ASEAN members urged to consider differences<\/p>\n
JAKARTA (JP): Minister for Investment Sanyoto Sastrowardoyo
\nsaid yesterday ASEAN should consider its members' economic
\ndifferences when admitting Cambodia, Laos, and Myanmar as new
\nmembers.<\/p>\n
\"There are challenges and opportunities for us when ASEAN
\nmembership has been expanded with the inclusion of three other
\nprospective members, namely Cambodia, Laos and Myanmar,\" he said.<\/p>\n
Sanyoto, who is also the chairman of the Investment
\nCoordinating Board, was speaking at a three-day seminar called
\n\"Enhancement of Trade and Investment Cooperation in Southeast
\nAsia: Challenges and Opportunities towards ASEAN-10 and Beyond\".<\/p>\n
ASEAN secretariat and the United Nations Economic Social
\nCommission for Asia and the Pacific organized the seminar.<\/p>\n
ASEAN groups Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore, Thailand and Vietnam. Cambodia, Laos and Myanmar are
\nexpected to join in the middle of this year.<\/p>\n
Sanyoto said that to cope with the challenges and
\nopportunities ASEAN members should lay down a long term strategy
\nwith some basic elements.<\/p>\n
The basic elements should include ASEAN's continuing efforts
\nto provide a stable macroeconomic environment, improve its
\nefficiency and competitiveness, and place more emphasis on human
\nresource development, he said.<\/p>\n
He said ASEAN should prioritize investment in basic
\ninfrastructure with a view to spreading out development more
\nevenly into less developed regions.<\/p>\n
\"Since public sector resources in most ASEAN member countries
\nmight still be limited, the private sector should be given a
\ngreater role in the provision of social infrastructure, such as
\neducation, health care and economic infrastructure,\" he said.<\/p>\n
ASEAN should be also committed to more equitable and fair
\ndevelopment strategies, including reducing poverty by providing
\ndirect assistance to people with limited access to economic
\nopportunities.<\/p>\n
U Nyan Lynn, the seminar's participant from Myanmar, said an
\nexpanded ASEAN would pose new challenges.<\/p>\n
\"The existence of differences in the level of economic
\ndevelopment, political and social systems and the integration of
\nnew members in a brief time span naturally calls for greater
\naccommodation and understanding based on equality and mutual
\nrespect,\" he said.<\/p>\n
He said most ASEAN countries were becoming increasingly
\nindustrialized and had integrated into global trade, investment
\nand financial systems.<\/p>\n
But Cambodia, Laos and Myanmar remained agricultural countries
\nin search of contacts, markets, investment capital, skills and
\ntechnology necessary for their level of development, he said.<\/p>\n
\"Once ASEAN becomes ASEAN-10, the Association must not be
\ndivided by economic cleavages. The nations and people of ASEAN
\nmust strive to make economic development a part of the common
\nregional goal and they must be prepared to engage in the task of
\nhelping to resolve one another's structural problems,\" he said.<\/p>\n
Nguyen Thanh Trung, a member of the Vietnamese delegation to
\nthe seminar, said ASEAN's spirit was important.<\/p>\n
\"Amid the current process of globalization, competition was
\nunavoidable among countries of the world. But for us in ASEAN the
\nmore important thing is the ASEAN spirit, that is to cooperate,
\ncoordinate, and benefit each other,\" he said.<\/p>\n
Investment<\/p>\n
Talking about investment Sanyoto quoted the United Nations'
\n1996 world investment report which stated ASEAN nations were
\namong the world's few developing countries which could attract
\nsubstantial foreign direct investment (FDI).<\/p>\n
The ASEAN region, one of the fastest growing economies in the
\nworld, absorbed about US$20 billion, or more than 30 percent of
\nFDI into South, East, and Southeast Asia in 1995.<\/p>\n
Within ASEAN Indonesia, Malaysia and Singapore had the largest
\nFDI worth $4.5 billion, $5.8 billion, and $5.3 billion
\nrespectively.<\/p>\n
But capital inflows to the three prospective member countries
\n-- Cambodia, Laos and Myanmar -- was just $165 million or 0.83
\npercent of the capital inflows to existing ASEAN members.<\/p>\n
World FDI in 1995 totaled $315 billion, up almost 40 percent
\non the previous year.<\/p>\n
Although the capital inflow into developing countries in 1995
\nincreased 14.5 percent to $100 billion, its share of world
\ncapital inflow fell from 38.5 percent in 1994 to 31.6 percent in
\n1995.<\/p>\n
But FDI to developed countries in 1995 was $203 billion, a
\n64.5 percent rise from the previous year. (bnt)<\/p>",
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