We need resolve, not complacency, especially as Asia faces weakening demand for its exports. In the longer run, sustaining rapid rates of regional growth depends on both effective reform and improved access to markets. Globalization brings larger markets ands access to new technologies, knowledge and business practices. But it also brings increased competition and greater market volatility. In such an international environment, institutions are needed that are both sturdy and flexible.
Governments simply have to press on with their reform agendas.
Governments will also, if their economies are to thrive in a more open world economy, have to foster more efficient investment in both public and private sectors. Massive investments are needed in both physical and social infrastructure. The key to better competitiveness is better educated and better trained people. Some countries in Asia produce fewer than half the engineers and scientists they require. Training in information technology is essential if we are to reduce the widening gap between developed and developing countries in the knowledge industry.