Australia extends A$45m to strengthen ASEAN economy

Australia extends A$45m to strengthen ASEAN economy

Sari P. Setiogi
The Jakarta Post
Jakarta

A A$45 million (US$31.72 million) aid program provided by the
Australian government to the Association of Southeast Asian
Nations (ASEAN) was officially launched on Wednesday evening in
Jakarta.

The program, called the ASEAN-Australia Development
Cooperation Program (AADCP), aims to strengthen economic
integration and competitiveness in the region through a series of
medium-term activities over two or three years.

ASEAN Secretary-General Ong Keng Yong told The Jakarta Post
that the AADCP would focus on research and academic studies,
rather than on creating physical infrastructure.

"It will, for example, conduct studies about free trade... to
help policymakers in determining what decision they should take.
There are many people in ASEAN countries who have good knowledge
and solid expertise, and they can be encouraged to do more with
some advocacy," he said.

He said the program was also expected to narrow the
information gap among ASEAN nations in integrating the economies.

Priorities for the program include trade issues, such as
improved customs and quarantine services, agricultural pests,
disease and safety issues, food quality standards, e-commerce,
the labor market and human resources development planning, and
the competitiveness of small and medium enterprises.

ASEAN leaders recently agreed to integrate the region's
economies by 2020 in a bid to boost trade and investment
activities.

Australian Ambassador to Indonesia David Ritchie said in a
speech that the program would have three core components: the
program stream, interrelated capacity-building activities on
economic integration and competitiveness; the regional
partnership scheme, smaller collaborative activities enhancing
regional development; and the regional economic policy support
facility, a policy research facility on economic issues within
the ASEAN Secretariat.

The AADCP is a new phase of the ASEAN-Australia Economic
Cooperation Program, which started in 1974.

"Assisting the development of ASEAN is in Australia's
interest. This is very good for Australia's security. Economic
integration is not something we fear in ASEAN. We are very
pleased with it, because it will lead to stability in the
region," Ritchie told the Post .

Counselor of Development Cooperation Sam Zappia from the
Australian Agency for International Development (AusAID) told the
Post that the outcome of the program would also facilitate trade,
including trade between individual ASEAN member states and
Australia.

He said the project would exclude Singapore and Brunei, which
have "graduated" because of their strong economic performances
and capital incomes.

"They can participate in some of the processes, but they will
not receive funding," he said.