kilometers, will produce two hundred thousand kilowatts..
By the year 2030, we intend to build as many plans which electric power will add up to 2.3 hundred million kilowatts. It is being verified that we will be able to supply enough energy and at the same time, maintain financial conditions.
Here, I have introduced one of the concrete plans that will solve the serious problem of the developing countries.
The future of the Asian zone still lies in the global environment problem. If Japan completes and transfers this new technology to the developing countries as soon as possible, I think it will put an end to the problem of the Asian economy globalization and global environment which has extended over a long period.
｡?HARA
An economy's purpose is not just to make money.
Manufacturing is an important factor and technology is therefore indispensable for that. We appreciate that your speech has brought home anew to us the importance of manufacturing and technology. I think later we'll have further discussion on this matter.
Now time is running short so I'd like to ask Mr. Shinohara to give us his comments on the two speeches, Mr. Shinohara, please.
｡?Commentator: Hajime SHINOHARA
Managing Director, Institute for international Monetary Affairs
I know many colleagues in the Tokyo Bank where I worked for 30 years who feel familiar with the globalization or Americanization after having a long business experience in the U.S. or in Europe. On the contrary, I think I am more Asian compared to the average Japanese person and share a similar sense with Dr. Pakkasem. I'd like to offer my opinions based on this feeling.
This currency crisis that started last July in Thailand, was followed by a chain reaction in the whole region making the word "contagion" -- its phrasal model is not given even in the Concise English Dictionary -- very popular among people.
Since then, crises have been breaking out one after another.
If I talk about why it happened, it will be a long lecture of two to three hours. Therefore I won't explain the reasons which I assume you already know. Instead, I'd like to offer four points of view in finding out what this series of crises is asking us in the course of evens or in history. The first point is the importance of foreign exchange movement, the importance of its stability between industrialized nations which Dr. Pakkasem stated as his third point.
As you know, the dollar and the yen have been fluctuating in a incredibly wide range in a short period of time. You might remember that the dollar was 242 yen on September 23, 1985 but it became so weak about two and a half years ago as to drop below 80 yen from April to May in 1995. During that period, we Japanese were paying attention only to the exchange rate of the Japanese yen and were concerned about high-yen recession or blaming Japan's insufficient system which allowed the yen bargaining. In short people looked solely inside the nation and regarded themselves as the victims of the yen-dollar exchange. However, as the yen has been depreciating over the last two and a half years, Asian currencies such as the Thai baht were automatically reevaluated in real terms, which led Asian countries into trade deficits as Dr. Pakkasem pointed out. This very logical fact makes us reflect that we didn't consider the issue important until problems arose. Although the currency depreciation caused by the high-dollar, low-yen, or low-EURO is the result of their spontaneous movements, we need to somehow stabilize them as well as put them into the calculable or measurable range. In addition, we have to avoid having an odd commitment followed by a foreign exchange risk in the short-term capital flow, and we also need to restrain free riding. In order to achieve these objectives, it will be necessary to think harder. I think this is one of the most important points.
With the new single European currency appearing next year, I hope it will play a controlling role against America since this new currency is backed by large financial and capital markets that can match the American markets. What we should seek is not the exclusive dollar in terms of foreign exchange movements nor self-righteous American foreign exchange policy, but a steady change of the exchange rate admitting the dollar and its free activities as one of the participants. God willing, the Institute for International Monetary Affairs will thrive for a long time.
The second point is found again in Dr. Pakkasem's speech that there might have been an excessive antithesis to the globalization or Americanization, I also repeat it here and there, but the way in which Dr. Pakkasem stated it was very clear using highbrow words and I appreciate it very much. The short-term capital flow, whether its target market is a financial sector or a bond market, is characterized as it comes around at the time when it is not welcomed and goes away quickly at the time when it is needed. Also being Japanese I
