Asia is the major economic force in global economy. While the world real gross national product was growing at 2.0% in 1993 to 2.6% in 1995, Asian real GNP grew at 8.3% in l993, slowing down a little to 7 .9% in 1995. In 1994 alone, some US$2.6 trillion worth of goods and services were exported by Asian economies including Japan to the world. This represented about 39% of total world exports.
Exports of Asian and Pacific economies grew by 11.8% for 1990 to 1994 as against 7.1% for the world. Likewise, imports grew by 10.9% for 1990 to 1994 as against 6.9% for the world. Value of exports of developing Asian and Pacific countries grew by l5% for 1990 to 1995 as against 6.5% for the world. Thus, merchandise exports of Asian and Pacific economies including Japan accounted for 24.8% of total world exports in 1994. Exports of automatic data processing equipment of developing economies in Asia and the Pacific averaged US$20 billion for 1993 to 1994, 22.9% of total world trade. For office machines and accessories, their share was US$16 billion or 24.8% of world trade. For footwear, it was US$17 billion or 49% of world trade. For special textiles and fibers, it was US$2.6 billion or 20% of world trade.
Foreign direct investments to Asia excluding Japan reached US$52.521 billion in 1994, totaling US$176.63 billion from 1989 to l994. In 1995, developing countries of Asia and the Pacific captured 52.2% of US$231.3 billion aggregate net resource flows to developing countries. A breakdown of these flows show that foreign direct investment to developing countries to Asia and the Pacific comprised 61.7% of US$90.3 billion foreign direct investment to all developing countries. For portfolio investment, they accounted for 61.8% of US$22 billion to developing counties. In 1995, Asians comprised 62.2% of world population. A growing Asian population which is seen as potential markets as well as dynamic producers.
The current crisis faced by Asian economies will affect, if not determine Asia's future. I will not dwell on the causes that spawned this crises, because more important is how we face the challenge, how we build more stronger, more fundamentally sound more diversified, greater force in the global economy. One vital component is the impact of the crisis on peace and order. The maintenance of law and order constitute a major force for stability. Poverty breeds crime and men without jobs turn to offenses in despair. The sound economy diminishes violation against the law. Crime prevention as a crucial program and efforts already in place to enhance coordination among government agencies and among Asian governments must continue in renewed strength. Crime prevention and criminal prosecution encompass also economic, financial crimes. Equally important is prevention of drug trafficking, going after illegal gambling and stamping out crime which leads to loss of lives and properties.
Prevention of financial crimes like securities fraud, fraudulent practices of banks and non-bank financial institutions and economic sabotage. Addressing financial crimes will lift the standards of practices in the financier markets and restore investor confidence.
If the crisis worsens, unemployment will rise. Strips a person of his dignity. It also forces him to commit crime to meet his economic needs. Clearly, this crisis has deeper implications on law and order as well as stability of civil society. For example, in developing countries like the Philippines, a number of industries have been hit hard by the crisis and by the keen competition brought about by globalization. The big players displace the small once who arc not prepared to compete. Labor dislocation is expected in mining and quarrying, garments and textiles, rubber production, footwear, toys, import-dependent industries like car assembly, construction and real estate will suffer significant lay-off. The increasing use of contractual and casual labor breed insecurity and displacement of unskilled workers. The world-wide slump of the coconut, sugar and other agro-based products has brought down rural incomes. Most important of all, migrant workers earning precious dollars may have to go home jobless due to economic recession. Social unrest will tear at the tenuous fiber of socioeconomic and political stability.