ASEAN and prosperity

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