View from Abroad: Life in Vietnam, Asia’s reborn tiger economy (Originally published 28/03/2015 at dawn.com)
The death last week of Singapore’s much acclaimed statesman Lee Kuan Yew has spotlighted world attention on tiny Singapore’s transformation from a tropical backwater to an affluent global city in just one generation. Certainly, Singapore stands tall in Asia as a formidable city state which proves that sometimes in geopolitics size does not matter.
But in South-East Asia, it’s not just Singapore that impresses.Travelling in Vietnam this week, it’s striking just how quickly this once war-devastated country has dusted off a bloody past, in favour of a new life and persona as one of this region’s most exciting economies.Ho Chi Minh City, formerly Saigon, buzzes with excitement as cars, motorcycles, buses weave their noisy way around surprisingly green urban centres — and some very narrow streets. Cafes, restaurants and bars are heaving with people. New businesses keep popping up, old ones are still thriving.A Belgian-Vietnamese friend tells me the country’s growing middle class has an appetite for foreign goods, the more luxurious, the better. Certainly, more and more European and Japanese cars on the roads are big and shiny, competing for space — and winning — against the ubiquitous scooters and motorbikes. Everyone has his/her palm pressed firmly on the car horn.This is China as it was twenty years ago, friends tell me. Noisy, crowded, the old and ramshackle giving way to the new and glittering. The skyscrapers going up, the five-star hotels, the glamorous department stores boasting French luxury brands are a foretaste of the big metropolis, a mini Shanghai, that Ho Chi Minh City is poised to become. For the moment, it is still possible to find serene hideaways where time appears to have stood still. But not for long.And certainly not at the university I visit on the outskirts of Ho Chi Minh City where students rush from class to class, stopping occasionally to sit down and play the pianos which are strewn around the campus.At the lecture I give on Europe, Asia and Vietnam, the students are serious and attentive — but impassive. I wonder in despair if I am getting through. But then the questions come fast and furious. I am grilled mercilessly on the impact of globalisation, my view of Vietnam, why Vietnam and the EU are signing a free trade agreement, how do you distinguish between good and bad journalists — and so on.Globalisation means losing our identity, they tell me, oblivious to the fact that in their skinny jeans and sneakers, carrying backpacks and peering into their smartphones, they have bought into globalisation with a vengeance. I point it out, they stare at me incredulously. This is not globalisation, this is life, they argue back. Exactly.Later as we take pictures and exchange addresses, I tell them they are lucky to be living in rising Asia, with jobs, hope — and pollution, one says interrupting me. Yes, pollution, urbanisation and overcrowding. But also jobs and growth — the two things we need in Europe. Puzzlement shows in their eyes.Their self-confidence is justified. Perched along one of the world’s most crucial shipping routes, and with a young and growing population, Vietnam is — once again — being tipped for economic lift-off, after years of disappointment.The news reports I read underline that money pouring into the South-East Asian economy from the likes of manufacturers Samsung Electronics Company and Intel Corporation is giving Vietnam a second run at becoming Asia’s next tiger economy.According to PricewaterhouseCoopers LLP, the country has the potential to become one of the world’s fastest-growing economies over the period to 2050. Not only is the South-East Asian nation gaining ground as a cheaper manufacturing alternative to neighbouring China, Vietnam is also a politically palatable destination for Japanese firms boosting investment in the region amid recurring Sino-Japan spats.“Vietnam is really the big winner from China losing its competitiveness because of rising wages” and a strong currency, say specialists. As labour costs rise in China, foreign investors are knocking on Vietnam’s doors.The list of those wishing to cash in is long, led by China and Japan but also including Singapore, Taiwan, the United States and the European Union.Vietnam and the US are working hard to strengthen ties, including in the security and defence sector, with Hanoi now demanding the full lifting of the arms embargo that was eased last year. Vietnam will be taking part in the Trans-Pacific Partnership trade pact, led by the US.Relations with Beijing are fraught over rival territorial claims in the South China Sea although tensions have eased in recent months and the Chinese and Vietnamese communist parties retain close ties.The EU, meanwhile is hoping to clinch negotiations on a bilateral, free trade agreement with Vietnam before too long.European diplomats tell me the country is an exciting destination for European exporters and investors.At more meetings — this time in Hanoi — the discussion turns to journalism, open societies and freedom of expression. Vietnam’s Communist Party keeps a tight lid on the media, including bloggers. The EU and the US are pressing for change and have an ongoing human rights dialogue with Hanoi. But it’s a question of one step forward, two steps back.As in China, the government appears to have struck a defining big bargain with its citizens: we’ll provide growth and progress in exchange for your loyalty. The trade-off appears to be working. So far.I see the bright lights, the fancy restaurants and the big cars. There is also still poverty and underdevelopment. I am enchanted by the friendliness of the people, young and old. Traditional and modern mix easily in the streets. There is no doubt: Vietnam is on the move. And it’s going to keep going up
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 21st 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 20th 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: New development paradigm (Originally published 08/03/2015 at dawn.com)
It used to be so simple: the world was divided into rich and poor countries. The rich provided aid and trade concessions to the poor ones. It was called Official Development Assistance (ODA) and often seen as a panacea for all problems facing “third world” countries. Rich nations promised to spend 0.7 per cent of their GDP as ODA. Developing nations were grateful for the help. It was neat and tidy. Orderly even.Only of course it wasn’t. It was messy, patronising and based on the notion of charity. Nothing wrong with charity — only that it begins at home. And as the going got tougher at home, growth rates dipped and jobs became scarcer, richer countries were less and less anxious to help the poorer ones.And then the world turned on its head as poor countries — or at least some of them — stopped being really poor. China, India, South Africa, Brazil began to rise, becoming more self confident and assertive by the day. They asked for stronger representation in international financial institutions, set up their own bank, started investing in and assisting their less well-off friends.In 2000 amid all the change and shift in power from North to South, the talk turned to achieving the Millennium Development Goals (MDGs) and eradicating poverty. However, it was still about the rich helping the poor, putting conditions on their aid, making sure that there was no wastage, no human rights abuses.Fast forward to 2015 and the world is a dramatically different place. The talk is of a post-2015 agenda which is about sustainable development in both the North and the South. There is a focus on governance, gender balance, and moving “beyond ODA”.There is agreement that the 17 Sustainable Development Goals (SDGs) will not be met by ODA alone. Their achievement will require the mobilisation of the private sector, a better use of remittances and philanthropy and more creative thinking about “blending” private and public funds.And above all there will be a focus on the mobilisation of additional resources by developing countries through domestic resource mobilisation, including through more thorough and efficient national tax collection.Yes, finally after years of beating around the bush, global attention is turning to tackling tax evasion, by companies and individuals. The question will be high up on the agenda of the third International Conference on Financing for Development which will be held in Addis Ababa, Ethiopia, from July 13 to 16, 2015.The reason for the focus on domestic revenue mobilisation in developing countries is clearly linked to the fact that ODA is on its way down and traditional donors are getting tougher.There is good talk about the potential benefits of taxation for state-building and the long-term independence from foreign assistance. It is also of course a question of governance.Revenue from taxation and customs provides governments with the funds needed to invest in development, relieve poverty and deliver public services directed towards the physical and social infrastructure required to enhance long-term growth.Strengthening domestic resource mobilisation is not just a question of raising revenues: it is also about designing a revenue system that promotes inclusiveness, encourages good governance, improves accountability of governments to their citizens, and cultivates social justice.Non-governmental agencies such as Christian Aid have estimated that developing countries, including lower- and middle-income countries, could be losing out on as much as $160bn a year in potential tax revenue because companies are dodging taxes. This was one and a half times the combined overseas aid budget of the whole rich world at the time, and there’s no reason to think the problem has got smaller since then.In 2011, the United Nations Economic Commission for Africa established a high-level panel to write a report on illicit financial flows (IFFs) in Africa and to come up with ways to combat them.The panel, presided by the former South African head of state Thabo Mbeki, warned that the cost of IFFs to the continent was around $50 billion each year.The report states: “Some have estimated that Africa’s capital stock would have expanded by more than 60 per cent if funds leaving Africa illicitly had remained on the continent, while GDP per capita would be up to 15 per cent more.”Worse still, this sum is even greater than the total official development assistance received by African countries, which was $46.1 billion in 2012.At a recent conference in Brussels, participants underlined that there was no dearth of money in the world and that in fact Africa was a rich continent. The money was just not in Africa, but hidden and hoarded in tax havens, most of them in rich countries.
View From Abroad: Getting excited about Asean (Originally published 28/02/2015 at dawn.com)
As China’s economy slows and Indian growth remains uncertain, global attention has switched to the end-year creation of a tariff-free 10-nation Southeast Asian “single market” as the newest and most exciting facet of rising Asia.The excitement is justified. Taken together, members of the Association of Southeast Asian Nations (Asean) have a population of 620 million, a growth rate of five per cent and a combined gross domestic product of almost $2.5 trillion. A growing middle class across the region has emerged as an avid consumer of foreign and domestic goods and services. Not surprisingly, global business is enthusiastic. Trade is booming and foreign investments into the region are rising.Significantly, even as they strive to get elements of the Asean Economic Community (AEC) in place by year-end, countries in the region are already crafting an even more ambitious “post-2015 vision” for further integration. The ambition is to move beyond trade and economics to focus on still largely incomplete plans for building a political and security community and preparing the groundwork for stronger social and cultural integration. One visionary goal is to create a common Asean time zone — as opposed to the current three spanning the Asean region — to facilitate cross-border business and finance.The AEC roadmap includes four pillars: a single market and production base (including the free flow of goods, services, skilled labour, capital and investment), a competitive economic region, equitable economic development and integration into the global economy.But challenges remain. First, don’t expect the AEC to enter into force with a “big bang” on Jan 1, 2016. Not all elements of the single market will or can be in place on schedule and while progress is being made to reduce trade barriers and ease investment, as well as ensure the free flow of goods, services, investment and skilled labour, the devil is in the detail — and in enforcement and implementation. An Asean Scorecard which keeps countries up to date on progress on the AEC says about 80pc of the work on completing the AEC has been done. But Asean experts acknowledge that the remaining 20pc covers “the most difficult” tasks.Malaysian Trade Minister Mustapa Mohamed, whose country holds the rotating presidency of the Southeast Asian bloc this year, has said the full impact of integration may not be felt until perhaps 2020, recognising that there are border issues, customs, immigration and different regulations, which still need to be tackled. Businesses must still navigate a complex landscape of different product standards and regulations that make it hard to sell across the region and hamper the ability of new companies to enter the market.Surprisingly, many Asean businesses appear to know little of the AEC’s pros and cons. Vietnamese officials said recently that 60pc of their country’s business community “had no idea what the AEC is”. A survey by the Singapore Business Federation in January found two out of five firms were completely unaware of it. Yet establishing the AEC will impact positively on many industries, including electronics, car parts and components, as well as chemicals, textiles, and clothing. Once completed, the hope is that the AEC will boost intra-Asean trade which currently stands at a modest 24pc of the region’s overall trade flows.Second, Asean still has much to do to connect with citizens. Increasingly vocal civil society representatives are adamant that Asean must live up to its goal of becoming “people-centred” and less elitist. In contrast to earlier years and outdated conventional wisdom, Asean civil society is proactive and striving to become deeply involved in efforts to ensure stronger human rights protection and promotion across the region. In a recent statement, the Asean People’s Forum (APF) — Asean’s largest civil society group — listed a number of problems in the region, among them grave human rights violations, corruption and poor governance. Intimidation of human rights defenders was also raised.There are signs that governments are paying heed. As current Asean chair Malaysia has indicated that one of its main priorities will be to engage Asean citizens and to promote greater understanding of Asean initiatives and projects. “We also hope to steer Asean closer to the people of Southeast Asia: to make this institution part of people’s daily lives, by creating a truly people-centred Asean,” says Malaysian Prime Minister Najib Razak. The rhetoric has to be turned into action, however.Third, for all the hype, Asean still has to deal with obstacles created by economic nationalism, protectionism and resistance to foreign-owned industries which persists in many member countries. Malaysia’s trade minister Mohamed has said he will not avoid the politically sensitive task of tackling protectionism in Asean such as local content requirements, mandatory product standards and import restrictions.More generally, maritime disputes in the South China Sea as well as incidents of religious sectarianism, rising intolerance, human trafficking and corruption are further challenges to surmount as are differences in levels of development and political and economic models among Asean states. Additionally, there is concern that Indonesia under President Jokowi may be too focused on the country’s domestic questions to play its traditional leadership role in Asean. Meanwhile Indonesian business continues to be wary of opening up the country’s markets to Asean competitors.Looking aheadThe Nay Pi Taw declaration on Asean’s post-2015 vision adopted last November sets out an impressive agenda for the region’s future. While deepening economic integration and connectivity remains on the agenda, Asean leaders have identified external relations and the building of political/security and socio-cultural communities as a priority.There is no shortage of interesting ideas: leaders of Indonesia and Malaysia in recent weeks have been pushing for a common time zone arguing that this would help businesses and allow for coordinated opening times for banks and stock markets. An Asean Open Skies Agreement is designed to create a single aviation market and allow for more flights, which will increase trade, investment and tourism. There are suggestions to set up an Asean regional infrastructure fund. Plans for strengthening the Asean Secretariat and improving coordination among member governments are being studied by a high-level task force. East Timor’s Asean membership is under internal discussion.Asean is a business opportunity for the West but also for other Asian countries — a fact that India, China and Japan are more than aware of.
View From Abroad: European lessons for Asian security (Originally published 14/02/2015 at dawn.com)
The just-negotiated ceasefire to stem the conflict in eastern Ukraine may or may not last. But the hard work put in by German Chancellor Angela Merkel and French leader Francois Hollande as they negotiated for over 18 hours with Ukrainian President Petro Poroshenko and Russia’s Vladimir Putin points to the still-potent and constructive security role that European states can play in their neighbourhood.It also underlines that — when it comes to the crunch — it’s Germany, France, and sometimes Britain, rather than the European Union which can do the hard labour involved in defusing tensions and securing a semblance of peace.True, the crisis has spotlighted divisions in the European Union over relations with Russia. The current sanctions regime against Moscow is not popular with all EU states.And certainly, the collapse of previous ceasefires has stoked doubts as to whether this one will hold. But before they throw up their hands in despair and accept confrontation with Russia — or follow America in seeking to send military aid to the Ukrainian army — European leaders will certainly try — and try again — to secure peace in the neighbourhood.And the lesson that peace is worth patiently, painstakingly and repeatedly striving for is an important one for Asia’s many star-crossed nations.This is also why the new European Security Strategy that the EU intends to hammer out by the end of the year should not ignore the different ways in which Europe can help Asia to deal with its many security challenges.Much has changed in the world since the last European Security Strategy was released in 2003, in the aftermath of the Iraq war. As EU foreign and security policy chief Federica Mogherini pointed out at the Munich Security Conference last weekend, the world today is a disorderly place. “The world is far from being a unipolar one, nor is it truly multipolar ... maybe we are living in times of an absence of poles,” Mogherini underlined, adding: “The big question for all of us is ... how do we manage complexity?”Asians are also struggling with the same challenge. For the first time in history, Asia is home to four — even five — important powers: a rising and increasingly assertive China, Japan that wants more influence, Korea searching for an expanded regional role, India which is being wooed by many as a counterweight to China and Asean, the regional grouping which has made peace and cooperation its leitmotif for many years.Trade and investment are the backbone of EU-Asia relations so far. But an EU-Asia conversation on security is set to be the new frontier. The EU cannot afford to be outside the loop of the dramatic geopolitical power games, rivalry and tension being played out in Asia between China, Japan and India — and the 10 south-east Asian members of Asean. Increased spending on arms across Asia is one indication that the region feels insecure, fragile and uneasy.The so-called Asian “paradox” — the fact that the region’s economies are closely knit together but governments are still grappling with historical tensions, is pushing some in Asia to take another, closer look at how Europe has been able to deal with its own tensions.Asian perceptions of security are also changing. The focus on territorial security is shifting to the importance of non-traditional security threats, such as climate change, pandemics, extremism and human trafficking, with some Asians putting the emphasis on “human security”. Across Asia, there is a recognition of the need for a collective or cooperative security architecture. But cooperative security in Asia remains underdeveloped, lacking collective security, regional peacekeeping and conflict resolution functions.Differing threat perceptions, mutual distrust, territorial disputes, concerns over sovereignty make things very difficult.But as their views of security evolve, for many in Asia, the EU is the prime partner for dealing with non-traditional security dilemmas, including food, water and energy security as well as climate change.Asian views of Europe’s security role are changing. Unease about the dangerous political and security fault lines that run across the region and the lack of a strong security architecture has prompted many in Asia to take a closer look at Europe’s experience in ensuring peace, easing tensions and handling conflicts.As Asia grapples with historical animosities and unresolved conflicts, earlier scepticism about Europe’s security credentials are giving way to recognition of Europe’s “soft power” in peace-making and reconciliation, crisis management, conflict resolution and preventive diplomacy, human rights, the promotion of democracy and the rule of law. Europeans, too, are becoming more aware of the global implications of instability in Asia. Clearly, the EU as the world’s largest trading bloc needs safe trading routes and sea lanes.Also, Europeans are now recognising that fragile peace in Asia will have an enormous impact on global security. That is one reason that the EU has signed Asean’s Treaty of Amity and Cooperation and is seeking entry to the East Asia Summit in order to sit beside the United States and Russia.An important challenge for the EU in its relations with Asia is to retain its identity vis-à-vis the much more dominant role played by the US. As it fashions its distinctive security role in Asia, the EU must make an effort to its own distinct profile in promoting multilateral approaches, the rule of law, good governance and regional integration.And that’s what makes the progress made with Russia over Ukraine so important.
This time it can be different: SDGs need more funds, changes in mindset (Originally published 26/01/2015 at friendsofeurope.org)
Prepare for a pivotal year for development cooperation. For most of 2015, the focus will be on seeking to define a transformative agenda for poverty eradication and shaping social, economic and environmental development over the next 15 years.Priority attention will be on knitting together a “post-2015” blueprint for poverty eradication and sustainable development which follows on from the Millennium Development Goals (MDGs) of 2000 and the 2012 United Nations Conference on Sustainable Development (Rio+20). Agreement on the “Sustainable Development Goals” (SDGs) is expected at the UN General Assembly in September this year.Consensus on a new set of goals – however long – is important in order to focus minds and ensure more coherence in global development. Even more crucially, however, implementation of the SDGs will demand a broader, more inclusive mindset, more international consultation and certainly more active civil society engagement. Additional resources, renewed attention on updating existing financial tools and instruments and creating new ones will also be needed.As such, the conference on Financing for Development Conference to be held in Addis Ababa in July must be well-prepared, with participants ready to look at traditional and innovative ways to fund growth and development.Also in 2015, a climate change agreement is hoped for at the December COP21 ministerial meeting in Paris. Last but not least, the EU has designated 2015 as its first-ever European Year of Development.Significantly, the 2015 summits are linked. An agreement at the Addis Ababa financing conference will provide momentum for the dialogue on the SDGs which will, in turn, create an impetus ahead of the critical climate talks.A radically changed environmentThe rhetoric in 2000 was impressive. But fifteen years after the adoption of the MDGs, the jury is still out on nations’ record in meeting the eight targets. The headline goal for extreme poverty reduction appears to have been met five years ahead of its target. Significant successes in school enrolment and mortality rates for under-fives have been achieved (albeit at slightly less than target rates). However, progress in meeting other important indicators remains patchy.This time, it’s different. The MDGs were brief, focused, easily understood and communicated – and represented a rare international consensus for development. The SDGs reflect the concerns and priorities of a radically changed world. As EU Development Commissioner Neven Mimica pointed out, “the world is a very different place in 2015 to what it was in 2000. We can no longer focus only on eradicating poverty; today’s challenges are much more inter-related and we have to make sure that we achieve sustainable development in all of its three dimensions: environmental, social and economic.”The SDG consultative process has been long and painstaking. The 17 SDGs and 169 targets agreed by the United Nations Open Working Group and endorsed by the General Assembly last year, represent a global wish list and cover the broad themes of the MDGs – ending poverty and hunger, and improving health, education and gender equality – but also include specific goals to reduce inequality, make cities safe, address climate change and promote peaceful societies. As such, they bring together two frontiers – development and climate – and tackle global public goods problems as well as national obstacles. There’s something for everyone – almost.For purists, the list is too long, the goals too disparate. “What the world needs is a plan of action to replace the Millennium Development Goals. What’s on offer is a shopping list,” according to Kevin Watkins, Director at the Overseas Development Institute. “The 17 SDGs and 169 targets cover everything from the urgent and measurable – eliminating poverty, cutting child deaths, universal provision of education, water and sanitation, and climate stability – to the vaguely aspirational.”Certainly, the goals are going to be much more complex to describe, implement and monitor.On the plus side, however, the SDGs could encourage a more holistic approach to development and offer a chance for more partnerships and collaboration. Crucially, the SDGs will be universal, which means all countries – rich and poor – will be required to consider them when crafting their national policies. This is different from the MDGs, which were applicable to all and marketed as anti-poverty goals for poor countries.Significantly, the adoption of the SDGs goes beyond the pure development agenda. They signal a determination by nations to jointly tackle complex global challenges. The importance of sustainable development will be accepted and highlighted as fundamental. Not least, they will reinforce an unprecedented process of international consultation and commitment at a time when many are sceptical about multilateral cooperation.Global partnership for development.MDG 8 urged development actors to forge a global partnership for development. Turning that ambition into reality means focusing on finding the resources to implement the post-2015 agenda. “Funding is crucial for credibility on climate and post-2015 efforts,” according to UN Secretary General Ban Ki Moon who believes that all public, private, domestic and international funding sources need to be tapped.Public financing and Official Development Aid (ODA) will be central to supporting the implementation of the SDGs. But money generated from the private sector, through tax reforms, and through a crackdown on illicit financial flows and corruption will be vital.Certainly, there will be less ODA to spur implementation. Aid flows look set to stagnate at best, and continue declining in importance to emerging economies. Public-private partnerships will be crucial. New development actors are emerging as an important source of funds for developing countries, especially for the financing of infrastructure. Foreign direct investments (FDI) in emerging countries are on the rise as are impact investments, Corporate Social Responsibility (CSR) activities and philanthropy.Remittances from workers abroad are a huge boon to their countries of origin. Governments are also under pressure to increase domestic resource mobilisation through more effective tax collection and anti-corruption measures.According to Amina J Mohammed, special advisor to the UN Secretary General on post-2015 development planning, “the private sector also has responsibilities and all must work in partnership, within and across sectors,” adding: “Indeed, partnership is critical but means so much more than just collaboration. Partnership is about the integration of visions, values, plans, accountability, resources and knowledge sharing.The world in 2015 will continue to be a difficult and hazardous place. The SDGs are one way of ensuring that the goal of a fairer, more equal and more stable world is kept alive.
Forget the headlines: Life is getting better (Originally published 24/01/2015 at dawn.com)
Cast a glance at the headlines and it’s clear: the world is a violent, cruel and unforgiving place. Inequality is rampant. Terrorists stalk our streets. Poor, homeless people crowd our shelters. It’s bleak and grim — and not getting better.
View from Abroad: Peshawar, Paris, Pegida and me (Originally published 10/01/2015 at dawn.com)
Just when you think it can’t get any worse, it does.On the second day of my long-awaited trip to Pakistan in December last year, I woke up to the news of the horrible massacre of school children in Peshawar.Like most people, I wept for the innocent lost lives, the bereaved families and a once honourable country which has lost its path, becoming mired in ever-more indecent violence and barbarism.As I made my way home to Brussels a few days into 2015, I was preparing to write about Pegida, Germany’s nascent and very toxic ‘anti-Islamisation’ movement which is making headlines across the globe.But then tragedy struck again as terrorists, unfortunately and wrongly, described as Islamists gunned down 12 people at the offices of Charlie Hebdo, the Paris-based satirical magazine.As France and the world mourned the dead and worried about the freedom of expression, diversity and tolerance, I asked myself: how many tears can you shed? How long and often can you weep? Will the hatred, violence and extremism ever end?I don’t know the answers but I know that whether we recognise the link or not, Peshawar, Paris and Pegida are, tragically, connected.I know that money, encouragement and support for the extremists whether in the Middle East, Pakistan, Asia or Europe can be traced to extremist Wahabi state and non-state actors in Saudi Arabia and other Gulf states.I know that Far Right groups in Europe and the United States are spreading a hysterical and toxic anti-Islam message, gaining traction and popularity as the economic slowdown persists and unemployment continues to rise.I know that politicians in Europe, the US and the Muslim world are unwilling and unable to rise to the challenge of building a strong counter-narrative of tolerance and discrimination.I know that 2015 is going to be a defining, testing year for humanity’s ability to live together in peace while accepting differences in religion, colour and culture.I know that the violence-loving, gun-toting men and (some) women who kill, maim and torture are outside the boundaries of any religion. There is no “Islamic State”, only murderers and criminals. There is no “good” Taliban, just blood-thirsty barbarians.I know that just as is the case for freedom-loving people in Pakistan, life for Muslims in Europe is going to get tougher in the aftermath of the recent terrorist attacks.But I also know that sanity and good sense will probably and hopefully prevail in both Pakistan and Europe.In the end, it’s not the politicians who will stop the rot. It is the people, the ordinary men, women and young people who say “enough is enough” to violence and intolerance.I know it is possible. As we visited Lahore only hours before the massacre in Peshawar, girls and boys came up to us to talk and take pictures, giggling and chuckling, proud of Pakistan and their heritage.The Badshahi Mosque and the Lahore Fort sparkled in the sun but it was the laughter and the cheeky jokes of the young men and women that warmed our souls.This was Pakistan the way it really is, the way it should always be. Hours later as we tried to come to grips with the tragedy in Peshawar, I took solace in the hope I had seen in the eyes of the young people of Lahore.In Europe too, it is the people who will stop the continent from descending into a dangerous downward spiral of anti-Muslim sentiment.True, the Far Right is gaining momentum. Talk of a “clash of civilisations” is rife. But equally those who want a multicultural and tolerant Europe are speaking out.Pegida gatherings have been dwarfed by massive counter-demonstrations in Dresden, Berlin and Cologne where people have spoken in support of immigrants and condemned intolerance.The famous Cologne cathedral and Berlin’s Brandenburg gate have switched off lighting as a sign of protest against xenophobic rallies. German Chancellor Angela Merkel has warned against hate and discrimination.In the aftermath of the Paris killings, European governments will certainly clamp down hard on radicals and would-be terrorists. They are right to do so. But in the medium and long-term, European politicians must also focus on the compelling need to integrate and accept their Muslim citizens.Retribution and revenge must not be allowed to take centre stage. If it does, it will play into the hands of the extremists.This is a dangerous moment. Yes, it is war. But it not a conflict between Islam and the West. The battle being fought so cruelly is between people who believe in humanity and criminals and terrorists who, quite simply, want to kill.
View from Abroad: Pakistan’s choice (Originally published 6/12/2014 at dawn.com)
As I prepare to travel to Pakistan — the first such visit in five years — I am filled with admiration, amazement and apprehension. They say the past is a different country. And Pakistan is certainly a very different country from the one I left all those years ago.Pakistan and I have both changed. I am obviously older (but not wiser) than the young, naive and rather demure girl who boarded the plane from Islamabad to Brussels with her parents and sister. At the time, I believed I would be away for a few months, may be a couple of years. Several decades later, Europe has become a core part of my identity and existence and Brussels is “home”, a city that has nourished and nurtured me through good times and bad.Pakistan’s transformation is more starkly radical. Sometimes I can hardly recognise my country of birth. There is much still to admire and love — and to yearn for on cold European winter evenings. Family and friends of course. The food and some of the music. The stories being told by old writers and new ones whose books I devour avidly. The artists whose pieces stir long-buried memories.But what I admire most is the resilience of the people. The indomitable spirit of the so-called common man, the “ordinary” people — or the “masses” that the Pakistani politicians refer to in derision — who keep the country humming and running against all odds.You see that unbeatable spirit everywhere, among the people displaced by floods and the deadly fighting between the army and the Taliban, after the tragic deaths of innocent civilians caused by drones, among the thousand Malalas still determined to go to school and the sick people waiting patiently for a doctor to see them in crowded hospitals.But that resilience is also about being optimistic about the future. Going to work every day in packed buses, facing harassment, electricity breakdowns, rampant inflation and corruption with stubbornness and stoicism. And to keep going on and on. I admire Pakistani business leaders and innovators who still invest and believe in the country. The young and the daring entrepreneurs. People who speak up for tolerance, resist the siren song of conformity and compromise.I have seen the same energy and resilience in many other parts of Asia and in Africa. But recently rarely in Europe. The Eurozone crisis has exhausted Europe and joblessness rates are much too high, especially for young people.But speak to young people in China, India and Indonesia and it is clear that they believe in a better future. Visit the countries and it is clear that people’s lives are getting better. Of course there is still inequality, poverty and hunger. But the governments in these countries are trying hard to tackle the multiple challenges they face. Are Pakistani politicians doing the same?So what about my amazement? Well, I suppose it’s about the patience of the people, the willingness to put up with mediocre and often corrupt politicians, war-mongering soldiers, inequality and unfairness and the rampant lack of the rule of law. Elections have not led to real democracy. All that aid money pouring in, has not led to sustainable growth and development.Reading the online version of the front page of Dawn fills me with wonder at how quickly Pakistan’s political landscape has turned into a dark, cruel, repetitive circus. The scowling, angry features of former cricketer Imran Khan, the crazy pronouncements of the Canadian preacher, the ever-chubbier and dishevelled, helpless look of the prime minister and the semi-lucid mutterings of the scion of the Bhutto family.And then there is the apprehension. Despite the disappointment and the disillusionment with a country which I once called home, I suppose there is still some lingering connection, a hope that Pakistan will survive the challenges of the 21st century, stand proud and tall and become an integral part of a rising Asia.It would be nice if Pakistan was in the headlines not because of the antics of the likes of Junaid Jamshed, anti-India rants by the foreign ministry, suicide bombings and hate-Malala crazies as well as the treatment being meted out to Asia Bibi but because the country was breaking new ground, turning a fresh page, opting for sanity rather than madness.After so many years and so many wonderful experiences in Europe and Asia — not to mention the lessons in honesty, sincerity and fearlessness that I learned from my father — I wonder if I will be able to stay silent when I encounter intolerance and religiosity and the blatant disregard for the rights of women, children and minorities that seems to have become part of the national discourse.Across Asia, there is hope and progress. Viewed from Brussels, it certainly looks like this is the Asian Century, a time when Asia is coming of age, growing and developing.Pakistan has a choice: it could join the Asian mainstream and give its people the life and future they deserve or it can opt to be part of a self-destructive Middle East mindset and stay on the periphery of a dynamic and vibrant Asia. I know what I would choose — but do they?
View from Abroad: Europe waits for trade talks but Modi ‘looks East’ (Originally published 22/11/2014 at dawn.com)
These are busy times for Asian leaders — and Indian Prime Minister Narendra Modi is among the busiest.Last week as he criss-crossed Asia, clinching business deals, attracting much-needed investments and building strategic alliances, Modi found time for a quick meeting with the European Union’s outgoing European Council President Herman Van Rompuy to underline that the “EU should take advantage of the new economic environment in India”.The two men apparently agreed that the United Nations should hold an annual international “Yoga Day”.But not much was apparently said on the EU-India free trade agreement that the two sides have been trying to negotiate for the last seven years and which now seems to have run into the ground.EU officials are still hoping that the negotiations will be back on track soon. But the Indian leader is too busy looking elsewhere.As of this autumn, Modi has his nation and the rest of Asia abuzz with his determination to inject new life into India’s “Look East” policy which, following his incessant Asian travels, including recent talks with Asean (Association of South-East Asian Nations) and other Asian leaders in Myanmar, has morphed into what Modi proudly describes as a “Look East — and Act East” policy.India’s decision to step up its game in Asia is no surprise. As an emerging power with “great power” ambitions, India has no option but to seek a stronger role in a volatile neighbourhood and a region marked by often-changing geopolitical rivalries and alliances. Also, tapping into the region’s dynamic economies is critical for India’s own growth and reform agenda.Certainly, China has the funds needed to help finance India’s infrastructure requirements while Japan and South Korea have the technical experience and expertise. South-east Asian markets are important for Indian investors and exporters. Sustainable peace with Pakistan may still be a long way off but is essential for India’s development and peace and stability in the region.While in Myanmar, Modi made the headlines by pushing his “Make in India” campaign, which aims to turn the country into a global manufacturing hub, by cutting red tape, upgrading infrastructure and making it easier for companies to do business. Modi promised to implement long-delayed plans to boost trade and deepen ties with Asean so that current trade flows could rise from $75 billion today to $100 billion by 2015.In fact, the policy is not new. India has long spoken of developing a “Look East” policy, but has lagged behind China in forging ties with emerging economies in South-East Asia. Tackling China’s influence on Asean and South Asia is still a challenge but India benefits from the fact that Japan, Asean and others in the region are certainly looking to reduce their economic dependence on Beijing by reaching out to Delhi.Indian commentators also underline that Modi used the Asean meeting to articulate for the first time India’s intent to enhance “balance” in the Asia Pacific region, arguing that the word was carefully chosen to reflect India’s shared concerns with other Asian countries about China’s growing assertiveness in the region.Interestingly, Indian defence cooperation is being stepped up with several Indian Ocean states including Sri Lanka and Maldives. India will supply four naval patrol vessels to Hanoi as part of $100 million Line of Credit signed last month. The two countries have also decided to ramp up cooperation in the field of hydrocarbon, civil nuclear energy and space.Given Modi’s focus on the Asia-Pacific, the EU’s new leaders may have to wait a long time before he signals a real interest in upgrading bilateral ties.It is no secret that the EU-India strategic partnership needs a shot in the arm and that trade and investment flows are much too modest. But negotiations for an India-EU Bilateral Trade and Investment Agreement (BTIA) — the most important issue on the bilateral agenda — have lasted for seven years, with no end in sight. And hopes that New Delhi would put energy and effort into the successful conclusion of the elusive deal have not materialised, with differences over tariffs and market access as well as questions related to the protection of intellectual property rights continuing to impede progress.The pact could be signed in 2015 — but only if both sides can summon up the political will to look beyond the array of technical issues to the deeper strategic importance of their relations.Modi and the EU’s new leaders face the uphill task of taking the relationship to a higher and more genuinely strategic level, a move that would benefit both sides.In addition to the geopolitical value of such a decision, European investors are willing and eager to enter the Indian market. European know-how could be valuable to India’s reform and modernisation agenda. Europe, meanwhile, needs new markets to keep its modest economy on track.To inject momentum into the relationship, both sides will need to make an effort. EU and Indian leaders have not met for summit talks since February 2012. An early meeting between Modi and the EU’s new presidents of the European Commission and the EU Council this autumn will therefore be crucial in signalling a fresh start in relations.
View from Abroad: EU must engage urgently with China (Originally published 15/11/2014 at dawn.com)
China's President, Xi Jinping, is a busy man. And if the European Union’s new leaders waste time in engaging with him, the EU could find itself gently, but firmly, shut out as Beijing steps up its game, both in the region and on global stage.The Chinese president has had quite a week. Having hosted the Asia Pacific Economic Cooperation (Apec) summit, signed an unexpected agreement with President Barack Obama on cutting greenhouse gas emissions and eased tensions with Japanese Premier Shinzo Abe, Xi attended the East Asia Summit in Myanmar and will then be at the G20 gathering in Brisbane, Australia.Chinese Premier Li Keqiang did attend the Asia Europe Meeting in Milan last month — but the EU was represented at the meeting by the outgoing EU leaders, European Council President Herman Van Rompuy and his colleague at the European Commission Jose Manuel Barroso. Beijing is waiting for the new Commission chief Jean Claude Juncker, Donald Tusk who will head the European Council as of Dec 1, and the new EU foreign policy chief Federica Mogherini to get in touch and answer whether the new men and women in Brussels will want a continuation or a change in in EU-China relationsCertainly, urgent matters at home and in Europe’s troubled neighbourhood command immediate attention. Juncker has also had to field embarrassing questions about allegations that Luxembourg was helping companies to dodge taxes while he was prime minister.But still, reinforcing ties with the world’s second largest — and still fastest growing — economy must be also be an EU priority.The good news is that after a few troubled years, Europe-China ties are encouragingly sound. Although trade frictions are unlikely to completely disappear, major trade quarrels have been settled. Differences over human rights notwithstanding, the EU and China have developed a good working relationship. As such, the new EU team inherits a relatively solid EU-China agenda. It must use this to further shape relations to fit a complex environment, both at home and in China.But as the array of recent events, overtures and agreements illustrate it is busy with consolidating relations with the US and is focused on its immediate neighbourhood. Unless Europe acts quickly, it could lose China’s attention at a time when the two sides need each other.It is worth repeating: Europe and China need each other, not least for economic reasons. Its growth rates may be slowing down, but China’s appetite for European goods and investments continues to be crucial in determining the pace and success of Europe’s economic recovery. China’s economic transformation demands that it has access to European know-how, experience and technology. China’s reform agenda also gives European companies myriad opportunities for enhanced trade and investments.Second, a deeper EU-China relationship is important in order to polish Europe’s foreign policy credentials — in Washington, Moscow and in many Asian capitals. Asian countries, which are locked in territorial quarrels with Beijing in the East and South China Seas, believe Europeans can temper Beijing’s assertiveness on the issue and use its experience in managing cross-border challenges to ensure stability in the region.Third, while Europe’s one-time dream of ensuring that China would one day become a “responsible” international stakeholder now appears hopelessly out-of-date and patronising in view of Beijing’s increasing global outreach and self-confidence in world affairs, there is no doubt that the EU needs to engage with China on a range of urgent foreign and security policy issues, including relations with Russia, Iran’s nuclear plans, policy towards the IS, fighting Ebola and combating climate change.Significant headway has been made in recent years, especially in EU-China economic ties. Trade relations remain buoyant, with bilateral trade in goods valued at about 420 billion euros in 2013. Trade in services, currently estimated at about 50 billion euros annually, is expected to grow as China opens up its services sector and as new reform efforts begin to bear fruit. More is being done to increase bilateral investment flows.There is still much more to discuss and discover. China is in the midst of massive change as the focus shifts to boosting consumer demand and away from an excessive reliance on investments and exports. The emphasis is also on fighting pollution, ensuring sustainable urbanisation and implementing other aspects of last year’s massive national reform agenda agreed at the Third Plenum. More recently, China’s Fourth Plenum shifted the focus to the rule of law, governance and legal reform. President Xi, widely regarded as China’s most powerful leader in recent decades, is stepping up his anti-corruption campaign.Beijing has been true to its word in making 2014 “the year for Europe”, with both President Xi and Premier Li travelling to key European capitals. The EU’s new leaders must reciprocate through visits, convening of an EU-China summit early next year and rapid organisation of the high-level political, economic and people-to-people dialogues.As China and the EU prepare to celebrate the 40th anniversary of their partnership next year, the relationship must be made more resilient, robust — and mutually respectful.
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: Keep watching Jokowi (Originally published 1/11/2014 at dawn.com)
You heard it here first. Two years ago, I predicted in this column (Hope amidst the madness Sept 29, 2012) that Joko Widodo, the then newly-elected governor of Jakarta, was poised to become the next president of Indonesia.On Oct 20, that prediction came true as Widodo — better known as Jokowi — became the leader of the world’s most populous Muslim majority country, fourth largest democracy and an impressive Asian economic power house.In 2012, I remember coming back from a long study tour in Indonesia where practically everyone I met had waxed lyrical about the governor of Jakarta. I was intrigued — and then I was convinced. Jokowi is special.Jokowi and Indonesia matter. They matter to Indonesia’s 250 million citizens, to the wider south-east Asian region — and also to an increasingly chaotic and depressingly violent Muslim world.Much has been written about Indonesia’s new head of state: by all accounts, he is low-key, soft-spoken, dedicated, hard-working and, in a country once ruled by the army and an unsavoury elite, he is “a man truly of the people”.He is therefore an unusual and outstanding political phenomenon. His origins are modest. He was drawn to politics late in life. In a country where family and background counts, he breaks the rules by having no army or political family connections.Comparisons have been made to US President Barack Obama. Both men emerged “out of nowhere” to lead their nations, caught the popular imagination by breaking with the past, reached out to young people and brought a message of change and hope to a tired nation.Look carefully, and the two men even share a striking physical resemblance.As Jokowi takes power, there are concerns that he may also run afoul of an old guard which is reluctant to cede power and privilege to a less skilful and less experienced political newcomer.But there is a difference. Obama heads an economy which is just beginning to sputter to life after years of stagnation. America is desperate to look inwards even as it is pulled screaming and kicking into new military adventures. Public support for Obama is eroding fast.Jokowi, in contrast, has become the leader of one of Asia’s most exciting countries and dynamic economies. Indonesia still faces an array of political, economic and societal challenges — and none of these will disappear under the new president’s watch.Significantly, what happens in Indonesia will not just stay in Indonesia — it will have strong repercussions across the country itself, the 10-member Association of South-east Asian Nations (Asean) and a curious Muslim world.Jokowi’s election is hopefully a fatal blow to the old-style politicians like Prabowo Subianto — a former general once married to the daughter of Indonesian dictator Suharto — who was also a candidate for president and refused at first to acknowledge defeat.In a region not noted for its espousal of democratic values and human rights, Indonesia stands out for having successfully ensured the transfer of power from one elected president to another.For many years, Indonesia has engaged in a massive soft power exercise of trying to export democracy to neighbouring nations, including Myanmar. Jakarta has taken the lead in trying to inject some real “people power” into Asean.Finally, Jokowi offers welcome relief in a Muslim world dominated by dictators, monarchs and unsavoury politicians.Still, it won’t be easy. Jokowi may have claimed the presidency, but he does not have a majority in parliament which last month controversially blocked the direct election of governors, mayors and district chiefs, a move which could prevent the rise of figures outside the political establishment, like Jokowi. The law is expected to be repealed — but it signals the tough political battle ahead for the new president.It’s been a good few years for the Indonesian economy — but growth is slowing down as the commodity boom wanes and exports decline. The government is under pressure to cut its generous fuel subsidies, a move which could spark civil unrest.Indonesia has not suffered a major terrorist strike since 2009 when a pair of luxury Jakarta hotels were targeted by suicide bombers but its brand of moderate and tolerant Islam is under threat from extremist forces. The country is trying hard to fight the spread of Wahabi Islam. Fighting corruption remains a challenge across the country.Most significantly, the new president faces the challenge of distancing himself from Megawati Sukarnoputri, a one-time president of the Indonesia and the daughter of the country’s first post-independence president, Sukarno.As chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), which put up Jokowi as presidential candidate, Megawati still wields enormous influence and has used it to determine the members of the new president’s cabinet.Indonesian newspapers warn that the new government is the result of compromises between Jokowi and Megawati and that contrary to expectations that the new president would appoint a team of technocrats, at least 21 ministers in the 34-member cabinet are either representatives of political parties or have links to political figures.Most damagingly, is the inclusion of Puan Maharani, Megawati’s daughter as a coordinating minister for human resources development and culture.“We can only imagine that the shoe is too big for her,” warned the Jakarta Post.“We are disappointed because we had high expectations,” the newspaper warned. However, there is praise for the appointment of eight female ministers, including the country’s first-ever woman foreign minister, Retno Marsudi.As I said in an earlier column, the world needs an inspirational, forward-looking Indonesia which stands proudly for pluralism, human rights, civil society and reform in a world where these values are in short supply.Friends of Indonesia are hoping they can continue to engage with a country which can fulfil its role as a modern and promising 21st century power. And they are watching Jokowi.
View from Abroad: A 21st century Silk Road (Originally published 25/10/2014 at dawn.com)
I have been in China for five days and my brain is on fire. Perceptions, discussions, confrontations crowd my mind, jostling for space, demanding attention. My Chinese colleagues have so much to tell me about their country’s new priorities and they want to know so much about the future of Europe. We discuss. We argue.
The debates go on and on at the round-table meeting in Changsha in Hunan province that we are attending. As day turns into night, the debates not only dominate my waking hours, they enter my dreams.Europe and China have much to talk about. We are so different and yet we have much in common. There is the shared challenge of encouraging sustainable growth, tackling problems in our respective neighbourhoods, dealing with an ageing population, making sure we eliminate inequalities.But much also separates us. Europe believes in democracy, elections and human rights. China wants western countries to stop pontificating and giving Beijing lessons on democracy. The focus should be on governance, not on elections and other the rituals of democracy, one Chinese academic tells us.“We have to treat each other equally ... the West should stop looking down on us,” another Chinese colleague insists at the round-table discussion between European and Chinese think tanks.Indeed, much has changed — and is changing — in Beijing. President Xi Jinping has embarked on an unprecedented national reform drive, demanding an end to corruption, stronger implementation of the rule of law, a rebalancing of the economy from investments and exports to domestic consumption.And for the last year, President Xi and Prime Minister Li Keqiang have been promoting the ambitious idea of a Silk Road which would connect China to Europe, weaving its way across Central Asia and Central and Eastern Europe on the one hand while also building connections through a maritime route which would include the Maldives and Sri Lanka and many South-East Asian states.Full disclosure: I confess that I am completely fascinated, intrigued by the initiative. As a young girl growing up in Pakistan, I spent hours reading of the adventures of the intrepid men and women who plyed the Silk Road, connecting towns, industries and people.Exotic looking Chinese traders, with their bundles of silk, satins and brocades, made their way to Islamabad, persuading my mother and aunts to buy their goods. I watched from the sidelines, amused by the good-natured bargaining, the chuckles resulting in mutually satisfactory transactions.Years later, I went up the Silk Road — or rather the silk track — to Hunza and Gilgit and felt my heart almost break at the exquisite beauty of the landscape. Many hundreds of Chinese and Pakistani workers died while building the road in such a hostile land. Their sacrifice was enormous, their memories preserved in plaques along the route.That was then. The Road was about romance and adventure. Today it’s about commerce. China’s new concept of the Silk Road has little to do with romance — and a lot to do with business.Still it is a visionary idea which is getting much attention in Asia and Europe. And so it should. As they did when they came out with their ‘China Dream’ concept a year or so ago, the ‘Silk Road’ initiative is a work in progress.Beijing has yet to articulate its ambitions in detail. “We are not yet talking about a strategy,” says a Chinese colleague.Clearly, China wants to use the Road to increase its trade relations with countries along the route. Beijing is interested in Central Asia’s energy resources. It wants to counterbalance Russia’s political influence in the region.Also, the Silk Road provides a strong counter move to America’s much-touted ‘pivot’ to Asia and to the Trans Pacific Partnership (TPP) trade agreement that the US wants to negotiate with countries in the region but without China.As I listen to the discussion, I am convinced that this is an idea whose time has come — again. China has the political clout to make it happen. And it has the money to finance many of the projects.Still, it won’t be easy. The 21st century Silk Road will not only allow goods to be trade freely across borders, it could also facilitate the cross-frontier movement of drugs, arms and terrorists.As such, the proposal needs to be developed with care and caution.As I prepare to leave Changsha, my head is still spinning with new information and ideas. I dream of ancient bazaars and long, winding roads through mountains and plains. The Silk Road as envisioned by Beijing may be based on national self interest and, given the challenges, may never see the light of day.But the vision of an interconnected world it articulates is worth preserving — and developing.
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.
ASEAN-EU to talk trade, security (Originally published 18/07/2014)
Asia remains high on the European Union’s foreign and security policy agenda following the meeting of foreign ministers from the EU and ASEAN (Association of Southeast Asian Nations[1]) in Brussels on July 23.In August, security discussions dominated EU foreign policy chief Catherine Ashton’s participation in the influential ASEAN Regional Forum (ARF) in Naypyidaw, Myanmar. And mid-October, European and Asian leaders will gather in Milan for summit talks on injecting new life and momentum into their 18-year old ASEM (Asia Europe Meetings) partnership. (read more)Asia and Europe have worked hard to maintain momentum in their relations despite pressing - and difficult - domestic and regional concerns. Such endeavours are to their credit. However, the challenge facing participants at both the upcoming ASEAN and ASEM meetings is to build more trust and understanding - and take their relationship to a higher, more strategic level.Discussions at the EU-ASEAN meeting focused on an array of global and regional issues. But more importantly, both sides have specific long-standing demands which are likely to be raised.A “win-win” deal?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 the ten-member 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.ASEAN, meanwhile, is looking for an EU upgrade to status of “strategic partner”, the appointment of a special EU envoy accredited to the Jakarta-based ASEAN Secretariat and the regular convening of EU-ASEAN summits. While not opposed to either of these points, the EU has put ASEAN demands on hold.No breakthrough was expected at the meeting in Brussels. But if both sides play their cards correctly by engaging in innovative and creative diplomacy, the meeting could pave the way - further down the line - for a “win-win” deal on the EU’s entry into the EAS and the elevation of ASEAN to one of Europe’s “strategic partners”.As expected meanwhile, 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. EU Trade Commissioner Karel De Gucht has said such a pact could be negotiated once the AEC is in place. (read more)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.Domestic challengesKeeping Asia-Europe engagement on track has not been easy for either region. The EU still faces the over-arching challenge of consolidating a still-slow economic recovery, creating jobs, especially for young people, and deciding on the distribution of key EU posts, including the appointment of the next high-representative for foreign and security policy. Hammering out a coherent strategy vis a vis a more assertive and often-unpredictable Russia remains a challenge. The EU is also still struggling to understand and respond to the continuing chaos and conflict in its southern neighbourhood.In Asia, meanwhile, conflicting territorial claims in the East China and South China Seas continue to strain relations between China and many of its neighbours and also challenge ASEAN’s claim to play a central role in the region. In addition, ASEAN is grappling with a military coup in Thailand, ethnic violence in Myanmar amid preparations for next year’s presidential elections and the year-long political crisis over disputed election results in Cambodia. While Jakarta mayor Joko “Jokowi” Widodo is clearly the winner in Indonesia’s presidential elections, competing claims of victory by rival Prabowo Subianto have created unnecessary political confusion in Southeast Asia’s most populous nation and most robust democracy.On the economic front, the Asian Development Bank has cut its initial growth outlook for the region from 5 percent to 4.7 percent even as the region struggles to tackle problems posed by urbanisation, climate change and unequal development.Growing connectivityThe EU has emerged as an important partner in implementing the Master Plan on Connectivity adopted by ASEAN leaders in October 2010 (read more). 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.Ashton’s participation in the ARF meeting in Napydaw ensures a much-needed, stronger EU-ASEAN dialogue on increasingly complex security issues. In a marked change over past years, there is already recognition of the need for a stronger EU-ASEAN conversation on security, including on non-traditional security threats including climate change, poverty alleviation, pandemics and illegal immigration.With 50% of world trade in tonnage passing through the South China Sea, the EU has taken a lead in establishing an EU-ASEAN high-level dialogue on maritime security, with a focus on port security, maritime surveillance, and the joint management of resources including fisheries and oil and gas.Significantly, while they once stayed carefully out of key Asian security disputes, EU countries with other Group of Seven leaders have expressed concern over tensions between China and some other Asian countries in the East and South China Seas, warned against any use of force and urged all parties to clarify and pursue their territorial and maritime claims in accordance with international law.Deeper trustWhile much binds the two regions, upgrading EU-ASEAN ties requires deeper trust and understanding between the two sides. Encouragingly the earlier acrimony over participation and attendance at meetings is now buried. Yet like ASEM gatherings, ASEAN meetings must become more inter-active and less formal and ritualistic. The focus on agenda items, prepared statements and out-dated rhetoric needs to be replaced by more open, frank and critical albeit constructive exchanges.Both sides have much to discuss and share. They should be allowed to do so – even on difficult issues such as the military coup in Thailand, the persecution of Rohingyas in Myanmar or tensions in the South China Seas - without taking offense or engaging in an overzealous regard for diplomatic niceties.ASEAN and the EU have been talking to and working with each other for several decades - but the last three years have been especially important in binding the two regions together. The Brunei Plan of Action adopted in 2012 laid the groundwork for a further intensification of EU-ASEAN ties. The meeting in Brussels should give added traction to EU-ASEAN engagement by preparing for a qualitative upgrade of relations within two to three years.
Indonesian elections matter to all of us (Originally published 07/07/2014, co-authored with Patricia Diaz)
Elections in Indonesia matter to a closely watching world. The results of the presidential elections in the world’s third largest democracy on July 9 will determine the future direction of Southeast Asia’s most populous nation and dynamic economic powerhouse.Beyond that, Indonesia’s political choice will have an equally strong impact on its neighbours, the wider Asian region and also on Europe and the United States. Most importantly, the way Indonesians vote will resonate across the Muslim world.Indonesians should know: their country offers a successful alternative model for Islamic societies, especially Egypt and other troubled Arab nations.As a Muslim majority country which is also a robust and vibrant democracy Indonesia is quite exceptional in a Muslim world dominated by monarchies, dictatorships and uncertain, vulnerable democracies.Indonesia’s experience in transiting from years of authoritarianism to democracy stands as an inspiration at a time when countries like Egypt are back peddling on meeting popular aspirations for change and political reform.Egypt’s failed democratic transition is proof that democracy needs visionary, thoughtful and cool-headed leaders, careful nurturing and can never be taken for granted.The choice Indonesians face now is simple: will they vote for a man who harks back to a past era, talks tough at a timewhen the world is looking for Indonesian “soft power” to tackle 21st Century challenges or a young and dynamic politician who stands for a new and progressive Indonesia, ready to take its place as a global power.Indonesia over the last decade and more has witnessed a massive transformation of its economy, with analysts now predicting that by 2030, the country will have an economy larger than either Germany or the United Kingdom.Whoever takes over the reins of power will have to tackle a long list of challenges, including a slowing economy, over-reliance on commodity exports, infrastructure bottlenecks and corruption. Keeping Indonesia open for business and avoiding the dreaded “middle income trap” will be other important priorities. The next president will also need to confront the problem of religious extremism which threatens a country known for its tolerance and moderation.
ASEM: Why Asia-Europe relations matter in the 21st Century (Originally published 30/06/2014, co-authored with Patricia Diaz)
The Asia-Europe partnership, launched in Bangkok in 1996 to foster stronger relations between the two regions, is ready for a reset.Hopes are high that the 10th Asia Europe Meeting – or ASEM summit – to be held in Milan on October 16-17 will confirm the credibility and relevance of Asia-Europe relations in the 21st Century. ASEM has certainly survived many storms and upheavals over the last eighteen years. With ASEM’s 20th anniversary in 2016 approaching rapidly, the challenge is not only to ensure the survival of the partnership but to create conditions for it to flourish and thrive.ASEM has been through different periods. Initial euphoria over the initiative was followed by a period of inertia and a degree of apathy and disinterest. Asians criticised European leaders and ministers for not turning up at important meetings. Europeans complained that the gatherings were turning into little more than photo opportunities.The talk now is about renewal and revival as Asians and Europeans seek to inject fresh oomph into ASEM. The focus is on energizing discussions through changed formats and a stronger focus on content.This is positive. 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. It is also conditional on closer engagement between Asian and European business leaders, civil society representatives and enhanced people-to-people contacts. An ASEM business summit and peoples’ forum will be held in parallel with the leaders’ meeting.Fresh ideasEncouragingly, efforts to reinvigorate ASEM have already begun. Asian and European foreign ministers and senior officials have been meeting over the last two years to try and thrash out a new and potentially winning formula for ASEM’s revival. Fresh ideas and formats to recapture ASEM’s original informality and flexibility are being put to the test. Efforts are being made to focus on content, not process. Long-winded communiques are being slimmed down. And leaders are being encouraged to engage in real conversations, not read from prepared papers, while also using ASEM’s immense networking opportunities for increased bilateral contacts.These and other initiatives are important and should go a long way in making ASEM more interesting and useful – and perhaps even more visible to the public. To stay in sync with a changing global political and economic landscape, ASEM is trying harder to adapt to and reflect new realities. Significantly, the theme of the Milan summit – “Responsible Partnership for Sustainable Growth and Security” – allows for a discussion not only of ongoing political strains and tensions in Asia and in Europe’s eastern neighbourhood, but also of crucial questions linked to food, water and energy security.High-level supportAs Viorel Isticioaia Budura, Managing Director at the European External Action Service (EEAS) points out, Asia matters for Europe - and, just as importantly, Europe matters for Asia. Messages of support for the partnership have also been made in recent months by the Chinese, Japanese and Russian leaders. A statement released after President Xi Jinping of the People's Republic of China meetings in Brussels underlined the “growing role of trans-regional and regional dialogue mechanisms to promote regional peace and prosperity”, with leaders saying they looked forward to the ASEM summit in Milan. Subsequently, an EU-Japan statement highlighted ASEM’s “value” as a forum for dialogue and cooperation. And interestingly, after their talks in Shanghai recently, Chinese President Xi Jinping and Russia’s Vladimir Putin defined ASEM as an “important platform for the exchange of economic and trade cooperation in other fields, social, cultural, etc.,” adding that they were “willing to strengthen cooperation and promote the ASEM to enhance work efficiency”.Connectivity, connectivity, connectivityEngagement between the two regions has been increasing over the years, both within and outside ASEM. Five of the 51 (set to rise to 52 with Croatia joining in October) ASEM partners – China, Japan, India, South Korea and Russia – are the EU’s strategic partners. Turkey and Kazakhstan have formally voiced interest in joining ASEM although approval of their applications will take time. There is now a stronger EU-Asian conversation on trade, business, security and culture.Exports to Asia and investments in the region are pivotal in ensuring a sustainable European economic recovery while the EU single market attracts goods, investments and people from across the globe, helping Asian governments to maintain growth and development. European technology is in much demand across the region. Not surprisingly, Asia-Europe economic interdependence has grown. With total Asia-Europe trade in 2012 estimated at € 1.37 trillion, Asia has become the EU’s main trading partner, accounting for a third of total trade. More than a quarter of European outward investments head for Asia while Asia’s emerging global champions are seeking out business deals in Europe. The increased connectivity is reflected in the mutual Asia-Europe quest to negotiate Free Trade Agreements (FTAs)and investment accords.The FTAs concluded with South Korea and Singapore and similar deals under negotiation with Japan, India and individual ASEAN –the Association of Southeast Asian Nations– countries as well as the bilateral investment treaty under discussion with China are important in consolidating EU-Asia relations. These and other initiatives illustrate enhanced recognition that the two regions must work closely together to ensure not only national and regional prosperity but also sustainable and inclusive global growth.Beyond tradeASEM’s connectivity credentials go beyond trade and economics. In addition to the strategic partnerships mentioned above, Asia and Europe are linked through an array of cooperation accords. Discussions on climate change, pandemics, illegal immigration, maritime security, urbanization and green growth are frequent among 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.
While Asia’s rise dominates the headlines, the region’s leaders are cognizant of the many challenges they face – and often look to Europe for cooperation in tackling them. Many Asian countries did not succumb to the woes plaguing the American and European economies but governments in economic powerhouses like China, India and Indonesia are acutely aware of the dangers of falling into the “middle income trap” of economic stagnation. Even as an emerging Asian middle class aspires for a better life and working conditions, the region is grappling with environmental degradation, rampant urbanisation, poor implementation of labour standards and lax quality controls on consumer products. Wealth inequalities persist despite the region’s successful attempts to reduce poverty.
Security: The Asian paradoxDiscussions on security are an important part of the political pillar in ASEM, with leaders exchanging views on regional and global flashpoints. Given current tensions over conflicting territorial claims in the East and South China Seas, this year’s debate should be particularly important.
Some call it the “Asian paradox”. Even as economic cooperation and - in the case of ASEAN - economic integration gathers pace in Asia, historical animosities and unresolved territorial conflicts weigh heavily on the region, damaging relations between governments and people. The point has been made most sharply by Asian leaders like former Indonesian foreign minister Hasan Wirajuda who warn that the gains of the "Asian Century" are at risk because of unresolved historical conflicts and abiding mistrust in the region.
Asian views of Europe’s security role are also changing. Unease about the dangerous political and security fault lines that run across the region and the lack of a strong security architecture has prompted many in Asia to take a closer look at Europe’s experience in ensuring peace, easing tensions and handling conflicts. As such, eearlier scepticism of Europe’s security credentials is being replaced by recognition of Europe’s “soft power” in peace-making and reconciliation, crisis management, conflict resolution and preventive diplomacy human rights.In addition, for many in Asia, the EU is the prime partner to deal with non-traditional security dilemmas, including food, water and energy security as well as climate change. Clearly also, the EU remains an inspiration for Asia’s own regional integration initiatives, including ASEAN, and in areas such as rules-based collective security.The seas…Europeans too are starting to become more aware of their security credentials and the global implications of instability in Asia, not least as regards maritime security. “The EU’s essential interests are closely tied up with the security of East Asia,” due largely to implications for navigation and commerce, underlines an EU Council document issued in 2012. The recently approved EU maritime security strategy identifies several threats to EU interests including cross-border and organised crime, threats to freedom of navigation, the proliferation of weapons of mass destruction and environmental risks. Respect for international law and especially the United Nations Convention on Law of the Sea are emphasised. Importantly, several Asian and European countries are working together in the EU-led ATALANTA counter-piracy operation in the Western Indian Ocean.Stronger engagement on Asian security issues has meant a deeper EU dialogue with ASEAN which is in the forefront of pan-Asian peace-building efforts. The European Union has signed the Treaty of Amity and Cooperation (TAC), ASEAN’s security blueprint for the region. High-level European and Asian representatives are now regular participants at the ASEAN Regional Forum (ARF), Asia’s prime security forum, as well as the Shangri La Dialogue, an annual informal gathering of security experts held in Singapore.A changing worldMuch has changed in Asia and Europe since ASEM’s launch. The last 18 years have seen the sustained rise of a self-confident Asia and much soul-searching in Europe over the region’s global relevance. ASEAN efforts to create a frontier-free economic community are speeding up and Myanmar, once the global pariah and the cause of much Asia-Europe acrimony, is now firmly committed to political reform. Europe’s economic troubles have made it less strident in promoting a values-based agenda and while the United States’ “pivot” to Asia certainly prodded Europe to become more active in the region, Asia and Europe have discovered the value of interacting with each other without America.Still ASEM faces strong competition. There is no dearth of rival groupings and countries have become adept at “forum shopping” as they seek to build interest-based coalitions. In a multipolar world, the G20 which brings together industrialised and emerging countries now has to fight for its place against other alliances such as BRICS (which brings together Brazil, Russia, India, China and South Africa) and MIKTA (Mexico, Indonesia, Korea, Turkey and Australia). A host of other regional and cross-regional groupings litter an increasingly crowded global landscape.
Indian elections: Gearing up for a “new” India? (Originally published 20/05/2014, co-authored with Patricia Diaz and Gauri Khandekar)
Expectations of change are high as Narendra Modi, leader of the Hindu Nationalist Bharatiya Janata Party (BJP), takes charge as India’s new prime minister.Critics describe him as controversial and polarising. But with his ground-breaking outright parliamentary majority, Modi certainly has the mandate to take strong and decisive action to revive economic growth and tackle India’s many other challenges.Indian business leaders have embraced Modi as their man, seeing him as the best hope for ending paralysed government policy and bringing in more foreign investment.An impressive turnaround in the fortunes of Gujarat, the Indian state he led as chief minister since 2001 (his supporters speak of a “Gujarat model of success”), has further burnished Modi’s credentials.Still it won’t be easy. With India’s economic reform and liberalisation programme running out of steam and growth falling from 10.3 per cent in 2010 to less than 5 per cent annually, the new prime minister faces an uphill struggle to turn election pledges into effective national policies.A paradigm political shiftHe has the voters with him. Modi’s election victory is stunning, triggering a tectonic paradigm shift in Indian electoral politics. The BJP-led coalition, the National Democratic Alliance (NDA), won 336 seats in the 543-seat Lok Sabha (India’s lower house of Parliament), with the BJP itself securing a sweeping outright majority by winning 283 seats.The impressive numbers mean that he owes his victory to Indians from every caste, class and religious background, including Muslims, many of whom appear to have set aside their suspicions about his role in the bloodletting in Gujarat in 2002. Modi has always denied any wrongdoing and the Indian Supreme Court ruled in 2010 he had no case to answer.The election also signals a radical transformation of India’s political landscape, with the long-ruling Congress Party, led by the Gandhi dynasty, winning only 44 seats, down from 209 in the previous Lok Sabha.Good times are comingDuring hundreds of rallies across the country, the BJP leader promised his voters that “good times are coming” as he vowed to promote development, revive economic growth, tackle youth employment, build a world-class infrastructure, and ensure women’s safety.The list of tasks for the incoming government is long and Modi, who campaigned on promises of “smaller government, more governance”, will have to act fast.The first priorities will be to kick-start the economy, overhaul the infrastructure sector and with 13 million young people entering the job market every year, the new Indian leader will have to act quickly to deliver on promises to create jobs.It will be a challenge. Analysts say India must create 10 million jobs a year, four times the pace of the last 5 years, to absorb youth into the workforce. Over half the country’s population is aged under 25 years.Big and boldRebooting India’s economy will require big and bold reforms on several fronts, including changes in labour laws which discourage foreign companies from setting up factories in India. Such a change is pivotal: revving up the manufacturing is essential to create more jobs, but manufacturing makes up only 15 per cent of India’s economy, compared to 31 per cent in China.An overhaul of India’s tax system and better infrastructure will also help encourage foreign investors. In addition, with his focus on urbanisation, Modi has promised to build 100 new cities and construct a high-speed rail network.With 400 million Indians still living in desperate poverty and 217 million of the country’s children malnourished, enormous social challenges continue to demand attention.Much will depend on the distribution of key portfolios such as finance, external affairs, defence and interior. All eyes are also on the first budget, expected to be released in June or July, which could give clear signs on the government’s economic vision and policy priorities.Foreign policy challenges Modi spoke little about foreign policy during the election campaign, leading to speculation that a drastic shift from past policies is unlikely, not least because of the continuity provided by India’s permanent bureaucracy. Analysts concur that the government’s engagement with the outside world is expected to focus heavily on trade and investment.Pakistan has wasted no time in making overtures to the incoming prime minister. Modi has been invited to visit Pakistan but many are worried the new Indian prime minister will be hostile towards its neighbour. The optimistic view is that Modi will follow in the footsteps of the former Indian prime minister Atal Bihari Vajpayee who was also a BJP leader but developed good relations with his Pakistani counterpart Nawaz Sharif in the 1990s. Sharif is also Pakistan’s current prime minister. In addition, Modi’s domestic growth and jobs agenda requires stability in India’s neighbourhood.The new Indian leader will have to make up his mind on whether he wants to do business and trade with China or whether – as some of his statements have indicated – he will adopt a more assertive posture towards Beijing. The body language between Modi and Chinese President Xi Jinping at the BRICS Summit in Brazil in July - likely to be one of Modi’s first overseas visits — will give a first signal of the future relationship between two of Asia’s leading powers.Modi will almost certainly pursue stronger economic ties with Japan, with an eye on expanding the flow of Japanese investments into the country. Relations with ASEAN are likely to be further consolidated as part of India’s “Look East” policy of upgrading economic ties with Asia’s rising economies.Oh, America! The greatest momentum in US-Indian relations came during the 2000s, when India was growing at rates approaching 10 per cent – but the once-thriving relationship hit stormy weather last year over allegations that a New York-based Indian diplomat, Devyani Khobragade, had committed visa fraud over the employment of a maid. The situation is made more complex by the fact that Modi is the only person ever to be banned from traveling to the US under the International Religious Freedom Act. A congressional report earlier this year said the BJP leader would qualify for a visa if he became leader. US President Barack Obama has said he looks forward to working closely with the new Indian leader to “fulfill the extraordinary promise of the US-India strategic partnership.” Modi is expected to travel to New York for the United Nations General Assembly meeting in September. A visit to Washington is likely to follow.Last but not least: Europe… Given the expected focus on Washington, Beijing and Pakistan, relations with the European Union (EU) are not likely to be an immediate top priority for the new government. The EU is hoping, however, that Modi will put energy and effort into the successful conclusion of the much delayed EU-India Bilateral Trade and Investment Agreement (BTIA).“Investors from Europe are bullish about India’s growth potential and want to see New Delhi and Brussels iron out their differences over the BTIA. We hope that the new Indian Government will be able to take some hard decisions necessary to spur growth and investments,” says Sunil Prasad, Secretary-General of the Brussels-based Europe-India Chamber of Commerce (EICC).Brussels and Delhi have been trying to clinch the elusive investment deal for the last seven years. But differences over tariffs and market access as well as questions related to the protection of intellectual property rights have impeded progress.The opening up of Indian’s insurance market, changes in government procurement rules and market access for automobiles as well as wines and spirits are important issues for the EU. India is insisting on more labour mobility, professional work visas and recognition as a data secure country to attract more European investments in its high tech sector.EU officials say the pact could be signed in 2015 – provided both sides summon up the political will to look beyond the array of technical issues to the deeper strategic importance of their relations. A recent EU ban on imports of Indian mangoes because of phyto-sanitary concerns has injected new strains in the relationship, however.Stronger interest Beyond the BTIA, Brussels is hoping the new government will demonstrate stronger interest in developing the EU-India relations.Europe and India have much to discuss. The new government’s jobs and growth programme resonates deeply in Brussels given the EU’s own struggle to generate employment and boost economic recovery. Both sides confront the challenge of expanding economic reforms, bolstering trade and tackling regional disparities.The EU-India conversation on security and counter-terrorism has taken off as has cooperation on regulatory cooperation and data protection. Discussions on environmental protection, urbanisation and water and food security are ongoing.The challenge now is to take the relationship to a higher and more genuinely strategic level. European investors are willing and eager to enter the Indian market. European know-how could be valuable to India’s reform and modernisation agenda. Europe, meanwhile, needs new markets to keep its modest economy on track.EU and Indian leaders have not met for summit talks since February 2012. An early meeting between Modi and the EU’s new presidents of the European Commission and the EU Council this autumn will be an important step in marking a fresh start in relations. Convening such a meeting should be a priority.