ASIAN AFFAIRS ON ASEM Il Sakong - Chairman of the Vision Group 2000 The Asia Europe Vision Group was established at the Second ASEM Summit in April 1998 with the mandate of reviewing the state of Asia-Europe relations and making recommendations on major measures that would advance the comprehensive Asia-Europe partnership agreed upon by the ASEM member countries in Bangkok in March 1996. With this mandate, the Vision Group which consists of 26 representatives of ASEM member countries and the European Commission, produced a report, “For a Better Tomorrow – Asia-Europe Partnership in the 21st Century,” which was submitted to the Foreign Ministers Meeting in March 1999 and is to be reported at the forthcoming Seoul ASEM Summit in October 2000. The report includes 9 major recommendations and 22 other recommendations, which, the Vision Group believes, will help achieve the Group’s medium to long-term vision for the Asia-Europe partnership. More specifically, the 31 recommendations are related to: first, sustaining economic partnership; second, meeting environmental challenges; third, enhancing educational, cultural and societal exchanges; fourth, promoting political and security co-operation; and fifth, the ASEM process. This article is a brief summary of the Vision Group report.3 1. The Medium to Long-Term Vision Asia and Europe find themselves in the midst of an economic, social and communications revolution, set to accelerate. These pose new challenges in the 21st Century. Given their history, cultural strengths and talents, it is imperative that Asia and Europe work together to make a strong and specific contribution, and to address these issues with urgency and tenacity. Since the inaugural meeting of ASEM leaders in Bangkok in 1996, the ASEM process has got off to a good start. A number of worthwhile ASEM initiatives involving the government and business sectors in the areas of trade and investment, environment, education, culture and civil society have been launched. However, the Vision Group feels that this is far from enough. The Group believes that it is time to move to a new and deeper phase of Asia-Europe relations. The phase, the Vision Group asserts, needs to be guided by an overarching vision that articulates the overall goal of strengthening relations between the two regions. The Vision Group’s medium to long-term vision is a gradual integration of Asia and Europe into an area of peace and shared development, a prosperous common living sphere in the 21st Century: The sphere should be such that knowledge, wealth, cultural heritage, democratic ideals, educational assets, intellectual aspirations and our new technologies are closely intertwined and exchanged between the two regions, without specific barriers or constraints. The Vision Group believes that the following recommendations will facilitate the achievement of the vision in the medium to long-term time frame. 2. Sustaining Economic Partnership 1) Liberalisation and open Markets Both Asia and Europe have benefited tremendously from the economic liberalisation of the past few decades. It is uncertain, however, that the trend in favour of liberalisation will continue automatically. The Vision Group calls upon ASEM partners to resist protectionist measures. Europe and Asia shall be best served by focusing on continued liberalisation in trade and investment. It is the job of ASEM to ensure that such liberalisation will continue and that protectionism will not rear its ugly head. It is critical for ASEM partners to undertake early action to reinforce the multilateral trading system and to co-operate to achieve, as soon as possible, the success of the next round of international trade talks. Major Recommendation #1: Eventual Goal of Free Trade in Goods and Services by 2025. The Vision Group recommends that ASEM partners set the eventual goal of free trade in goods and services by the year 2025 by adopting a strategic framework for the progressive freeing of trade in goods and services among themselves. The strategic framework must involve real commitment and establish clear deadlines and benchmarks. It must aim at extending free trade progressively across sectors, industries and markets, in a step-wise approach which recognises at each new stage differences inherent in the level of development achieved by the individual ASEM partners. 2) Asia-Europe Co-operation for Financial Stability Major Recommendation #2: Closer Macroeconomic Policy Co-ordination and Reform of the International Financial System. The European Union’s introduction of the Euro on 1 January 1999 is a watershed, heralding a new era in the international financial system. Given the importance of the EU in world GDP, trade and foreign investment, and it’s role in the international financial system, the Euro is likely to emerge as a major global currency. The monetary policy adopted by the European Central Bank can thus be expected to have far more international impact than the policies of the individual central banks of the EU member states. The Vision Group welcomes the introduction of the Euro, and calls for closer macroeconomic policy co-ordination between the major economic players. In the area of international finance, the Vision Group sees a need for Asia and Europe to work together in order to achieve a coordinated response matching rapid financial globalisation. In particular, both must make special efforts to adapt the international financial architecture to the age of globalisation. The Vision Group urges that the major functions of the Bretton Woods institutions, as well as the BIS, be both strengthened and better co-ordinated. Management of exchange rates, substantial reduction in the volatility of short-term capital flows and the strengthening of domestic long-term financial markets should be among the critical aspects of reform. In the light of the recent Asian financial crisis, the Group recommends that particular emphasis be placed on enhanced transparency in information on foreign exchange reserves, in the accumulated external liabilities of both the public and private sectors and in the underlying soundness of financial institutions. The Vision Group further recommends that governments should take steps to ensure that the quality of financial data reported by businesses and by financial institutions is accurate, reliable, comprehensive and in conformity with internationally accepted norms. The Vision Group further recommends that liberalisation of accounting and financial services be expedited, within the context of the WTO. The recent Asian financial crisis has reaffirmed the importance of sound domestic financial institutions and highlighted the necessity of prudent financial supervision at the national level. Weaknesses in this regard have unnecessarily exacerbated a difficult situation. The Vision Group calls on ASEM authorities to co-operate in the fuller implementation of prudent financial supervision. In particular, this should include training of financial supervisors. 3) Enhancing Asia-Europe Trade and Investment Major Recommendation #3: Asia-Europe Business Advisory Councils (BACs.) Although the Vision Group notes that Asia-Europe trade has increased significantly, it is confident that it can increase still further. Asia and Europe should take a quantum leap in co-operation regarding trade and investment. The Vision Group recommends that the ASEM leaders establish Asia-Europe Business Advisory Councils (BACs). The main objective of the BACs would be to institute high-level dialogue to promote Asia-Europe investment, with a membership including national government leaders and the CEOs of companies, domestic and foreign. Other initiatives recommended for sustaining partnership are: - An Asia-Europe Trade Week to be held biennially from 2002 in conjunction with the ASEM Summit should aim to contribute to a business environment that will foster increased trade between the two regions. - An ASEM work programme on electronic commerce to be initiated to urge members to educate current and potential users of electronic commerce in order to more speedily realise its economic and social benefits in both Europe and Asia. -An ASEM Advisory Network of Senior Executives to be established as a non-profit association of active and/or retired executives on a non-profit basis who can share their wealth of experience in an interactive forum with small businesses, in order to promote business opportunities and cross border investment in ASEM partners by SMEs. - Fostering an attractive investment climate for FDIs between ASEM partners in order to enhance the growth of output, income, employment and exports; sharing of advanced technology with the host economy; and transfer of innovative management and organisation techniques. 4) Improved Infrastructure Major Recommendation #4: Improved ASEM Infrastructure Framework The Vision Group recommends that ASEM adopt an improved ASEM infrastructure framework for all key areas (energy, telecom, transport, water, environment, etc.), which are critical to inter-regional trade, technology sharing and investor confidence. All modes of transportation between Asia and Europe, such as air transport, should also be expanded through further liberalisation. Protectionism must be eliminated and free competition among carriers be encouraged by introducing measures such as transparency in tendering and procurement procedures. The Vision Group notes the importance of energy-related technology and infrastructure development. 5) Science and Technology Major Recommendation #5: ASEM Information Technology Council To meet the challenge of the 21st Century, Asia and Europe must greatly reinforce their co-operation in science and technology, as well as technology transfer. This means mobilising the full resources of existing ASEM mechanisms, so that the two regions can promote science and technology-led development in such a way to ensure their common prosperity. The Vision Group proposes that an ASEM Information Technology Council be formed, comprising members from both the public and private sectors, to promote information infrastructure development in such areas as technical standards, electronic translation software and satellite TV broadcasting. ASEM Ministers responsible for Science and Technology (R&D) are encouraged to meet on a regular basis to discuss common areas of concern with a view to exploring possibilities for co-operation in big science and technology projects. A virtual Asia-Europe Technology Transfer Centre should be established on the Internet and run in close co-operation with the science and technology and business communities of both regions. The Vision Group recommends promotion of an Asia-Europe network of centres of excellence in key technologies. Co-operation between research institutes, universities and think-tanks can be encouraged through conferences, seminars and joint R&D activities as well as more intensive use of electronic media. The Group also sees a strong case for co-operation in the delivery of health care, building on the respective traditions in the medical skills and medical education in both regions. 6) Economic Assistance There has been asymmetry between Asian ASEM members and European ASEM members in economic assistance. Some Asian members are recipients of economic assistance, while most European members are donors. Once the Asian economies overcome their current difficulties and return to growth, a larger number of Asian ASEM members will be able to extend economic assistance to other developing countries throughout the world. The Vision group recommends that Asian ASEM members and European ASEM members start to co-operate in economic assistance to the rest of the world. The experience of many Asian ASEM members, as late developers, should prove especially valuable to other, now developing, countries. Combining these with the experience and knowledge accumulated by traditional donor countries in Europe and Asia should be an ideal basis for expanded ASEM co-operation. Co-operation between ASEM partners in medical work in third world countries and in disaster relief is already possible. The 21st Century should see aid workers and volunteers from all the ASEM partners working together for sustainable development across the world and the consolidation of a tradition of co-operation between their respective NGOs. 3. Meeting the Environmental Challenge One of the key priorities on the global action agenda is the enormous environmental challenge which both industrialised and developing countries face today. Industrialisation and urbanisation led to massive depletion of natural resources and environmental pollution on a wide scale in ASEM partners. However, with constructive and concrete co-operation within ASEM there can be decisive improvement in environmental quality to both ASEM partners and the rest of the world. The Vision Group envisages specific priority areas for concerted action by ASEM. These are: - Sustainable use and conservation of natural resources; - Urbanisation; - Industrialisation; - Institution and capacity building. Major Recommendation #6: ASEM Environment Centre The Vision Group proposes that ASEM develop closer long-term environmental co-operation: defining priority areas and objectives, with annual reviews, along with specific measures to attain these objectives; developing institutional capacity adequate to implement environmental policies. In order to realise these goals through concrete co-operation, and ensuring symmetry with other current environmental pregrammes outside the ambit of ASEM, the Vision Group recommends establishment of an ASEM Environment Centre. 4. Enhancing Educational, Cultural and Societal Exchanges Major Recommendation #7: Declaration on Education The Vision Group believes that educational exchanges lie at the heart of achieving a deeper understanding between Asia and Europe. To this end, ASEM leaders are urged, at their meeting in Seoul in 2000, to issue an ASEM Declaration on Education. The Vision Group presents a three-fold vision regarding educational exchanges: a significantly better balance in student numbers between Europe and Asia within the next five years; a five-fold increase in the total number of students exchanged between Europe and Asia by the year 2025; and an improved balance between the numbers of Asian foreign students studying in North America and those studying in Europe. Major Recommendation #8: ASEM Scholarship Programme A clear signal of the commitment of ASEM governments to the development of young talent and leadership potential on both sides is now urgent. The Vision Group recommends creation of prestigious, high-profile ASEM Scholarship Scheme. ASEM scholarships will be awarded to the best and brightest of students for postgraduate study on an inter-regional basis, chosen for their quality of intellect and level of attainment. The Vision Group believes that two hundred ASEM Scholars per annum at the start is an achievable target. Educational exchanges and education curricula are central to the deepening of mutual understanding over the long term. Therefore, the Vision Group proposes that ASEM Education Ministers meet at regular intervals to discuss, decide upon, benchmark and review the progress of ASEM education initiatives. It is further proposed that an ASEM Network of University Heads be established, comprising national representatives, charged with furthering Asia-Europe university exchanges of students and faculty, and with the introduction of greater Asian content into European university education, and vice versa. Furthermore, in order to encourage the exchange of faculty between Asian and European universities, the Vision Group recommends that ASEM Visiting Professorships be established on selected campuses. However, educational exchanges should not be confined to the formal education system alone; the expansion of the scope of training exchanges to cover the relevant experts and civil servants in fields such as the environment, infrastructure planning and management, regional and urban planning and legal and financial systems is also favoured. The Vision Group proposes that the Asia-Europe Foundation (ASEF) be strengthened, so that it can better carry out an extended objective of promoting cultural co-operation and exchange between Asia and Europe. A biennial ASEM cultural festival and the establishment of ASEM twin cities are also recommended. 5. Promoting Political and Security Co-operation Major Recommendation #9: Affirmation of the Principles of Good Governance In order to promote better understanding between the two regions, the Vision Group, subscribing to the guiding principles laid down in the Bangkok Summit, sees the dialogue between Asia and Europe on good governance in international relations as part of their political co-operation. The Vision Group therefore recommends that the ASEM Leaders at their meeting in Seoul in 2000 affirm the principles of good governance. In addition, in order to promote better understanding between the two regions, the Vision Group recommends development of the dialogue between Asia and Europe on good governance and human rights. Given the importance of political and security issues, ASEM should lend itself as a vehicle for political and security dialogue between Asia and Europe at different levels, and encourage, co-ordinate and support the involvement of both governmental and non-governmental organisations in political and security dialogue. The Vision Group also encourages ASEM partners to explore ways and means to promote co-operation between the ASEAN Regional Forum (ARF) and the Organisation for Security and Co-operation in Europe (OSCE). Furthermore, The Vision Group notes that ASEM partners could provide training centres and facilities where Asian, European and other peace-keepers could be jointly trained. The Vision Group also recommends that ASEM partners commit themselves to determined action to stem the proliferation of weapons of mass destruction and their means of delivery, encouraging universal compliance with the Nuclear Non-Proliferation Treaty (NPT), the Comprehensive Nuclear-Test-Ban Treaty (CTBT), the Chemical Weapons convention (CWC), and the Biological Weapons Convention (BWC). All countries face the challenge of managing social imbalances, and need to work to prevent social inequalities, including inequalities in income distribution and in access to education, from rising to levels at which they pose a threat to social cohesion. In addition, the fight against absolute poverty must be accentuated as general prosperity increases. In many ASEM partners a gender problem is exacerbated by wide disparities with regard to educational opportunities and place in the labour market. The Vision Group calls on ASEM partners to focus on raising productivity, extending employability – particularly of the female workforce – and reskilling as central aspects of social policy. This is recommended as a further area in which exchange of experience and best practice would be beneficial. In this regard, the contribution of the ASEM Trust Fund is welcomed. 6. The ASEM Process The Vision Group notes that the ASEM process will become more complex, not less. The Group believes there is a need for a point of co-ordination, a focus for continuity ensuring momentum of the ASEM process and for communication on ASEM activities and achievements. Although the Vision Group recognises the existing minimum institutionalisation principle of the ASEM process, the Vision Group still recommends the establishment of a lean but effective secretariat. Most of this article is taken directly from the report without quotations. | |||
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