Preliminary data suggests that FDI flows to the region have remained relatively stable throughout 1998. Even taking into account the prospect of an end to contractions in most East Asian economies during 1999, growth in global trade this year is expected to be less than half the annual average rate of 9 percent from 1995 to 1997. This makes it harder for even the most resilient economies to sustain the rates of growth they have enjoyed in recent years. The bottom line is that the global bottom line will be less healthy while East Asian economies remain sluggish. The recognition that East Asia's sustained recovery and development remains a global concern underpins the need for an unambiguous commitment by all of us to continue working together to rebuild growth and sustainable development in East Asia.
Effective cooperation is especially important in addressing the economic impacts of the crisis.
To be effective, our cooperation must take place within a sound policy environment. The international financial institutions, especially, must remain at the vanguard of efforts to achieve necessary structural and policy reforms which also take due account of social implications and objectives. Along with bilateral donors, the international financial institutions must continue to back these interventions with ongoing financial support. Among the most productive contributions the broader international community can now make to rebuilding economic strength in East Asia is to assist these countries to develop their economic and financial policy, management and governance capacities. Strengthening these capacities is likely to deliver some of the most direct and enduring benefits for the future economic fortunes of East Asia.