Newsgroups: bit.listserv.seasia-l
Date:         Thu, 23 Jul 1992 04:36:43 PDT
From:         "Indonesia Publications/Task Force" <apakabar@IGC.APC.ORG>
Subject:      SEA: ASEAN Changing
X-To:         seasia-l@msu.edu

/* Written 12:15 am  Jul 23, 1992 by newsdesk in cdp:ips.englibrary */
/* ---------- "SOUTH-EAST ASIA: ASEAN -- DIPLOMATI" ---------- */
Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Reference: Trade & Finance
Title: SOUTH-EAST ASIA: ASEAN -- DIPLOMATIC VETERAN BUT ECONOMIC NEOPHYTE


an inter press service feature

by yuli ismartono

bangkok, jul 21 (ips) -- the association of south-east asian nations
(asean) turns 25 years old this year but many observers say it still
has a long way to go in achieving regional cooperation.

established in august 1967 as a economic bloc, the philippines,
thailand, malaysia, singapore and indonesia had hopes of bringing
about regional prosperity, much like what the common market had done
for countries in europe.

but fears of intra-asean competition defeated lofty ideals of
regional cooperation and planned joint ventures among member
countries never left the drawing boards. the hoped-for boom in
regional trade went bust.

instead, asean became known for its diplomatic prowess, with its
crucial role in bringing the four warring factions in cambodia and
their backers, vietnam and china, to the negotiating table last
year as its latest achievement. because of the peace accord signed
last october in paris, there is now a ceasefire in cambodia.

said philippine president fidel ramos during his opening speech
tuesday at the asean ministerial meeting: ''many have pointed to the
irony (that) while asean was ostensibly established primarily for
economic purposes, it has been most successful in political
cooperation.''

he added: ''(but) it may have been necessary to gain mutual trust
through political cooperation in order to acquire the will and the
confidence to strengthen economic collaboration.''

although trade within asean increased to 25.3 billion dollars in
1990 from 12.9 billion dollars in 1988, it is small compared to the
rise in overall asean trade with the rest of the world, which
totalled 268 billion dollars in 1990.

as a proportion of the group's total trade, intra-asean business
stood at around 20 percent in 1990, changing very little from a
decade earlier.

the individual fortunes of the asean members, however, have
undergone much transformation in the past two decades.

twenty-five years ago, the philippines rated high among the most
economically developed asean countries. these days singapore and
brunei, which joined asean a few years ago, lead the way, followed
by rapidly-industrialising malaysia thailand and indonesia. the
philippines now trails last. (more/ips)



south-east asia: asean (2)

''uneven development among the member countries and hence their
national interests took precedence over regional interests,'' said
sukhumband paribatra, director of chulalongkorn university's
institute of security and international studies in bangkok.

but the recent changes in the world order has put pressure on
asean to act collectively. with the growing strength of economic
powers like the european community, the united states and japan and
the intensified efforts of korea, taiwan and china, asean has been
trying to put up a brave, united economic front.

in january, it agreed to create the asean free trade area (afta),
which is aimed at gradually reducing intra-asean tariff rates on
manufactured goods on sector-by-sector basis.

but doubts remain of it pushing through, as businesses and
industries voice out fears of being clobbered by competitors within
asean and have mounted a fierce campaign against afta.

the protests come at a time when asean is caught up in another
tussle, albeit in a political forum: the spratly islands conflict.

observers predict asean will have to bring forth all of its
diplomatic skills in tackling the problem, which involves three of
its members along with vietnam and china. ''we have to tread very
carefully over this issue,'' thai foreign minister arsa sarasin told
ips recently.

tensions have risen at a delicate time as vietnam, along with
laos, takes the first step toward becoming a full member of asean by
signing the treaty of amity and cooperation.

although the conflict remained benign for some time, vietnam has
now locked horns with china, which had surprised spratly claimants
in may by granting oil exploration rights to a u.s. firm in an area
that includes the disputed islands.

still, analysts like sukhumband say ''asean has the mechanism
necessary for a dialogue, which is what is needed to diffuse tense
situations''.

added thai foreign ministry official wittaja vejjajiva: ''we will
find ways of reaching a negotiated settlement. we have gained
confidence, learned to compromise through political cooperation.''

analysts say the challenge is a good test of skills for asean,
which will also have to address other regional security issues like
the departure of the soviet and u.s. military forces there.

but, as philippine president ramos mused in his speech, ''perhaps
the most effective way of enhancing regional security is the
strengthening of regional economic cooperation''. (end/ips/yi/cb/92)
Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU