What Role for Peer Review in Fostering Regional Integration? - Comments - 1 st OECD - Southeast Asia Regional Forum Jakarta January 2007 Ki Fukasaku OECD Development Centre

2 Questions to Consider in Session III  What are the major challenges for regional integration in ASEAN?  Can Peer Review be useful for monitoring and advancing regional integration?

3 Recap  Globalisation and regionalisation: is East Asia special?  Need for coherent policies to integrate all ASEAN countries (esp. CLMV)  Enhance the capacity of reviewed countries to engage in peer review  Where to East Asian regionalism?  Why Peer Review? (Or why not other methods?)

4 Two Types of Regionalisation  Market-led Regionalisation, driven by higher- than-average economic growth and trade and FDI liberalisation both multilaterally and unilaterally [Lloyd 1992]  Institution-led Regionalisation, driven by the formation of RTAs and enhanced regional co- operation in areas other than trade

5 From Market-led to Institution-led Regionalisation in East Asia  East Asian and Pacific interdependence  East Asian currency and financial crisis  9/11 and security  Emergence of China and India  Promoting growth through reform  Slow progress in the WTO process  “WTO plus” issues  Increasing FTAs/EPAs in the ROW

6 Where to East Asian Regionalism?  APEC Bogor Declaration (1994) : free trade and investment in the APEC region by 2010 (developed members) and by 2020 (developing members)  Embracing FTAs in East Asia  FTA/EPA bandwagons (Japan, Korea, China)

7 East Asian “Noodle Bowl” of RTAs Source: Drysdale (2006) ASEAN Indonesia Thailand Singapore Philippines Malaysia CER China Japan Republic of Korea Australia Mexico New Zealand USA Study group Under negotiation Agreement signed In force Taiwan Chile Panama

8 Where to East Asian Regionalism  From Bilateral FTAs to an East Asian FTA [e.g. Cheong 2003; Urata & Kiyota 2003; Plummer & Wignaraja 2006]  ASEAN to write a charter and to create the free trade area by 2015  2 nd East Asia Summit agreed to launch a Track Two study on a Comprehensive Economic Partnership in East Asia (CEPEA) among EAS participants.

9 East Asia’s Functional Co-operation at Different Levels  17 Co-operative Areas, including:  Trade and investment  Money and finance  Energy  IT  Intellectual Property  Food  Health  Environment  Disaster prevention  Development assistance  48 different groupings, including:  ASEAN  ASEAN + 3  ASEAN + CER  ASEAN + India  ARF  East Asia Summit  APEC  ASEM

10 ASEAN/East Asia: Cases for Regional Peer Review?  Scope  Participants  Ownership  Capacity building

Thank you for your attention!