Indonesian Political, Business & Finance News

SE Asian officials tackle political and economic woes

| Source: AP

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.

View JSON | Print