China, Europe and the Netherlands: Opportunity Is Knocking at Our Doors

Apr. 2015 
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Solving the poverty puzzle
Good Governance. Strong partnerships. Investment in infrastructure, education, 
and the basic necessities of life. These are the keys to solving the poverty puzzle 
and giving millions of Asia’s children hope for a brighter future.
Find out more at www.adb.org 
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T
he further we venture into this new 
era of change and transition, the 
more we need exchanges of ideas to 
light the way ahead.
     The publication of our April issue 
coincides with the opening ceremony of 
the Boao Forum for Asia Annual Con-
ference 2015. The Forum is attracting 
increasing attention not only within the 
Asia-Pacific region, but also from anyone 
involved with the region, not only because 
it brings together leading elites in their 
respective fields, but also because people 
are interested in the thoughts of, and in-
terchanges between, the wise minds which 
have brought about the region’s fast-paced 
development.
 “Asia’s New Future: Towards a Com-
munity of Common Destiny” – as in the 
past, this year’s meeting will cast new light 
on expectations for Asia’s actual devel-
opment and strategic direction. Over the 
past half-century, different parts of Asia 
have excelled in various sectors of the 
global economy, not only benefiting from 
the massive arenas opened up by global 
economic liberalization, but also from the 
policy dividends and unleashed vitality 
brought about by ongoing change.
Innovation and reform have encouraged 
humanity to move from an agricultural 
society into the industrial era, developing 
into the new world that we know today. 
Nowadays, Asia’s various member states 
and regions, regardless of their social 
From 
the Editor
Innovation Is Shaping Our Future
governance or mode of economic develop-
ment, all face challenges in terms of their 
capacity to generate innovation.
This issue’s cover story, “Europe, Amer-
ica and China Have the Same Economic 
Problem”, penned by the 2006 Nobel Prize 
winner for economics Edmund Phelps, 
traces the past, analyzes the present, and 
looks to the future of the world’s three 
major economies. Phelps believes that 
regardless of their state of development, 
their economic growth and success origi-
nate from technological and industrial in-
novation. Developed nations can only rely 
on their own innovation capacity, whereas 
in developing countries, innovation can 
be achieved by introducing and copying 
existing technologies.
Professor Phelps points out that as Eu-
rope, the U.S. and China enter their own 
new economic normal, the issues they face 
are actually the same: how to stimulate 
widespread innovation and vitality, how 
to expand innovation from the inner cir-
cles of high-technology industries to every 
industry sector, and even to every individual 
at the grassroots level of society.
German investor Peter Jungen’s views 
are similar to those of Professor Phelps, 
and he proposes strengthening the devel-
opment of education  which stimulates in-
novation, eliminating the inhibiting effect 
of traditional culture on innovation, and 
disposing of regulatory measures which 
stifle innovation.
In our Macro Economy column, we 
are honored to bring to you an article by 
Dutch Prime Minister Mark Rutte. The 
Prime Minister, who will head a delegation 
on a visit to China and attend the Forum, 
has taken the opportunity in his message 
of blessings for the New Year of his Chi-
nese zodiac sign, the Sheep, to talk about 
the close cooperation between China and 
the Netherlands in areas as disparate as 
trade, investment, culture and society.
Former Director General of the WTO 
Pascal Lamy writes about the past, present 
and future of global governance. He per-
ceptively points out that acknowledging 
and understanding our global differences 
is a prerequisite to attempts to find an 
acceptable point of convergence, and is 
probably the most valuable contribution 
our global system could make to improve 
global economic, political, and social inte-
gration, ensuring the best possible future 
for the generations to come.
Ravi Menon, Director of the Monetary 
Authority of Singapore, also writes about 
Singapore’s role in the integration of Asia’s 
economies, the offshore RMB market and 
infrastructure financing. He also discusses 
with readers how to best write the story of 
Asia’s growth.
We hope that these insights—from 
scholars, regulators and leaders alike—will 
stand the test of time, and light the way 
ahead for the transformation of Asia, as 
well as the world.
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Information
 
▌
On 9 January 2015, the inaugural event of 
the 2015 series of Boao Salons, organized by 
Boao Review was held in Beijing. The theme 
was “Diplomatic challenges with China’s 
neighbors”, and former Deputy Director for 
Asian Affairs of the Ministry of Foreign 
Affairs Madame Yang Jian was invited to 
give the keynote speech.
 
▌
Recalling her early participation in the 
Boao Forum for Asia, as the Forum’s Asian 
regional coordinator, Yang Jian started off 
by expressing her sincere happiness at the 
achievements and position the Forum has 
today achieved.
 
▌
Turning to the topic of her speech, 
she explained that foreign affairs are an 
extension of domestic affairs.  She mentioned 
that diplomats must have well-honed 
communications and judgement skills, a 
positive attitude in the face of challenges, 
and the ability to implement the national 
will and protect national interests. In this 
era of globalization, national interests are 
intertwined, and dialogue and negotiation 
are the only desirable ways to resolve 
disagreements. China’s foreign relations, 
those with its neighbours in particular, must 
seize opportunities, face up to challenges, 
and seek a peaceful, stable environment to 
allow its domestic reforms to mature.
 
▌
On the subject of the Asia-Pacific situation 
in the face of the USA’s “pivot to Asia” and “new 
balance of power in the Asia Pacific” strategies, 
she talked about the strategic decisions which 
China, as the world’s largest developing nation, 
has taken in the face of this situation. 
 
▌
With regard to Sino-Japanese relations, 
she explained that although the positive 
development of Sino-Japanese relations is 
burdened by historical baggage as well as a 
variety of more recent issues, these should 
be resolved with diplomacy and wisdom. 
Regarding the Korean Peninsula, it is even 
more important that the parties involved 
remain calm and restrained, and invoke 
dialogue and negotiations to achieve the 
nuclear disarmament of the peninsula, and 
ensure its peace and stability.
 
▌
Yang Jian also answered questions from 
participating guests on subjects ranging 
from territorial disputes with China, 
international investment, Sino-Myanmar 
and Sino-Vietnamese relations, and the 
work and lives of diplomatic personnel. BFA 
Secretariat Executive Director and BFA 
Institute Executive Dean Yao Wang, and 
BFA Institute Vice President Wang Dong and 
Gao Song, publisher of the Boao Review, also 
participated in the Salon. 
 
▌
Before the start of the Salon, Boao Review 
Media Executive General Manager Song 
Boao Salon
Focusing on the diplomatic 
challenges with China's neighbors
 – 2015 Inaugural Event
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