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68. ASEAN and the North-South Dialogue
- ISEAS–Yusof Ishak Institute
- Chapter
- Additional Information
ASEAN and the North-South Dialogue 339 By: ROS Size: 7.5" x 10.25" J/No: 03-14474 Fonts: New Baskerville 68. ASEAN AND THE NORTH-SOUTH DIALOGUE ALI ALATAS Reprinted in abridged form from Ali Alatas, “North-South Issues and Their Relevance to ASEAN”, in ASEAN Security and Economic Development, edited by Karl D. Jackson and M. Hadi Soesastro (Berkeley, Calif.: Institute of East Asian Studies, University of California, 1984), pp. 10–15, by permission of the author and the Institute of East Asian Studies, University of California. What relevance do North-South issues have for ASEAN and what is ASEAN’s stake in the North-South negotiations? I submit that not only has ASEAN a vital stake in them, but it has also a crucial role to play both in the North-South dialogue and in the recovery of the world economy. ASEAN’s direct interest is involved in at least four areas central to the New International Economic Order, namely, primary commodities, international trade, transfer of technology, and money and finance, with a fifth area, energy, being of particular concern to Indonesia. First, let us consider the field of primary commodities and commodity trade. ASEAN’s natural resource endowment is a cornucopia of strategically important commodities and minerals. It is the world’s principal supplier of natural rubber, palm oil, and coconut oil. It is a major producer and exporter of oil and natural gas, tin, tropical timber, coffee, copper, tungsten, sugar, rice, and tobacco. In the field of international trade ASEAN’s performance is no less spectacular. It enjoys an increasing share of international trade with a steady growth rate averaging 24 percent per annum (in the period 1975– 1980) as compared with a world rate of about 18 percent (in the same period). It has emerged as Japan’s second largest trading partner and the fifth largest trading partner of the United States. Though its trade with the European Economic Community is of a more modest nature, it has exhibited a phenomenal growth rate of over 30 percent per annum between 1975 and 1980. Export trade alone constitutes a significant source of foreign exchange and accounted for 42 percent of ASEAN’s total gross national product in 1980. Turning now to technology, ASEAN’s current vigorous level of development and its surging industrial drive inevitably create essential needs. It requires large quantities of technological imports and capital goods to sustain that development. Apart from 068a AR Ch 68 22/9/03, 12:54 PM 339 340 Ali Alatas By: ROS Size: 7.5" x 10.25" J/No: 03-14474 Fonts: New Baskerville access to and availability of technology, the enhancement of indigenous technological capability will henceforth be a crucial determinant not only for ASEAN’s further growth but also for its capacity to grow. Financing and access to financial markets have assumed a central importance for ASEAN. Adequate financing is essential to facilitate rapid industrialization and largescale international trading. Singapore has become a financial center of growing importance for the entire Asian-Pacific region. The need to assure adequate financing flows on a continuous and more predictable basis is paramount to ASEAN’s continued successful growth. Given ASEAN’s heavy stake in each of these vital areas, it should come as no surprise to anyone that the ASEAN countries have assumed an active and highly visible part in the North-South negotiations since their inception. First, because of its concentration on commodities and its predominant position in commodity trade, ASEAN has always fully supported the call for remunerative and equitable price and earnings stabilization arrangements. Thus, ASEAN countries were in the forefront in the negotiations for the Common Fund and for UNCTAD’s Integrated Program for Commodities, including the establishment of new international commodity agreements for individual commodities. Of the ten core commodities of the Integrated Program for Commodities, almost all are of direct importance for ASEAN. At present, ASEAN’s attention is directed to the next area for negotiations, namely, the establishment of new frameworks of cooperation with a view to increasing the participation of developing countries in the processing, marketing, and transport of their commodities. The recent collapse of commodity prices has had a particularly severe impact on the ASEAN economies , and it is obvious that the existing international economic relationships continue to operate to the inherent economic disadvantage of the developing countries. Second, the heavy dependence of ASEAN countries on international trade compels it to play a major role in...