Regional Economic Policy Support Facility
Regional Partnerships Scheme
Program Stream
ASEAN-ANZ Summit
Marks a New Era for Regional Ties
The ASEAN-Australia and New Zealand (ANZ) Commemorative Summit, held in Vientiane, Laos on 30 November 2004, was a historic milestone for our regional partnership. In commemorating the 30th Anniversary of ASEAN-Australia and ASEAN-New Zealand dialogue relations, the Summit opened the way for closer linkages in many fields.
Heads of State and Government at the Summit noted in their Joint Declaration that ASEAN, Australia and New Zealand have a long record of constructive engagement. This, they said, has laid a strong foundation for a new level of interaction that will take the partnership to greater heights and closer friendship.
To advance their shared goals of security and prosperity, the Leaders endorsed a major program of initiatives for political and security cooperation, economic linkages and financial cooperation, functional and development cooperation, and promoting people-to-people contacts.
A highlight was agreement to pursue a comprehensive ASEAN-Australia and New Zealand Free Trade Agreement, to build on the substantial trade and investment linkages already in place. The Agreement will progressively eliminate all trade barriers while allowing for flexible treatment for the newer ASEAN members.
Negotiations on an ASEAN-Australia and New Zealand Free Trade Area (FTA) will begin early in 2005 and are expected to run for two years, aiming for full implementation within ten years. Prospective benefits include an open market of some 500 million people and significant complementarities between the economies involved.
The Leaders’ Declaration also recognised the continuing development cooperation provided by Australia and New Zealand, both for ASEAN’s regional integration and development programs and directly to less developed ASEAN member countries.
At the Summit, the Australian Prime Minister, the Honourable John Howard MP, announced a new package of regional cooperative activities, valued at more than AUD 17 million, in fields of common concern such as combatting SARS and Avian Influenza, illicit drug control, animal health and quarantine. He said this would build on Australia’s existing regional and bilateral development cooperation with ASEAN and its individual Member Countries, with commitments of $400 million this year.
aadcp
newsletter
No. 6, January 2005
The Australian Prime Minister, the Hon John Howard MP, joined leaders from ASEAN Member Countries and Dialogue Partners to participate in the ASEAN Summit in Vientiane, Laos on 29-30 November 2004.
AFP Photo: Hoang Ding Nam
New studies were approved at the recently concluded meeting of the Research Priorities Committee (RPC) of the REPSF, which is equivalent to the Facility’s Board of Directors. Membership of the RPC is composed of the ASEAN Secretary General, the AusAID Director of the Asia Regional Program, and the ASEAN Senior Economic Officials Meeting (SEOM) Representative.
Holding its fifth meeting on 09 December 2004, the RPC endorsed Project 04/009 on Enhancing ASEAN Minerals Trade and Investment and Project 04/010 entitled
AIA-Plus: Building on Free Trade Agreements. A third project that was approved in principle will look into
Concepts & Methodologies for the Investigation of Measures Affecting the Integration of ASEAN’s Priority Sectors
and is envisaged to be a preliminary activity prior to a more comprehensive
exercise. It is anticipated that these projects will be put out to tender in the first quarter of 2005.
The ASEAN Secretary General (SG) also briefed the meeting on the outcomes of the recent ASEAN Leaders Summit held in Vientiane on 29 – 30 November 2004 and, in particular, to highlight the implications for the REPSF. The SG explained that the Facility could help support policy studies to further accelerate the 11 priority sectors and enhance the region’s competitiveness. Noting that the ASEAN-Australia and New Zealand Commemorative Summit was also held in Vientiane where the objective to further strengthen economic partnerships was given new impetus, the SG also suggested there would be opportunities to support the negotiations on a Free Trade Agreement (FTA), which will commence in early 2005.
Fifth Meeting of REPSF’s Research Priorities Committee
Given that ASEAN's economic agenda is starting to take a more definite shape with the decision to create an economic community as well as the numerous ASEAN plus 1 agreements being developed, the need to provide more systematic policy analysis and advice is gaining urgency to ensure that the economic agenda of ASEAN as a regional bloc is sustained.
REPSF recently commissioned Dr. Andrew MacIntyre of the Australian National University’s Asia Pacific School of Economics and Governance (ANU-APSEG) in Australia, Dr. Vo Tri Thanh of the Central Institute of Economic Management (CIEM) in Vietnam and Dr. Mari Pangestu of the Centre for Strategic and International Studies (CSIS) Indonesia to look into options for establishing a regional economic policy research network to support ASEAN priorities. The research team was augmented during field studies and subsequent analysis by the ASEAN Secretariat Economist, Dr. Aladdin D. Rillo and the REPSF Research Advisor, Dr. Ramonette Serafica. In their presentation to the REPSF’s RPC, and to invited officials from the ASEAN Secretariat and MUPL, the consultants stressed that the
research network must be governed by three basic principles.
First, it should yield timely and policy-relevant research on topics of importance to the ASEAN Secretariat and ASEAN officials that would be fed into ASEC, Senior Economic Officials Meetings (SEOM) and ASEAN Finance and Central Bank Deputies Meetings (AFDM).
Second, it should nurture the development of a community of economic researchers within ASEAN, thereby helping to deepen capacity to produce high quality local analysis that contribute independently to more informed regional policy deliberations. Balancing these first two principles is a critical issue. The needs and interests of both policy-makers and researchers must be adequately catered for, otherwise the partnership will not function.
The third basic principle is more straight forward: the framework for the partnership should be practical and viable. In essence this implies starting modestly while preserving the possibility for it to evolve into something larger and more complex in the future.
The basic features of their proposed framework are:
• A system of commissioned, rapid turn around, research projects focused on key issues relating to ASEAN priorities,which network members may bid for on a competitive basis.
• Direct involvement of ASEC in negotiating the research agenda and selecting tenders.
• Key research findings fed directly to senior ASEC and ASEAN officials, and published research reports disseminated through the network.
• Resources to fuel the development of an independent network of research institutions.
The participants at their presentation broadly agreed with the basic principles and features recommended. It was further suggested particularly by the Secretary-General that the REPSF could help nurture the creation of the network by providing research opportunities which could be jointly undertaken by institutes around the region, thereby slowly introducing the research network as a viable mechanism for generating much needed economic policy analysis and advice on a systematic and sustained basis.
ERNA: Economic Research Network for ASEAN
Delegates at the 5th Meeting of REPSF’s Research Prioritities Committee, ASEAN Secretariat, Jakarta, 04 December 2004.
Strengthening Risk Management and Governance in
ASEAN’s Banking Systems
Senior representatives from banking regulators within ASEAN attended a 5 day workshop in Melbourne from 18- 23 April 2004 on banking risk management and governance issues.
Enforcing Intellectual Property Rights in ASEAN
In line with ASEAN’s efforts to strengthen financial systems in the region, 55 senior banking regulators from ASEAN visited Melbourne in March and April 2004 to attend training courses on prudential regulation and risk management in banking. This training program formed a core element of the AADCP Regional Partnership Scheme project
Strengthening Risk Management and Governance in ASEAN’s Banking Systems.
The training program prepared ASEAN banking regulators in the implementation of internationally recognised Basel 2 standards and helped improve understanding of bank risk management, pricing and capital provisioning in banking regulatory agencies. Overall best practices were promoted in corporate governance arrangements in ASEAN banking sectors, with a best practice guide developed.
This project has contributed to regional integration by raising the awareness of ASEAN regulators of best regulatory practices that can be implemented in their domestic regulatory system. Additionally
it has encouraged participation and regional benefits by assisting ASEAN regional regulators become aware of new international standards that will assist in developing transparent financial markets to encourage financial cooperation, economic integration and other trade linkages. Importantly, it reinforced cooperation through networking and
partnerships between Australian and ASEAN regulators and industry experts.
This 10 month project, which has recently concluded, was implemented by Monash University’s Australian APEC Study Centre, in collaboration with several leading Australian public and private financial institutions, and the Monetary Authority of Singapore.
Au
The enforcement of intellectual property rights (IPR) is a problem in some ASEAN member countries. IPR infringement, both domestically and through the import and export of goods, is seen to have considerable impact on the economic development of countries and their businesses.
In May 2004, a regional workshop was held in Bangkok aimed at strengthening the awareness of IPR of judges and public prosecutors from ASEAN Member Countries. This major capacity building
initiative was jointly funded by the United States Patent and Trademark Office, AADCP-RPS and the Japan Patent Office, in collaboration with the ASEAN Working Group on Intellectual Property Cooperation, IP Australia, USAID, the Kenan Institute Asia and the Thai Department of Intellectual Property.
The ninety workshop participants were drawn from a wide spectrum of public and private sector stakeholders. The number of participants and sponsors reflected the growing emphasis and interest by IPR
holders and governments in the region to address enforcement issues. The workshop utilised a panel and case study approach to discuss current legal concerns and techniques in both civil and criminal enforcement. It also provided opportunities for participants to share their experiences and discuss greater regional coordination of IPR enforcement activities. Furthermore, the workshop focused on the innovative use of alternative dispute resolution and mediation in criminal IP cases.
Recognising that terrorism is a threat to regional and international peace, stability and economic development, ASEAN and its Member Countries have been addressing the issue of terrorism at the national, bilateral and multilateral levels over the years. To assist in these efforts, AADCP is funding the RPS project
Foundation Course for Senior Officials in the Theory of Counter Terrorism Recognition and Multilateral Collaboration for Combatting Terrorism. The project is aimed at enhancing the skills of senior
officials from civilian and law enforcement agencies across ASEAN. It includes deepening the awareness of social, economic and political implications of terrorism, so that the course participants are be able to contribute to the development of strategies for promoting security cooperation among relevant agencies within their own country and across the region.
A Needs Analysis Workshop was held in Jakarta in February 2004, followed by country-specific training courses which
were conducted in each ASEAN Member Country between July 2004 to January 2005. The courses have been attended by over 300 participants from a broad spectrum of government agencies from the 10 ASEAN Member Countries. The project concludes in late January 2005 with a wrap-up conference in Jakarta.
The project is being implemented by The Distillery Pty Ltd, in partnership with the University of Wollongong and the Nanyang Technological University.
aadcp
newsletter
The First Meeting of the AADCP Program Stream (PS) Program Coordination Committee (PCC) was held on 15 October 2004 in Jakarta, Indonesia. Co-chaired by ASEAN and Australia, the meeting brought together delegates from Brunei Darussalam, Indonesia, Malaysia and Singapore, and representatives of the ASEAN Secretariat, AusAID, and AADCP Australian Managing Contractor, ACIL Australia Pty Ltd.
The ASEAN Co-Chair, Mr. Dhannanjaya Sunoto, Principal Director, Bureau for External Relations and Coordination, ASEAN Secretariat, welcomed delegates. He expressed the appreciation of ASEAN Member Countries to the continued commitment of Australia to support the activities in ASEAN and shared the views of Australia on the importance of the AADCP.
Noting that 2004 marked 30 years of
ASEAN-Australia development cooperation, Australian Co-Chair, Mr. Ross Muir, Director of Asia Regional Section, AusAID, reiterated Australia’s commitment to support ASEAN economic integration and competitiveness. He emphasised that ASEAN ownership of the Program is crucial; the Program will continue to be run by ASEAN and focussed on emerging ASEAN priorities. Mr Muir also noted that this Program follows on from the ASEAN-Australia Economic Cooperation Program (AAECP) which is now almost completed. Lessons learned from the AAECP have been incorporated into AADCP. An important feature of AADCP is that all activities have a common theme and shared synergies.
ASEAN Secretariat Desk Officers presented progress reports for their respective projects. Issues discussed included, in brief: the appointment and
respective roles of National and Regional Focal Points; the benefits of in-person project inception meetings; the provision of additional support, where necessary, to less-developed countries; program sustainability; monitoring and evaluation; and translation of project documentation.
The third design mission for Program Stream projects commenced on 14 October 2004. Two projects under design are: Strengthening ASEAN Plant Health Capacity (COMP 4) and Strengthening ASEAN capability in Risk Assessment in Support of Food Safety Measures
(COMP 6). These projects are scheduled for tender in early 2005. Information will be available on the AADCP website as soon as project designs have final approval.
The next Meeting of the PCC will be held in Jakarta in mid March 2005.
substantial progress in collection and analysing data from country comparisons across 20 selected occupations.
This information, together with case studies, will be used to identify best practice principles, difficulties and constraints in the development of SRAs in different occupational and industrial contexts across the region. Practical policy options for enhancing skills recognition and labour mobility will be developed. Ultimately, this work will
contribute to improving skill development, labour market flexibility and labour market integration and mobility within ASEAN.
A feature of the project, being implemented by Australian Expert Group in Industry Studies at the University of Western Sydney with TAFE Global, Asia Policy Research (Bangkok) and Dr Amelia Ancog (Manila), is the on-going input through working groups located in the Departments of Labour / Education in each of the ten ASEAN countries.
ASEAN – Australia Development Cooperation Program Workshop participants discuss the establishment of a network of ASEAN specialists in Skills
Recognition System, at the AADCP-PS funded workshop in Phnom Penh (Cambodia) 18-19 November 2004
Progress & Commitment Re-affirmed at Inaugural
Meeting of Program Stream Coordinating Committee
Progress on Enhancing Skills Recognition in ASEAN
usAID
The Program Stream’s Enhancing Skills Recognition in ASEAN Project commenced in March 2004. This project is assisting ASEAN countries to improve labour market flexibility to meet emerging needs of industry and to promote mobility of skilled workers within an increasingly integrated ASEAN region. It provides information and analysis to assist ASEAN countries to review their skills recognition arrangements (SRA) and build capacity of staff in member country agencies concerned with SRA.
A highly successful workshop was held in Phnom Penh on 18-19 November 2004 with 27 participants representing all ten ASEAN nations. The workshop was officially opened by the Australian Ambassador to Cambodia, H.E. Ms Lisa Kim Filipetto, with support from the Cambodian Minister for Labour and Vocational Education, H.E. Mr Nhep Bunchin, who attended a pre-workshop meeting.
A new phase of regional development has commenced with the adoption of ASEAN’s latest overview strategic plan, the Vientiane Action Programme 2004-2010. This document will guide ASEAN’s way forward at a time of great challenge and change within the region and globally.
The Vientiane Action Programme (VAP) was endorsed by ASEAN Heads of State and Government at the Tenth ASEAN Summit in Vientiane, Laos on 29 November 2004. It flows on from ASEAN’s first six-year planning framework, the Hanoi Plan of Action, which concluded in 2004.
Like its predecessor, the VAP sets out a detailed work plan of activities aimed at realising the goals of ASEAN Vision 2020 and the Declaration of ASEAN Concord II. The VAP is the outcome of extensive consultation throughout the ASEAN committee structure, coordinated by the ASEAN Secretariat.
In keeping with the goals of Vision 2020 and ASEAN Concord II, the VAP places particular emphasis on advancing ASEAN economic integration, building the ASEAN Security Community and Socio-Cultural Community, and narrowing the development gap between ASEAN member countries.
Realising the ASEAN Community
The VAP lists five strategic thrusts for
building an ASEAN Security Community: political development, shaping and sharing of norms, conflict prevention, conflict resolution and post-conflict peace-building. It proposes activities for practical cooperation in each area.
The ASEAN Economic Community is premised on ASEAN’s Vision 2020, which envisages the region functioning as a single market and production base by 2020, with great benefits for competitiveness and prosperity. With this aim the VAP offers three central strategies:
• Accelerated integration of eleven priority sectors into a single market and production base by 2010. The Tenth ASEAN Summit endorsed the ASEAN Framework Agreement for the Integration of Priority Sectors, which contains Road Maps for action in each sector.
• Enhancement of the ASEAN Investment Area, launched in 1998, through greater opening up of investment opportunities and a range of facilitation and promotional measures, in line with provisions of the ASEAN Strategic Investment Action Plan for 2004-2008.
• Boosting intra-regional trade through progressive elimination of tariff and non-tariff barriers, harmonisation of
customs procedures and other support systems, strengthening of Small and Medium Enterprises (SME), and strategies to liberalise essential services such as finance, transportation, telecommunications and energy.
The ASEAN Socio-Cultural Community seeks to raise living standards, encourage a caring society and safeguard natural and cultural resources. The VAP details strategies for building strong systems of social protection, promoting environmental sustainability, managing the social impacts of economic integration, and preserving the region’s cultural heritage and identity.
Narrowing the Development Gap
To ensure that the benefits of economic integration are equitably distributed, ASEAN is committed to narrowing disparities between member countries in terms of income and other aspects of human well-being. The VAP plans to strengthen the Initiative for ASEAN Integration, through specific attention to the needs of the newer ASEAN members. It will also accelerate support for designated sub-regional growth areas.
Implementing the VAP
Leaders at the Summit agreed to establish an ASEAN Development Fund to support the implementation of the VAP. They also recognised the interest and willingness of ASEAN’s Dialogue Partners to offer expertise and resources to help realise the plan’s wide agenda.
Australia looks forward to supporting the VAP through the ASEAN-Australia Development Cooperation Program (AADCP). The AADCP has already funded economic research and project design studies to assist in formulation of the new plan, and is continuing to sponsor many collaborative activities related to the VAP priorities of economic integration, community-building and equitable development.
ASEAN Summit Endorses Vientiane Action Programme
aadcp
newsletter
February 2005
• Early: Project Coordination Group (PCG) Meeting to review project progress, make key decisions, coordinate project activities and consolidate communication channels, under PS Project Quality Assurance Systems for ASEAN Fruit and Vegetables, Kuala Lumpur, Malaysia
• 13th Feb-18th Mar: Regional field study tour to review local arrangements for industry association certification of tourism professionals and discuss potential for Mutual Recognition Arrangements (MRAs) for adoption of ASEAN competency standards, under RPS Project Developing ASEAN Common Competency Standards for Tourism Professionals, 10 ASEAN Member Countries • 23rd-25th: Third international workshop to discuss
options for harmonised legal infrastructure for e-commerce in ASEAN, under PS Project Legal Infrastructure for E-Commerce in ASEAN, hosted by Galexia Consulting and Baker & McKenzie, Siem Reap, Cambodia
• 23rd: Regional Partnerships Scheme – Fifth Joint Selection and Review Panel (JSRP) Meeting, Jakarta
March 2005
• 8th-9th: Workshop on regulatory best practice for electrical and electronic sector, under PS Project Strengthening ASEAN Standards Conformity and Assessment Systems, Lao PDR
• 10th-11th: Workshop on regulatory best practice for cosmetics sector, under PS Project Strengthening ASEAN Standards Conformity and Assessment Systems, Lao PDR
• Mid: Program Stream – Second Program Coordination Committee (PCC) Meeting, Jakarta • Second Good Agricultural Practices (GAP)
Workshop to continue to develop a quality system that will become the ASEAN GAP, under PS Project Quality Assurance Systems for ASEAN Fruit and Vegetables, Thailand
• Late: Three day high level regional workshop to reach agreement on the Cargo Processing Model, under PS Project Enhanced Customs Capacity Building in ASEAN, Manila, Philippines
• 29th-30th: Presentation of REPSF Project 04/008 – Strategic Directions for ASEAN Airlines in a Globalising World, at the 11th Air Transport Working Group Meeting, Vietnam
April 2005
• 4th-8th: Workshop on the development and implementation of national food safety strategies for ASEAN countries, under PS Project Quality Assurance and Safety of Fish and Fishery Products Handling, Processing and Packaging, Cambodia
• 11th-22nd: Training workshop in animal disease surveillance, under PS Project
Strengthening Animal Health Management and Biosecurity,Philippines.
• 19th-20th: Workshop on regulatory best practice for pharmaceutical sector, under PS Project Strengthening ASEAN Standards Conformity and Assessment Systems, Thailand (TBC)
• 21st-22nd: Workshop on regulatory best practice for prepared foodstuffs sector, under PS Project Strengthening ASEAN Standards Conformity and Assessment Systems, Thailand (TBC)
• 26th-28th: Joint forum to review main issues affecting consensus on common competency standards and mutual recognition arrangements (MRA) issues, under RPS Project Developing ASEAN Common Competency Standards for Tourism Professionals, Jakarta, Indonesia
• 27th-28th: Presentation on REPSF Project 04/003 – SME Access to Financing: Addressing the Supply Side of SME Financing, at the 16th SME Working Group Meeting, Bangkok, Thailand
• One week meeting with Australian and ASEAN representatives to develop draft country Implementation Plans, under PS Project Enhanced Customs Capacity Building in ASEAN, Cambodia.
May 2005
• 2nd-7th: Workshop to finalise the draft evaluation framework and tools, under RPS Project Development of Evaluation Framework and Impact Assessment Tools For ASEAN Committee on Science and Technology (COST) Programmes and Projects, Jakarta, Indonesia
• 6th-7th: Workshop on harmonising skills recognition processes and practices, under PS Project Enhancing Skills Recognition Systems in ASEAN, hosted by the Australian Expert Group in Industry Services in collaboration with the Myanmar Department of Labour, Yangon, Myanmar (TBC)
• Two week Train-the Trainer Course in the ASEAN Customs Valuation Guide, under PS Project Enhanced Customs Capacity Building in ASEAN, Vietnam
• Implementation review of the Country Implementation Plans by Australian and ASEAN representatives, under PS Project Enhanced Customs Capacity Building in ASEAN, Jakarta (TBC)
• Presentation of REPSF Project 04/007 – Movement of Workers in ASEAN: Healthcare and IT Sectors, at the 4th Senior Labour Officials Meeting, Cambodia.
The ASEAN Secretariat, Ground Floor 70A Jl. Sisingamangaraja
Jakarta 12110 INDONESIA Tel. (62-21) 724-3372, 726-2991 Fax (62-21) 722-9028
Email: john@aseansec.org
Steven Watkins
Project Manager
Melbourne University Private Ltd 442 Auburn Road
Hawthorn VIC 3122 AUSTRALIA Tel. +61 3 9810 3186
Fax. +61 3 9810 3100
Email: s.watkins@muprivate.edu.au
RPS
Maria Eloida Cruz Balamiento
Project Coordinator
The ASEAN Secretariat, Second Floor 70A Jl. Sisingamangaraja
Jakarta 12110 INDONESIA Tel. (62-21) 724-3372, 726-2991 Fax (62-21) 739-8234
Email m.balamiento@aseansec.org
Sarah Hamilton
Project Manager ACIL Australia Pty Ltd 854 Glenferrie Road
Hawthorn Vic 3122 AUSTRALIA Tel. +61 3 9819 2877
Fax +61 3 9819 4216
Email: sarah.hamilton@acil.com.au
Program Stream
Dr Greg Gibbons
Program Director
The ASEAN Secretariat, Second Floor 70A Jl. Sisingamangaraja
Jakarta 12110 INDONESIA Tel. (62-21) 724-3372, 726-2991 Fax (62-21) 7278-7252
Email greg.gibbons@aseansec.org
Susan Majid
Program Manager ACIL Australia Pty Ltd 854 Glenferrie Road
Hawthorn Vic 3122 AUSTRALIA Tel. +61 3 9819 2877
Fax +61 3 9819 4216
Email: susan.majid@acil.com.au
