DAVOS, Switzerland, 27 January 2008 — The rise of China and India on the world economic stage has sent a wake-up call to the members of the Association of Southeast Asian Nations (ASEAN) to get their own houses in order. This was pretty evident from the deliberations at the World Economic Forum Annual Meeting. There was a time when the world looked at East Asia with awe. However, political problems and economic meltdown in the late 1990s left the East Asian tigers clawless. But now they are trying to infuse new life into the organization, and instead of sharpening their claws, this time the focus is on sharpening their business acumen.
Rather than taking on China and India, the South East Asian nations are now calling for joining hands with these two emerging giants with a view to make the most of the region’s economic dynamism. To turn disadvantage into advantage, ASEAN leaders are calling for deepening trade ties with China, South Korea and Japan as well as India.
“Such a strategic alignment will not only assist the process of regional integration in Southeast Asia but also bring ASEAN countries — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — closer to the major players in East Asia,” Abdullah Badawi, prime minister of Malaysia, told participants in a high-level plenary session titled “The Emerging Asian Community: The Role of ASEAN.”
ASEAN leaders see the present as the time for the group’s next step. “The phenomenal rise of China and India has taken much of the limelight from the ASEAN stage. While the players of East Asia and the Pacific still value the ASEAN processes of dialogue and consultation, they have also began to realize that they need their own tract to promote their own interests,” said ASEAN Secretary-General Surin Pitsuwan.
“ASEAN has given them a valuable period of ‘getting to know you.’ Now they need to go beyond talks and move toward tangible action. From now on, the group must consolidate and leverage all resources and geographical advantage to remain relevant, and continue its role as the centerpiece of East Asia community building.”
The emphasis will be on fuzzy paws rather than sharpened claws. “It is in that manner that the ASEAN leaders are trying to turn the challenge of the rise of China and India into the boon of the rise of East Asia,” Pituswan said. “But they realize, too, that this new model of economic cooperation could be perceived as a potential fortress of Asia, as the European Union was once feared. They need to keep their promise of open regionalism.”
There was a call for cohesion to weather potential instability. “This is crucial because globalization brings with it risks, as seen in the recent financial market turbulence,” said current ASEAN Chairman Lee Hsien Loong, who is also Singapore’s prime minister.
“The economy of Vietnam, for example, is taking off. The Philippines has strengthened its public finances while Singapore is enjoying a strong momentum, riding on the regional growth as well as its own economic restructuring. Oil producers, like Malaysia and Indonesia, are also benefiting from high-energy prices. Thailand is enjoying strong exports while forming a new elected government. Laos, too, is benefiting from the strong global demand for commodities.”
“China is doing very well today, and ASEAN has regarded China as a friend,” Badawi said. “All ASEAN countries have benefited from China’s growth today. This has been an eventful 40 years for ASEAN. We’ve come a long way, and at Davos we have presented our plans for the next phase. We can’t see 40 years ahead. That’s not possible — even for 10 years, there’s a lot of mist and haze. But over the next five to seven years, we have ambitions. We are serious about them. We know what we need to do, and I think if we have another ASEAN event here in five or seven years’ time, we’ll have new items and new progress to report.”
Getting houses in order means more than trade agreements and finances. Philippines President Gloria Arroyo urged member countries to make a difference in the region by getting detained opposition leader Aung San Suu Kyi freed in Myanmar, calling for ASEAN to attain a level of democratization on the issue of human rights.
“If we are to work collaboratively for the common good, we must see political reform,” Arroyo said. “We must see Aung San Suu Kyi released — and now. Our present ASEAN knows our position on this.”
Pitsuwan said the WEF session has gotten people talking about the regional grouping. He added that ASEAN must play its part by making itself attractive.
