Finance ministers, from left, China's Xie Xuren, South Korea's Yoon Jeung-hyun and Japan's Kaoru Yosano, pose together during their meeting at the annual Asian Development Bank.
The U.S., U.K., and a number of the large countries that make up the E.U. began to form political and military and alliances after WWII and these expanded as the Soviet Union dissolved. Through the current financial crisis there has been very little coordinated economic policy among these same counties even though some of the economically weaker ones would certainly benefit from a program to shore up the financial health of the region by providing a pool of capital for temporary aid.
Asia is doing what the West cannot do despite political and military divisions among many of them that go back decades. Nations in the region are building a coercive plan to protect the region's financial stability. (See pictures of the global financial crisis.)
According to Reuters, "Japan, China and South Korea have finalized details of an emergency $120 billion liquidity fund for 13 Asian nations." In the event of a financial crisis in one of the counties, this fund would be available to provide assistance.
There is a temptation to compare this new facility to the IMF, but that analysis would miss the move toward a financial alliance that will help serve to bring Asia together as a single, loosely formed economic entity lead by China and Japan, two of the four largest countries in the world as measured by GDP. The program makes the region financially stable, probably more stable than Europe is now with its rising unemployment, stagnant economies, and sovereign debt which faces downgrades in many cases. (See pictures of Obama's recent trip to Europe.)
The old alliance among the nations that support the military cooperation of NATO has not extended to a set of economic bonds that are even more important as the global financial crisis claims victims in countries such as Ireland and the old Eastern European block. That gives Asia an advantage as the recession continues.
— Douglas A. McIntyre
See the 25 people to blame for the financial crisis.
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