ASEAN and prosperity

Finance ministers of the Association of the South East Asian Nation's (ASEAN) member states meeting in Myanmar say the region is expected to grow at 3.4 percent to 4 percent this year bolstered by global recovery and efforts to integrate member nations.

In a joint statement at the conclusion of their annual meeting they say they are confident that "their sound macro-economic policies" would also have a positive effect.

They based their expectations on the projected recovery of the global economy, their sound domestic macro-economic policies and ongoing structural reforms and on the closer economic cooperation that ASEAN has fostered. The global slowdown, exacerbated by the Sept. 11 terrorist attacks on the WTC and Pentagon in the United States, has hampered the group's efforts to sustain economic recovery in the wake of the 1997-1998 financial crisis.

The ASEAN countries' modest growth in 2001 has been blamed on the general decline in direct foreign investments and export demand for electronics goods. ASEAN has identified economic integration and cooperation as being key to competing in the tough new competitive environment.

Special U.S. trade representative, Robert Zoellick, sent by President Bush to boost trade with Asia and in particular with the ASEAN, when here on a visit to Indonesia sounded very optimistic about Indonesia's foreign (capital) investment opportunities. He has even declared Indonesia to be safe for U.S. investments ignoring the noisy anti-American demonstrations in relation to the Middle East conflict, while he was here.

One reason for optimism may stem from the planned free-trade pact between the U.S. and Singapore. The people in Indonesia will benefit from this free trade agreement which should lead to greater investment, more jobs and higher expectations. There is reason to expect that the ASEAN region, in spite of Myanmar's "different state economy" will experience a period of stability ahead.

There may be less reason for Indonesia's extremist groups to join the terrorist movement provided prosperity and the distribution of welfare is more evenly spread in ASEAN countries. ASEAN therefore, as a regional organization, has thus demonstrated its worth as a grouping for constructive human endeavors.

GANDHI SUKARDI

Jakarta