In his intervention at the meeting, H.E. Hor Namhong thanked his Mexican counterpart Honorable Patricia Espinosa for inviting Cambodia, as Chair of ASEAN to participate in the meeting.
As the world is looking to the upcoming G20 Summit in June, there is a great expectation of its effectiveness to take an expanded role in building global governance, encompassing finance and economy, social implications and environment dimension which currently pose extremely serious threat to mankind, he said.
As G20 represents both developed and developing countries, with the sense of universal responsibility, it can contribute to the slow down and, eventually, the reversal of this global phenomenon, he said.
Meanwhile, H.E. Hor Namhong also touched on the issue of “shared responsibility to address global challenges in an interdependent system”.
“I think that those issues reflect clearly the serious situation in which we are living in this 21st century,” he said.
According to H.E. Hor Namhong, as economies become more interdependent, it is not only the opportunity for wealth creation that is multiplied, but also the opportunity for destabilizing shocks to be transmitted from one country to another. The imbalances and risks are omnipresent.
The G20 and the multilateral financial institutions have a crucial role to play in meeting these challenges, he said, adding that shared responsibility is about building and strengthening institutions of global cooperation across a wide range of areas.
First, he pointed out, for systemic financial stability, we need a stable monetary system, prudential regulation of international financial markets, and a capacity to deal with major systemic shocks. On that I praise the G20 Leaders’ efforts of the last 4 years to make the G20 the premier forum for international economic cooperation. The achievements of the G-20 Summits have helped laid a sound foundation for a new system of global economic and financial governance which has helped to prevent the spread across the globe of the recent global financial crisis.
“Second, we need to adhere to the rule of law to secure an open system for international trade. We should continue fighting against protectionism and promoting free and fair trade. Here, G20 can take a leading role in resuscitating the Doha Round,” he said. “As such we need to move beyond mere interdependence to a deeper level of commonly shared principles: shared values, shared responsibilities, and shared benefits.”
In this regard, in East Asia since 2010, ASEAN with China, Japan and Korea, we have put in operation US$120 billion Swap Arrangement to implement regional financial cooperation, he said.
On the other hand, he underlined, securing sufficient food to feed the world has now become a complex problem for the international community. It is estimated that more than one billion people do not have enough food, as the world population has reached 7 billion. Based on the latest report of the UN Secretary General High Level Panel on sustainability, the world will need at least 50 percent more food, 30 percent more water and 45 percent more energy by 2030. Therefore maybe we need a “new food security order” and a new approach to meet the basic need of the increasing of population in the world.
To improve Food Security in East Asia, ASEAN once again with China, Japan and Korea, have signed an Agreement to establish an ASEAN+3 Rice Reserve of about 800,000 tons for emergency needs, he said.
H.E. Hor Namhong went on to say that representing 85 percent of the global GDP, 80 percent of international trade and two-thirds of the world’s 7 billion population, the G20, with many of its members are developing countries, can significantly influence the global governance responses with expanded role in global challenges.