By Martha Moss - 7th October 2011
Europe has to adapt itself to the new rhythm of the global world
Pierre Vimont, the executive secretary general of the European external action service
The EU has been urged to consider "new economic models" as it engages with rapidly developing countries in Asia.
Pierre Vimont, the executive secretary general of the European external action service, was among the speakers at a Friends of Europe discussion exploring the challenges for Asia in the coming decades.
He said it was time for Europe to consider "new ways of working" with Asia. The call came after a report from the Asian Development Bank (ADB) which identified the key challenges that Asia must confront if it is to meet its economic potential.
Vimont set out how the EU was looking to change the way it provides support and assistance to Asia.
"It will be less about state to state relations and more about civil society," he said, with Brussels "helping to mobilise civilian societies".
As the economic crisis continues to wreak havoc on the world markets, Vimont highlighted the interconnectedness of the global economy.
"We're talking about a global economy so whatever happens in the economic situation in European countries will have some affect on Asia and the other way round," he said.
He added, "It's all about defining a new way for Europeans to come and help and work together more than assisting in traditional way. Europe has to adapt itself to the new rhythm of the global world."
Klaus Ebermann, a visiting professor from the British University in Egypt, agreed that "we need a new economic order, we need new models".
Arif Havas Oegroseno, the ambassador for the mission of Indonesia to the EU, is also concerned by the downturn in Europe.
"People in Jakarta are very nervous about what's happening in Europe and in the US," he said in his intervention, pointing to a very strong trading investment relationship between Indonesia and the EU.
The discussion highlighted resource scarcity, governance and gender equality as underlying issues which must be addressed if Asia is to secure sustainable growth.
ADB vice-president Ursula Schaefer-Preuss said that, climate action is about more than reducing carbon emissions and protecting the environment.
"To secure long term competitiveness, Asia has to take global leadership in efficient use of resources and develop radical energy efficiency and diversification programmes," she said.
Ashok Sharma, senior director of the ADB's office of regional economic integration, warned over the dangers of Asian countries falling into the 'middle-income trap'.
He defined this as a country unable to compete with low-wage, low-income products, yet also unable to compete with the advanced economies.
One way of avoiding the middle-income trap was to place a "very strong emphasis" on education right from the start, Sharma argued.
"To avoid a middle income trap, you require a continuous supply of quality, skilled labour in the production process," he added.
