The last half-century has been witness to remarkable progress made in economic and social development by Asian countries. As a result, Asia's influence in international and regional affairs has been increasing steadily. Thanks to the economic take-off in East Asia over the past two decades, which is perceived by the world as the East Asian miracle, the overall Asian economy has developed rapidly. This has made Asia prominent among the regions in the world, which have undergone the most dynamic economic development. Although Asia has suffered a lot from the financial crisis at the end of the twentieth century, the Asia economies are now back on a path of recovery and economic stability due to their capacity for self-adjustment and reform.

On account of the opening policy pursued by most Asian countries, the trade and investment links between them have been increasingly strengthened. Various forms of bilateral, regional, sub-regional, and trans-regional cooperation have gradually unfolded. Collaboration and exchanges in the fields of business, finance, science and technology, transportation, culture and the media are constantly increasing. East Asian cooperation (10+3) has already entered into a substantive stage. The economic integration within ASEAN, and the cooperation in the Lancangjiang-Mekong river basin and in the Tumenjiang river basin are underway. Trans-regional cooperation in the frameworks of ASEM and East Asia-Latin America Forum as well as APEC is also moving forward. It can be predicted that the prospects of Asian economic development and cooperation will be very bright.

In the new century, the trend of economic globalization and regionalization continues to develop, European economic integration process picks up speed and North American Free Trade Area (NAFTA) moves ahead. Under such a situation, Asian countries are promised great opportunities and are confronted with many severe challenges, predictable and unpredictable. It requires the Asian countries to strengthen the cooperation with other parts of the world as well as the collaboration and exchanges among themselves. It is now a common task for them to seek the way to face the challenges brought about by globalization, to sustain the healthy growth of the economy and strengthen their co-ordination and cooperation.

Although Asian countries have participated in many international conferences and organizations such as APEC and PECC, Asia as a whole lacks a forum, led by Asians and guided from perspectives of Asian interests and views, provides opportunity to exclusively discuss the Asia issues and aims at enhancing cooperation and exchanges among Asian countries, and between Asian countries and other parts of the world. Against this backdrop, in September 1998, former Australian Prime Minister Bob Hawke, former Japanese prime Minister Morihiro Hosokawa and former Filipino President Fidel V.ramos put forward the proposal to establish an Asian Forum, similar to the World Economic Forum headquartered in Davos.