Lee Jong-Wha for PS Say More

The PS Say More Newsletter | [View this message in a web browser]( [PS Say More]( Welcome to Say More, a weekly newsletter offering readers exclusive insights into the ideas, interests, and personalities of some of the world’s leading thinkers. In each issue, a Project Syndicate contributor is invited to expand on topics covered in their commentaries, address new issues, and share recommendations about everything from books and recordings to hobbies and social media. This week, Project Syndicate catches up with [Lee Jong-Wha]( Director of the Asiatic Research Institute at Korea University and a former senior economic adviser to the South Korean president. Lee Jong-Wha Says More… Project Syndicate[Lee Jong-Wha]( You’ve [called]( for the G20 to lead a coordinated response – including fiscal, financial, and trade measures – to the COVID-19 crisis. What principles or policies should form the “the pillars of economic-policy coordination”? If the United States and China refuse to abandon their “utterly counter-productive blame game,” can the rest of the world step in to offset the damage? Lee Jong-Wha: International coordination can play an important role in limiting a negative shock’s cross-border spillovers and restoring confidence. Hasty measures taken by individual countries are often ineffective and sometimes even counter-productive. By undermining trade and disrupting financial flows, they can exacerbate emerging and developing economies’ plight. One key focus of policy coordination should thus be to keep goods, services, and capital flowing smoothly. In the wake of the 2008 global financial crisis, I attended many G20-related meetings, including as a G20 Sherpa. I saw firsthand how effective the body was in facilitating cooperation – and how effective that cooperation was in shoring up the global economy. That is why I believe that the G20 should again serve as a platform for planning and implementing a coordinated crisis response. Tensions between the US and China – which the COVID-19 crisis has unfortunately intensified – threaten to impede progress. Now is the time for the world’s two largest economies to show joint leadership, not to point fingers at each other. The rest of the world – especially the European Union, Japan, and middle powers – should be encouraging them to do just that. At the same time, the other major economies, with the support of the international institutions, should be hedging their bets by pursuing their own (coordinated) measures to stimulate the world economy. PS: Last November, you [noted]( that “key sources of popular frustration” in Hong Kong, such as soaring property prices, resemble those that have fueled Latin American political crises. Ensuring sound policymaking, you argued, demands accountability, underpinned by strong institutions (including an independent judiciary), free and independent media, and a vibrant civil society. What, then, does China’s proposed new [security law]( for Hong Kong, which effectively erases the territory’s autonomy, mean for the city’s economic prospects? LJW: When Hong Kong and the other East Asian economies first achieved rapid growth and industrialization, they avoided many of the missteps made by Latin American economies, thanks to well-functioning markets and carefully designed economic policies. But, in recent decades, these economies have also confronted rising income inequality and an inadequate government response – two sources of intense frustration. This is certainly the case in Hong Kong, which is now plagued by economic stagnation, high property prices, and social polarization. Attempts by the Communist Party of China to undermine the city’s liberal democracy – which have culminated in the new security law – have compounded these problems. If Hong Kong is to remain a dynamic economy and a global financial hub, it needs to be allowed to retain its economic freedom, uphold good governance, and cultivate inclusive institutions. This is in China’s economic interest, as much as it is in Hong Kong’s. PS: In your latest PS commentary, you [note]( that South Korea will need to go beyond stimulus to ensure economic growth and prosperity. Among other things, you argue, the government must “create a more supportive environment for high-value-added services industries” and “improve conditions for private investment and research and development.” But can countries really pursue such policies at a time when the pandemic has generated so much uncertainty about economic fundamentals? LJW: To cope with the COVID-19 crisis... [Read the rest of our interview with Lee]( [How to Prevent the Japanification of East Asia’s Economies]( [How to Prevent the Japanification of East Asia’s Economies]( By Lee Jong-Wha Hong Kong, Singapore, South Korea, and Taiwan were long hailed for their economic dynamism, but now risk following the low-growth path of Japan over the last three decades. To avoid this fate, their governments must adopt a comprehensive set of policies to tackle structural weaknesses. Previously in Say More [Barak Barfi]( – a research fellow at New America, where he specializes in Arab and Islamic affairs – predicts which Arab countries will be hardest-hit by the COVID-19 crisis, hones in on Turkish President Recep Tayyip Erdoğan’s biggest fear, and offers an insider’s perspective on Syria. [Read more](. [Nicholas Agar]( – a professor of ethics at Victoria University of Wellington, New Zealand – emphasizes the importance of unchosen social interactions, warns that technology cannot replace them, and wonders whether COVID-19 is enough of a shock to improve the lives of poor people in the long term. [Read more](. [Check out the full Say More archive]( [Special Edition: Beyond the Techlash. For a limited time, when you subscribe to Project Syndicate, we will send you a complimentary copy of our newest special-edition magazine.]( Project Syndicate publishes and provides, on a not-for-profit basis, original commentary by the world's leading thinkers to more than 500 media outlets in over 150 countries. This newsletter is a service of [Project Syndicate](. [Change your newsletter preferences](. Follow us on [Facebook]( [Twitter]( and [YouTube](. © Project Syndicate, all rights reserved. [Unsubscribe from all newsletters](.