Finally, I will briefly touch on the ability of the Asian countries to combine their culture with the acquisition and development of the most advanced technologies and globalization process. There is a world wide consensus that a strong economic revival of Japan's economy would herald a significant recovery for the Asian economies as a whole. Japan's annual real GDP growth rate, which fell to -2,8 per cent in 1998 is expected to increase significantly to 1,0 per cent in 1999 and to 1,5 per cent by the year 2000. The annual inflation rate in Japan, which rose from 0,1 per cent in 1996 to 1,7 and 0,6 per cent in 1997 and 1998 respectively, is expected to drop to -0,4 per cent by the end of 1999. This expected turnaround in the performance of Japanese economy is not only critical for Africa's development but for the whole world.
Japan undertakes significant direct trade with Africa.
Since 1994, Japan has operated with a significant trade deficit. SADC would benefit significantly from Japan's economic revival if it were to sustain the level of competitiveness that it has attained thus far. It is important not to forget that Japan is the second largest economy in the world and Japan is well-disposed to Africa at this stage. The combined annual real GDP growth rate of these countries fell from 6,6 per cent in 1997 to 3,7 per cent in 1998 with severe impact on the gains that had been made to reduce poverty and generate jobs. Growth is now expected to significantly increase to 5,3 per cent in 1999 and 5,4 per cent by 2000.