While the subjects of the contagion effects from the eurozone crisis and regional security will no doubt top the agenda of world leaders gathering in Bali for the East Asia Summit, they should not ignore the imminent impact of disasters and climate change on their economies.

Indeed by the time the leaders meet, it is likely that floodwater will still inundate much of Thailand including its industrial estates that house many regional production centers. As of Friday, the Honda factory in the Thai province of Ayutthaya was still submerged. Similarly, the Toyota factory was also still engulfed by water, and only seven months ago the same company also suffered the devastating impact of the March 2011 massive earthquake and tsunami in Japan.

Because of the floods in Thailand, Honda factories in North America have already cut production targets by 50 percent and are experienc...