Asia gaining an international voice

Asia gaining an international voice

Frank-Juergen Richter and Pamela Mar, The Straits Times, Asia
News Network, Singapore

We have just come out of three big international summits of
elites from business and government. The APEC meeting in
Shanghai, the World Economic Forum East Asia Economic Summit in
Hong Kong and the World Trade Organization (WTO) ministerial
meetings in Doha have approached common issues of business,
economy, geopolitics each with their own twist.

The results of the meetings are signposts, enabling observers
to muse on Asia's future.

Asia's geopolitical voice has achieved a significant level of
coherence. Whether one calls this political maturity or
converging of interests, the region is starting to realize a
sophistication of international voice.

The biggest country, China, no longer allows domestic policy
to be the primary shaper of international stance, as evidenced by
Jiang Zemin's support for the global anti-terrorism platform at
the APEC Summit.

In addition, China's realization of the Shanghai Cooperation
Organization with the republics of Central Asia shows a careful
crafting of multilateral relations which further supports the
proposition of a proactive China in the international arena.
China has also gained leverage vis-a-vis its most difficult
relation, Japan.

Smaller countries are also speaking forcefully, lest the world
begins to think that the only countries in Asia that matter are
China and Japan.

Philippine President Gloria Arroyo made clear that the
Philippines clearly sees links between global conflict and the
fight at home against Muslim separatists. Her renewed efforts in
this area indicate that she will likely continue the Philippine's
strong presence at the global level.

Although it is too early to predict a joint thrust of foreign
policy, the three summits have shown a development towards an
Asian voice that is balanced and distinct.

At the same time, this is markedly different from the past in
that it is in no way carved from the superficial concept of
"Asian values" but, instead, grounded in the need to tackle
immediate needs and challenges.

A prediction we offer is that Asia is maturing in its
discussion of free trade and is thus well-positioned to bolster
positive intra-regional trade. The "threat" of China has become
the catalyst giving the region enough clarity and determination
to realize the vision for an Asian free-trade area.

The idea of a free-trade area with China as its economic core
is an acceptable and even optimistic proposition for Southeast
Asia. The attention shown to China, China's great efforts to show
solidarity and the will to cooperate with its East Asian
neighbors at APEC and the East Asia Economic Summit demonstrates
that both sides accept the other as an indispensable partner.

At the same time, Asian countries have defined the bounds of
their aligned interests, most forcefully on the issue of monetary
cooperation.

At the East Asia Economic Summit, the region's major central
banks agreed that while monetary cooperation was an interesting
proposition, the region does not need nor would it benefit from a
European Union-style economic grouping nor a common currency. But
they made it clear that they would continue to consult, formally
and informally, in addressing currency and financial-market
issues.

Added to the achievements of the government-driven APEC and
WTO meetings, the East Asia Economic Summit churned out direct
action potential for businesses.

In tackling the economic recession and in responding to their
governments' policies, Asian businesses are beginning to behave
more and more like "Western" multinationals. Asia's industry
leaders have increasingly moved production overseas, hired and
fired workers with the same bottom-line driven intensity as
Western MNCs, used capital markets to achieve financing, and
pursued mergers and acquisitions in response to business needs
rather than political allegiances.

Moreover, they have defined their joint interests and are
undertaking discussion on these issues with their political
leaders. They are insisting, as intensely as any Western
lobbyist, on being heard. Certainly, Indian Minister Murosoli
Maran's vociferous defense of the trading rights of developing
countries testifies to this convergence of government policy and
business constituencies at home.

This is not to say that Asia will move towards a U.S.-style
lobbying business but merely that Asia's business leaders are
learning how to jointly define, defend and assert their
collective interests with their political leaders.

Addressing one's business interests with government is nothing
new, but the fact that Asia is doing so at the global level is a
relatively new phenomenon.

If Asia fights the recession with the same skill it exhibited
in the three meetings, it will emerge a stronger and more matured
player on the world stage.