Hatoyama, who attended the Horasis Asia Meeting being held for the first time in Bangkok yesterday, said that the speed of globalisation in the region had led to a poverty inequality. He said that it caused some people to worry about their future, and they had started to attack globalisation and focus more on nationalism.
“There were definitely high hopes that greater global interaction would support redoubled world economic growth and progress. Unfortunately, we have seen expanded gaps in wealth and other categories, along with increased terrorism and strife. The result has been a rise in global instability – socially, politically and economically as well,” Hatoyama said.
“In direct contrast to globalisation, many nations have experienced rationally upsurges in nationalism. In Japan, the temporary fruits of the Abenomics’ economic stimulus plan have faded, leaving serious concerns about the future. In China as well, economic prospects cannot be described as totally bright by any means.
“It is true that the US economy remains relatively robust. However, if a situation emerges in which the US Congress becomes deadlocked on policy issues, the outcome could be sluggish progress on the political front. That in turn would exert a negative impact on economic activities.”
Hatoyama said that it was important for Asian nations to strike a good balance between globalism and nationalism, and to focus on the internal growth of their specific territories, such as East Asia, South Asia and Southeast Asia. They should be more integrated in diversified aspects, such as economics, politics and security, environment, and culture.
“I have agreed with HM King Bhumibol Adulyadej’s philosophy of sufficiency economy as the way to ensure long term sustainability. This philosophy is quite similar to ‘Taru Wo Shiru’ [which means to know what is enough] in Japan,” he said.
“As [a contradiction] to capitalism being implemented by the business sector with an aim to maximise profit, the philosophy of the sufficiency economy is quite in line with Buddhism teaching to prevent over consumption and over loans.” Hatoyama said that in the future, Japan would be much more integrated with South Korea and China in a very peaceful manner. He said most Japanese however have great concerns about China’s foreign policy, especially on territorial disputes.
He said that while China has enjoyed strong economic growth, Japan has been facing some depression or zero economic growth. This may lead to problems in developing a deeper economic relationship between the two countries.
In the midst of such dynamics, Chinese President Xi Jinping has announced China’s “One Belt, One Road” plan. Under this grand vision, infrastructure would be improved on the Eurasian continent, while building a new Silk Road spanning both land and sea.
As an institution to help realise this strategy, the Asian Infrastructure Investment Bank or AIIB has been launched. Within this bank, the International Advisory Panel (IAP) has been established as a support body for the AIIB.
“For myself, it was a great honour to be selected as one of the 11 IAP members,” Hatoyama said. “In my opinion, Japan needs to join AIIB, even at this late point.
“In the area of infrastructure building, Japan has a long history of experience and knowledge. I firmly believe that my nation should share its know-how in this field, offering precious guidance to help AIIB, collaborate with the Asian Development Bank, the World Bank, and other institutions. That would help advance its projects in a smooth and efficient fashion.
“President Xi insists that if the One Belt, One Road plan is realised, Eurasia will emerge as a common-destiny community. Obviously, this is a mighty dream, and is not something that can be achieved overnight.
“Personally, I believe that such a community should first be formed in East Asia with that goal in mind. I have proposed the concept of a so-called East Asian Community. Clearly, this East Asian Community vision and the One Belt, One Road plan can overlap to form a concentric circles of cooperation.”