The changeover to new types of production makes demands for great, and often swift, adaptation. Some companies become unprofitable and employees both in industrialised countries and developing countries are forced to leave their jobs and look for new. •  Although the situation of more and more people is improving, the gap between the poor and the rich is increasing. Countries, which due to deficient infrastructure and incapable political leadership, etc. are not equipped to take advantage of the benefits of globalisation, risk falling further and further behind. •  The global environmental problems are aggravated. •  Free capital movements make countries more vulnerable if they carry out less credible policies. As quickly as investments flow in when economic prospects are good, they flow out just as quickly when financiers suspect that growing problems threaten the savings they have the task of managing. BIS Review 78/2000  2  These are some of the problems that we cannot ignore. They are among the great challenges for world politics today, and I understand those who feel concern. Many of these issues require coordination between countries, and it is therefore an ambitious agenda that we have to tackle energetically. A lot of work is already in progress, nationally and in various multilateral organisations. However, despite these issues being important, the conclusion is not that we should endeavour to reduce trade or have fewer contacts between countries. A number of the problems I mentioned are rather related to growth and economic development in general entailing change.

Despite Asia’s diversity in people, culture and traditions, the region has been able to come together as a group to achieve greater integration in the areas of trade and investment. While trade remains an important contributor to growth in the region, of importance is that the pattern of trade of the Asian economies has changed significantly. This decade has seen the rise in intra-regional trade. Intra-regional trade in Asia has risen from 32% of total exports in 1995 to an average of 50% in 2008. Increasingly, as incomes rise in Asia, intra-regional trade will increase to meet the rising domestic demand of regional economies. More than half of the world’s population resides in Asia that has a favourable demographic structure that comprises of a significant young and dynamic segment. The growing middle class has altered the consumption and savings patterns in the region, providing the region cumulatively with a huge growing consumer market. Asia also has high savings which allows for higher consumption while still having surplus funds to finance regional investment activity. The rapid trade liberalisation across Asia has improved market access, creating a vast market for goods and services. In addition, bilateral and region-wide free trade agreements are set to expand further even as multilateral agreements continue to be pursued. The growing pace of intra-regional investment flows has also gained momentum to complement the region’s trade integration. Businesses in the region are leveraging on regional complementarities as well as taking the opportunity of the growing markets in the region.