Asian economies work well together Eric Teo Chu CheowChina Daily Updated: 2005-09-22 06:30
The third High-Level Conference on Asian Economic Integration was jointly
organized last week in Taiyuan, Shanxi, by Shanxi University for Economics and
Finance and the Research and Information System for Developing Countries (RIS)
of New Delhi, India. This initiative was supported by the Sasakawa Foundation in
Tokyo, which was also an active partner in the first two conferences.
This series of high-level conferences is thus an initiative of the three big
Asian powers, who are rightly leading Asian economic integration. What stood out
was a clear feeling of optimism that Asia is poised to accelerate its economic
integration, especially in the lead-up to the East Asia Summit (EAS), which will
take place in Kuala Lumpur in December.
At least five major themes emerged in Taiyuan, giving rise to this optimism.
First, it was stressed in the official opening remarks that the time was
right for the launch of Asian economic integration, as economies in the region
take off. The mood in Asia is optimistic, as economic growth has proven to be
sound and buoyant, despite the rise of oil prices and economic slowdowns in the
United States and Europe. China and India, and eventually Japan, will be the
much-needed engines of growth, especially in trade.
Indeed, Asia's economic integration will be more and more trade, investment
and consumption-led, as these three pillars will no doubt constitute the key
elements of Asian growth and integration.
It was also pointed out in the opening paper that sub-regional entities have
perhaps reached their limits, as they may not be able to exploit the full
potential of growth through the synergy of these economies alone.
This is perhaps the case for ASEAN, as the financial needs in terms of
infrastructure-building, as well as the potential of markets, may have reached
their limits.
It is here that Japan - and even the Republic of Korea, Australia and New
Zealand - could step up in the first place, with China and India providing a
later boost.
Complementary elements would definitely offer even greater potential in an
all-inclusive "ASEAN plus China, India, Japan, South Korea, Australia and New
Zealand" grouping, when launched in Kuala Lumpur.
Asia is coming to realize its interdependence is growing very quickly - not
only economically and financially, but also in other social areas, ranging from
health and education to environment and social development. Asian countries have
become fully aware of their total interdependence and common vulnerability, as
the past three years have adequately and unfortunately proven.
Moreover, the scourge of terrorism and piracy have also locked Asian
countries together in the Melaka Straits and the adjoining Indonesian maritime
domains, as well as in the South China Sea.
This common vulnerability and interdependence that binds Asia together is
progressively emerging in the common consciousness of Asians.
There is an urgent need for Asians to adopt a pragmatic, progressive and open
approach to growing regionalism and economic integration. Asian economic
integration must be progressive so as not to give the feeling of a heavy handed
top-down government-only approach, but should be pragmatic, as the economies
evolve towards integration, with the process balancing both social and economic
imperatives.
Moreover, Asian economic integration must be undertaken in an inclusive way,
in line with Asia's goal of "open regionalism," as its economies also depend
heavily on external trade. Asians must therefore assure Americans and Europeans
that Asian integration is not undertaken at their expense, as Asian economic
integration should not be seen as a threat.
One way to promote economic integration developed during the conference
consists of joining the existing and negotiated Free Trade Agreements (FTAs)
into a region-wide Asian FTA.
Lastly, there is also a need to create a "one-ness" or an "Asian-ness" within
the region - a feeling of "one Asia." The crucial question of an emerging Asian
identity arises, as Asians should feel a certain togetherness as a people,
forging a common destiny. But an Asian identity of togetherness and commonality
must be built progressively, if Asian integration is to be based on a solid
foundation.
(China Daily 09/22/2005 page4)
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