japan-China-Koreatrilateral FTA, and contribute to a creation of deep, wide and dynamic marketsin Asia that respect the rule of law.

And the question is what Japan’sresponsibility is to forge the lasting peace and prosperity in Asia-Pacificregion? One of answers is to enhance Asia economic development by realizingsustainable growth in our own economy. Japan is in the midst of a quantum leap.Abe administration has been carrying out growth strategies to promote structurereform, investment and innovation. We now have the best chance to end deflationand we strongly committed to continuing this movement towards sustainableeconomic growth. We must illustrate our strategy and consolidate a virtuouseconomic circle whereby our growth strategy prompts higher employment, whichwill lead to greater domestic consumption and further investment. I stronglybelieve that this virtuous economic circle will bring positive momentum, notonly for Japanese economy, but also for the pan-Asian economy, given thateconomic integration in this region. When we talk about economic cooperation,we hear about a lot about sharing best practices, however, I think lessons fromfailure also provides priceless value to policy makers. In this context,Japan’s experience after the recovery of economy in the financial sector offersmany suggestions, and we are pleased to share that experience and lessons.

China has proposed a concept of the Beltand Road. But I must say that, what is actually aimed through this conceptremains unclear. Therefore, concerning the Belt and Road, we are seeking a moredetailed explanation from Chinese side. And about AIIB, Japan agrees with Chinaon the recognition that there is a high demand for infrastructure in Asia, andthat means financial resources are needed. But in order to establish a crediblefinancial institution, it is essential to ensure a fair governance of theinstitution. We also need proper mechanism to ensure foreign countries theirsustainability and to take care of environmental and social impact of projects.

The enlargement from G7 to G20 in 2008proves that not only developed economy, but also emerging economies arebecoming important players in shaping the global economy. In other words, theworld economy is in an extremely dynamic situation, with each of the diverse leadingeconomic players mutually supplying interacted impetus to one another.