what role for peer review in fostering regional integration? - comments -

What Role for Peer Review in Fostering Regional

Integration?- Comments -

1st OECD - Southeast Asia

Regional Forum

Jakarta 23-24 January 2007

Ki FukasakuOECD Development Centre

2

Questions to Consider in Session III

What are the major challenges for regional integration in ASEAN?

Can Peer Review be useful for monitoring and advancing regional integration?

3

Recap

Globalisation and regionalisation: is East Asia special?

Need for coherent policies to integrate all ASEAN countries (esp. CLMV)

Enhance the capacity of reviewed countries to engage in peer review

Where to East Asian regionalism?

Why Peer Review? (Or why not other methods?)

4

Two Types of Regionalisation

Market-led Regionalisation, driven by higher-than-average economic growth and trade and FDI liberalisation both multilaterally and unilaterally [Lloyd 1992]

Institution-led Regionalisation, driven by the formation of RTAs and enhanced regional co-operation in areas other than trade

5

From Market-led to Institution-led Regionalisation in East Asia

East Asian and Pacific interdependence

East Asian currency and financial crisis

9/11 and security

Emergence of China and India

Promoting growth through reform

Slow progress in the WTO process

“WTO plus” issues

Increasing FTAs/EPAs in the ROW

6

Where to East Asian Regionalism?

APEC Bogor Declaration (1994) : free trade and investment in the APEC region by 2010 (developed members) and by 2020 (developing members)

Embracing FTAs in East Asia

FTA/EPA bandwagons (Japan, Korea, China)

7

East Asian “Noodle Bowl” of RTAs

Source: Drysdale (2006)

ASEAN

Indonesia

Thailand

Singapore

Philippines

Malaysia

CER

China Japan

Republic of Korea

Australia

Mexico

New Zealand

USA

Study group

Under negotiation

Agreement signed

In force

Taiwan Chile

Panama

8

Where to East Asian Regionalism

From Bilateral FTAs to an East Asian FTA [e.g. Cheong 2003; Urata & Kiyota 2003; Plummer & Wignaraja 2006]

ASEAN to write a charter and to create the free trade area by 2015

2nd East Asia Summit agreed to launch a Track Two study on a Comprehensive Economic Partnership in East Asia (CEPEA) among EAS participants.

9

East Asia’s Functional Co-operation at Different Levels

17 Co-operative Areas, including:

Trade and investment Money and finance Energy IT Intellectual Property Food Health Environment Disaster prevention Development

assistance

48 different groupings, including:

ASEAN ASEAN + 3 ASEAN + CER ASEAN + India ARF East Asia Summit APEC ASEM

10

ASEAN/East Asia: Cases for Regional Peer Review?

Scope

Participants

Ownership

Capacity building

Thank you for your attention!