SUMMIT LEADERS’ DIALOGUE ON REGIONAL ECONOMIC INTEGRATION
“ARE OUR PRESENT MODELS OF REGIONALISM SUCH AS APEC AND ASEAN ADEQUATE?”
ARE NEW REGIONAL INSTITUTIONS REQUIRED? HOW CAN WE STRENGTHEN REGIONAL ECONOMIC INTEGRATION?
A dialogue with:
- HE Prime Minister Kevin Rudd of Australia
- HE President Felipe Calderon Hinojosa of Mexico
- HE Prime Minister Abhisit Vejjajiva of Thailand
Moderated by Prof Tommy Koh, Ambassador At-Large, Ministry of Foreign Affairs, Singapore and Chairman, Singapore Institute of Policy Studies
Questions continue to abound over the current state of regional institutions in the Asia Pacific (including APEC), and whether they are adequate. The last year alone has seen two proposals for alternatives to the current architecture have sparked debate: an Asia-Pacific community, proposed by Australian Prime Minister Kevin Rudd, and an East Asia Community, proposed by Japanese Prime Minister Yukio Hatoyama. But with so much invested in already existing arrangements, some questioned why there might be urgency for new institutions and what purposes the new architecture might serve.
In the opening session of Day 2 of the APEC CEO Summit, HE Prime Minister Kevin Rudd of Australia, HE President Felipe Calderon Hinojosa of Mexico, and HE Prime Minister Abhisit Vejjajiva of Thailand discussed whether the existing institutional arrangements in the Asia Pacific are adequate for promoting peace and prosperity. The session was moderated by Tommy Koh, Ambassador At-Large, Ministry of Foreign Affairs, Singapore and Chairman, Singapore Institute of Policy Studies. Each APEC leader began by delivering a 10-15 minute address.
PM Rudd spoke of the need for a new institution (an Asia Pacific Community) which could look at all regional challenges in both economic and political/security domains and meet among leaders from the key countries. He argued that this was an important need and one that is not met by existing institutions.
PM Rudd emphasized the timeliness and effectiveness of the G20 in coordinating recovery efforts and noted that 9 APEC economies are in the group. Looking at the region, he surveyed the adequacy of regional institutions and praised APEC and also ASEAN as an example for cooperation in the wider region. As for the East Asia Summit, he said that it is a good gathering and gaining momentum.
PM Rudd then detailed his proposal for an Asia Pacific community- one that would present a comprehensive economic, political, and security agenda to all of the economies in the Asia Pacific region. Although he stated that the proposal is far from urgent (Australia is setting a date of 2020) and that he does not advocate an EU style model, he did state that it is “far better that we shape the future than to simply take a passive approach and allow the future to shape us.”
President Calderon spoke about the case of NAFTA and its relevance for the Asia’s integration going forward. He urged that NAFTA be further strengthened and that its example serve the wider region to combat protectionism and increase integration.
The Mexican President spoke out against protectionist policy and emphasized the benefits to all tiers of society that accrue through free trade policy, urging that efforts for similar policies in the Asia Pacific must be renewed, even in the face of crisis.
He used the case study of the North American Free Trade Agreement, which is faltering in some aspects, to make his case that the Asia Pacific region must be ever vigilant of creeping protectionism. He cited free transport issues, and the reluctance of one of the NAFTA parties to ratify several of the agreements.
PM Abhisit of Thailand then spoke on the circumstances that enable ASEAN to play the role of the Asia Pacific’s convener, facilitator, and catalyst. In his judgment, ASEAN has done a good job todate but should be complacent. He called for a continuing step by step improvement of ASEAN-led institutions to benefit all in the region.
Prime Minister Abhisit argued that despite the “untidiness” of the current architecture (which includes APEC as well as the East Asia Summit, the ASEAN Plus Three Summit, the ASEAN Regional Forum, and others), that current architectures have served the people reasonably well. ASEAN has been able to build a community, is responsive to challenges, and has been central in bringing Asia Pacific countries to the table time and time again. One effective ASEAN-centric policy, the Chiang Mai Initiative, has been effective and has constantly been improving, now with an increased reserve pool that can help it complement the IMF.
Moreover, the Prime Minister said that ASEAN has contually reaffirmed its commitments for free trade agreements but has also backed up its talk by signing many more FTAs and other economic agreements with its dialogue partners.
The Prime Minister did however warn of complacency, saying that the current architecture should not necessarily be seen as perfect. Citing the Asia Pacific Community and East Asia Community proposals, he said that there must be a common vision for regional integration, but that there may be many alternative methods for how such integration is achieved.
The first question from the audience came from Associate Professor Simon Tay of the Singapore Institute of International Affairs. He asked about the Leaders’ views on the role of America in the Asia Pacific, and specifically in the framework of regional institutions going forward.
All of the leaders agreed that the USA must play a significant role in the Asia Pacific. PM Rudd pointed out that not only is the US economy central to the immediate Asia Pacific region, but that for many years peace and security in the region has been underpinned by the presence of American security forces. This has allowed economic development to occur uninhibited by concerns over war and conflict. Abhisit echoed these views, adding that the US must also participate actively on questions of rebalancing and its shifting role in the world economy and the Asia-Pacific.
In a specific question, a young member of the audience asked Prime Minister Abhisit a question about the role of young people in the economic recovery. The Prime Minister said that it was important for all people, but especially young leaders, to see growth not as a sprint but as a marathon. PM Abhisit stressed the need to make growth balanced, sustainable, and inclusive.
At the close of the session, Moderator Tommy Koh asked the audience for their views on several of the issues that had been discussed. Most audience members agreed that the current architecture had been successful- some 80% to 20%. The next question was whether a new institition a la Rudd’s Asia Pacific community was needed – 55% voted yes, while 45% voted no. The last question was as to whether ASEAN’s role as facilitator, convener, and catalyst in the Asia Pacific should continue. 74.6% of audience members voted yes, ASEAN’s role should continue, with just 25.4% voting no.
