Tokyo Consensus
The
High-level Conference on Asian Economic Integration: Vision of a
New Asia was organized by RIS in Tokyo on 18-19 November 2004 in
collaboration with premier think-tanks of other Asian countries
namely the Council on East Asian Community, Tokyo; the Development
Research Centre of the State Council of China, Beijing; The Global
Security Research Institute of the Keio University, Tokyo and the
Malaysian Institute of Economic Research, Kuala Lumpur, with the
support of the Sasakawa Peace Foundation, Tokyo. It had participation
of eminent scholars, experts and policy makers from China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, and Thailand. The participants have been affiliated with
premier think-tanks of Asia, besides the organizing institutions
such as the Asian Development Bank, the UN-ESCAP, the International
Institute of Trade and Development, Bangkok; Korea Institute for
International Economic Policy, Centre for Strategic and International
Studies, Jakarta; Singapore Institute of International Affairs,
Shanxi University of Finance and Economics, Taiyuan;
Institute of South East Asian Studies, Singapore, National
University of Singapore, Institute of Developing Economies, Tokyo;
Tokyo University, Waseda University, Keio University, Delhi University,
Confederation of Indian Industry, among a number of others.
The Conference was inaugurated by Hon’ble Mr Koichi Kato,
Member of Japanese Diet. The inaugural session was also addressed
by Hon’ble Mr B.J. Panda, Member of Indian Parliament and was attended
by Hon’ble Mr Sachin Pilot, Hon’ble Mr V.P. Singh Badnore and Hon’ble
Mr Akhilesh Yadav, members of Indian Parliament and had a statement
of the Ambassador of India.
This
Note represents an agreed summary record of the discussion at the
Conference.
The
Conference noted that there was optimism about the development prospects
of Asia with the reforms and sustained rapid growth of China and
India, the recovery of Japan from a decade old recession, rise of
middle class as source of final demand, and growing technological
dynamism of Asian countries. Over the past decade Asian countries
have also integrated themselves within the region as evident from
high and growing proportion of intra-regional trade and investments.
There is also an attempt to build on this ‘functional’ or market-driven
cooperation to more formal institutionalized cooperation as clear
from numerous sub-regional or bilateral free trade arrangements.
In particular, China, Japan, India and South Korea are all working
on ASEAN+1 FTAs. China, Japan, Korea and India are also considering
bilateral FTAs between themselves. Through the emerging web of FTAs
a virtual Asian economic community is emerging. There is need for
building on these subregional and bilateral attempts a broader framework.
The conference noted that a broader regional approach such as a
regional FTA framework subsuming the bilateral and subregional FTAs
will generate substantial welfare gains for each of the partners
in a larger Asian economic community. The regional FTA combining
Japan, ASEAN, China, India and Korea (JACIK) could be broadened
to include other Asian countries in a phased manner. The monetary
and financial cooperation also has the potential of creating hundreds
of billions of additional income besides providing a basis of exchange
rate stability by building an institutional infrastructure for pooling
even a marginal (such as 5%) proportion of their substantial foreign
exchange reserves and launching an Asian currency unit as a sort
of Asian SDR or a unit of account. The development of Asian bond
markets, cooperation among the Asian export-banks and in stock markets
will also be fruitful.
Energy
security provides another fruitful area of cooperation against the
background of high dependence of the region on imported sources
of energy and fast growing demand. The cooperation could take the
form of an Asian Energy Forum to discuss common problems, pooling
resources for joint exploration, develop common infrastructure,
a common strategic reserve, an Asian energy market, and protection
of sea-lanes. There was a case for technological cooperation in
Asia in energy saving technologies, non-conventional resources of
energy, but also in addressing digital divide and problems of health
and malnutrition.
Finally,
the Conference emphasized on the need of including civil society
in this dialogue and highlighting the socio-economic dimension and
evolving a unique Asian socio-economic development model which will
keep social equity and competitiveness at the center of growth.
The
Conference felt that the larger countries of Asia viz., Japan, China,
and India need to provide leadership to the process of regional
cooperation in Asia while ASEAN’s role in bringing them together
is recognized. The regional economic integration and economic interdependence
will also provide for peace, security and facilitate reconciliation
with history in Asia and will lead to an Asian identity.
The think-tank community of Asia has a critical role to play
in realizing the dream of building a New Asia by showing the way
forward to the policy makers with specific proposals for implementation.
Various networks of Asian think-tanks that have come up recently
such as New Asia Forum, NEAT, ASEAN-ISIS among others need to coordinate
and work together. The research and exchange of views between think-tanks
and policy makers through conferences like this need to continue.
Involvement of civil society such as parliamentarians, media, citizen
groups, private sector, among others in the think-tank interactions
would also be useful for broadening the constituency of regional
cooperation.
Tokyo,
19 November 2004
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