Riding the East Asian Tiger

Yang Razali Kassim Senior Fellow with the Institute of Defence and Strategic Studies, Nanyang Technological University, Singapore..

Tech Central Station, USA
June 29, 2005

Two big stumbling blocks however have to be resolved if East Asia's club is to take off. The first is how to reconcile and accommodate the competing strategic interests of the United States and China - the two powers that can make or break the EAS. The second -- a related sub-text -- is how to bring in other emerging powers, such as India, or parties which do not want to be left out of this highly significant process, such as Australia and New Zealand.

So far, it is a good sign that all the key players are learning from past mistakes and realize the inevitability of an East Asian club

Click here to read further: http://www.techcentralstation.com/062905C.html

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EU Lessons for East Asian Regionalism

Eric Teo Chu Cheow (Council Secretary, Singapore Institute for International Affairs)
The Japan Times
June 25, 2005

Recent referendums in both France and Netherlands dealt a blow to European integration as voters overwhelming rejected the proposed EU Constitution 55-45 percent and 64-37 per- cent, respectively. Nine countries, including Germany, Spain and Italy, have already approved the constitution via a parliamentary process. Britain, Denmark and Luxembourg, which had planned to hold referendums, have now canceled them.

How can East Asian leaders, who will hold an inaugural East Asian Summit in Kuala Lumpur this December to discuss the creation of an EU-style regional trade bloc, avoid a similar debacle in the future? There appear to be at least four lessons that they can draw from recent European developments.

Click here to read further: http://www.japantimes.co.jp/cgi-bin/geted.pl5?eo20050625a1.htm

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The CECA is Welcome

T.K Bhaumik
The Financial Express
June 24, 2005

The Cabinet nod to the India-Singapore comprehensive economic cooperation agreement (CECA) is welcome. The agreement is extremely significant especially, in the light of India’s ‘look east’ policy. India has realised that its future lies in closer ties with the Association of South East Asian Nations (Asean). In the past few years, it has been trying its best to increase its interaction with the Asean region. As Singapore is an important member of Asean and has been favourably disposed towards India, the CECA will act as a gateway for India’s integration with the region

Click here to read further: http://www.financialexpress.com/fe_full_story.php?content_id=94598

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The Role of EAS in an East Asian Community

Makmur Keliat
The Jakarta Post
June 23, 2005

What are the future prospects for regional integration in East Asia? This question is pertinent because the ASEAN Foreign Ministers (AFM) meeting held in Cebu two months ago seems to have failed to map out a role for the East Asia Summit (EAS) in realizing the idea of future regional integration in East Asia.

On the grounds that it dissipated the divergent views of member countries of ASEAN on the membership of the EAS, some regarded the consensus as a significant breakthrough. However, the agreed modality seems to have also conveyed confusing signals on the future direction of East Asia regional integration.

Click here to read further: www.thejakartapost.com (Please note that access to The Jakarta Post archives is on registration basis. Registration is free)

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India Embraces Singapore

Asia Times Online
June 23, 2005

While the CECA provides India a toehold in ASEAN, it opens a market of 1 billion people for Singapore. The island state has already become India's fastest-growing trade partner. While Singapore is India's largest trading partner in South-East Asia, India is Singapore's top trading partner in South Asia. Exports to Singapore recorded a phenomenal growth of 78.6% during 2004-05, while imports into India grew by 23.8% in the same period. The phenomenal rate of growth in recent years is mainly attributed to the excellent economic and political relationship between India and Singapore.

Click here to read further: http://www.atimes.com/atimes/South_Asia/GF23Df01.html

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Pulling Together

Liu Weiling
China Daily
June 20, 2005

In a region in which the people are traditionally fond of saving money, determining where and how to invest idle capital is a long-standing puzzle. East Asia, with the world's highest savings ratio, is facing this dilemma now, despite a thirst for funds brought about by galloping growth.

The latest report released by the World Bank indicates developing nations in East Asia face a massive funding challenge, as they need to spend more than US$1 trillion over the next five years in infrastructure construction.

Such a situation, in the eyes of Qin Yaqing, a veteran Chinese expert on East Asia studies, creates huge potential for better investment co-operation among East Asian nations. Moreover, an effective economic co-operation mechanism will steer the creation of the East Asian community a bright outlook painted by regional leaders last year, says Qin, vice-president of China Foreign Affairs University.

"Integration will create a huge fortune for the nations involved, and more and more savvy business people in the region are keeping their eyes open," he tells China Business Weekly.

Click here to read further: http://www.chinadaily.com.cn/english/doc/2005-06/20/content_452780.htm

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Toward an 'Asian Union'?

Philip Bowring
International Herald Tribune
June 18, 2005

East Asia appeared for a time to lay claim to defining Asia. The Asia Pacific Economic Cooperation group, for example, includes most of the Pacific basin but excludes South and Central Asia. The East Asia of this summit ought to be self-defining, combining the Confucian Northeast with its Southeastern neighbors.

But advances in India and a fear of Chinese dominance now makes it necessary to invite India (and probably Australia, too) to the gathering.

Clearly there is a lot of scope within East Asia, with huge trade already, for enhanced cooperation. In time - if China and Japan can emulate the postwar Franco-German understanding - they might translate into something like the European Economic Area, with free trade but no common external or social policies. That in turn would promote cooperation to limit exchange-rate volatility among members but fall well short of a common currency.

The East Asia Summit could promote political dialogue. America's exclusion should help keep it focused on Asian issues rather than global ones. The United States is, of course, an Asian power, but East Asian countries need to address issues directly rather than through the prism of their relations with America.

Click here to read futher: http://www.iht.com/articles/2005/06/17/news/edbowring.php

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Japan's Beneficent Potential

Makoto Taniguchi
The Japan Times
June 14, 2005

Asian currency and financial cooperation including plans to create an Asian bond market and an Asian common currency. The 1997 Asian currency crisis triggered moves toward regional integration. This attests to the importance of regional cooperation in monetary and financial areas. Talks are already under way to create an Asian bond market so that abundant funds in Asia can be invested in the region. An Asian common currency will eliminate exchange-rate regulations in the region.

Japan is in a position to contribute the most in these areas. Japan's active participation will make it possible to create an effective East Asian Community. Asia needs Japan. To meet its expectations, Japan should act as a confident and cooperative member of Asia. Over time that will generate a sense of community among East Asian nations, leading to the establishment of an East Asian Community. The emergence of such a regional community will contribute greatly not only to economic development in East Asia but also to political stability and security in the region

Click here to read further: http://www.japantimes.co.jp/cgi-bin/geted.pl5?eo20050614a1.htm

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An Asian `Economic 9/11' for U.S. Economy

William Pesek Junior
Bloomberg News
June 5, 2005

Even if you disagree that U.S. economy is losing its way, it may not matter. China and India are giving rise to billions of new capitalists who may soon be able to compete directly with American entrepreneurs, engineers and financiers at a fraction of the cost. All this should be a far bigger wake up for the U.S. than is has been.

The rise of China and India may not be an ``economic 9/11'' for the U.S., but there's no getting around the fact that the future is the U.S.'s to lose. And it may lose it to Asia.

Click here to read further: http://www.bloomberg.com/apps/news?pid=10000039&sid=aAAGSN8ncSWo&refer=columnist_pesek

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Asia's Growing Role in the World Economy

David Burton
The Financial Express
June 1, 2005

The rapid growth of emerging market econo-mies in Asia has been a notable feature of the global economy in recent years. This growth has been led most visibly by China and, increasingly, India, but several other Asian countries play an important and vibrant role as well. The strong performance of these economies, combined with the continued dynamism of the US, has helped sustain the current worldwide expansion, offsetting ongoing sluggishness in Europe and also in Japan, where growth has remained sporadic despite progress in bank and corporate sector restructuring

Click here to read further: http://www.financialexpress.com/fe_full_story.php?content_id=92508

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