SE Asian officials tackle political and economic woes

SE Asian officials tackle political and economic woes

SINGAPORE (AP): Southeast Asian officials meeting in Singapore
on Wednesday began wrestling with multiple challenges including
fragile presidencies, dwindling foreign investment and the rift
between rich and poor.

Government heads, diplomats and economic ministers from the
Association of Southeast Asian Nations (ASEAN) had grand plans to
boost electronic commerce, free trade and foreign investment as
they began four days of talks in Singapore.

But the 33-year-old ASEAN alliance is creaking under the
weight of numerous problems.

Even as it struggles to emerge from a devastating economic
recession, ASEAN is trying to steer its 10 member countries -
some with largely agrarian economies -- headlong into the digital
age with an "e-ASEAN" accord to be signed on Friday promoting
free trade over the Internet.

But the annual summit of ASEAN does not list defense
cooperation on its agenda. Still, there are cautious efforts
within the organization to boost military links in such "non-
warfighting" fields as search-and-rescue or providing relief to
regions struck by natural disasters.

"For the first time there is a push within ASEAN to develop
multilateral military cooperation," said Robert Karniol, the
Asia-Pacific editor for Jane's Defense Weekly, a respected
defense journal.

ASEAN's largest member, Indonesia, is riddled with separatist
movements and ethnic violence. Its ailing leader, President
Abdurrahman Wahid, faces calls to resign.

Philippine President Joseph Estrada is being impeached on
corruption charges, and upcoming elections in Thailand are
stirring political uncertainty.

Meanwhile, Southeast Asia is losing out to Northeast Asia as a
destination for crucial foreign investment.

Malaysia has criticized its wealthy, ultramodern neighbor
Singapore for its rapid-fire initiatives to form bilateral free-
trade pacts with a number of countries from New Zealand to the
United States.

There is a huge gap in economic development between ASEAN
founding members such as Singapore and Thailand, and new members
Cambodia, Laos, Myanmar and Vietnam.

In addition, many Western countries are politically squeamish
about ASEAN's recent inclusion of military-ruled Myanmar, which
has long been criticized for human rights abuses.

Laos has been plagued by a series of mysterious bomb
explosions in public places. Foreign investors are intrigued by
Vietnam's possibilities, but frustrated by the country's refusal
to loosen its socialist bureaucracy.

ASEAN's regional partners, China, Japan and South Korea,
are to offer healthcare assistance to the 10-nation grouping, an
Indonesian delegate to the ASEAN summit said here on Wednesday.

Azrul Azwar, director-general of Indonesia's health services
committee, said the aid offer was made as senior officials met
Wednesday in preparation for the ASEAN-plus-three leaders'
summit.

South Korea will propose a vaccination and immunization
project, Japan will offer a scholarship program for health
services and China is to assist with an unspecified "humanitarian
project," Azwar said.

Full details are expected to be unveiled at a meeting of the
leaders of Japan, China and South Korea with the leaders of ASEAN
during the "ASEAN-plus-three" session on Friday, he said.

Economic and foreign ministers began consultations on
Wednesday, with the heads-of-government meetings slated for
Friday and Saturday.

ASEAN and its regional partners were expected to discuss
agreements aimed at backing each other's currencies in order to
stave off financial crises like the one that gutted Southeast
Asia in 1997 and 1998.

They also planned to talk about a proposed Trans-Asia railway
from Singapore to China. But even as Northeast and Southeast Asia
gear up for talks on cooperation, they are competing for foreign
investment.

A lack of confidence in the way Southeast Asia has handled the
financial crisis has sent much of that investment north, where
countries such as South Korea and Taiwan have responded to the
same crisis by liberalizing their economies and opening up key
sectors.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Vietnam.