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Indian foreign minister sees closer Asian economic, monetary ties |
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June 3, 2000
SINGAPORE, JUNE 2 (AP) - Indian Foreign Minister Jaswant Singh said Friday he strongly favors the idea of an Asian monetary fund, a concept floated by Japan during the recent economic crisis in the region.
"We must look at it much more closely," Singh said. He was taking questions after giving a lecture in Singapore on security cooperation between India and the 10 countries of the Association of Southeast Asian Nations.
Japan's proposal for an Asian fund followed the regional crisis of 1997.
While the Southeast Asian countries favored the idea, the United States said it might undermine the financial discipline imposed by the International Monetary Fund as a condition to lending.
On Thursday, the IMF's new Managing Director Horst Koehler said he was open to the idea of an Asian fund, but said such a body would need to complement, and not compete, with IMF operations.
The idea of an Asian fund, in any case, "cannot be rushed," Singh said. The minister is on a three-day official visit to Singapore.
Asked whether he supported the idea of a common currency in Asia, he said in this area he would "tread cautiously."
Separately, Singh said it was "inevitable" that Asian economies would move closer together, although he stopped short of predicting regional integration similar to that of the European Union.
But like the EU, Asian countries would move closer together thanks to common economic interests, which would "provide the necessary catalystic effect," he said.
"India in South Asia has obviously to take the lead," he added.
Turning to Singapore, Singh said local businesses could benefit hugely from the Indian government's program to privatize state enterprises such as airlines, banks and insurance companies.
Giving the insurance sector as an example, he noted that "in a population of one billion, the insured percentage is less than 1 percent."
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