ASEAN is now the sixth-largest economy in the world in terms of combined GDP; and is the fourth-largest exporting region after China, the U.S. and Germany. The ASEAN Economic Community is governed by the principles of mutual respect for countries’ independence, national identities, and levels of development. These principles have become a foundation for deeper economic and financial integration, creating a region that is more inclusive and sustainable. However, globalisation has presented us with significant challenges. Where it has created winners, many have been dislocated. Fruits of globalisation that were not equitably shared led to a sense of injustice within the global community and economy. Now, domestic inequality has increased, while existing wedges in wealth distribution, employment opportunities and social mobility have been amplified by globalisation. Public discourse on both the positives and negatives of globalisation is not new. What is new is the rising public backlash against globalisation, which has been used by some to promote their narrow economic and political agenda. Ironically, some of these originated from the very economies that advocated globalisation as a means to generate greater wealth. Some of these concerns are legitimate and deserve due attention by policymakers and researchers. The advocacy that globalisation should be made fairer warrants strong consideration. Maximising benefits and evenly distributing it is a worthwhile goal. Let’s challenge the conventional wisdom and consider unorthodox solutions. As these solutions will invariably have global dimensions, cooperation amongst countries is critical. This is where the IMF, as a global institution, can facilitate and play a meaningful role.

Jean-Pierre Roth: The long path to restoring faith in financial markets Speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank, at the CEO Luncheon of the Swiss-American Chamber of Commerce, Zurich, 4 September 2002. *  *  *  At the outset I would like to acknowledge the long-standing ties between the Swiss-American Chamber of Commerce and the Swiss National Bank. In the past, members of the Governing Board have been invited to speak before this select audience. It is a great pleasure and honor for me to continue this tradition. My remarks today will focus on the present challenges faced by the global economy: a crisis in confidence which has pushed equity prices to unexpected lows and an economic recovery which does not seem to take the desired path. Nevertheless, I am convinced that the fundamentals are in place for a return to sustained growth. Inflation is low in almost all industrial countries, monetary policy is supporting the recovery, household consumption still plays a stabilizing role and public finances despite short-term difficulties - are not far from equilibrium. While numerous factors are responsible for the present economic uncertainty, the prolonged volatility witnessed in equity markets has hit investors particularly hard. In hindsight the stock market correction fits partially the classic story of fundamentals; one that is driven by a bubbles collapse in dotcom companies and the anticipated slowdown in economic activity.