ASEM: a right platform for conversation on shared global challenges

This is just the right time for a serious Asia-Europe conversation on shared global challenges. With Brexit around the corner, the world economy in poor shape, growing inequalities and discontent with globalisation on the rise, Asian and European leaders meeting in Ulan Bator, Mongolia, on July 15-16, have a great deal to talk about.Add to the list, an increased disconnect and mistrust between governments and citizens — especially between leaders and young people — the rise in populism, fears of uncontrolled immigration and violent extremism, and it’s clear that leaders at the Asia Europe Meeting (ASEM) summit in Mongolia will have a full agenda.Asian leaders and policymakers may believe that most of these issues are of relevance only to Europe. The truth is more complicated. The Brexit referendum last month has certainly highlighted the strength of these and other preoccupations among British (and other European voters). But many of these worries are shared by citizens across the world.Asia is as unequal a continent as is Europe. Winners and losers of globalisation exist on both continents and terrorists pose a challenge to Asian and European states alike. Even though they are masters of grabbing the headlines in Europe, populist politicians with simple messages exist in Asia as well. And leaders in both Asia and Europe need to build stronger connections with young people and respond to their worries about education, jobs, exclusion and marginalisation.It is important to have these discussions within ASEM. Given its informal format and structure, ASEM offers a unique platform for an open, no holds-barred high-level brainstorm on issues of mutual interest. The leaders’ retreat session is especially suited to the debate on shared challenges.In fact, it is the need for such a conversation that led to the creation of ASEM 20 years ago — and that is likely to give ASEM renewed geo-strategic relevance and increased credibility in the coming years.ASEM stakeholders — including policymakers, members of parliament, civil society representatives, academics and members of think tanks as well as young people and business leaders — are engaged in impressive efforts to make ASEM fit for purpose in the 21st Century.The emphasis should be on new ideas and increased connectivity as part of a potent new recipe for injecting new energy and dynamism into ASEM.Transforming ASEM into a hub or network of ideas and initiatives will give the Asia-Europe relationship a geo-strategic raison d’être, which it has lost over the last two decades. The platform for networking, dialogue and cooperation it provides today makes it even more essential in an interdependent and complex world. Asia-Europe connectivity is now a fact of life and reinforcing these networks through stronger institutional, infrastructure, digital and people-to-people linkages is rightfully emerging as a central element of efforts to revive and renew ASEM.ASEM has met many of its original goals by providing Asian and European leaders with opportunities to get to know one another, encouraging greater people-to-people understanding and providing the two regions with avenues to explore new areas of cooperation in the political, economic and social sectors.An array of ASEM meetings allows policymakers from both regions to exchange views on regional and global issues and strengthen their economic relations through greater trade and investment. Additionally, meetings between business leaders, parliamentarians, academics and civil society actors — and young leaders — have allowed ASEM to make important headway in enhancing mutual Asia-Europe understanding and upgrading the quality and diversity of the Asia-Europe conversation.While these connections are important, ASEM can do much more by playing a more central role than it has so far in generating, nourishing and disseminating new ideas about living and working together in a globalised world.This requires the setting up of an “ASEM Brains Trust” or network of think tanks/studies centres, which can help to enliven ASEM by turning into a market place for ideas and initiatives. Proposals and ideas generated within such a studies centre should be fed directly into the work of senior ASEM officials and the activities of other stakeholders. Such tasks could be performed by an ASEM coordination centre of the kind being recommended by Mongolia.This combination of ideas and connectivity allowing for a permanent circulation and exchange of thoughts, knowledge, experience and expertise can revive ASEM for the third decade. The summit in Ulaanbataar can and should set ASEM on the road to renewal. The 21st Century is proving to be turbulent, violent and unpredictable. ASEM can help increase Asian and European understanding of a very complicated world.

China seeks to enhance Asia-Europe connectivity

China is expected to contribute more to the Asia-Europe Meeting (ASEM) by promoting greater relations between the two regions at an upcoming summit.

Chinese Premier Li Keqiang will unveil new proposals in deepening cooperation between Asia and Europe during his first foreign visit this year.

Li will attend the 11th ASEM summit in Mongolian capital Ulan Bator from July 15 to 16, after an official visit to the country from July 13 to 14.

ASEM has provided an important platform for political dialogue, economic cooperation, and cultural and social exchange between Asia and Europe.

Launched in 1996, the biennial ASEM summit has served as a venue for dialogue between countries in Asia and Europe. ASEM now includes 53 Asian and European members. The 11th ASEM summit to be held in Mongolia marks the 20th anniversary of the group's founding.

Shada Islam, director of policy at the Brussels-based think-tank Friends of Europe, said that ASEM has performed well in terms of bringing together Asia and Europe.

"The revitalization of this important forum is to a large extent a consequence of the fact that China is very much engaged into it," said Shada Islam in a recent interview with Xinhua.

She explained that ASEM is very flexible but needs some fresh energy, and said she believes that discussions on connectivity will provide that kind of new dynamism.

"ASEM members are expecting more from China, the second largest economy in the world. It should show more courage and wisdom and allocate more resources in leading the interconnectivity between Asia and Europe," said Cui Hongjian, director of the Department for European Studies of the China Institute of International Studies.

Cui noted the importance of linking China's Belt and Road Initiative to existing ASEM projects such as the Asia-Europe continental bridge as well as to more new projects to boost their connectivity.

China attended all ASEM summits ever since its birth, and the proposals it made in the past 20 years have borne witness to its contributions to the platform.

The Mongolian summit is highly looked to as it will work out the plan for priorities in the next 10 years.

The ASEM faces the challenge to enhance its relevance in looking for more spots of common interests between Asia and Europe, said Ding Yifan, an economist with the Development Research Center of the Chinese State Council.

Ding suggested more cooperation between Asia and Europe in technology and environmental protection, as well as increased efforts in dealing with possible differences among Asian and European members.

Ding expects the Chinese premier will touch upon such topics during the summit in a bid to bring out more momentum from the ASEM in the next decade.

Meanwhile, Li is also likely to discuss with other Asian and European leaders the Brexit issue, the South China Sea arbitration unilaterally initiated by the Philippines, and other hot topics across the region.

The upcoming visit by Li is expected to seek more convergence between China's Belt and Road Initiative and Mongolia's Steppe Road program.

More cooperation in production capacity, major projects and finance is expected to inject more vitality in China-Mongolia ties.

There's opportunity for Mongolia's Steppe Road program to get aligned with the Belt and Road Initiative, which will greatly benefit the Mongolian economy as well as the construction of a tri-party economic corridor involving China, Mongolia and Russia, said Gao Shumao, the former Chinese ambassador to Mongolia.

On efforts to aligning the Belt and Road Initiative and the Steppe Road program, Gao said there is huge potential for the two sides to cooperate in rail and highway construction, clean energy, tourism, health care and people-to-people exchanges.

Chinese President Xi Jinping's visit to Mongolia in 2014 laid a sound foundation for China-Mongolia relations, and Li is expected to strengthen those ties during his trip, said Gao.

View from Abroad: All aboard the Silk Road express (Originally published 27/06/2015 at dawn.com)

Europe has been slow in its response to China’s ‘One Belt, One Road’ initiative. This may be about to change. If both sides play their cards right, the EU-China Summit on June 29 could kick-start a much-needed conversation on synergies between China’s ambitious vision of an interconnected world and Europe’s mega investment plan to boost jobs and growth.The rewards of such cooperation could be enormous. Increased EU-China connectivity will increase bilateral trade between the two partners, create new business opportunities for European and Chinese enterprises, and boost employment, growth and development in Europe and China — and in countries along the routes.To start the dialogue, Europeans will have to take the long view. With the possibility of a Greek exit from the Eurozone getting ever closer, Britain’s plans for a referendum on its EU membership becoming more strident and growing discord over how to deal with the refugee crisis, European policymakers are thinking local, not global.It’s not just about domestic difficulties; Europe’s neighbourhood is also on fire.And yet, if Europe is to fulfil its ambitions of becoming a global actor while also meeting the domestic imperative of generating stronger economic growth and creating jobs, the EU policymakers must look beyond current emergencies to Europe’s medium-to-long-term needs.This is the logic behind the $315bn investment plan drawn up by European Commission President Jean Claude Juncker to modernise Europe’s infrastructure. With its focus on investments in energy, digital, transport and innovation, the blueprint has the potential to revitalise European economies over the next decade.But Europe can’t possibly do it alone. This is why it is important that EU governments, business leaders and academics start paying more attention to China’s headline-grabbing ‘One Belt, One Road’ initiative — and ways in which this could fit in with the EU’s own investment masterplan.After months of staying relatively silent on the subject, the EU policymakers are beginning to talk about — and explore — the advantages of synergies between the Juncker plan and the ‘One Belt, One Road’ initiative.Clearly, joining forces will unleash more resources. Implementing the EU investment plan will require the mobilisation of billions of euros of private and public funds as well as capital from the European Investment Bank (EIB). As European Commission Vice-President Jyrki Katainen said recently, the EU is hoping to attract Chinese investors to stump up some of the capital for the Juncker plan. The point has also been made by European Trade Commissioner Cecilia Malmstrom as well as by the European Commission president himself.The hope is clearly that the EU connectivity projects will be able to interest both the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB). The EU is particularly interested in meeting the long-term infrastructure needs in southern, eastern and central European countries and in the Balkan states. Greece as well as some members of the so-called ‘16+1’ group of central and eastern European countries have already indicated their strong interest in such Chinese investments. If all goes according to plan, the eastern part of Europe could connect seamlessly with the western projects on the new Silk Road.As the different ‘One Belt, One Road’ projects come on stream, business opportunities will open up for construction, transport and logistical companies — including European enterprises — across the route. EU-China trade is likely to get an important boost from the expected reduction in transport time and costs while EU exporters and investors will gain access to new growth markets in inland China and Central Asia. Such a development would give an added fillip to the current EU-China negotiations on a bilateral investment treaty.As it passes through often-volatile and less-developed countries and regions, the ‘One Belt, One Road’ has the potential to unleash economic potential across the way, bringing stability as well as growth to Europe — and China’s — neighbourhood. Such a conversation could be especially useful within the 53-member Asia Europe Meeting (ASEM) where connectivity is also climbing up the agenda.It’s not just about money, technology and goodwill, however. The EU insists that investment projects selected for financing under the ‘One Belt, One Road’ initiative must meet strict governance, environmental and technical standards, and result in sustainable development.Moving from dialogue to action will require time and effort — and willingness to compromise. China has taken its time in putting flesh on the bones of the project and in explaining its many facets to a closely-watching world. A more detailed dialogue is now necessary before the EU and China get down to identifying and working on the nuts and bolts of their cooperation. Given their different working methods and cultures, European and Chinese policymakers, bankers and business leaders won’t find it easy to work together.The devil will certainly be in the detail. Expectations will have to be managed on both sides. Selecting projects will be difficult and time-consuming. And there will be no quick results.But in a world desperate for money, jobs and modern infrastructure, China has once again shown its capacity to surprise and to think big. Europeans must come on board the Silk Road ‘express’, not just watch it from the sidelines.

View From Abroad: Getting connected — the secret to reviving Asia-Europe ties (Originally published 16/05/2015 at dawn.com)

To count in an increasingly complex and interdependent world, you have to be connected. This is true for individuals, institutions, companies, continents, regions and countries. The growth of social media sites is testimony to the increased connectivity of individuals and groups.No connections translate into lack of influence. It means no voice, no role and no chance to make an impact. What’s true for individuals is also true for countries. The nations which have clout in this rapidly-changing 21st century are those that are connected to the rest of the world.That’s why the European Union is busy breaking down internal barriers to trade, services and the movement of goods among its 28-member states. It is also the reason that the EU and the United States are negotiating an ambitious and trade-boosting Transatlantic Trade and Investment Partnership (TTIP) and it is also why the US is also hoping to conclude the Trans-Pacific Partnership (TTP) negotiations by the end of the year.Asians are embarked on a headline-grabbing connectivity agenda of their own. The Connectivity Masterplan drawn up by Asean (Association of South-East Asian Nations) is impressive in its scope and content. And of course China’s “One Belt, One Road” initiative is making waves worldwide.As these different initiatives illustrate, connectivity can and does take many forms. The first focus is clearly on transport — building roads, bridges, railways as well as maritime and air routes. There are also digital networks.Connectivity is also about building networks that connect people, schools and colleges, media, civil society organisations, businesses, policymakers and institutions.Being connected is good for the economy by helping to boost trade and investments and creating jobs. It is good for creativity and innovation. It is good for fostering mutual understanding. And, of course, it is very good for peace and stability.And that’s why is encouraging to see the attention now being paid to Asia-Europe connectivity. The topic is high on the agenda of Asem (Asia Europe Meetings) and is being widely recognised as a vital element in the efforts to revive Asem for its third decade.Certainly, compared to 1996 when Asem was first launched in Bangkok in 1996 or even 10 years ago, there is now a stronger EU-Asian conversation on trade, business, security and culture. As Asem celebrates its 20th anniversary in Mongolia next year, connectivity is expected to be an important driver for further Asia-Europe cooperation.Asia-Europe economic connectivity has grown. With total Asia-Europe trade in 2012 estimated at 1.37 trillion euros, Asia has become the EU’s main trading partner, accounting for a third of total trade and surpassing the North American Free Trade Agreement (Nafta). More than a quarter of European outward investments head for Asia while Asia’s emerging global players are seeking out business deals in Europe.The increased connectivity is reflected in the mutual Asia-Europe quest to negotiate Free Trade Agreements and investment accords. The EU and China are currently negotiating a bilateral investment agreement. The FTAs concluded by the EU with South Korea and Singapore and similar deals under negotiation with Japan, India and individual Asean countries are important in consolidating EU-Asia relations.Beyond trade and economics, Asia and Europe are linked through an array of cooperation accords. Discussions on climate change, pandemics, illegal immigration, maritime security, urbanisation and green growth, among others, are frequent between multiple government ministries and agencies in both regions, reflecting a growing recognition that 21st century challenges can only be tackled through improved global governance and, failing that, through “patchwork governance” involving cross-border and cross-regional alliances.Importantly, connectivity is the new Asem buzzword. The significance of Asia-Europe connectivity — including digital connectivity — was underscored by the Asem summit in Milan last year, with leaders underlining the contribution increased ties could make to economic prosperity and sustainable development and to promoting free and seamless movement of people, trade, investment, energy, information, knowledge and ideas and greater institutional linkages.The summit urged the establishment of an integrated, sustainable, secure, efficient and convenient air, maritime and land transportation system, including intermodal solutions, in and between Asia and Europe. It also noted the usefulness of an exchange of best practices and experiences on areas of common interest, relating for example to the governance of the EU Single Market and the implementation of the Master Plan on Asean Connectivity.A meeting of Asem summit in Milan transport ministers held in Riga discussed a common vision for the development of transport networks between Asia and Europe and emphasised the significance of connectivity between the two regions for achieving economic prosperity and sustainable development. The importance of railway links was especially underlined.Certainly, much of the talk on Asia-Europe connectivity is centred on Chinese President Xi Jinping’s plans for the Silk Road Economic Belt and a 21st century maritime Silk Road (termed together “One Belt, One Road”) aimed at building two economic corridors with important development implications for many nations, creates new opportunities for further China-EU cooperation in areas such as infrastructure, trade and investment as well as energy and resources.The initiative raises many questions: how will Europe benefit from the construction of the Silk Road Economic Belt? What is the potential for synergies between the Chinese and European infrastructure and connectivity policies? Which sectors are likely to benefit most from such cooperation? What will be the role of the Asian Infrastructure Investment Bank in financing the “One Belt, One Road” initiative? What is the role of youth and women in the drive to connect Asia and Europe?Is it only about infrastructure or can Asem also encourage institutional and people-to-people connectivity? The answer was given at a meeting of Asem education ministers — also in Riga — which highlighted the importance Asia-Europe cooperation in areas like mobility of students, teachers, researchers, ideas and knowledge. Finally, while increased connectivity would offer opportunities for business and trade, the darker security implications linked to the cross-border movement of arms, drugs and terrorists also need to be addressed.

ASEM: renewal and revival for the third decade

Asian and European leaders will celebrate the twentieth anniversary of ASEM (Asia-Europe Meeting) at their summit in Ulan Bator, Mongolia, next year. ASEM has come a long way since its launch in Bangkok in March 1996. Even as leaders take stock of past achievements, however, the ASEM summit in 2016 must upgrade the Asia-Europe partnership by setting it on a renewed and reinvigorated track for its third decade.The omens are good. ASEM today is more energised and vibrant than at any time in recent years. Governments in both regions seem to have discarded earlier inertia and lack of interest in ASEM in favour of a more constructive and upbeat approach. The ASEM summit in Milan in October 2014 and the meeting of foreign ministers in Delhi in 2013 injected new momentum into the Asia-Europe relationship by reviewing and simplifying ASEM’s content, procedures and outreach. Still, more needs to be done. In the years ahead, governments must strike a satisfactory balance between using ASEM as a dialogue forum and meeting demands for enhanced action-oriented cooperation on selected themes of common interest.Above all, ASEM needs a new over-arching 21^st Century narrative and raison d’etre which connects it to a broader global conversation on living and working together in an interdependent but increasingly anxious age. Asia and Europe face a growing list of common concerns ranging from climate change to tackling pandemics and combating violent extremism. The two regions economies are even more closely linked than before. A fragile security environment in one region prompts unease and tensions in the other.Exploiting ASEM’s full potential therefore is about more than just improving the channels of communication between Asia and Europe. It is also about providing global public goods, better governance, managing complexities and tensions and working together in trying to shape a new world order. More than ever before, ASEM’s focus should therefore be on Asia-Europe cooperation to tackle wider regional and global challenges. It must also increase civil society involvement in ASEM in order to increase its visibility and relevance in the long-term.This discussion paper explores the relevance and importance of ASEM in a rapidly-evolving and often volatile global order and looks at efforts under way to revive ASEM through the introduction of new formats and a sharper focus on content as well as through enhanced engagement with civil society and the media. It makes policy recommendations for energising the Asia-Europe partnership and ensuring that leaders hammer out a new blueprint for reviving ASEM at its 20^th anniversary summit in 2016. The paper underlines the author’s view that ASEM is a vital element of Asia-Europe cooperation and global networking but needs a rethink – and a new narrative to make it relevant and credible in an unpredictable and complex “no polar” world.The full text of the policy paper may be accessed through the link below:http://www.friendsofeurope.org/media/uploads/2015/03/ASEM-STUDY.pdf 

View from Abroad: Asia’s affair with US leaves Europe out in the cold (Originally published 8/11/2014 at dawn.com)

America continues to loom large over the Asia-Pacific region. Whether it’s about trade, politics or security, Asian eyes tend to focus almost solely on Washington. Japan, South Korea, Taiwan and the Philippines feel safer under the US security umbrella. India wants to forge a stronger relationship with Washington. Even China, the region’s most economically vibrant and powerful nation, seeks a special “great power” relationship with America.Hence the focus on the US-led Asia-Pacific Economic Cooperation summit opening in two-day Beijing on Nov 10 and the East Asia Summit from Nov 13-14 in Naypyidaw, Myanmar. A few days later, the spotlight will move to Brisbane, Australia, for the G20 summit.Certainly, the APEC agenda is impressive, with leaders expected to agree to a study on negotiating a Free Trade Area of the Asia-Pacific (FTAAP). But Asia’s enduring affair with America leaves only a small space for an Asia-Europe relationship.Significantly, Europeans will be absent from the jamboree in Beijing. The EU has been pressing for entry into the EAS which now also includes the US and Russia but Asians are in no hurry to open the door.Some European countries and the European Commission will, however, participate in the G20 meeting.And yet, there is more to the Asia-Europe relationship than meets the eye. America’s so-called “pivot” to Asia may have grabbed the headlines, but the EU has spent the last three and a half years upping its own game in Asia.The Asia-Europe Meeting (ASEM) held in Milan last month is a case in point. The summit may not have made headlines worldwide but over 50 European and Asian leaders made an array of pledges on boosting growth, continuing economic and financial reform and building stronger Europe-Asia connectivity.Significantly, the theme of the Milan summit — “Responsible Partnership for Sustainable Growth and Security” — allowed for a discussion not only of ongoing political strains and tensions in Asia and in Europe’s eastern neighbourhood, but also of crucial non-traditional security threats linked to food, water, and energy security.In addition, the meeting brought back much of the informality that marked the first few ASEM summits by including a “retreat” session during which leaders — with only one aide in attendance — were able to have a free-flowing discussion on regional and international issues, including Ebola and the threat posed by the so-called Islamic State.Attendance was exceptionally high, with all key Asian and European leaders — apart from the new Indonesian president and the Indian and Pakistani prime ministers — taking part in the sessions.Even before they meet in Beijing, there was a quick handshake in Milan between estranged neighbours Chinese Prime Minister Li Keqiang and Japan’s Shinzo Abe. Russian President Vladimir Putin was in attendance. Also, the EU finally held a long-awaited first-ever summit with Asean leaders. Kazakhstan and Croatia joined ASEM, bringing the total number of ASEM participants to 53.Leaders agreed on an ambitious programme until 2016, the year when ASEM, under Mongolian chairmanship, will celebrate its 20th anniversary. Countries agreed to work in smaller groups or clusters on 16 “tangible cooperation areas” including disaster management, renewable energy, higher education, connectivity and information technology.The challenge is to keep up the momentum generated in Milan. The good news is that ASEM’s resilience has allowed it to survive many upheavals since its launch in Bangkok in 1996. Initial euphoria over the initiative was followed by a period of inertia and a degree of disinterest. Asians criticised European leaders and ministers for not turning up at important ASEM meetings.Europeans complained that the gatherings were turning into little more than photo ops. The current mood is positive as ASEM seeks a stronger focus on content. However, ASEM’s future hinges on whether governments are ready to pay as much attention to ASEM and devote as much time and energy to their partnership as they did in the early years. Closer engagement between Asian and European business leaders, civil society representatives and enhanced people-to-people contacts is also essential.In the future ASEM needs an even sharper focus on growth and jobs, combating extremism and tackling hard and soft security issues. Women in both Asia and Europe face many societal and economic challenges. Freedom of expression is under attack in both regions. Populist parties and nationalism are becoming a threat to diversity and societal peace in both regions.Finally, ASEM faces the uphill task of securing stronger public understanding, awareness and support for the Asia-Europe partnership. ASEM’s 20th anniversary in 2016 should set the Asia-Europe partnership on a new and more dynamic track — that could perhaps generate the kind of excitement that APEC does.

View from Abroad: Western nightmares are just bad dreams (Originally published 19/10/2014 at dawn.com)

It's the stuff of Western nightmares: imagine if, one day, a strong China and a weak but assertive Russia “gang up” against the United States and Europe, winning more friends and allies and imposing their writ on the rest of the world?The recent high profile meetings between Chinese Premier Li Keqiang and Russian President Vladimir Putin have been watched carefully — and fretfully — in all Western capitals with uneasy policymakers seeking to understand if this is just a passing show of affection or if the two countries are planning to build a more solid partnership.Beijing has made clear that it has no intention of being part of any geopolitical power play being hatched by Moscow. China’s interests are global. Indeed before he met Putin, Li was in Germany striking two billion euro worth of business deals. He then headed to Italy for more headline-grabbing commercial overtures.Beijing’s standard line is that it has no allies, only friends. That’s not how Russia views the world. Russia in contrast is under Western sanctions. The EU is struggling to reduce its dependence on Russian oil and gas while the Nato military alliance talks menacingly about Russian actions in Ukraine and its annexation of Crimea.Some warn it is the beginning of a second Cold War. Clearly, it isn’t. The multipolar world today is a very different place from what it was in the Cold War years.Still, some thing is afoot. The Russians are working overtime to woo the Chinese. Beijing is clearly interested in accessing more Russian oil and gas, providing Moscow with new markets as Europe diversifies away from Russian energy. Some 50 agreements and memorandums of understanding are reported to be signed during Li’s visit to Moscow, including in areas related to high-speed transit and finance. China is also eager to supply Russia with fruit and vegetables, products that Moscow is no longer importing from Europe.Western attention is focused on Russian-Chinese cooperation within the Shanghai Cooperation Organisation which some in the West view as a potential competitor for Nato. And the recent decision to launch the BRICS bank is seen as a joint challenge by Russia and China to the post-war liberal order and the supremacy of the Bretton Woods institutions.Both China and Russia are often on the same side on tackling global flashpoints, eschewing military intervention unless sanctioned by the United Nations Security Council.There’s no doubt, however, that while it may want to stay friends and do business with Moscow, China has no interest in being seen as Russia’s best friend. As friendships go, in fact, the focus in many envious Western capitals is on the ‘special relationship’ between China and Germany.While in Berlin, Li and German Chancellor Angela Merkel signed deals worth approximately US$18.1 billion, covering cooperation in areas including agriculture, automotive, telecom, healthcare and education.Li requested that Germany help to relax the EU’s high-tech export restrictions to China and continue expanding bilateral trade and investment. He further stated that the two countries should continue working together on feasibility studies concerning the proposed China-EU Free Trade Agreement. The two sides also signed guidelines covering 110 cooperative agreements over the next five to 10 years.At the Hamburg Summit organised by Germany’s top industrialists that was attended by Premier Li the message was clear: China is not only the the biggest market for German companies, it is also a growing one. China’s huge national reform programme agenda, opens up exciting new export and investment opportunities for German — and other European — companies. Discussions focused on China’s massive urbanisation needs which can be met by European companies.Chinese investments into Germany and the EU are soaring. Significantly, unlike many other countries, China has shown a strong interest in the future course of Asem, the Asia Europe Meeting forum which is often criticised for being a mere talk shop.At the Asem summit in Milan last week, Li waxed lyrical about Asem’s role in improving connectivity between Asia and Europe, underlining his vision of building a Silk Road between Asia.Li knows he is on a winning streak. As the Financial Times newspaper reported recently, Chinese investors are surging into the EU.In 2010, the total stock of Chinese direct investment in the EU was just over 6.1bn euro — less than what was held by India, Iceland or Nigeria. By the end of 2012, Chinese investment stock had quadrupled, to nearly 27bn euro, according to figures compiled by Deutsche Bank.Not surprisingly, the EU and China are in the process of negotiating a bilateral investment treaty aimed at protecting each others’ investments but also ensuring better marker access.China is clearly not about to ditch Russia. But Beijing’s focus is on the growing markets of Europe. Western policymakers can sleep easy. For many nights.

APPOINTMENT OF FIRST EU ENVOY TO ASEAN WILL BOOST TIES (Originally published 25/09/14)

The European Union’s decision to appoint a special ambassador accredited to the Association of Southeast Asian Nations (ASEAN) is a welcome and long-awaited step forward in the EU’s relations with one of the world’s most dynamic and rapidly-growing regions.As a statement by the European External Action Service, the EU’s “foreign ministry”, underlined, the “important decision” reflects Europe’s growing engagement with ASEAN and an ambition to upgrade the existing partnership with the Southeast Asian grouping to a strategic one.The move also underscores the hard work put in by ASEAN members in drawing EU attention to the region over the last four years. Friends of Europe has been a strong advocate of closer and stronger EU-ASEAN relations.The new EU envoy could make an important contribution to injecting some much-needed momentum into what – until four years ago – was still a lacklustre and uninspiring relationship.Good progress has been made in recent years. However, building a solid, sustainable and strategic EU-ASEAN relationship will remain a challenge, demanding a strong effort by both regions. Certainly both sides see an interest in forging closer ties. Bilateral EU-ASEAN trade and investment flows are booming. Europe and ASEAN need each other’s’ markets to grow and thrive.But in addition to the global challenges they need to tackle, Asian and European countries face difficult tasks both at home and in their respective regions. Still grappling with slowing economic growth and unacceptably-high youth unemployment rates, Europe’s urgent foreign policy priority is to thrash out a new “beyond sanctions” strategy for dealing with an increasingly volatile and assertive Russia.European countries are also under pressure to join America’s campaign to “destroy and degrade” the so-called “Islamic State” in Iraq and Syria.ASEAN states, meanwhile, are struggling to meet their goal of forging a border-free single ASEAN market by end-2015. On the foreign policy front, they are engaged in a delicate balancing act to maintain good relations with the three Asian behemoths: China, Japan and India.Still the omens are good. Coming only a few weeks before the mega Asia Europe Meeting (ASEM) in Milan on October 16, the EU announcement on the special envoy to ASEAN sends a strong and reassuring message of continuing EU engagement with Asia in the years ahead.ASEM will bring together 53 Asian (including ASEAN) and European partners for a two day summit focusing on the key security, economic and political challenges facing both regions.Significantly, Chinese Prime Minister Li Keqiang, Japan’s Shinzo Abe and key ASEAN leaders will be attending the meeting as will Italian Premier Matteo Renzi and the EU’s top officials, Herman Van Rompuy and Jose Manuel Barroso. For both men it will be the last ASEM gathering before the change of EU leadership in November.Asian and European business leaders, parliamentarians, academics and journalists as well as civil society actors will also be gathering in Milan around the same time in separate but inter-connected fora.In another sign that Europe intends to stay engaged with Asian states despite the fires burning in its neighbourhood, the incoming EU foreign policy chief, Italian Foreign Minister Federica Mogherini, has gone out of her way in recent weeks to highlight Europe’s sustained interest in Asia, including ASEAN.Mogherini’s focus on Asia is important and reassuring. Her predecessor Catherine Ashton was roundly criticised by ASEAN governments for paying only sporadic and cursory attention to their region. She managed to get relations back on track – but it was touch and go at moments.Mogherini is expected to be more attentive. And under the new structures being designed by incoming European Commission President Jean-Claude Juncker, the EU foreign policy chief will be working in close cooperation with her colleagues who deal with trade, development aid, humanitarian affairs and climate change to forge a coherent conversation with Asia. Closer coordination with EU capitals is also expected.This is good news. Both the EU and ASEAN have worked hard over the last four years - in Brussels and in the different European and Southeast Asian capitals - to make their relationship more credible and relevant.It’s often been long and laborious. Human rights issues as well as relations with the former military junta in Myanmar cast a dark, unpleasant shadow over relations even as trade and investment flows continued to expand.Political reforms in Myanmar as well as ASEAN’s economic dynamism and newfound interest in developing an impressive - albeit still modest - human rights agenda, have helped to turn the relationship around.Looking ahead, for the EU, membership of the East Asia Summit (EAS) remains an important strategic goal. The 18-member forum which discusses security and development includes ASEAN as well as the United States, Russia, India and others. ASEAN’s reaction so far to EU membership of the East Asia Summit has varied from lukewarm to hostile, however.The appointment of the new EU envoy to ASEAN could help unlock the EU membership of EAS in the coming years. ASEAN is also looking for an EU upgrade to status of “strategic partner” and the regular convening of EU-ASEAN summits.At the same time, with the end-2015 deadline approaching for establishing a border-free ASEAN Economic Community (AEC), demands for the revival of the once-abandoned effort to negotiate an EU-ASEAN free trade deal have resurfaced. The outgoing EU Trade Commissioner Karel De Gucht has said such a pact could be negotiated once the AEC is in place. It’s still not clear if his successor Cecilia Malmstrom will be equally interested in such a deal.Certainly an EU-ASEAN FTA could increase Europe’s visibility in a landscape crowded by multiple Asian free trade initiatives including the US-led Trans Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) linking ASEAN to all leading economies in the region.Significantly, the EU has emerged as an important partner in implementing the Master Plan on Connectivity adopted by ASEAN leaders in October. The plan, which includes the forging of physical, institutional and people-to-people links, is discussed in the EU-ASEAN Dialogue on Connectivity. The first such dialogue was held in Brussels earlier this year.A conversation on maritime security has also been initiated.These and other EU-ASEAN ventures should expand and deepen once the new – and yet to be named - EU envoy to the grouping begins working in Jakarta. Europe and ASEAN have come a long way in making their partnership more relevant in a rapidly-changing world. Both sides must maintain the momentum despite domestic and regional distractions.

Renewing ASEM ahead of 2014 summit (Originally published 25/09/13)

Most multilateral organisations face the daunting task of adapting to new 21st century economic, political and social realities.Set up in the aftermath of World War II, global institutions at the core of the international system, such as the United Nations, the International Monetary Fund and the World Bank are under pressure to respond to the rise of the world’s emerging powers.The G20, which brings together industrialised countries and the world’s leading rising powers - including China, India and Brazil - was created in 1999 to complement the more restricted G8 composed of traditional industrialised powers. Demands for more effective governance now also beset the G20.Not surprisingly, renewal and reform are also the name of the game for ASEM, the Asia-Europe partnership launched in Bangkok in March 1996 to build stronger region-to-region ties.ASEM (Asia-Europe Meeting), with its 51 partners, is an important multilateral platform for Asia-Europe contacts which allows the two regions to interact in myriad ways.Trade and investment flows are booming, the two regions share concerns about regional and global peace and security and meet regularly within the ASEM framework to discuss issues as varied as urbanisation, river basin management, food security and education.But there is no doubt: ASEM must adapt to the changing landscape in both Asia and Europe if it is to remain credible and relevant.Interestingly, that means going back to the original informality and flexibility of ASEM and the immense Asia-Europe networking opportunities it offers.On the plus side, ASEM includes five of the European Union’s strategic partners – China, Japan, India, South Korea and Russia - and four of the UN Security Council’s permanent members – China, Russia, Britain and France.The fact that new countries continue to demand entry into the club – which began with 26 founding members in 1996 – is a mark of ASEM’s attractiveness and vigour. Once inside the partnership, European and Asian countries of all sizes interact with each other on an equal footing.The forum also provides a platform for ample bilateral contacts between leaders and officials of both sides.Yet, the need for renewal is pressing.  ASEM meetings over the years have become more formal and ritualistic, with ministers and leaders reading out well-prepared statements instead of engaging in direct dialogue.Meetings of ASEM senior officials have become long and drawn-out as participants talk more about procedures and dates than substantial questions.The progress they make can appear slow, plodding and incremental. ASEM participants often complain that their work is not visible to the public, that ASEM does not punch its weight in the over-crowded field of global cooperation platforms.The consensus is that 17 years after its launch amid much fanfare, ASEM is in need of a new lease of life.Ironically this could be achieved by taking ASEM “back to the future” and rediscovering the initial rationale behind the partnership. The aim is to recover ASEM’s initial focus on substance over protocol and ritual.Efforts to make ASEM more pragmatic, effective and result-oriented – and more relevant to partners’ economic and social priorities – have dominated deliberations for the last few years.Progress on revitalising ASEM is gaining momentum in the run-up to the ASEM summit hosted by the EU and set to be held in Milan, Italy, in autumn 2014.ASEM foreign ministers meeting in Delhi on November 11-12 are expected to endorse a number of changes which many hope will inject new life into the Asia-Europe partnership.Asian and European policymakers have agreed to streamline and simplify ASEM working methods to ensure that ASEM foreign ministers and leaders engage in a real, in-depth and focused conversation on key concerns.As such, when they meet in Delhi in November, in addition to attending 2 official plenary sessions, ASEM foreign ministers will engage in a “retreat” to ensure more intensive and interactive dialogue.Discussions in the plenaries will focus on sustainable economic growth and development and on non-traditional security issues, including issues such as food, energy and water security, cyber security and counter-terrorism.The “retreat” will look at international and regional flashpoints including the Middle East, North Korea and Iran.Efforts are being made to ensure that chair’s statements and other documents issued at the end of ASEM meetings are short, simple and to-the-point.Based on existing mechanisms, there is now agreement to work on cooperation projects which are even more visible and tangible for benefit of Asia and Europe.Following the recent membership of Norway, Switzerland and Bangladesh, ASEM expansion is expected to continue as Croatia, which became the 28th member state of the EU on July 1 2013, formally joins ASEM next year.ASEM partners also face the uphill task of securing stronger public understanding, awareness and support for the Asia-Europe partnership, especially in the run up to the summit in 2014 and two years later when ASEM celebrates its 20th anniversary.If ASEM reform is implemented as planned, 2016 could become an important milestone in a reinvigorated Asia-Europe partnership, a must in the 21st century.

Exploring ideas on ASEM’s future (Originally published 03/06/13)

Ever since the first high-profile Asia-Europe Meeting (ASEM) in Bangkok in March 1996, Asian and European leaders, ministers and officials have been working on myriad fronts to forge a stronger region-to-region partnership on issues as diverse as green growth, global peace and prosperity, human rights, education and urbanisation.Their work may not always make the headlines. And the progress they make can appear slow, plodding and incremental. ASEM participants often complain that their work is not visible to the public, that ASEM does not punch its weight in the over-crowded field of global cooperation platforms and that 17 years after its launch amid much fanfare, ASEM is in need of a new lease of life.With the next ASEM summit set to be held in Brussels in autumn 2014, the race is on to try and inject fresh impetus into a process which all 51 ASEM partners agree is a compelling necessity – but one which must be deepened and made more dynamic to stay relevant in a rapidly-changing world.ASEM foreign ministers, who gather in New Delhi on November 11-12, are expected to come up with fresh ideas for reviving the Asia-Europe partnership.As illustrated at a recent symposium held in Yangzhou, China, the problem facing ASEM is not a lack of initiatives on revitalizing the relationship; rather, the challenge is to find common ground among the many suggestions being put forward by ASEM partners – and then to refine and streamline recommendations before presentation to ministers and leaders.Significantly, all 51 partners continue to underline the strategic significance of ASEM in the 21st Century. The fact that new countries continue to demand entry into the club – which began with 26 founding partners in 1996 – is seen as a mark of ASEM’s attractiveness and vigour.Over the years, ASEM has also served as a “new Silk Road” connecting the two continents and providing a unique platform for dialogue and cooperation, says an Asian official, adding: “Asia and Europe need each other…we are closely interconnected and interdependent and draw on each other’s’ strengths.”European policymakers say they are similarly confident that ASEM has great merits. “Its relevance has increased. ASEM is informal, comprehensive and still very attractive,” said one European official in Yangzhou.The challenge is to maintain ASEM’s unique informality, networking and flexibility but also make it more pragmatic, effective and result-oriented – and more relevant to partners’ economic and social priorities.ASEM should identify “more cooperation projects which are visible, tangible and serve the interests of people,” said an Asian official, adding: “ASEM should be a forum for action.”More frequent meetings of ASEM economic officials and ministers were mooted, with participants also suggesting that ASEM should be used to explore new ideas, to stimulate and facilitate progress in other fora and encourage capacity-building across sectors.The need for more ASEM contacts with civil society, including members of parliament, business representatives, scholars and journalists as well as local authorities, was underlined.The most difficult task facing policymakers is a much-awaited overhaul of ASEM’s working methods in order to make meetings – especially leaders’ summits held once every two years – more interesting, relevant and productive.Recapturing the excitement and energy evident at ASEM’s launch in 1996 will not be easy, however. Over the years, ASEM meetings have become more formal and ritualistic, with ministers and leaders reading out well-prepared statements instead of engaging in direct dialogue.Meetings of ASEM senior officials have also become long and drawn-out as participants talk more about procedures and dates than substantial questions. “These meeting are a bottleneck in ASEM” said one senior official in Yangzhou. “We have become a housekeeping body.”Instead of reviewing a series of global and regional developments, ASEM summits should have a more streamlined agenda, allowing leaders to engage in a real, in-depth and focused conversation on key concerns.Leaders and foreign ministers should also meet in a so-called “retreat” format to ensure more intensive and interactive dialogue. “We want them to really get to know each other, forge friendships and understanding,” said one participant.Chair’s statements and other documents issued at the end of ASEM meetings should be short, simple and to-the-point rather than long and procedural. They should be media-friendly and understandable to the general public, helping to enhance ASEM visibility.The long-running debate on whether or not ASEM needs a secretariat to provide institutional back-up was discussed. The drive to set up an ASEM Secretariat is essentially driven by Asian partners of ASEM who feel the need for such an institution on their side.Europeans, on the other hand, are generally satisfied with the current situation since the European External Action Service plays an important coordination role for European partners.As preparations intensify for the meeting of foreign ministers in Delhi, the conversation on strengthening ASEM is likely to gain pace. The aim is to prepare not only for the summit in Brussels in 2014 but for ASEM’s 20th anniversary celebrations in 2016.As participants in Yangzhou said, the upcoming anniversary should not only take stock of ASEM cooperation so far but also set it on a new and revitalised course for the future.

US lessons for EU-Asia ties (Originally published 18/07/11)

European Union policymakers seeking a seat for Europe at the East Asia Summit, the region’s leading security forum, should stop talking and start proving they are serious about stepping up political engagement with Asia.Turning EU rhetoric into action can begin with three easy steps.For starters, senior EU officials can stop playing hard-to-get and start attending key Asian meetings taking place in the region.The decision by Catherine Ashton, the EU high representative for foreign affairs and security policy, not to attend the ASEAN Regional Forum (ARF) in Bali, Indonesia on July 22-23 for a second year running is a serious diplomatic faux pas.Asians see it as a snub and yet another signal that, apart from a focus on China, Europe is not really interested in the region. Britain and Germany are understandably not too pleased with Ashton’s decision either.The fact that Ashton’s acting “deputy”, Polish Foreign Minister Radoslaw Sikorski, is also not going to the ARF makes things worse. The task of representing the EU at the ARF top table has apparently fallen to Elzbieta Bienkowska, Poland’s minister for regional development.Protocol-conscious Asians are not amused. If the Baroness is too busy, say Asian diplomats, she could have asked the much-respected Kristalina Georgieva,EU Commissioner for international cooperation, humanitarian aid and crisis response, affairs, to attend the ASEAN Forum.True, the EU held its own Asia Europe Meeting (ASEM) with Asian foreign ministers in Hungary in June. But by shying away from travel to Asia, Ashton and others are reinforcing the impression of EU neglect and indifference.Correcting this perception will not be easy. As a result, Europe may have to wait a long time for that much-coveted seat at the East Asia Summit which, in addition to key regional players such as Japan and Australia, now also includes both the US and Russia.Second, the European External Action Service should hammer out a revamped, up-to-date agenda for EU-Asia cooperation which goes beyond trade and business. EU negotiations on free trade agreements with Asian countries are a positive step forward in helping to enhance economic ties. But trade policy, however active, is no substitute for foreign policy.EU policymakers need to engage in some serious reflection, based on input from independent researchers, think tanks, academics, business leaders and other non-state actors, from both Europe and Asia, on how to get Europe-Asia ties on amore dynamic track. The conference “Europe and the Asian Century”, organised by Friends of Europe on June 21, highlighted several areas for future engagement between the two regions.European institutions still tend to be wary of advice from “outsiders”. As a result, EU policy on Asia has failed to adapt to Asia’s changing political, economic and social landscape. Like the Americans, Europeans must engage more actively with independent think tanks working on Asia.Third, like the Americans – and increasingly, the Russians - the EU should become an active partner in the increasingly important security discussions in Asia, including within ARF, the annual security-focused gathering of Asian foreign ministers and their key foreign partners.As she did last year, US Secretary of State Hillary Clinton is going to the ARF meeting and the other encounters organised around the Forum, including a preparatory meeting of the East Asia Summit which will be held in Bali on November 19, with President Barack Obama in attendance.US officials make clear that Clinton makes a point of “showing up” at Asian gatherings to prove America’s “sustained commitment” to the region and to enhance its strategic engagement with Asian countries, especially ASEAN members.The ARF agenda is impressive, including discussions on easing the ongoing border conflict between Cambodia and Thailand, tensions in the Korean Peninsula (with the reclusive North Korea making a rare appearance on the international stage by sending its Foreign Minister Pak Ui-Chun attends to the Bali meeting)and conflicting territorial claims in the South China Sea.Missing meetings may appear trivial to a harried and rushed EU foreign policy chief who has to deal with myriad pressing issues, including some in Europe's immediate neighbourhood. But diplomacy is about travel, networking and trying to influence and shape policies and perceptions.For too many years – with the exception of Javier Solana, the former EU high representative for foreign and security policy - EU commissioners and ministers have either stayed away from meetings with their Asian counterparts or put in a brief, formal appearance. Opportunities for dialogue and networking were missed. Personal relationships have not been nurtured.Dealing with a changing and rising Asia will require that the EU engages in new courtships and new alliances. If the EU wants a seat at the East Asia Summit, senior European diplomats will have to learn to engage more actively and more constructively with rising Asia.

ASEM to discuss non-traditional security threats (Originally published 01/06/11)

Asia Europe Meetings meetings have so far focused on traditional threats to global and regional security, including the North Korean and Iranian nuclear programes, the Arab-Israel conflict and the situation in Afghanistan.But while world peace is still threatened by inter-state wars and military conflicts, competition for access to food and energy resources, water disputes, health pandemics and terrorism are emerging as equally potent threats to global security.They are also becoming increasingly central to the evolving international security agenda.“Non-traditional” security challenges are not new. In a rapidly globalizing and interdependent world, however, their impact can be felt not only within countries but also on a regional and international level.They spread fast – and if left to fester, can cause enormous societal havoc and regional and global tensions.ASEM foreign ministers’ discussions in Budapest on June 6-7, on “non-traditional” security issuesare therefore a good step forward in fostering stronger Asia-Europe engagement on tackling key 21stCentury challenges.Hungary, the current presidency of the 27-nation European Union and host of the ASEM meeting, has said foreign ministers will look at questions like energy security, food security, water security and supply, climate change, terrorism as well as disaster preparedness and management.In an increasingly interconnected world, made smaller through increased trade and improved technology, unilateral action cannot effectively deal with these new challenges. Multilateral responses, including within the ASEM framework, are therefore important.As a platform for informal exchange and discussion, ASEM is ideally suited to explore the nature, scope and fall-out of the new security challenges. ASEM also allowsthe sharing of experiences and expertise on possible solutions and coping mechanisms.The new, non-military security threats share some common features: they are transnational (that is neither purely domestic nor purely inter-state), emerge quickly and spread rapidly – within countries and on the regional and global levels.In addition to their impact on people, they can also have a far-reaching economic impact – on individual countries and on the global stage.The SARS (Severe Acute Respiratory Syndrome) epidemic in 2002, the “Avian flu” in 2007 as well as HIV/AIDS are examples of how quickly diseases can spread in an era of rapid inter-continental travel, prompting not only human tragedy but also devastating countries’ health sectors and economies.Asian countries are aware that the region’s recurring problem of haze caused by environmental pollution and forest fires can exact a very high price in terms of human security as well as cause damage to health systems and the economy.Today, rising food prices are increasing inflationary pressures in many parts of the world while also stirring social unrest and impacting on progress made so far in achieving the Millennium Development Goals (MDGs).Asian and European countries have some experience in joint action to tackle food security, disaster response, piracy at sea and terrorism.Rising food prices were discussed at an ASEM meeting held in Hanoi last month.At the ASEM 8 summit last year, leaders agreed to an increased sharing of intelligence to track down and stop the funding of piracy operations off the coast of Somalia and stressed the need to prosecute suspected pirates.They also asked countries to criminalize piracy and armed robbery at sea in national legislations.The EUNAVFOR Atalanta mission, launched in December 2008 and counting up to 12 ships and patrol aircraft supplied by Italy, the Netherlands, Germany, France, Spain, Belgium, Luxembourg and Greece, as well as non-EU member Norway, patrols the Gulf of Aden and Somali Basin waters in conjunction with other anti-piracy missions operated by NATO and several Asian countries.ASEM experts on counter-terrorism and disaster-management meet regularly.However, more work is needed to identify and prioritise the new dangers, select institutions for responding to the expanding security agenda and work out linkages between traditional and non-traditional threats.Addressing human security issues will require that solutions are people-based, multilateral, and involve government, business and civil society.By providing an example of such multilateral cooperation, ASEM can help craft a new 21st Century global security agenda.

Time for Asia-Europe cooperation on food security (Originally published 06/05/11)

Asian and European policymakers meet in Chiang Mai, Thailand, next week for talks on food security amid fears that currently volatile food prices could trigger a new “food price shock” similar to the food crisis in 2006-2008.Rising food prices are spurring inflation and unease in Europe - but Asia is especially vulnerable. The region’s poor families spend over 60 per cent of their income on food compared to 10 per cent spent in developed nations. The rising cost of food is hurting Asia’s rural poor and urban middle classes.The Asian Development Bank has warned that a sustained 10 per cent rise in domestic food prices in developing Asia, home to 3.3 billion people, could push an additional 64 million people into extreme poverty. Recent gains in poverty reduction made in Asia could be seriously undermined.The statement echoed similar warnings made earlier in the year by World Bank President Robert B. Zoellick that “more people could become poor because of high and volatile prices.”The meeting in Chiang Mai on May 9 and 10 provides an opportunity for enhanced Asia-Europe cooperation to help defuse current uncertainties and improve global food security.Using the platform provided by ASEM, Asian and European countries can share experiences, exchange best practice and undertake joint initiatives to tackle the array of factors responsible for the rising cost of food.There is no dearth of issues to discuss. The 48 ASEM partners, including food producers, exporters and importers, must work together to improve farmers’ livelihoods, ensure sustainable agricultural and food production, encourage “responsible” agricultural investment and strengthen agricultural research.Sharing agricultural innovations and promoting technology transfers are important. Countries must work together to provide for food security arrangements in case of emergencies and share information on food security.ASEM members need a frank discussion on the many factors responsible for the current situation. Bad weather, including floods in Australia and Pakistan and increasing oil prices (immediately affecting the price of fertiliser) – worsened to some extent by the political turmoil in the Middle East – are clearly contributing to the problem.Countries’ efforts to reduce their dependence on oil by producing crops for fuel rather than food, can also impact on prices. Increases in population and added demand for more food by the world’s rapidly growing emerging countries – many of which are Asian – have further contributed to the pressure on food prices. An increase in the cost of farm inputs such as fertilisers and speculation in the futures market is aggravating the situation.To come to grips with the problem, governments need to focus attention on strengthening entire food systems from farm production, processing, retail and distribution to consumption. There must be increased emphasis on agricultural research which can increase crop yields.It is a daunting task requiring national initiatives but also collective action. The 10-member Association of Southeast Asian Nations has agreed, through the ASEAN Integrated Food Security Framework, to establish an emergency regional rice reserve system.The European Union is also well-placed to provide its experience and expertise to Asian countries. Once criticised for its system of costly farm subsidies and high farm tariffs, the EU has revamped its common agricultural policy and thanks to efficient and modern farming techniques, remains a leading exporter and importer of food products.The European Commission, the EU’s executive arm, spends about 600 million euros a year on food security projects and programmes in developing countries.An EU food facility worth one billion euros is under implementation as a rapid response to the 2008 food crisis in developing countries. Most of the projects are expected to be completed by end-2011.With experts warning that if food and fuel prices continue to surge, economic growth in the Asian region could be reduced by up to 1.5% this year, the stakes are high for ASEM. In an inter-dependent world, changes in Asia’s growth prospects will have a strong impact on European economies.As a paper prepared for the ASEM meeting in Chiang Mai underlines, “Food security has become a serious challenge for our communities.” As such, it requires joint Asia-Europe action.