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EU'S ASEAN MYOPIA



Hi Folks,
            here's an interesting article on EU/ASEAN.

Sincerely,

Julien
---------------------------------


                         EU's Asean myopia 


By Linda Low 

   The EU needs to be more than just an Asean dialogue
            partner for a more stable global system 



THE Association of Southeast Asian Nations (Asean) and the European Union
(EU) face many
common issues, among them enlarging their membership and dealing with the
more competitive
external environment. 

But in contrast to Asia's economic boom, Europe is mired in menacingly high
unemployment rates
and the fiscal throes common in so many welfare states. 

Another difference lies in the ability of their industrial structures to
respond to the vast changes
taking place in the world economy. 

Asean's enlargement to include "transitional" Indochinese economies -- first
Vietnam, and now
possibly Cambodia, Laos and Myanmar -- and the EU's extension to former command
economies in Eastern Europe and Russia, are fraught with socio-political
chasms. 

But Asean's case for enlargement may be more convincing with positive
"neighbourhood" effects
with the pulling power of Singapore, Malaysia and Thailand. 

Besides the Asean Free Trade Area (Afta), the region's many growth triangles
have also
encouraged trade and investment. 

These include the Singapore, Johor and Riau Islands (or Sijori) the
Indonesia-Malaysia-Thailand
growth triangle (or IMT-GT), and the Brunei-Indonesia-Malaysia- Philippines
East Asean Growth
Area (BIMP-EAGA). 

Commentators say the EU's economic integration is probably driven more by
politics than
economics. Whatever the case, it has been myopic of the EU to regard Asia
and Asean as
marginal locations, while confining their attention to Europe first and,
following tradition, globalising
only to the extent of crossing the Atlantic to the United States. 

Despite the EU being both too preoccupied and too divided to project a
common stand on Asean,
it has to do more than just be an Asean dialogue partner. 

Instead of EU trying to impose its own socio-political orientations, it
should take a much broader
view of Asean politics. In contrast with American missionary zeal and
preachiness, some
Euro-realism would be welcome. Given that Europe is not as deeply involved
in Asia's security as
the US, it may be best for EU, like Japan, to keep purely to business and
commerce. 

>From a global perspective, stronger Asean-EU ties would help create a more
stable system.
Among the triad, the Asia-Europe leg is weaker than the US-EU and US-Asia legs. 

If the third leg is reinforced, the triad structure could be more reassuring
in providing a balance of
political and economic power in the global equation. 

Push and pull factors have led to the Asia-Europe summit (Asem) in 1996.
Before the next Asem
in the United Kingdom in 1998, follow-up activities last year and this year
comprise a government
and private sector working group, separate meetings of senior officials and
economic ministers, a
business forum and studies on economic synergies to develop policies. With
an Asia-Europe
Foundation in place in Singapore, the momentum should increase. 

The EU has plenty to offer Asean in its endeavour to build up local small
and medium enterprises.
There are some 16 million enterprises in the EU ranging widely in size,
market focus, ownership,
structure, financial base and other attributes. 

European tradition and capitalism are good at building skills, and Europe's
apprenticeship schemes
and craftsmanship are much admired in Asean. European businesses are also
built to last, strong
on tradition and European virtues that avoid the social excesses of
corporate America. 

Travel and education are also two services high on the agenda of many Asean
consumers.
European universities and institutions of higher learning are among the
finest and oldest. 

On the other hand, Asean is hungry for education and need more qualified
people in technology,
and the sciences as well as in the humanities. 

But while the timing for greater Asean-Europe cooperation may be right, what
it takes is
leadership to push it through. 

This is another in a series of articles from members of the Economic Society
of Singapore.
The views expressed are those of the author, and need not reflect those of
the Society.
Comments from readers are welcome.