McKinnon Backs Group to Address Social Costs of Asian Turmoil

Foreign Minister Don McKinnon, today declared New Zealand's support for the formation of a regional group to address the social impact of the Asian economic turmoil.

Mr McKinnon who is currently attending the ASEAN Post Ministerial Conference in Manila was responding to the proposal for an ASEAN PMC "Caucus on the Social Safety Net" tabled by Thailand's Foreign Minister, Surin Pitsuwan.

"In one way or another, all countries in the region are affected by the crisis," Mr McKinnon said.

"It makes sense for us to meet on a regular basis to look at ways to minimise the social costs as economic reforms kick in."

Mr McKinnon also reaffirmed New Zealand's support for the IMF-backed packages of reforms to strengthen the financial architecture of the region.

"The strengthening and transparency of financial institutions along with public sector reform are critical to the successful recovery of affected economies," he said.

"We must support those initiatives designed to assist the region back to prosperity through economic liberalisation and keeping our markets open to trade."