ASEAN measures are not bold enough: Analysts<\/p>\n
HANOI (AP): Southeast Asian officials are finalizing a package
\nof \"bold measures\" to restore confidence in the region's
\ndevastated economies. But analysts say they aren't bold enough to
\nspark a turnaround of the 17-month-old financial crisis.<\/p>\n
\"This is very disappointing actually; these are not bold
\ninitiatives,\" said Maria Socorro Bautista, an economist at the
\nUniversity of the Philippines. \"This is not new.\"<\/p>\n
The measures, to be announced later this week at a summit of
\nthe Association of Southeast Asian Nations, include faster trade
\nand investment liberalization and relaxed rules on foreign
\nownership of land.<\/p>\n
ASEAN economic ministers consider the measures so important
\nthat they took the unusual step of throwing them back twice to
\ntheir senior officials for strengthening -- once in October and
\nagain last Saturday.<\/p>\n
They say they're pleased with the results.<\/p>\n
\"It's going to be significant,\" Indonesian Economic Minister
\nGinandjar Kartasasmita said. \"It signals the seriousness of the
\ncountries in this region... these will not be easy measures.\"<\/p>\n
The package must still be approved by the ASEAN leaders, who
\nwere arriving in Hanoi on Monday for their two-day summit.<\/p>\n
A draft of the measures says the countries will eliminate
\ntariffs on most products traded within the region by 2002, a year
\nfaster than previously envisaged. However, poorer members of the
\nnine-member group will be given more time.<\/p>\n
The group also will establish an ASEAN Investment Area in
\n2003, seven years ahead of schedule. That will open more
\nindustries to foreign investment and give businessmen from other
\nASEAN nations the same legal rights as local investors. It also
\nwill allow 100 percent foreign ownership of land and of more
\nindustries.<\/p>\n
However, countries with constitutional restrictions on foreign
\nownership, such as the Philippines and Vietnam, will be allowed
\nexemptions.<\/p>\n
The current package also includes duty-free imports of capital
\nequipment and says a new round of negotiations on trade in
\nservices will begin early in 1999 and end in 2001.<\/p>\n
Some countries also offered individual concessions to start in
\n1999. Several, however, were already planned or have already
\nbegun.<\/p>\n
The Philippines, for example, pledged to open retail trade and
\ndistribution businesses to foreign equity -- a step contained in a
\nbill already submitted to its Congress.<\/p>\n
Indonesia said it will allow 100 percent foreign equity in
\nmanufacturing and listed banks, which Ginandjar said it had
\nalready planned.<\/p>\n
\"We were going to do it anyway. But if we do it together, the
\nimpact will be much greater,\" he said.<\/p>\n
Officials say they've realized that foreign investors tend to
\nsee Southeast Asia as a single region, and therefore it's
\nimportant that the whole region send a message that it is coping
\nwith its economic difficulties.<\/p>\n
\"This is a collective move by the ASEAN members to show
\nthey're still committed to trade and liberalization,\" said Song
\nSen Wun, regional economist for G.K. Goh in Singapore.<\/p>\n
\"This may look bold, but these are just brave words at these
\ntrying times.\"<\/p>\n
ASEAN groups Brunei, Indonesia, Laos, Malaysia, Myanmar, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>",
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