Spain accelerates Look-East program<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Spanish government, which currently holds the presidency
\nof the European Union, has stepped up its Look-East policy since
\n2000 under a four-year Asia Pacific Framework Plan devised to
\nbroaden and deepen its overall relations with what it sees as a
\nhigh-growth region. German Begarano, director general for
\ninternational economic relations at the Spanish foreign ministry,
\nand Damasa de Lario, the Spanish ambassador to Indonesia, shared
\ntheir views about the program and its implementation in
\nIndonesia in separate interviews with The Jakarta Post.<\/p>\n
Question: Spain had traditionally developed intensive
\nrelations only with Europe, Latin America and the Mediterranean.
\nWhat is the thought process that led to this new spirited
\ndevotion to Asia.<\/p>\n
Answer: The policy reorientation was prompted by the
\nrealization that Spain's marginal presence in the region, except
\nin the Philippines, goes against the political, economic and
\nsocial interests of modern Spain, a thriving, technologically
\nadvanced country, one of the most dynamic members of the European
\nUnion. Despite its short crisis in the late 1990s, Asia
\nundoubtedly remains one of the most dynamic regions, home to the
\nso-called economic tigers, major multinationals and foreign
\ninvestors. Since Spain has increasingly become a supplier of both
\nfinancial, development assistance capital and technology, it
\nneeds to capitalize on that position to enhance its political,
\neconomic and social engagement in the region.<\/p>\n
Q: What are the objectives of the Plan?<\/p>\n
A: The objectives in the political arena are deepening bilateral
\nand multilateral political relations through bilateral programs
\nand more intensive involvement in regional organizations such as
\nASEAN and its various forums, actively contributing to peace-
\nkeeping and stability and promoting greater respect for and
\nprotection of human rights in Asia.<\/p>\n
In the economic field, Spain is implementing concerted efforts
\nto expand trade, develop investment by promoting its
\nmanufacturing capability and enlightening the Spanish business
\ncommunity of the business and trade opportunities in Asia and
\nincreasing its overseas development assistance.<\/p>\n
Certainly, there are numerous other programs in education and
\nculture aimed at improving mutual understanding. Most important
\ntoo are our internal efforts to promote among the Spanish people
\na higher sense of understanding on the relevance of Asia to our
\nnational interests. Without active support of the people, notably
\nour regional governments, business community, mass media, social,
\ncultural and educational organizations, the government-sponsored
\nplan will never achieve its goals.<\/p>\n
Q: Given the vastness and diversity of the Asian region, how is
\nSpain implementing the Asian dimension of the plan within its
\nforeign policy?<\/p>\n
A: We realize that increasing our presence in Asia requires
\nspecific actions and programs to ensure a more in-depth knowledge
\nof each sub-region and individual countries in the region. In
\nterms of policy approach, the plan therefore divides the Asian
\ncountries into five different groups: China, Japan and the two
\nKoreas, Indian subcontinent, ASEAN and Australia together with
\nNew Zealand and the Pacific island states.<\/p>\n
Q: Could you cite specific programs in the ASEAN group of
\ncountries?<\/p>\n
A: There are too many programs designed specifically to the ASEAN
\ngroup and to its individual members to fit this space. Just to
\ncite some of them, we have stepped up our consultations with the
\nambassadors from ASEAN countries in Madrid and increased the
\nmonitoring and participation in the ASEAN and its various forums.
\nAn ASEAN House is being prepared in Barcelona to operate as the
\ncenter for disseminating information on ASEAN countries and
\npromoting their products.<\/p>\n
Q: What programs is Spain undertaking in Indonesia as part of the
\nplan?<\/p>\n
A: Like in other Asian countries, the engagement of Spanish
\nofficials and business organizations in Indonesia has so far been
\nvery small. Perhaps, the most popular flag of our business
\ncooperation in the country has only been the joint venture
\nbetween CASA and state-owned PT Dirgantara Indonesia in Bandung
\nto manufacture light passenger aircraft bearing the CN-235 series
\nnumber but this company is now facing severe financial problems.<\/p>\n
However, the Spanish government has stepped up its involvement
\nin Indonesia's development through its participation in the
\nConsultative Group on Indonesia (CGI) creditor consortium.<\/p>\n
In 2001, for example, the Spanish government disbursed US$39
\nmillion in soft loans for four development projects in health
\nservices for the urban community and the National Police, the
\ncomputerization of land-title registration and certification and
\nvocational education. In the same year, the government pledged
\n$71 million in soft loans for seven other projects in various
\nsectors.<\/p>\n
For fiscal year 2002, the Spanish and Indonesian governments
\nagreed on aid disbursements amounting to $57 million for
\ndevelopment projects in health, basic infrastructure, education
\nand good governance.<\/p>\n
Spain has built up good expertise and reliable software
\ntechnology in developing good governance practices through
\ncomputerized information systems at state institutions and has
\nfulfilled Indonesia's requests to develop such systems at the
\nimmigration and Attorney General's offices throughout the
\ncountry. The projects have been tendered but there are some
\nproblems that have to be resolved before the projects can run at
\nfull speed.<\/p>\n
Q: Since the Spanish soft loans are tied to the procurement of
\nSpanish products, what is termed as development aid seems also to
\nbe designed to help Spanish companies enter the Indonesian
\nmarket?<\/p>\n
A: We should admit that Spanish development aid also is designed
\npartly to introduce the expertise, technology and competitive
\nedge of Spanish companies in Indonesia. There is nothing wrong
\nwith that, soft loans from other Indonesian donors within the CGI
\nare also tied. As the loans offer concessional terms such as
\nmaturities of more than 30 years, a grace period of 10 years, and
\ninterest rates below 3 percent that are not available in the
\nfinancial market, they also impose several strings.<\/p>\n
Most important, though, is that development projects to be
\nfinanced with such soft loans must be selected by Indonesia's
\nNational Development Planning Agency. We don't offer things that
\nIndonesia does not need. In fact, we are always in consultation
\nwith the agency regarding any projects to be implemented.<\/p>\n
We hope that as more Spanish companies build projects in
\nIndonesia, they will eventually be interested in investing in the
\ncountry and expanding two-way trade which is now still way in
\nfavor of Indonesia. Spanish imports averaged almost $1 billion a
\nyear between 1997 and 2000 consisting mainly of minerals such as
\ncopper concentrates, coals and precious metals, canvas shoes and
\nfurniture. But its exports have so far been languishing at
\nbetween $200 million to $350 million per year.<\/p>",
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