Chairman Hiromasa Yonekura,

Ladies and Gentlemen,

Dear Friends,

I am delighted to meet you, friends from the Asia-Pacific business community, in the beautiful port city of Yokohama and exchange views with you on the topic of "Emerging Markets in the Asia-Pacific region."

The rapid development of more and more emerging markets is a salient feature of the international political and economic landscape in the 21st century. In keeping with the trend toward economic globalization and industrial relocation, emerging markets have adjusted and improved economic development strategies in the light of their national circumstances and embraced economic development paths and models with distinctive features. With robust and sustained development, they have become an important engine driving world economic growth. In the fight against the international financial crisis, emerging markets were the first to achieve an economic rebound and fairly rapid growth and played an important part in promoting world economic recovery. Countries across the world are now paying greater attention to the role of the emerging markets on the international stage.

There are many emerging markets in the Asia-Pacific region. Their development and their future will have a major impact not only on the Asia-Pacific region, but also the whole world. It is therefore highly relevant for this CEO summit to choose "Emerging Markets in the Asia Pacific" as the theme of discussion. I wish to take this opportunity to share with you the following observations.

First, Asia-Pacific emerging markets have made important contribution to world development and will continue to offer enormous development opportunities. The rapid development of emerging markets in our region has changed the state of backwardness in many countries and regions and improved the lives of hundreds of millions of people. It has contributed significantly to the endeavor to narrow development gaps, reduce poverty and attain the UN Millennium Development Goals (MDGs). The Asia-Pacific emerging markets have actively engaged in international business cooperation. By supplying a huge amount of energy and raw materials, they have provided sufficient resources for the development of other countries. By exporting quality yet inexpensive manufactured products, they have offered a rich variety of goods to other markets. By importing goods and services on a large scale, they have provided market and dynamism for world economic growth. And by attracting vast foreign direct investment, they have made themselves major destinations for international capital flow. Looking ahead, emerging markets in the Asia-Pacific region will offer even more opportunities for world economic development in terms of resources, goods, market and capital. The international community should work with them to seize opportunities, tap the potential and promote the common development and prosperity of all countries.

Second, Asia-Pacific emerging markets still face many daunting challenges despite their rapid development. We must recognize that although emerging markets in our region have scored remarkable achievements in development, the overall level of their productivity is not high and their ability for innovation is not strong. They are confronted with structural problems accumulated over the years and their extensive growth model is yet to be changed in a fundamental way. For them, developing the economy and improving people's livelihood remains an arduous task and achieving industrialization, urbanization and modernization is an unprecedented endeavor. They must meet the major challenge of ensuring coordinated development between urban and rural areas, among different regions and between the economic sector and the social sector. And they have a pressing need to improve their institutions and enhance their innovation capabilities. In short, they still have a long way to go before they can achieve comprehensive development and they must make sustained and strenuous efforts. The international community should view the development of Asia-Pacific emerging markets in a holistic and objective way and put it in a historical perspective. While acknowledging their development achievements, the international community must fully appreciate their difficulties and challenges.

Third, Asia-Pacific emerging markets have actively responded to global challenges and the international responsibilities they undertake should be commensurate with their development stage. As important members of the international community, the Asia-Pacific emerging markets have taken an active and constructive part in international cooperation and worked with various parties to counter such global challenges as the international financial crisis, climate change, energy and resources security, public health security and serious natural disasters. They have been energetically engaged in South-South cooperation, helping other developing countries speed up development and contributing to the cause of international development and the common development of all countries. We must remember, however, that the Asia-Pacific emerging markets are still at the primary stage of development, and both their capabilities and resources are limited. To ask them to take on responsibilities and obligations beyond their capabilities and development stage will do no good to international cooperation and world economic development. It can only damage the development of Asia-Pacific emerging markets. The international community should encourage emerging markets in the Asia-Pacific region to assume international responsibilities on the basis of their capabilities, national circumstances and stage and level of development.

Fourth, the international community should improve the international economic and financial systems and create an enabling environment for the common development of emerging markets and all other countries. The existing international economic and financial systems have played a positive role in the development of emerging markets in the Asia-Pacific region. But it is necessary to further improve them through appropriate reform and adjustment measures and adapt them to the changing economic situation. It is important to advance reform of international financial supervision and regulation, international financial institutions and the international monetary system with a view to establishing a fair, just, inclusive and well-managed new international financial order. The international community should oppose protectionism in all manifestations, call for and support free trade, and handle trade frictions through dialogue and consultations. It should work for comprehensive and balanced outcomes of the Doha Round negotiations on the basis of the existing achievements in order to realize the goals of the development round at an early date. The international community should take more concrete actions on development to secure resources, improve mechanisms, enhance cooperation, and ensure the attainment of the UN MDGs as scheduled.