ONLY DEMOCRACY AND FREEDOM CAN SAVE ASIA

>> Nobel Prize winning economist Amartya Sen >> says there is every indication Asia is pulling out of its economic >> crisis and greater democracy would help cushion the effects of >> future >> financial upsets.

>> >> The 1998 laureate told Reuters in an interview in Bangkok, where the >> >> crisis began two years ago, that one of its positive effects had >> been >> democratic progress in several countries.

>> >> "I think people have learned something from that," he said. "The >> fact >> the democracy movement became stronger in South Korea and moved >> dramatically in that direction in Indonesia and became stronger in >> Thailand too, I think are positive aspects.

>> >> "The crisis had the effect of bringing out the weakness of the >> previous >> argument that democracy was not needed in Asia -- that it's against >> Asian values and it's not needed anyway.

>> >> "I think that argument has been currently busted because when the >> crisis >> came, the poor in South Korea and Indonesia did need the voice they >> didn't have."

>> >> The Asian meltdown had forced countries to implement reforms to >> improve >> financial transparency and accountability and these efforts had >> borne >> fruit, he said.

>> >> "As far as the crisis itself is concerned, I think there is every >> evidence that the entire region is pulling out of it now. But that >> doesn't mean a crisis of this kind cannot come again in a few years >> time."

>> >> Sen, from India, is the first Asian to win the Nobel prize for >> economics. He is master of Trinity College Cambridge and a professor >> >> emeritus at Harvard.

>> >> REGION MUST WATCH FOR SIGNS OF FUTURE CRISIS

>> >> "One must not fight the past war but look at the future war and for >> that >> one has to see the ways this crisis could come and how it could be >> prevented," he said. "My belief is democracy and greater practice of >> >> democracy will have a very positive part to play."

>> >> Asked if he thought recovery might have come too soon for reforms to >> >> take proper root, a concern expressed by some economists, he >> replied: "I >> don't think it came too soon. Even in the old business cycles in the >> >> West, if you go down for a year or two you would expect by the third >> >> year to turn around." Asked what could precipitate a future crisis >> and >> what form it could take, he said: "I don't know that. You see that's >> the >> real danger, that people always tend to imagine the next crisis will >> be >> very much like the last one. I just don't know and I don't think >> anyone >> really knows that."

>> >> One reason the crisis in East Asia had been so severe was warning >> signs >> had been ignored.

>> >> "Unfortunately, people didn't react when there were straws in the >> wind >> and sometimes they didn't even react when there were trees in the >> wind," >> he said.

>> >> A key problem now facing the region was securing a fair deal in the >> new >> round of world trade talks, Sen said. >> >> "I think the unequal power of the United States is something worth >> worrying about. >> >> "You need fairer trade conditions. You don't want asymmetry where >> the >> United States could have a lot of restrictions of one kind or >> another -- >> agricultural commodities for example -- when other countries are not >> >> allowed to have that."

>> >> Smaller countries should follow the examples of trade unions >> standing up >> to a powerful employer, he said. "You need a united voice of the >> smaller countries put together." >> >> He said he believed this month's protests against U.S. policy at >> the >> World Trade Organisation conference in Seattle had helped wake up >> Washington to global concerns.

>> >> "Even the biggest countries, including the United States, have been >> put on.

By David Brunnstrom