Asia, Africa need new strategy for cooperation

Asia, Africa need new strategy for cooperation

Yash Tandon and Chandra Kant Patel, Geneva

The conjuncture of rapid structural transformation in a
growing number of economies of Asia, the adoption of reforms to
revive Africa's economic prospects, and the expected leveling --
off in demand and income growth in the advanced economies
provides a propitious setting for renewed efforts to strengthen
Afro-Asian economic cooperation. Emerging complementarities
between the economies of the two regions, buttressed by macro-
economic reforms of the recent past, have contributed to a rapid
growth in trade, investment and financial flows between them.

The expansion in inter-regional trade has, potentially, far
reaching consequences not only for these two regions but for the
world economy as a whole. It signals, for example, a rupture in
the center-periphery pattern of trade that has historically
defined developing countries relations with the North. These
shifts are also likely to affect the quality of trade relations:
intra-developing trade is more likely to reflect equality and
mutuality of interests, unlike the rancor and dependence that
characterizes North-South trade relations.

As regards OECD economies, the New Strategy will need to take
into account demographic trends and consequences of an aging
population, declining savings (and long-term investment) and
stagnation in demand due in part to a saturation of consumption
and stagnation in income growth. The New Strategy must therefore
address the implications of shifts in the loci of dynamism and
growth away from developed to other regions of the world.

Deepening Afro-Asian ties, however, will require sustained
political efforts. One of the lessons deriving from earlier
measures to increase economic cooperation and promote
integration, no less within regions as between them, suggests
that in the absence of a high degree of political commitment and
support, such efforts are unlikely to secure the full benefits of
mutual cooperation.

At the same time, given the considerable heterogeneity
within and between the two regions, efforts towards enhancing
cooperation must necessarily embody multiple approaches. In this
regard, strengthening intra-regional cooperation will itself have
spillover effects towards strengthening inter-regional ties via
the provision of more secure and larger trade and investment
markets.

The several existing structures designed to promote sub-
regional, regional and even inter-regional arrangements will be
required to play a leading role in providing form and content to
a New Strategy for Enhancing Trade, Investment and Technical
Cooperation (New Strategy). Likewise, beyond the important
catalytic role of Governments, civil society will have to play a
greater role than heretofore. New partnerships embracing
business, industry, centers of learning and research and other
non-governmental structures will, to a much greater extent than
before, be expected to drive the process of cooperation.

A tri-partite framework of cooperation involving inter-
governmental forums, sub-regional organizations and people to
people and civil society interaction should be formalized to the
extent possible and structured to permit its growth. The
forthcoming Asian-African Summit in Jakarta therefore has a
central role in designing and establishing such a framework
within which the New Strategy can be nurtured.

An important component of such a framework must be the
establishment of follow-up arrangements to service the technical
and policy-making organs of the New Partnership, to monitor
progress in the implementation of the decisions and to help
coordinate the work of existing institutional structures and
private-public partnerships in support of the New Strategy.

Such an effort would require political guidance and
leadership on an on-going basis and for which a standing bureau
of the conference could be established to meet periodically,
including at heads of states levels, to monitor progress and take
appropriate decisions. The follow-up structures could consist of
one or more of the regional organizations and new ones to be
created such as, for example, An Afro-Asian Trade and Investment
Chamber.

Priority areas critical for the success of the New Strategy
include: Policies and measures regarding international trade and
the harnessing of comparative advantages between the two regions;
the role of a revived Global System of Trade Preferences;
cooperation in the field of commodities, investment and transfer
of technology and special measures for the least developed
countries.

Likewise, sharing of expertise and knowledge, learning from
best practices concerning agricultural, industrial and commercial
policies, and related measures covering FDI and its promotion,
transfer of technology and competition policy should be expected
to form a key component of the New Strategy.

In this respect, the role of non-governmental actors in
promoting learning and sharing of experiences must be
highlighted. Access to the resources at the disposal of the
private sector and related associations such as Chambers of
Commerce, Business and Industry associations and Export and
Investment promotion agencies would complement the traditional
Government to Government mode in the delivery of technical
assistance.

The establishment of a network of relations between Asian and
African Universities and centers of research could play a leading
role in training, increasing exchanges of students and faculty,
building technical capacities and sharing of knowledge in a wide
range of development policies and areas.

Given the similarities of development experiences, provision
of technical assistance between Asia and Africa is likely to be
more productive, cost-effective and better adapted to each
other's need than support from the traditional providers of such
assistance.

However, this will not take place spontaneously or at levels
warranted by needs or demand. The transfer of technical
knowledge and assistance among them must be supported by, as
necessary, contributions from Governments and private entities
and for which consideration may be given to the establishment of
an Afro-Asian Technical Assistance Pool to be managed and
administered by one or more of the existing institutions of
cooperation in the two regions.

Yash Tandon is Executive Director of the South Centre, Geneva.
Chandra Kant Patel is Co-ordinator in Geneva of the Southern and
Eastern African Trade Information and Negotiation Institute
(SEATINI).