of gdp per capita since the turn of the millennium, to about usd 2, 400 in 2007. the remarkable pace of growth in the asia - pacific region is good news for all of us. the region, which has an immense potential, is contributing to global prosperity. the euro area has the potential to take advantage of the new opportunities that this rapid development creates. in 2006, emerging asia accounted for about 10 % of euro area exports and 18 % of its imports. it also accounted for about 6 % of the euro area ’ s stock of foreign direct investment. importantly, the world economy might be better able to rely on the dynamism of the asiapacific region should growth in other regions lose some momentum. this is particularly important at the current juncture. however, it is equally important not to forget one caveat. we are in a universe of interdependence. if one economy slows down, it has an influence on all other economies. since we are all interdependent, the key question is how, and to what extent, a possible slowing down in some mature economies might be partially offset by stronger growth in other regions, notably in emerging asia, also bearing in mind differences in cycles and drivers of growth. iii. implications for the international financial architecture it is evident that the developments we have been witnessing have called for systemic changes in the global policy framework. new players in the asia - pacific region are gaining in importance and reaching out to more established players. this means that they also have more responsibilities in the global arena and that the rules of the game need to adapt in order to keep pace. this is why the governance of the world economy in macroeconomic and financial matters has been changing in terms of both format and substance. consider first format. the various international institutions and fora which are involved in international policy dialogue on macroeconomic and financial affairs have strived over the past ten years to better integrate new players from the asia - pacific region, alongside those already involved. let me briefly take some examples. one of the most important of these fora is the group of seven or g7. finance ministers and central bank governors of the seven most industrialised nations of the world, including of course japan, meet several times a year to discuss issues of mutual interest. my experience is that the g7 meetings have proven an invaluable forum for cooperation on macroeconomic policies and for giving, when appropriate, signals to market participants. an important step based

the asia pacific region, to draw the right lessons from the present market correction – which, according to our agreed methodology, we will do when we receive the definitive report of the financial stability forum on the occasion of the next spring meetings of the bretton woods institutions in washington – i will make three remarks. first, the international community is able to produce a right and pertinent diagnosis of the situation of global finance. as chairman of the global economy meeting which takes place every two months in basel, with a very important and active contribution of governors of central banks from the asia - pacific region, i mentioned regularly in 2006 as well as in the first months of 2007 that my colleagues and i judged that there was a significant underpricing of risks in global finance. this situation was substantiated by a very low level of spreads, a very low level of risk premia, an abnormally low level of volatility in a large number of markets. we explicitly and publicly called for institutions and markets to prepare themselves for a correction that was both unavoidable and necessary to pave the way for more sustainable path of global finance. such analysis and diagnosis were reflected pretty well in most financial stability reviews published by central banks, not the least in the european central bank publication a long time before the market correction. second, a good analysis and a pertinent diagnosis are a necessary condition for future necessary market corrections to be as smooth and as orderly as possible. but they are not a sufficient condition per se as is clearly demonstrated in the present episode of turbulence and as was regularly observed in the previous periods of sharp and abrupt market corrections. and that is the reason why it is so important, so decisive that we draw all the lessons from the present episode, across the board, without any prejudices, without giving any privilege of untouchability to any part of global finance. from that standpoint i think the work of the financial stability forum – scrutinising liquidity risk management as well as credit rating agencies, analysing without complacency the weakness in the structure of incentives of the “ originate to distribute ” model as well as the monitoring of the off - balance sheet vehicles, examining the implementation of the basel ii agreement as well as the arrangement for dealing with in particular weak cross - border financial institutions – is of the essence. third, even with a right and pertinent diagnosis, and appropriate significant improvements in benchmark voluntary principles and codes of conduct for the