In this realm, the role of governments is limited. The state-led economic growth strategies that were effective in lifting Korea and other Asian countries out of poverty, have shown themselves to be woefully inadequate to meet the challenges of globalization. Open markets and competition have been established as the most efficacious approaches to growth. Technological innovations have shortened distances and speeded up time. Economies are now too complex to be directed by governments.
Governments do have an important role to play.
As the financial turmoil in this region has demonstrated, government prudential supervision is critical for financial strength, and hence confidence in national currencies. And governments cannot spend beyond their means. But the most important role for government is to facilitate not constrain or restrict private business. That in a short period of time, the U.S. has been able to help to recraft a comprehensive set of approaches to deal with new security challenges demonstrates our creativity. I think this stands us in good stead for dealing with the future.