A three-part television documentary about Asia entitled "East and West," written and presented by Hong Kong's last governor Chris Patten, will be broadcast by the BBC and distributed internationally in September. A book written by Mr. Patten under the same title will be published the same month.
 The first of the series deals with the changing relationship between Asia and the West. The second focuses on Korea, its rapid development, how it is addressing its economic problems, and its measures to attract foreign investment. In preparation of the second of the series, Mr. Patten visited the Seoul offices of KOTRA and consented to be interviewed by KT&I.

Why do you feel the time is right for this series?

 Following the crisis there's a tendency in the West to belittle Asia's achievements.
It should be remembered, for example, Korea's development is unique in economic history. Starting from impoverishment, it has turned itself into one of the biggest economies in the world. Those qualities still exist. They haven't been swept away by the crisis.

What is your interest in Korea?

 I'm very interested in Korean values although I believe values are universal. The reason why I'm concentrating on Korea is it tells the story of Asia's rise and some of the reasons for what went wrong: the need for greater openness, transparency, a recognition of the global market place, all of which are important in attracting foreign investors.

Is there widespread interest in the West about Korea?

 Interest in Asia is intense. There's particular interest in Korea because Korean recovery is part of the recovery of Asia. There's also interest in the personality and principle of President Kim Dae-Jung. He has increased the interest of the world in Korea. The nature of interest in Asia has shifted rapidly. Before the crisis there were headlines about an "Asian threat," a suggestion Asian success represented a challenge to growth and jobs in America and Europe. Attention has now moved to Asian problems representing a threat to Western jobs and growth. The truth is that economic interdependence, the increase in free trade, the huge capital flows across national boundaries means one person's success is everyone's success, and one person's failure is every one's failure.

Does your motivation for this series derive from your experience as governor of Hong Kong?

 My five years from the vantage point of Hong Kong did give me an insight into what's happening in Asia. I could spend my time giving speeches on Asia in Europe, and I feel I would be of more help if this interest was better informed and reflected less exaggeration and hysteria. I worry the Asian crisis may lead to greater protectionism in the West and Asia, and it's important to resist this trend. Asia will run up a trade surplus as it imports less and Asian exchange rates become more competitive, while some Asian politicians and unionists will blame the crisis on Western institutions and corporations. However, one of the reasons for Asia's rise is the opening of world trade which has increased six-fold since the 1960s. Putting up barriers will be catastrophic, but it's difficult to get people to accept the rapid change that economic success demands. It's the role of government to make that change less painful and maximize gain. Britain went through the same attempts at restructuring as Korea in the 1980s. It was tough, but Britain now has the fastest growing economy in Europe.

What measures do you feel would aid the economic recovery of Asia?

 I believe Asian governments in the 1970s and 1980s got the basics of economic management right. They left business to business, and invested in health and education. They kept spending and taxes low to keep savings high. In the later 1980s and 1990s, they neglected the fundamentals. There was lax bank regulation, too many prestige projects, and too little emphasis on profitability. Meanwhile in many countries political institutions didn't keep pace with economic growth. The general lessons are: it's extremely important to have institutions of government grow in the long term, encourage long-term capital investment from overseas, the rule of law, a clean civil service and a level playing field for business. It's also extremely important to have greater openness and transparency. The rest of the world is expecting to see in Korea a real separation of government from business, and of both from the banks, so each can pursue their proper role and don't become confused.

How do developments in Asia relate to your own personal philosophy?

 I'm an increasingly passionate liberal in the classic 19th century sense. I strongly believe in open markets and market solutions, and it's the role of government to make those solutions smoother. I'm also a passionate believer in political freedom as well. One of the reasons why the Asian debate between politics and economics is so fascinating is that it matters enormously for the rest of the world. Korea, a country where it has been tough for democracy in the past to the point it is cherished more strongly, now has a president who is one of the most distinguished advocates of democracy in the world and who is seeking market-oriented solutions for different economic problems. It makes what's happening in Korea all the more interesting. I hope people will read my book and watch the program as a passionate appeal for more liberalism in relating free economics to free politics.

by Charles Duerden