(LEAD) IMF head says Asia's time has come for global economy

(ATTN: ADDS remarks by Korea's finance minister in last 3 paras)
DAEJEON, July 12 (Yonhap) -- Asia has emerged as a global powerhouse in the
process of recovering from the worldwide economic crisis and its economic
performance will likely continue to grow down the road, the head of the
International Monetary Fund said Monday.
"Asia has emerged as a global economic powerhouse from the recent worldwide
financial crisis," IMF Managing Director Dominique Strauss-Kahn told a conference
that kicked off here. "Asia's time has come...No one can doubt that Asia's
economic performance will continue to grow in importance."
The conference will last until Tuesday under the theme of "Asia 21: Leading the
Way Forward," with participants including regional policymakers and high-ranking
IMF officials to discuss the future role of Asian countries and the reform issue
for the Washington-based lending organization.
His emphasis on Asia's role in the international community comes after the IMF
recently projected that the economy in the Asian region will grow 7.75 percent
this year, a much faster rate compared with the around 4.5 percent predicted for
the global economy.
Strauss-Kahn, however, noted that countries in the region should guard against
future possible outside shocks at a time when downside risks linger, such as the
recent fiscal debt problems in Europe.
The IMF chief also emphasized that Asia should nurture its domestic investment
and consumption as its "second engine of growth," saying that it would be more
crucial when its traditional means of growth, such as exports to advanced
nations, are now facing a slump.
Asia's role in the global economy needs to be reflected in voice and
representation in global financial institutions, he noted, adding that his
organization is "now working to complete the realignment of voting power by the
end of November this year."
"We are now working on a second stage -- to be completed by the G-20 summit in
Seoul this November -- that will do even more to help align Asia's representation
in the Fund with its economic weight in the world," he said.
Meanwhile, at the same conference co-hosted by the IMF and the government here,
South Korea's Finance Minister Yoon Jeung-hyun said that the IMF's role should
change in Asia, calling for more efforts to be made in reflecting the region's
increased "clout and responsibilities" in the global community.
"Up until now, it seems that the IMF has not fully assumed its role of ensuring
macroeconomic stability and supporting economic development in Asian developing
countries," Yoon said.
"I believe the IMF has an important contribution to make by proposing and
enacting concrete and realistic measures to strengthen financial safety nets
around the globe," he added.
kokobj@yna.co.kr
(END)

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