Asia's growth prospects hinge on China and Japan, delegates at Economic Forum agree

Asia's growth prospects hinge on the solidity of Japan's fledgling recovery and the emergence of China as a world economic power, delegates to a global economic forum agreed here Monday.
Whether Japan's economic revival, following 1.5 percent growth in the first quarter of this year, is sufficiently solid to end more than a decade of stagnation will be a key factor determining prospects for the region, according to the World Economic Forum.
China's emergence as a major economy will also have a deep impact on the region, delegates to the two-day forum on Asian growth strategies concluded.
The forum bringing together more than 180 officials and business leaders from 21 countries also identified the need for deeper regional integration as one of the top challenges facing the regional economies.
Another key challenge is the reform of economies whose lack of transparency and accountability brought on the 1997 Asian financial crisis, according to South Korea's Finance Minister Lee Hun-Jai.
Though some Asian nations, notably South Korea, responded to the crisis by launching wide-ranging reforms, the job is far from complete, Lee said.
"If Asia is to be a leader in world economic development in the 21st century ... we must establish within Asia a truly transparent economic system," he said.
Regional security issues, including the impasse between Taiwan and China and the stand-off over North Korea's nuclear ambitions, could throw up roadblocks in the way of Asian progress, delegates agreed.
However, recent conciliatory gestures from Taiwan to China and the pursuit of six-party talks on North Korea gave rise to hopes that these key issues can be resolved peacefully over time, delegates said.
Singapore's Deputy Prime Minister Tony Tan Keng Yam linked growth prospects for the region to resolving tension through peaceful means.
"It is fundamental that there must be security in the region before there can be prosperity," he said.
"I am optimistic about the future of Asia. The future of Asia is bright."
On the opening day of the Davos-style forum on Sunday, some 10,000 protestors opposed to globalisation staged a rally, accusing the Geneva-based group of pushing for free trade at the expense of Asia's poor. No protest rallies were held Monday.