Sat, 21 Dec 2002

Promoting the newer ASEAN member states

Pola Singh, Head, Initiatives for ASEAN Integration Unit, Jakarta

As integration with the world economy increases, the Association of Southeast Asian (ASEAN) finds itself facing important opportunities and challenges including the need to better integrate the new members into the regional and global economy. ASEAN leaders have agreed to develop a Roadmap for Integration of ASEAN (RIA) in order to put the objective of regional integration at the center of ASEAN's cooperation and provide a framework for more coherent implementation of the regional integration program.

A stable, prosperous and highly competitive ASEAN economic region is envisioned, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities.

Among ASEAN's greatest challenges in the new millennium is the one it faces within: The integration of market diversity and the transitional economies of its new member countries -- Cambodia, Laos, Myanmar and Vietnam (collectively known as CLMV countries). In November 2000, the ASEAN Leaders agreed to launch an 'Initiative for ASEAN Integration' (IAI) program, which gives direction to and sharpens the focus of collective efforts in ASEAN to narrow the development gap between ASEAN's older and newer members.

With the rapidly changing socio-economic global landscape, there is a greater sense of urgency and commitment among ASEAN countries to push ahead with fresh approaches to ensure that the newer members -- Cambodia, Laos, Myanmar and Vietnam (CLMV countries) -- are not left behind. Widening of the development gap between the older ASEAN-6 members and the CLMV countries could undermine regional solidarity.

This six-year IAI work plan (July 2002 -- June 2008) has been developed to assist these countries which are lagging behind catch up with the rest by ensuring that the economic wheels of their economies move at an accelerated pace. Furthermore, this Work Plan, if implemented successfully, will instill confidence in these countries to face the economic challenges ahead such as globalization and liberalization.

The programs, activities and projects under the work plan are directed at strengthening the CLMV countries' capacity, capability and resolve in meeting the challenges ahead such as reducing poverty, preparing them to face global competition and also assisting them to gain some competitive edge in world markets.

ASEAN's experience in the last three decades has shown that measures to reduce inequality in income and wealth distribution can contribute to faster economic growth. The programs, activities and projects in the work plan are intended not only to enhance the productive capacity of the peoples in the CLMV countries but also make their economies more competitive in facing the new realities in the global economy. In all of these efforts, cooperation from all quarters is needed.

The launching of the IAI plan is the response of ASEAN in assisting its less fortunate members bridge the development gap among the older and newer members. Concerned on the well being of their fellow members, ASEAN-6 countries (Indonesia, Malaysia, Singapore, Thailand, the Philippines and Brunei) have committed to make significant contributions to uplift the standards of living of the CLMV countries.

ASEAN-6 will assist the new members by capitalizing on their broad spectrum of strengths, resources and abilities. Contribution of member countries could take various forms including training, provision of technical experts and supply of equipment, just to name a few. ASEAN-6 has taken the lead to ensure that the new members join in the mainstream of development by making numerous pledges and commitments to assist in the realization of the work plan.

Indonesia for instance has stepped forward and has made several country offers in the energy and transport fields as its contribution to the integration efforts. Similarly, Malaysia, Philippines, Singapore and Thailand have also responded in beefing up the capacity building efforts of the newer members. These efforts will undoubtedly lead to a speedier integration of ASEAN.

The CLMV will focus on the priority areas of infrastructure development, human resource development, information and communication technology and promoting regional economic integration in the countries.

The current inherent weak human resource capabilities in the CLMV countries together with weak or absent policy, institutional and legal frameworks make it difficult for these countries to raise their productive capacities; it also constraints the effective absorptive capacity of making optimum use of foreign aid. The work plan will strengthen the productive capacities of the CLMV countries with an improved enabling environment and strengthened support capacities

Information and communications technology offers the CLMV countries a vital opportunity and means to leapfrog the historical stages of development. In line with the e-ASEAN initiative, the CLMV countries will have in place the policy, institutional, legal and regulatory frameworks.

The information age poses the danger that those who are already well advanced will go faster and even further ahead. This means that ASEAN has to deliberately intensify efforts to assist the CLMV countries in ICT so that the ICT gap is not widened further. ASEAN wants to ensure that as it strives to catch up with the more advanced economies, the gap narrows between those the older members and the newer members who will be in danger of being left out of the information age.

All of these efforts and the realization of the benefits will take time. Hence ASEAN has given the CLMV countries a six- year timeframe to nurture, evolve and develop clean and efficient administrative systems managed by experienced, competent and proactive officials who are quick to respond to changes.