Switzerland - In his address to the  World Economic Forum Saturday, Japan's Taro Aso said his country was ready to provide 17 billion dollars in development assistance to Asian countries.

"It is Asia that holds the greatest potential anywhere in the world," said the prime minister, noting that 40 per cent of world's population resides there and the region has an economic growth rate of about 4 per cent.

He also promised to fulfil Japan's aid commitments to Africa, Afghanistan and the Palestinians and to help fight pirates off the coast of Somalia, Tokyo would send its maritime forces to the troubled waters.

"Japan will dispatch Self-Defence Force vessels off Somalia as a countermeasure against piracy," said Aso. The ships would be in addition to activities in the Indian Ocean, which including refuelling support to US troops.

Japan has a strict pacifism clause in its constitution, but maintains a strong navy and some other forces.

Aso reiterated Japan's readiness to loan up to 100 billion dollars to the International Monetary Fund to ensure US dollar-based liquidity to smaller and emerging countries.

He called for better supervisory mechanisms for the financial markets and warned against protectionism.

"We will resolutely fight all protectionism," the premier said in his speech, "in keeping with the lessons of the 1929 Great Depression."

Japan's economic stimulus package, worth about 840 billion dollars, focused mainly on helping businesses cope with the downturn, but was still stuck in the lower house. Aso said fiscal stimuli were needed when investment and lending was stalled.

"Aberrational economic circumstances call for exceptional responses," said Aso. (dpa)