Towards Vision 2020:
ASEAN - Japan Consultation Conference
On the Hanoi Plan of Action

THE FINAL REPORTWITH

RECOMMENDATIONS

October 2000

2. PREFACEIn December 1997, the Association of Southeast Asian Nations (ASEAN) declared its
Vision 2020 aimed at building a concert of nations, outward looking, living in peace,stability and prosperity, bonded together in partnership in dynamic development and in
a community of caring societies.

In December 1998, ASEAN adopted the Hanoi Planof Action (HPA), which set out specific and concrete steps in the short- and mid-term toachieve the Vision 2020.
With a view to enhancing cooperation with ASEAN in achieving the Vision 2020
starting with the HPA, Prime Minister Keizo Obuchi, in December 1998, proposed toestablish an Eminent Persons Group from all the ASEAN Member States and Japan.
The Group consisted of 26 members, acting in their individual capacities, two eachnominated by ASEAN Member States’ governments and six by the government ofJapan (the list of members can be found in the appendix). The Group was mandated toformulate a set of concrete recommendations to enhance ASEAN-Japan cooperationand to present it to the Heads of States and Governments of ASEAN Member States
and Japan at the ASEAN-Japan Summit Meeting in Singapore in November 2000.
Three conferences were held in Hanoi (October 1999), Nara (March 2000) andSingapore (October 2000). As a result of the three conferences, the Group adopted a
set of concrete recommendations.

This set of recommendations is expected tofacilitate the realization of the HPA and the Vision 2020, as well as Japan’s contribution
to this process, through more dynamic and deeper ASEAN-Japan cooperation. Suchcooperation is in their mutual interest in meeting the challenges of globalization and insecuring the future of ASEAN.

The Group was provided logistical support by the following institutions which hadreceived a grant from the Japan-ASEAN Exchange Projects (JAEP).

ASEAN Institutes of Strategic and

The Japan Institute ofInternational Studies (ASEAN-ISIS)International Affairs (JIIA)

3. Table of Contents
1. Executive Summary (Back to Executive Summary)
2. Preface
3. Table of Contents
4. Introduction and Overview
5. Macro-economic Policy and Finance
6. Trade, Industry, Technology, and Capacity Building
7. Political and Security Cooperation
8. Human Security and Social Development
9. Education, Culture, and Arts
10. Glossary of Abbreviations
11. List of Members of the Eminent Persons Group4. I NTRODUCTION AND OVERVIEWINTRODUCTION
The ASEAN Member States and Japan have come a long way in forging cooperative andconstructive relations since the 1970s.

ASEAN made serious efforts in internalconsolidation and enhanced cooperation with industrialized countries towards its Member
States’ economic development from the mid-1970s while trying to achieve peace,stability and security.

Japan adopted its landmark policy towards ASEAN andSoutheast Asia in ‘the Fukuda Doctrine’ as early as 1977.

The philosophy of the

Fukuda Doctrine was to make ASEAN and Japan equal partners, to cooperate in the
promotion of ASEAN solidarity and resilience, and to contribute to the forging of peace
and prosperity in Southeast Asia in cooperation with like-minded countries outside theregion.

Ahead of reconciliation between the ASEAN Member States and the

Indochinese states, which came about later, Japan advocated peaceful coexistence
throughout Southeast Asia.

The ASEAN-Japan relationship has evolved from donor-recipient towards an equal
partnership as ASEAN Member States began to achieve substantial levels of economic
growth.

However, new challenges have emerged in the last years of the 20th century,

catalyzed by the recent Asian financial crisis. This requires a new partnership in
which both sides should claim shared ownership.

THE CHALLENGE OF GLOBALIZATION
Natural economic complementarities and geostrategic realities exist in the relations
between ASEAN and Japan.

Based on these factors, economic cooperation between

them has been growing in trade, investment, and development assistance, leading to ahigher degree of interdependence between them, especially since the late 1980s.

Now,

the process and dynamics of globalization, fueled by the Information andCommunications Technology (IT) revolution, are creating new challenges andopportunities.

ASEAN and Japan are both affected by the transformation of traditional modes andinstitutions of governance at various levels and sectors brought about by globalization.
Interdependence has led to more prosperity from rapid economic growth, but at the sametime, it has made them more vulnerable in the context of globalization, as dramatized by
the Asian financial crisis. The impact of globalization has revealed the importance ofreforming the systems of governance within both ASEAN and Japan as well as in global
institutions.

At the same time, the process of globalization offers ASEAN and Japan anopportunity to create ‘a common economic space’ to profit from the advantages of the IT
revolution. Globalization also demands the establishment of more integrated regulating
mechanisms, both regionally and globally, in order to govern the regional and global
flows of goods, services and capital.

Their common interest in meeting the challenges of globalization at various levels ofgovernance requires the forging of a new partnership, including the reform of various
international institutions of governance, so as to enable them to maximize the benefits
and reduce the costs of globalization to their citizens.

THE CHALLENGE OF AN ENLARGED ASEAN
The end of the Cold War, ASEAN’s successful management of intra-regional sources ofconflict and its impressive economic growth created a conjunction of forces that
established ASEAN standing in the Asia-Pacific region and the world as a credible andconstructive actor. These factors led to the enlargement of ASEAN membership toinclude all of the 10 countries in Southeast Asia, and an expansion of its external relations
with all the relevant economic, political and security actors in the Asia-Pacific region.
The enlargement of ASEAN unfortunately coincided with the Asian financial crisis, thus
aggravating the emergence of a two-tier ASEAN.

The crisis hindered the old ASEAN members from contributing to the economic goals
sought by the new members ―Cambodia, Laos, Myanmar, and Vietnam (CLMV)― in
joining the grouping.

While ASEAN members need to address the domestic problems

brought about by the crisis, they must also tackle the task of leveling the ‘ASEAN divide’.
Cooperation with external partners is an important component of this effort. Japan has
demonstrated both its willingness and its capacity to cooperate in this process.

In fact, Japan has come forth with initiatives such as the ‘New Miyazawa Initiative’ andthe ‘Obuchi Plan’ to assist Asian countries, including those in ASEAN affected by thecrisis.

Japan has also provided ASEAN with the Japan-ASEAN General Exchange

Fund (JAGEF), in addition to bilateral programs to assist the CLMV, to redress the‘ASEAN divide’. Two new components of current Japanese efforts are in the form ofassistance to the more developed ASEAN Member States for undertaking the programsfor CLMV under the concept of South-South cooperation, and assistance to the private
sector to undertake infrastructure projects and foster local industries in the region.

ASEAN enlargement has, however, made it more difficult to reach consensus due to theincreased numbers of actors involved.

This problem must be squarely tackled.

THE PRINCIPLES OF COOPERATION UNDER THE NEW ASEAN-JAPAN PARTNERSHIPThe new partnership between ASEAN and Japan should be implemented, based, interalia, on the following principles:

1. Equal partnership, shared ownership, and mutual respect.
2. Importance of domestic reform by ASEAN Member States to improvegovernance in furtherance of the goals of the ASEAN Vision 2020 and the HPA
which will promote the new ASEAN-Japan partnership.
3. Importance of the ‘third opening of Japan’, which will promote the new
ASEAN-Japan partnership.
4. Closing the ‘ASEAN divide’ as a common objective.
5. A ‘coalition of the willing’, open to the participation of all.

5. MACRO-ECONOMIC POLICY AND FINANCE
Globalization has made and is continuing to make the world’s economies interdependent
at an unprecedented pace and to an unprecedented degree.

ASEAN Member States andJapan have become acutely aware of the inherent dangers in, as well as the opportunities
provided by, the phenomenon of globalization.

In the midst of the Asian financial crisis,

triggered by the high volatility of short-term capital flows through international markets,
domestic institutions, systems and business practices, that enabled high growth in thesecountries, have also exposed their weaknesses and vulnerabilities. Domestic reforms
and the need for new global governance to meet these challenges are now widely
recognized.

In East Asia, various measures have already been taken to counter the negative aspects ofeconomic globalization. First, while struggling to address necessary structural reforms,
Japan has also shown its determination to complement the efforts of international
financial institutions (IFIs) to help the affected nations of East Asia. Japan implemented
a variety of measures amounting to approximately $80 billion within a short interval.
Second, the ASEAN Member States took an unprecedented initiative of collective
self-help by establishing a regional surveillance mechanism on macro-economic
conditions and policies. Third, the Finance Ministers of ASEAN Member States andJapan, who had started meeting even before the crisis, intensified their mutual
consultations in order to cope with the serious financial problems in the region. Fourth,
the Chiang Mai Initiative proclaimed by the Finance Ministers of the ASEAN Member
States and Japan, China, and the Republic of Korea (ASEAN+3) is a landmark
accomplishment for regional cooperation to meet the challenges of globalization.

Domestic efforts to address the requirements for transparency, accountability and better
governance in finance are crucially important.

In this context, cooperation by ASEAN

Member States and Japan at both global and regional levels on issues of macro-economic
policy and finance will also contribute to avoiding future disruptions of the financial
systems and capital markets.

In view of these imperatives, the Group recommends that:

1.

ASEAN Member States and Japan build on the Chiang Mai Initiative forcurrency stability.
The Chiang Mai Initiative was an important step for further enhancing regional
cooperation among ASEAN+3.

Based upon this initiative, other appropriate

mechanisms that could strengthen our ability to provide sufficient and timely
financial support to ensure financial stability in East Asia should be pursued.
In pursuit of this goal, assistance should be provided, as necessary, for thecapacity building of some individual ASEAN Member States.

2. ASEAN and Japan intensify consultations on the mechanism of macro-economic
policy dialogue and regional surveillance.
Given the deepened economic interdependence within East Asia, it is quite
important to establish a coordinated economic and financial surveillance andmonitoring system in the region.
is essential.

For this purpose, ASEAN-Japan cooperation

As an initial step, it is desirable to establish a network of both

highly respected official and private research institutions for policy dialogue andconsultation through which an appropriate scheme for regional financial
surveillance is designed.

3. Japan continue public financial support to ASEAN Member States in need, withspecial emphasis on new members.
The continued and steady flow of Japanese financial resources through theJapan Bank of International Cooperation (JBIC) and other relevant financial
institutions to the ASEAN Member States is essential for their economic growth.
In doing so, Japan should recognize the diversity of the stages of development
among ASEAN Member States.

4. Japan and those ASEAN Member States that are able to do so serve as catalysts
to help rebuild confidence in other ASEAN Member States throughco-investments with the private sector and relevant International Financial
Institutions (IFIs) such as the International Financial Corporation (IFC).
Japan and some ASEAN Member States could help other ASEAN Member
States by persuading IFIs such as the IFC to facilitate more private investments
in industries that are key to sustainable development. The IFC is instrumental
in lobbying the private sector to co-invest in the manufacturing sector and inlong-term infrastructural and utilities concession projects. Such efforts would
be instrumental for promoting investments into the ASEAN Growth Areas.

5. ASEAN and Japan work together for greater East Asian representation in IFIs
such as the International Monetary Fund (IMF), the International Bank for
Reconstruction and Development (IBRD), and the Asia Development Bank
(ADB), so as to reflect the new realities in global and regional economies.
The rapid growth of the East Asian economies is not fully reflected in thedecision making structure of the IFIs, such as in their share of voting rights inrelation to the size of their economies. Measures to reform the international
financial architecture would need to include a review of the roles of IFIs,
especially for the enhanced participation of the emerging East Asian economies.

6. ASEAN and Japan study the establishment of an Asian Monetary Fund (AMF)
that is consistent with global governance.
As a follow-up to the Chiang Mai Initiative, the importance of establishing a
supplementary regional mechanism to respond to future financial crises is now
recognized.

In this respect, an appropriate regional financial mechanism thatwould contribute to strengthening the international financial architecture could
be explored through a joint research group consisting of representatives ofresearch institutes in the region.

Perhaps this can be followed up by

consultations at the governmental level.

7. Japan assist ASEAN Member States to develop additional financial instruments
such as long-term bonds, so as to encourage stable capital flows to the ASEAN

countries.
The region needs to develop a wider variety of channels for access to long-term
financing.

Nurturing viable long-term bond markets in ASEAN Member

States is an urgent task as part of the efforts towards establishing a stablefinancial system in the region. Japan should further vitalize the Tokyo bondmarket through the promotion of yen-denominated bonds (Samurai Bonds) andupgrading the government bond markets and settlement systems.

8. Japan undertake measures to promote the internationalization of the Yen.
The internationalization of the Yen can help provide ASEAN Member Stateswith greater currency stability, by offering them an alternative currency forinternational transactions and instruments for raising funds.

6. TRADE, INDUSTRY, TECHNOLOGY, AND CAPACITY BUILDING
Trade, industry, technology, and capacity building are crucially important factors forpromoting economic development and sustaining prosperity.

ASEAN and Japan have along history of mutual cooperation in these fields. In an increasingly interdependent andglobalized world, however, the decision-making roles in these fields are increasingly
shifting from sovereign states to the international markets. The IT revolution and theemergence of the so-called ‘new economy’ are further accelerating this trend.

International economic institutions such as the World Trade Organization (WTO) haveplayed important roles in promoting economic exchanges by providing internationallyrecognized norms and rules. Today, these institutions are challenged to adjust to therealities of the globalized economy.

Appreciating the importance of rule-based

international institutions for world economic prosperity and stability, ASEAN and Japan
should cooperate together to meet these challenges and to strengthen these global
institutions.

Japan has started to cope with the IT revolution and ASEAN has adopted its concept of‘e-ASEAN’.

ASEAN should recognize that in pursuing its ‘e-ASEAN’, an accelerated

program for CLMV is necessary in order to promote ASEAN prosperity, and to avoid awidening of existing gaps amongst its members.

It is in the interest of both ASEAN and Japan to deepen their cooperation in tacklingthese challenges, not only bilaterally but also through regional and global fora.

In view of these imperatives, the Group recommends that:

1. ASEAN and Japan vigorously pursue a comprehensive agenda for the newround of the WTO, in order to realize the objectives of the ASEAN Vision 2020.
ASEAN and Japan share great interest in promoting further trade liberalization.
They could intensify their cooperation to strongly urge other trading partners tomove forward towards the early launching of the next round of WTO

negotiations.

A comprehensive agenda for the new round of negotiations will

be in the interest of ASEAN and Japan, although it will pose many newchallenges.

ASEAN and Japan should consult each other as much as possibleon all the major issues in the WTO.

2. ASEAN and Japan support WTO membership for all ASEAN Member States,and offer training and other assistance in preparation for such membership.
WTO membership offers the fast lane to economic growth through trade.

As

WTO accession means conformity with WTO rules, structural changes indomestic systems often become necessary.

Accession of Cambodia, Laos andVietnam to the WTO will promote the economic integration of ASEAN.
Efforts should not be spared to accelerate their WTO accession.

3. ASEAN Member States and Japan seriously consider initiatives to promote free
trade that are WTO-consistent at the regional, sub-regional and bilateral levels,
whilst at the same time recognizing the primary importance of the WTO
negotiations, and the implications for ASEAN integration.
ASEAN Member States are pursuing the ASEAN Free Trade Area (AFTA), andJapan and Singapore have agreed to begin negotiations for a bilateral agreement
seeking economic partnership for a new era. Other initiatives are possible, butthey must be WTO-consistent.

4. ASEAN and Japan implement their commitments simultaneously for a more
effective Individual Action Plan (IAP) and Economic and Technical Cooperation(ECOTECH) in Asia Pacific Economic Cooperation (APEC), in pursuit of thegoals for free trade and investment in the Bogor Declaration.
ASEAN Member States and Japan should reconfirm their commitments in
Bogor to achieve the goal of free and open trade and investment in the
Asia-Pacific region no later than the year 2010 for the industrialized economies
and 2020 for developing economies. In this regard, IAPs are the core tools forthe flexible approach to trade liberalization.

Peer review of the IAPs will beuseful in enhancing their effectiveness. Currently, the track-II institution the
Pacific Economic Cooperation Council (PECC) carries out this function to acertain extent, but this must be taken up more by governments.
ASEAN and Japan should jointly pursue the six priority areas of ECOTECH:
developing human capital; developing stable, safe and efficient capital markets;
strengthening economic infrastructure; harnessing technologies for the future;safeguarding the quality of life through environmentally sound growth; anddeveloping and strengthening the dynamism of small and medium-sizedenterprises.

5. ASEAN and Japan give impetus to take APEC to the next stage, i.e., towards thecreation of an ‘Asia-Pacific OECD’.
The Organization for Economic Co-operation and Development (OECD) is aforum for socio-economic policy coordination as well as a socio-economic
information/data gathering and processing think tank with a strong secretariat
for its member governments. Today, this function is partly carried out by
PECC in the Asia-Pacific region, albeit on the second track.

Governments in

the Asia-Pacific region could coordinate their socio-economic policies, and
ASEAN and Japan can accelerate this process by beginning this exchange
amongst themselves.
ASEAN and Japan should cooperate to realize the inclusion of Cambodia, Laosand Myanmar into APEC.

6. ASEAN improve their investment and business environment in order to promoteforeign investment and revitalize economic activities, in particular through morevigorous pursuance of AFTA, the ASEAN Investment Area (AIA) and theASEAN Industrial Cooperation Scheme (AICO).
A deeper economic integration of ASEAN will promote horizontal and verticaldivision of labor within ASEAN and result in market expansion, which will
attract more foreign direct investments from Japan and other countries.
Recognizing the importance of foreign direct investment (FDI) for promoting

economic growth, ASEAN Member States and Japan could consider pursuingbilateral investment agreements.

7. ASEAN pursue greater harmonization of standards such as legal and accounting
standards and a common regime for intellectual property protection.
Harmonization of standards is crucially important in promoting economic
integration and market expansion, as proven in the development of the European
Union. Japan’s contribution in the ASEAN harmonization process will enhancebusiness between ASEAN and Japan.

Japan should actively support thefollowing items mentioned in the HPA:
(1) Standardization:A) Reorganization of standards, regulations, rules and certification systems
B) Mutual recognition agreements (MRAs)(2) Support in the reform of legal systems related to business and economies(3) Cooperation in intellectual property rights:
A) Establishment of an electronic database by 2004
B) Framework for a pan-ASEAN patent agency

8. ASEAN intensify its work to establish common cyber laws, secure-messaging
infrastructure and payment gateways in its effort to realize an ‘e-ASEAN’. In
doing so, ASEAN should make good use of Japan’s announced programs tobridge the ‘e-divide’.
Prime Minister Mori of Japan has committed $15 billion over 5 years in acomprehensive cooperation package, aimed at bridging the international ‘digital
divide’.

9. Recognizing the crucial role of Small and Medium-sized Enterprises (SMEs) for
sustainable economic development, ASEAN establish regional export financing /credit guarantee schemes and systems of micro-credits for SMEs with Japan’s
assistance.
In addition to Japan’s efforts to encourage Japanese SMEs to make directinvestments in ASEAN Member States, other measures for promoting SMEs
could include the nurturing of SMEs in ASEAN through the establishment of an
SME Corporation and an Institute for Small Business Management andTechnology.

The development of SMEs should be linked to rural economic

development, industrialization and the creation of supporting industries. The
development of dynamic SMEs will create new workplaces especially in the IT
industries, form the core of the service industry, and become the driving force ofinnovation.

10. ASEAN Member States and Japan cooperate and play a leading role, together
with other interested countries, in the development of the Greater Mekong
Sub-region, recognizing its importance for the development of the CLMV.
In

the

CLMV,

basic

infrastructurefortransportation,energy,andcommunications are urgently needed in order to achieve sustainable economic
development.

In this regard, pilot projects for infrastructure, human resource

development and a framework for cross-border cooperation in the East-Westcorridor should be emphasized.

Such cooperation should include efforts tofacilitate the participation of the private sector and relevant institutions, such as
the ADB, IFC, and JBIC.

11. Japan ensure the steady implementation and enlargement of the ‘Obuchi Plan’for human resource development made at the ASEAN + 3 Summit in Nov 1999.
Of the ten points in the ‘Obuchi Plan’, special emphasis could be made on thefacilitation of the education of ASEAN students and the training of ASEAN
workers in Japan, as well as the dispatch of Overseas Senior Volunteers to
ASEAN.

Identification of the areas for dispatching Overseas SeniorVolunteers should be coordinated.

12. Japan promote the expansion of domestic demand for ASEAN goods andservices.
Japan must continue to bear in mind that domestic demand-led growth in Japanwill be a key factor for sustaining economic growth in ASEAN Member States.
Japan should work more positively towards improving market access, especiallyfor agricultural goods. Meanwhile ASEAN Member States should be mindfulof the quality consciousness of Japanese consumers, and all efforts should bemade to respond accordingly.

13. Japan open its labor markets with a coherent and comprehensive policy that canbetter meet the need for foreign workers in Japan and minimize illegal labor.
In line with the Report of the “Mission for Revitalization of Asian Economy:-Living in Harmony with Asia in the Twenty-first Century- (Okuda Mission
Report)”, it is important that Japan revise its rules and regulations concerning
foreign workers.

Besides professionals, more technical workers could be

welcomed from ASEAN.

7. POLITICAL AND SECURITY COOPERATION
Political and security cooperation in ASEAN-Japan relations has been focused in thecreation of a stable and comprehensive political-security environment in the Asia-Pacificregion.

In the 1980s, ASEAN and Japan collaborated closely in the regional and global

efforts to settle the Cambodian conflict, culminating in the holding of elections under theUnited Nations Transitional Authority in Cambodia (UNTAC) in 1993.

Political andsecurity cooperation has since moved into the ASEAN Regional Forum (ARF), whose
establishment was supported by Japan from the start. Recognizing the threat of weaponsof mass destruction (WMD), both are committed to securing regional support for
non-proliferation at the regional and global levels.

Having forged constructive and cooperative relations in the past, there is now a need todeepen and broaden their political and security cooperation under a new ASEAN-Japan
partnership. The challenges to global governance brought about by the end of the Cold
War to nation-states and global institutions such as the United Nations (UN) require thecollective wisdom and commitment of many actors, especially those with establishedhabits of working together. The changes in the profile of power in the world, the goal of
non-proliferation of WMD, increasing globalization, and the impact of the Asianfinancial crisis similarly require enhanced cooperation amongst them.

ASEAN should play a key role for the stability of East Asia, through assuming a leadingrole for a more relevant and effective ARF.

The relevance and effectiveness of the ARF

could be promoted by increasing the capabilities of ASEAN through the new
ASEAN-Japan partnership.

Enhanced ASEAN-Japan cooperation can strengthen

ASEAN’s solidarity by enabling the ASEAN Member States to overcome the challenges
of enlargement and the danger of an ‘ASEAN divide’.

Finally, the rise in prominence of non-traditional security issues, especially transnational
crime in the region in recent years, can be more effectively addressed by closer
collaboration between ASEAN Member States and Japan.

In view of these imperatives, the Group recommends that:

1. ASEAN Member States and Japan consult and coordinate more closely on thereform of the UN to reflect the new realities that have emerged in the past 50
years, including the reform of the UN Security Council, to serve as the central
actor in global governance.
To these ends, ASEAN Member States should support the permanent
membership of Japan in the UN Security Council within the context ofcomprehensive reform of the UN.

ASEAN Member States and Japan should

start to formulate and coordinate their policies on this issue.

2. ASEAN Member States and Japan cooperate closely to make the ASEAN
Regional Forum (ARF) a more effective institution for security in the region.
ASEAN and Japan should exert all efforts to implement confidence-building
measures proposed in the ARF, including the publication of defense white
papers with an acceptable level of transparency.

Further, the ARF should

move more expeditiously to the next stage of preventive diplomacy.
As confidence-building progresses, ASEAN and Japan should cooperate to
make the ARF leadership better reflect the wider community and regional
footprint, including an increased role for non-ASEAN members.

In future, theconcept of a non-ASEAN ARF co-chair may be considered as a means of
ensuring the ARF’s continuing effectiveness, relevance, and success.
Continuity and institutional memory can enhance the ARF’s capacity as apolitical-security dialogue mechanism.

This can be achieved through theestablishment of a permanent facility, with sufficient capacity, under the
ASEAN Secretary-General, and open to the expertise and participation of all the
ARF members.

3. ASEAN Member States and Japan collaborate in pursuing the objective of
non-proliferation, including working jointly to further achieve the entry into
force of CTBT, and to realize the unequivocal undertaking of the elimination of

nuclear weapons as pledged at the NPT Review Conference.
ASEAN Member States and Japan share a concern on the continuing spread of
nuclear weapons and other WMD.

This is the one of the most serious

destabilizing factors in the regional and the global environment.

They

therefore must collaborate to put a halt to the proliferation and the flow of thoseweapons.

4. ASEAN Member States and Japan work with other countries towards the
adoption of a code of conduct for the Asia-Pacific region, including a mechanism
for peaceful settlement of disputes.
Efforts for the adoption of a regional code of conduct are already underway.

It

is important to put some concrete mechanisms in place to make it an effective
tool for regional peace and stability.

5. ASEAN Member States and Japan cooperate to establish a regional training
center for peacekeeping operations that is open to the participation of all thecountries in the Asia-Pacific region.
Apart from jointly contributing towards global efforts at peacekeeping under the
auspices of the UN, the proposed center can also serve as a vehicle for
confidence building among the personnel that will be involved and enhancecapacity building of their organizations in promoting peace.

6. ASEAN Members and Japan work for the development of fora for enhanced
cooperation on a region-wide basis in East Asia that are inclusive and open to allinterested and relevant parties.
Progress has been made in starting a new form of regional dialogue among East
Asian nations in the form of the ASEAN+3. This is a significant development
and possesses the potential for becoming a meaningful vehicle for East Asian
cooperation, especially if it becomes inclusive and open to other participants inthe future.

Growing interdependence in East Asia beyond ASEAN +3 is areality well worth taking into account in this proposed regional form forcooperation. Other efforts include the Korean Peninsula Energy Development
Organization (KEDO) and Northeast Asia sub-regional cooperation.

7. ASEAN Member States and Japan cooperate more to combat transnationalorganized crime.
Transnational organized crimes such as illegal trafficking in drugs and smallarms, piracy and money laundering require the strengthening of the capacity ofexisting policing mechanisms.

Furthermore, the threat of cyberspace crimes

will become increasingly menacing for our societies. In this regard, ASEAN
Member States and Japan can enhance their cooperation in policing mechanisms
such as the International Criminal Police Organization (INTERPOL), andcooperate in strengthening the capacity of regional policing mechanisms such as
the ASEAN Criminal Police Organization (ASEANPOL).

8. ASEAN Member States and Japan take initiatives for the creation of a regionalframework for cooperation in energy security.
Rapid economic growth has increased the demand for energy in East Asia andthe Asia-Pacific region. At the same time, fossil fuel-based energy sources arelocated in politically unstable areas of the world, and the location of pipelines
where they have to be built can be a politically volatile issue as well. The
problem of nuclear safety remains a challenge to fuller exploitation of nuclear
energy.
In this light, a forum for dialogue should be established, strategies for regional
storage of oil reserves should be developed, and cooperation on nuclear safety,
including technology, monitoring, and disposal issues, should be enhanced.

9. ASEAN Member States and Japan support and encourage greater track two
activities that promote consultation and intellectual dialogues on relevant andtimely regional and global issues.
The themes of these activities include geopolitical and security issues relevantto the region. It is useful and necessary to build habits of cooperation forpeaceful settlement, conflict prevention, and greater openness and tolerance
among all countries in the region through and with the involvement of Track-II
mechanisms.

8. HUMAN SECURITY AND SOCIAL DEVELOPMENT
The concept of human security should be one of the principal pillars in a new partnership
between ASEAN and Japan.

Human security is a relatively new and multifaceted

concept that relates to (1) assistance to ASEAN Member States for human capacity
development; (2) the creation of human and social capital in our respective countries; and(3) the basis for social justice and human rights in national and regional communities.

We are challenged to find a new model of development that puts the security of humanbeings in the center. We must seek to promote this human security in a context changedby the negative impacts of globalization and the IT revolution. Increasing poverty,
economic disparity, the degradation of the environment, and the lack of social
development are undermining the security of human beings.

This will have important consequences for the HPA and the ASEAN Vision 2020. The
new ASEAN-Japan partnership should also focus on the promotion of human security
and social development within ASEAN and further in the wider international community
and, by doing so, become a microcosm of the world.

In view of these imperatives, the Group recommends that:

1.

ASEAN Member States and Japan address the issues of basic social safety
nets at the national level, and cooperate to share experiences across countries.
The philosophy, approach and practice of social security in East Asia have to bereviewed.

Conditions are changing with demographic transitions and thedigital divide, and there is a tendency for people to be marginalized in the new
economy.

Such efforts should include the planning for such policies, andlinking them to concerns with education, health care and the challenges of aging
societies.
The Asian economic crisis emphasized the need to provide adequate andappropriate safety nets for citizens.

In most ASEAN Member States, thesesafety nets cannot and should not be elaborate nor expensive. They should,
however, protect individuals against sudden shocks to the economy, allowing
them more room and time to recover their footing, and to re-emerge toparticipate in the economic recovery.

2. ASEAN Member States should further cooperate in their efforts to empower
their peoples through measures for social development and human security,
such as intra-ASEAN training and other programs, especially in ASEAN rural
areas.
These efforts should involve Japan and other concerned countries as partners
from the early stages of planning.

Work should be focused throughappropriate mechanisms and institutions such as joint ministerial meetings,
including those of Labor, Health, Agricultural and Industrial Ministries; theASEAN Foundation; and Non-Governmental Organizations (NGOs).
While cities are of increasing importance in ASEAN Member States, many
people remain in rural areas where poverty is prevalent, and thesocial-economic disparity between the cities and the rural areas is becoming
more serious. To strengthen efforts in rural development, greater emphasis
needs to be placed on increasing human capacity in these areas. There must beemphasis, too, on the training of people, especially for newer ASEAN members.
ASEAN should seek to work with third countries with sizeable assistanceprograms, such as Japan, and to incorporate their inputs and efforts from anearly stage. Additionally, ASEAN should seek to mobilize foundations, NGOs
and other private organizations.

3. ASEAN establish an ASEAN University System that links the different centersof excellence in ASEAN and connects to appropriate institutions in Japan, so as
to promote social development.
This proposed ASEAN University System should provide courses in themedium of the English language that meet both national and regional needs inhuman development as well as utilize the Internet and other tools of distancelearning.

A part of East Asia's strength has been to invest in the education of

its peoples, and this must be re-emphasized within the context of heightenedcompetition that comes with globalization.

4.

ASEAN and Japan should increase consultation and cooperation in combatingillegal traffic in human beings, especially women and children, and the spreadof HIV/AIDS.
Intra-ASEAN trade and other links are increasing, as are links between ASEAN
and Japan.

Such links are beneficial, but cross-border activities can also

impact human security adversely. The norm of non-intervention should notprevent efforts to cooperate across borders to address such issues.

5. ASEAN Member States and Japan cooperate in the promotion and protection ofhuman rights, especially flows of women and children, in particular througheffective and early implementation of relevant international conventions.
Human rights are universal.

ASEAN Member States and Japan have, inparticular, been among the countries that have acceded to the human rights
conventions on the rights of the child, and for the elimination of discrimination
againstwomen.

Implementationbynational

governments

can

be

supplemented by assistance and cooperation among ASEAN Member States andbetween ASEAN and Japan.

6. ASEAN Member States and Japan cooperate in consolidating the rule of law as
the basis for judicial systems and for social and human development, throughprograms for training of judges, attorneys and the police.
Part of the reforms that are required for ASEAN Member States relates to therule of law. This is not only for commercial activities.

It is a vital element toanchor human security through the equal protection and fair treatment of
individuals. Japan and some countries have more experience in legal reform
and in developing judicial systems with a strong tradition of the rule of law.
This experience should be shared with others, through cooperation programs.

7. ASEAN Member States and Japan expand cooperation on regional and global
environmental issuesofcommon concern, toaddress environmental

degradation and work towards sustainable development.
Many environmental issues are transnational in nature.

With increased tradeand investment between ASEAN and Japan, and among ASEAN Member States,
regional cooperation on environmental issues has become of great importancefor sustainable development and human security.

This is important for global

issues such as climate change, and regional issues such as major floods and thehaze problem caused by fires.

8. ASEAN and Japan expand their cooperation to lend assistance and shareexperiences with other developing regions, including Africa.
Some ASEAN states are among the least developed countries and requireassistance. Nevertheless, ASEAN-Japan relations should be outward looking.
As ASEAN Member States progress, they must share their experiences withother developing countries in Africa and elsewhere.

An ASEAN-Japan

partnership includes both very developed nations and others that are newly
developing.

As such, this partnership in human security and social

development can offer rich experiences for South-South cooperation.

9. EDUCATION, CULTURE, AND ARTS
The exchanges in education, culture, and arts between ASEAN and Japan should be
addressed in the new context of deepening interdependence and globalization.
Promoting mutual understanding through enhanced educational and cultural exchanges
and contacts is vital in responding to the challenges posed by globalization. In aninterdependent and globalized society, we are challenged to harmonize and coordinate
domestic policies, regulatory mechanisms and institutions, which were traditionallycategorized as being within the sole jurisdiction of the sovereign state.

In order to avoid

misunderstandings and to promote cooperation, the enhanced appreciation of diverse
cultures, histories, traditions and social values is vital.

ASEAN Member States have long realized the importance of cultural exchanges amongst
themselves, considering them an important means of preserving their cultural heritage aswell as their national and regional identity.

However, ASEAN cooperation in this field

has remained one of the weakest areas in intra-ASEAN cooperation because of a lack offinancial and human resources.

As a country with abundant cultural resources andvaluable experiences in preserving its cultural heritage, Japan could provide ASEAN withassistance and share with it its technical expertise in this area. ASEAN-Japan cooperationin this field would meet the aspiration for creating an ASEAN community rich indiversity.

Moreover, enhancing people-to-people exchanges will promote mutual understanding
between ASEAN and Japan, thus strengthening the basis for increased regional
cooperation.

In view of these imperatives, the Group recommends that:

1. ASEAN and Japan encourage their television and radio networks, both local
and satellite, to foster mutual understanding by better reflecting anddisseminating the cultural heritages of ASEAN Member States and Japan toeach other’s publics.

Even in the age of the IT revolution, TV and radio remain important media in
forging commonality among the populace at national and regional levels.
These media can contribute to the promotion of partnership amongst peoples,
and the ASEAN Member States are accumulating such experiences through
ASEAN cultural cooperation.

Japan should cooperate not only throughfinancial support for these efforts, but also through more substantive programs
to enhance ASEAN-Japan partnership.

2. ASEAN and Japan cooperate to establish cyber libraries, cyber research
institutes, cyber drama theaters and cyber music concert halls.
The Internet should be used in a more effective way to bring people in theregion closer. ASEAN Member States need to provide IT hardware to libraries,
schools and cultural facilities, and, in this regard, Japan should welcome
ASEAN Member States’ requests to utilize the announced package on bridging
the international digital divide.

3. ASEAN and Japan promote more joint projects such as ASEAN-Japan arts andmusic competition programs, cultural tours and cultural activities, including
those organized by civil society groups.
ASEAN and Japan have, over the past decades, not paid sufficient attention toeach other’s culture and their cultural relationship.

In the new ASEAN-Japan

partnership, special emphasis should be placed on promoting cultural exchanges.
Private enterprises can be encouraged to support such cultural activities.

4. ASEAN Member States adopt a regional cultural policy for the preservation andtransmission of cultural heritage.
Regional cultural policy on regulations and teaching of this heritage shouldemphasize both cultural vestiges and values. ASEAN acknowledges this in its
Declaration on Cultural Heritage.

ASEAN and Japan should implement therecommendations of the ASEAN-Japan Multinational Cultural Mission,
especially these relating to heritage planning.

5. ASEAN and Japan strengthen the existing exchange programs for journalists
and editors in both directions, and enhance the educational and youth exchange
programs also in both directions.
Currently, the number of exchange programs for journalists and editors are
decreasing.

This trend must be reversed, with emphasis on increasing the flowfrom Japan to ASEAN Member States.
At the university level, ASEAN-Japan university networks should be
strengthened through the expansion of mutual recognition of academic credits,
more student and faculty exchanges, and more collaborative research.
Scholarships should be expanded and be made available to those with realneeds.
Youth exchange should be also enhanced both in quantity and in quality throughbetter coordination between implementing organizations and associations.
Japan Exchange and Teaching (JET) programs to invite English-speaking
teachers to Japan have recently been partially extended to ASEAN, and theseshould be further expanded.

Similar programs could be introduced in ASEAN

to invite Japanese teachers to ASEAN Member States. Programs for youth
student exchange should be further enhanced in both directions.

6. ASEAN Member States and Japan cooperate to strengthen or establish Japan
Cultural Centers, and to expand the roles and functions of the JapanFoundation Asia Center in Japan, in order to promote mutual understanding.
The existing Japan Cultural Centers in ASEAN Member States and the JapanFoundation Asia Center in Japan serve as channels to promote contact andunderstanding between the peoples of ASEAN and Japan.

These existing

Centers should be strengthened, and ASEAN Member States that do not haveJapan Cultural Centers should cooperate with Japan to build them in theircapitals.

7. ASEAN Member States and Japan promote studies on ASEAN-Japan relations,the outcomes of which should be disseminated and shared by scholars,
researchers, students and others through a strengthened network between
ASEAN Member States and Japan.
Regional studies including ASEAN-Japan relations on political, economic,
historical, and other aspects should be promoted in schools and universities asappropriate, for enhancing mutual understanding between the peoples of
ASEAN and Japan. Joint academic studies among scholars and researchers on
ASEAN-Japan relations should also be enhanced. Cyber research institutes,
cyber libraries and university networks should be utilized extensively for thispurpose.

10. Glossary of Abbreviations

ADB

Asian Development BankAFTA

ASEAN Free Trade AreaAICO

ASEAN Industrial Cooperation Scheme

AIA

ASEAN Investment Area

AMF

Asian Monetary Fund

APEC

Asia Pacific Economic Cooperation

ARF

ASEAN Regional Forum

ASEAN

Association of Southeast Asian Nations

ASEAN-ISIS

ASEAN Institutes of Strategic and International Studies

ASEAN+3

ASEAN Member States, Japan, China, Republic of Korea

ASEANPOLASEAN Criminal Police Organization

CLMV

Cambodia, Laos, Myanmar, Vietnam

CTBT

Comprehensive Test Ban Treaty

ECOTECH

Economic and Technical Cooperation

FDI

Foreign Direct Investment

HIV/AIDS

Human Immunodeficiency Virus / Acquired Immune Deficiency
Syndrome

HPA

Hanoi Plan of Action

IAP

Individual Action Plan

IBRD

International Bank for Reconstruction and Development

IFC

International Financial Corporation

IFIs

International Financial Institutions

IMF

International Monetary Fund

INTERPOL

International Criminal Police Organization

IT

Information and Communications Technology

JAGEF

Japan-ASEAN General Exchange FundJBIC

Japan Bank of International Cooperation

JET

Japan Exchange and Teaching

JIIA

Japan Institute of International Affairs

KEDO

Korean Peninsula Energy Development Organization

MRAs

Mutual Recognition Agreements

NGOs

Non-Governmental Organizations

NPT

Non-Proliferation Treaty

OECD

Organization for Economic Co-operation and Development

PECC

Pacific Economic Cooperation Council

SMEs

Small and Medium-sized Enterprises

UN

United Nations

UNTAC

United Nations Transitional Authority in Cambodia

WMD

Weapons of Mass Destruction

WTO

World Trade Organization

11. LIST OF MEMBERS OF THE EMINENT PERSONS GROUP[ASEAN MEMBER STATES]
Brunei Darussalam
Mr. Haji BAHARUDDIN Bin Dato Haji Talib Member, Committee on Facilitation of
Economic Policies Infrastructure,
Financial, Credit Commerce Labor

Dato’ Paduka Haji Suyoi Haji OSMAN

Permanent Secretary II, Ministry ofForeign Affairs

Cambodia
Mr. KAO Kim HournExecutive Director, Cambodian Institutefor Cooperation and Peace (CICP)
Member, Supreme National Economic
Council

H.R.H. Sdech Krom Khun NORODOM Sirivudh
Supreme Privy Counselor to His Majesty
the King
Chairman, Board of Directors, Cambodian
Institute for Cooperation and Peace (CICP)

Indonesia
Dr. DJISMAN S. Simanjuntak

Executive Director, Prasetiya Mulya
Business School
Chairman, Board of Directors, Centre forStrategic and International Studies (CSIS)

Mr. Jusuf WANANDI

Member, Board of Directors, Centre forStrategic and International Studies (CSIS)and Senior Fellow

Laos
Mr. Sayakane SISOUVONG

Director General, ASEAN Department,
Ministry of Foreign Affairs

Mr. Inthasone THIRAKUL

Fellow Researcher, Institute of Foreign
Affairs, Ministry of Foreign Affairs

Malaysia
Tan Sri Dato’ Dr. NOORDIN Sopiee

Chairman and CEO, Institute of Strategic
and International Studies (ISIS)

Prof. RUGAYAH bte Mohamed

Director, Centre for Technology Policy
and International Studies (CENTEPIS),
Universiti Teknologi Malaysia, Johor Bahru

MyanmarU Win AUNG

Vice President, Union of Myanmar
Federation of Chamber of Commerce andIndustry (UMFCCI)U Myint THU

Assistant Director, Desk Officer,
ASEAN-Japan Dialogue Relations,
Department of ASEAN Affairs, Ministryof Foreign Affairs

Philippines
Prof. Enrique P. ESTEBAN

President, Center for Research andCommunication Foundation, Inc.
Director, Asian Bank

Dr. Carolina G. HERNANDEZ (Co-Chair)

President, Institute for Strategic andDevelopment Studies, Inc. (ISDS)Singapore
Mr. Simon SC TAY (Co-Chair)

Chairman, Singapore Institute ofInternational Affairs (SIIA)
Nominated Member of Parliament

Dr. Linda LOW

Associate Professor, Business Policy
Department, National University ofSingaporeCouncil Member, Singapore Institute ofInternational Affairs (SIIA)

ThailandDr. Chumpol PHORNPRAPHA

Board of Directors, ASEAN-Japan
Economic Council, ASEAN Section

Dr. Kusama SNITWONGSE

Chairperson, Advisory Board, Institute of
Security and International Studies (ISIS)

VietnamAmb. Vu Duong HUAN (Co-chair)Director General, Institute forInternational Relations (IIR)

Mr. Phan Doan NAM

Advisor and Senior Research Fellow,
Institute for International Relations (IIR)[JAPAN]Mr. Toyoo GYOHTEN

President, Institute for International
Monetary Affairs

Mr. Noboru HATAKEYAMA

Chairman and CEO, Japan External Trade
Organization (JETRO)Mr. Akira KOJIMAManaging Director and Editorial Page
Editor, Nihon Keizai Shimbun (NIKKEI)

Amb. Hisashi OWADA (Co-Chair)

President, The Japan Institute ofInternational Affairs (JIIA)

Mr. Iwao TORIUMIChairman, Marubeni Corporation

Prof. Susumu YAMAKAGE

Professor of International Relations,
University of Tokyo

ASEAN-ISIS / ASEAN Secretariat
Ms. Clara JOEWONO

Vice Chairperson, Board of Directors;
Director for External Affairs, Centre forStrategic and International Studies(ASEAN-ISIS)

Dr. Eric TEO Chu Cheow

Business Development Director, Suez
Lyonnaise des EauxCouncil Secretary, Singapore Institute ofInternational Affairs (ASEAN-ISIS)

Dr. Termasak CHALERMPALANUPAP

Special Assistant to the Secretary-Generalof ASEAN (ASEAN Secretariat)

Ms. Imelda I. de LEON

Assistant Director, Bureau for Program
Coordination and External Relations(ASEAN Secretariat)

Mr. Chavarat CHARNVIRAKUL

Member, Advisory Board, ASEAN-Japan
Economic Council, ASEAN Section (Thailand)Amb. Le Dang DOANH

President, Central Institute for
Economic Management (CIEM)(Vietnam)

Mr. Dato’ Mohamed JAWHAR Hassan

Director General, Institute of Strategic
and International Studies (ISIS)(Malaysia)

Ms. Vatchanaphone KHENNAVONG

Senior Official and Research Fellow,
Institute of Foreign Affairs, Ministry ofForeign Affairs (Laos)

Ms. Malayvieng SAKONHNINHOM

Deputy Director-General,
Department of Treaty and Law Affairs,
Ministry of Foreign Affairs (Laos)

Dr. Firdaus WADJDI

President Director, PT Pakarti Tata
(Indonesia)