[Global HR Forum 2011] Volcker Urges Creation of Control Tower to Resolve Fiscal Imbalance

Hatoyama Calls for East Asian Education Network

Volcker Urges Creation of Control Tower to Resolve Fiscal Imbalance

 

Former Japanese Prime Minister Yukio Hatoyama called for the East Asian nations of South Korea, China and Japan to form an education network among the three neighbors. “Korea, China and Japan have provided outstanding human talent to the international community during their remarkable economic growth,” he said in a keynote speech Wednesday at the opening ceremony of the Global Human Resources Forum 2011. The 64-year-old explained that an education network based not on the American or European system, but on the distinct characteristics of Asia must be created. “The ‘Campus Asia’ program can be the foundation to this network,” he said.

 

 

Under the ‘Campus Asia’ program, all credits earned by the participants in other countries will be recognized at their home schools which would promote student exchanges between the three countries. Mr. Hatoyama, a longtime advocate of trilateral cooperation said, “Fostering human talent is a perennial issue of interest for the three nations so Korea, China and Japan will play a decisive role in creating the community.”

 

The former prime minister stressed that though the different history and values of each country leads to conflict at times, the differences are also a source of dynamism. “The key to this community lies in recognizing our differences and using this diversity in a positive manner,” he said.

 

 

 

Former Chairman of U.S. President Barack Obama’s Economic Recovery Advisory Board Paul Volcker gave a bleak outlook for the global economy. Following Mr. Hatoyama’s speech, Mr. Volcker, touching on Europe’s debt problems said, “We’re going to be in a difficulty for a while, at least for the next year or two.” And depending on the actions of eurozone policymakers, a bear market could continue for a “long time.” To avoid the collapse of the eurozone the former Federal Reserve chairman proposed setting up an organization that can “deeply deal with the fiscal policies of the member states.” Mr. Volcker said a control tower is needed to resolve global fiscal imbalance. “A system should be in place that urges China to refrain from stacking up foreign reserves and recommends the U.S. to take austerity measures,” he said.

Despite the gloomy outlook, in a one-on-one session with Il SaKong, chairman of the Korea International Trade Association, Volcker remained upbeat saying that the crisis in Europe can “speed up welfare and tax reform” which would significantly improve the financial soundness of nations. He emphasized that a quicker resolution to the crisis can be found by “restoring leadership” and “fostering human talent.”

 

The opening ceremony was attended by more than 1,200 guests including South Korean Prime Minister Hwang-Sik Kim and Minister of Education, Science and Technology Juho Lee. In his congratulatory speech, the prime minister said, “There’s a limit to what the government’s budget can achieve in managing a rapidly aging society. If homes, schools and society fail to reengineer their respective roles, the age of centenarians can become a curse rather than a blessing.”