Financial crisis never sees its end. The series of sovereign debt crisis concerning the developed countries might just be the prelude of the re-shuffling of global economic powers. By the end of July 2011 the actual unsettled treasury bonds was just USD25 million away from the legal limit of USD14.294 trillion. Although the debt limit was raised after much-heated debates, there is still no clear proposal on how to reduce the debts. With the developed countries busy handling their debt problems, the developing countries are bound to face changes in the international finance and trade model.
With the quantitative easing, the short bloom of the global economies was quickly overshadowed by financial challenges brought about by the increase in asset prices. The challenge is a long-term one. The financial tsunami in 2008 was one alarm that the world cannot rely solely on financial expansions.
While the failing of the financial systems of the developed countries might have less impact on the Asian developing countries, it does not mean that Asian countries can take a relax approach to these problems. In the re-shuffling of global economic powers, Asian countries have to face the challenges of remodeling: GDP’s have to come from somewhere other than exports. A new economic development model is needed, to replace demands by the developed countries with domestic demands. Such economic remodeling needs to focus on long term development and innovation: it is only with sustainable growth that Asian economies can avoid the “low level equilibrium trap”.
With 60% of the world’s population, Asia is the cornerstone of the prosperity and stability in the world’s peaceful development. While the developed countries lack the drive in their economies, Asian countries act as the major force in the world’s economic growth. The overall improvement of the livelihood of Asian people is also an important area in the world’s millennium development goal. It is only when those living in Asia have improved their standard of living that one can say that the world is sharing the prosperities.
It is against such background that we present to you the 2011 Boao Youth Forum (Hong Kong): “Asian Economies in Remodeling: What We Can Do”. Through our sub-panels “Creative Asia: New Champion in Global Culture & Entertainment Industry”, “Internet in Transition - What lies ahead”, “Education in Transition: Bridging Gaps between High Education Structures and Emerging Demands for Skilled Labors” and “Revitalizing Asian Finance Sector for Sustainable Economic Development”, we shall explore the roads ahead in Asia’s remodeling, and the role and mission of the youths.