Sat, 27 Nov 1999

Asia First

The summit of the Association of Southeast Asian Nations (ASEAN) in Manila this weekend is of great importance for the region and for Indonesia. It will be the last summit before we move into a new millennium, with all the exciting and unpredictable challenges facing the world and the region. It will be the first summit for the region as it recovers from a devastating economic crisis, a setback which has in retrospect put the region on a stronger economic if not political footing. For Indonesia, this is the first ASEAN summit after tumultuous changes, marked by the shift from a repressive to a democratic government.

The Manila summit is essentially a chance for the 10 ASEAN leaders to chart the course of the region into the next millennium. It is just as well that they have invited their counterparts from China, Japan and South Korea. With ASEAN leaders currently considering the idea of political and economic integration, to be truly effective, the association should expand its boundaries to encompass the whole of Asia, or at the very least, the East Asia region.

The integration of East Asia, even with all the challenges which this process would entail, must be initiated now if the region is to survive the vigorous competition which the globalization process has unleashed. Asia is falling behind the two other major regions. Europe is leading in this game of political and economic integration to the point of having a common currency. The Americas is forging ahead with the North American Free Trade Agreement (NAFTA), which include South American countries. Argentina, for example, is even considering getting rid of its own currency in favor of the U.S. dollar.

Admittedly, Asia is far less homogeneous, and far more diverse than these two other geographical areas, that political and economic integration will be that much more difficult. Asia has also witnessed some of the most destructive wars since World War II, and it hosts some of the major hot spots that could potentially erupt into devastating conflicts, such as the ones in the Taiwan Strait, the Korean Peninsula and the South China Sea. These tensions have made the process of promoting integration even more challenging. However, they should not deter the region from promoting the much-needed integration.

One of the major lessons from the 1997 Asian financial crisis is the need for the region to reduce its heavy reliance on the U.S. dollar in trade and investment. Such dependence on one single currency exposed Asian economies to the volatile world currency markets. Talks have already started among Asian countries about realigning their currencies to one of their own. While it may be decades before this idea gains popular currency, it is encouraging to note that people are talking about it.

Underpinning the difficulty of economic and political integration within Asia is of course lingering distrust among countries in the region. This is a legacy of both World War II and the Cold War. Overcoming mutual suspicions remains the biggest challenge facing the region. So long as it exists, it is difficult for the two most powerful countries in the region -- Japan and China -- to provide the leadership that is needed to push the idea of political and economic integration.

This is precisely the point where ASEAN comes in. The association remains the only institution in East Asia that has the credibility and capacity to take the initiative, if not the leadership, in major issues of concern to the region. ASEAN has demonstrated this ability in the past, and in spite of the setback caused by the economic crisis, it surely has the capacity to play that role again now.

In turn, Indonesia can and must provide leadership within ASEAN. As the largest member in the group, Indonesia's leadership comes with the territory. This has always been the case, but with one big difference: we now have a new democratically elected government in Jakarta.

Under President Abdurrahman Wahid, this will be a more confident Indonesia, one with far less political baggage than the Indonesia under Soeharto. Assuming that Indonesia can resolve its domestic problems and begin the economic recovery process, then it is well positioned to take up leadership of ASEAN.

President Abdurrahman was correct in his decision to make Asia his first foreign policy priority. This weekend in Manila, he will have the chance to move beyond slogans to turn the Asia First concept into reality. He must seize the initiative, if not the leadership, to push for economic and political integration. For Indonesia and the rest of Asia, there is no other alternative for surviving the next millennium.