The regional landscape will be shaped by these challenges and how each country responds to them. There are many initiatives emerging in individual countries. But a key part of the response has to be a collective one since no single country in this part of the world can tackle this challenging new world on its own. This is where regional integration comes in and this is where there are some encouraging signs.
The Southeast Asian region is only gradually coming to grips with the Covid-19 pandemic, but it does not have the luxury of postponing action to tackle the longer-term dangers that it faces. The discouraging developments seen in the past few weeks have made that clear. The rift between the West and China is widening, with immense consequences for Southeast Asia including a higher risk of regional conflicts, trade protectionism and technological bifurcation.
Moreover, the cost of managing the pandemic will leave a high burden of debt everywhere, while the massive monetary interventions are likely to produce a great deal of financial turbulence. Globally, economic growth is likely to slow as continuing uncertainty dampens business investment and as both businesses and households save more in order to build stronger buffers against potential shocks. The severe flooding in China reminds us that climate change is not some far away danger but a present one that demands more urgent action than we have committed to so far.
