industry. So it would seem that the financial business took away the profile of the manufacturing industry. By adding this to the item "America versus Asia" mentioned earlier the picture becomes worse. The same issue is actually being discussed in Europe and as you already know, Le Monde Diplomatique calls it World War IV. If America wins a sole victory, moreover, be in control of the military strength, the entire profit of all the other countries will be taken away by America,
But as this is such a crude dispute, I would suppose that we should hold a more precise discussion as to where to start loosening the threads of the three opposing stages. I hope you understand that I did not intend to criticize the issue itself but the public opinion.
｡?SHIRAISHI
The problem I brought forward today would be classified in the second item which Professor Yamazaki mentioned. I would like to discuss it as a problem of regional politics and financial order rather than that between the global market and national government . So, naturally, I do not intend to discuss the lifestyle of America and Asia. That is another story.
I agree that the third item, the problem between financial and manufacturing business does exist. One factor that makes it necessary to establish a zone of stability is money, though the problem will not be settled only by it, but there are cases where a stable flow of money is necessary in the long run.
Be it training people or manufacturing produces, it would be impossible to maintain such activity if there were no sable financial supply. This has a close connection with the manufacturing industry issue. So, I do agree with Professor Yamazaki's opinion. I didn't mention this topic in particular because I expected it would be brought up in the session afterwards. But with reference to it, though I am not sure of the current situation, I heard about two months ago that the total amount of all the listed companies of Thailand came lower than that of America's Coca Cola Corporation alone. It is a strange story, and I think such problem will not be solved unless the regional order itself has been reconstructed.
｡?PAKKASEM
I think the World Bank's latest report called "Private Capital Flow" did sat quite clearly that Asian financial sector lags behind their real sector. We are all suffering. In that sense, America has a better financial engineering innovation. That's why they are ahead of us. The American top 50 corporations have the strong capital base. They also have the technology base. When the world economy is opened widely, the U.S. definitely has a better competitive advantage position. So the World Bank concluded that Asia must strengthen its financial sector. Our financial sector inherits too many bad corporate cultures, networks, old orders, subsidies. Maybe we have to really clean up our financial sector, make ourselves more transparent and competitive. Dr. Anthony Reid?
｡?Anthony REID
Professor, Southeast Asian History at the Research School of Pacific and Asian Studies, Australian National University
Regarding the notion that we need to protect ourselves. We are starting to hurt. We know the hurt will get worse and we've got to protect Ourselves. Mr. Guingona mentioned a sort of trading block and we should trade more among ourselves and we should raise the tariff to outsiders and reduce it inside the Asian region. You are looking for a kind of yen or yen block or Asian currency. Without pretending to understand all the economics of that issue. I just want, although a very understandable reaction, whether it is a helpful direction at this sage. If one had a yen block, Asian block without actually reforming the financial system within it, would it be any more comfortable being dominated by the Wall Street of Tokyo, whatever it is, the Wall Street of Osaka than by Wall Street? Isn't it really the global financial system that needs reforming rather than isolating oneself from it? The European example of regionalism is attractive, but the original rationale for European unity was not economic isolation, but rather the political aim, to create peace in Europe; it was not to protect oneself from the global financial system. This self-protection is a slightly troubling quest.
｡?PAKKASEM
I didn't mean that we should protect ourselves, but strengthen ourselves in the global marketplace as one among equals. In the next century there will be three economic blocks: a European one, an Asian one and an American one. Asians still act individually, not as a region, whereas North Americans are Strong and Europeans are strengthening. So we have to strengthen our regional position as a block, That includes cleaning our financial mess. But I think a big country, a big power should be criticized also.
We have to speak out. Asians are too shy and too politic People take it for granted. All the commentators in the international media, you would see NBC, CNN, the so-called financial experts, are all Anglo-Saxon people, hardly an Asian face appears
