Foreign Minister of Thailand

(This article appeared in Far Eastern Economic Review, February 17, 2000)

When the Association of Southeast Asian Nations was born 32 years ago, its founders spoke of the need to foster greater cooperation among the countries of the region "in an increasingly interdependent world." While this oft-repeated phrase has become a cliche, its use by our leaders more than three decades ago nonetheless demonstrates their foresight and wisdom. And at ASEAN's first summit in Bali, nearly nine years after its birth, our leaders coined another phrase that has become part of ASEAN's vocabulary. They stressed the need for members to strengthen their national and regional "resilience" at a time when this part of the world ,faced one of its biggest crises, a result of regional tensions.

Over the years, this resilience has been a source of strength for ASEAN as its members weathered many storms. Indeed, after the Asian economic crisis began in Thailand in 1997, that resilience was severely tested-with many predicting the group's demise. But ASEAN survived as its resilience held, and it continued its commitment to greater cooperation in a globalized economy. We heeded well our founders' wisdom.

Now, in just a few days, Thailand will host the 10th session of the United Nations Conference on Trade and Development, or Unctad X. This will be the first major international conference at the dawn of the 21st century, and all 190 members of Unctad, two more than the membership of the UN, will participate at the highest level. The fact that Unctad X is taking place in an ASEAN country gives added impetus and significance to the entire process. The outcome of the conference will have significant implications not only for the future of Unctad, but also for regional trade cooperation. One of the achievements of the conference will be the first ever informal ASEAN-UN Summit, which will bring together ASEAN leaders, the UN secretary-general and the heads of various UN agencies. It suggests that two-and-a-half years after the Asian economic crisis began, ASEAN is slowly but surely overcoming the malaise and reemerging as an economic-force to be reckoned with.

But though we have survived, there is yet more to do before we can regain our former status and influence. Members of ASEAN need to put their respective houses in order. In many countries there remain sectors of society that lack effective and transparent governance, and there still exists confusion between business ethics and extended family welfare. In this globalized world, where market forces are quick to punish weaknesses in an economy ASEAN can no longer afford "business as usual." Rather, we must build further resilience by accelerating the process of economic and political reform so vital to our recovery and renewal.

For ASEAN to retain its viability and relevance, it is essential that it coordinates more closely members' policies, especially on major political, economic and social issues of mutual concern. This entails a stronger commitment to regionalism, since we can no longer afford to compete individually among ourselves, and separately with the world. More intensive interaction in a spirit of openness and sincerity is clearly needed.

Next, it is imperative that ASEAN augments existing mechanisms of cooperation. Regional surveillance of macroeconomic performance has been accepted as a necessary preventive measure to head off a future economic crisis. Many issues, formerly dealt with by finance and trade officials in individual countries, now have become issues of regional concern. An ASEAN Surveillance Process already has been in place since March 1999. This involves a peer-review process and exchanges of information on important financial matters. One area of surveillance particularly important for ASEAN is the monitoring of shortterm capital flows, current-account deficits and other critical macroeconomic indicators, which should be better coordinated among the ASEAN members.

In trade, it is worth noting that progress has been achieved in the acceleration of the ASEAN Free Trade Area, or AFTA. Especially noteworthy is the decision taken by ASEAN leaders at its 3rd Informal Summit, committing themselves to the elimination of all import duties by 2010 for the six original members of ASEAN. More, as of January 1 this year, some 90% of the Inclusion List of the six original signatories to the Agreement on the Common Effective Preferential Tariff Scheme now have tariffs of no more than 5%, and some goods at no tariff at all. This accounts for 90% of all intra-ASEAN trade. All these targets have been achieved ahead of original deadlines. At the same time, intra-ASEAN trade has also been increasing impressively over the years, despite some hiccups resulting from the recent economic crisis.

What is clear after the nearly three years since the economic crisis descended upon us is that if ASEAN cleaves to the wisdom of its founders, then its future prosperity and greater influence will be that much better guaranteed. Indeed, in a world fast establishing global connections, we cannot do otherwise than pay attention to the wisdom that is part of our legacy.