内酷

By Anthony Rowley, The Business Times, May 29, 2008

It's time it tackled common problems through concerted action

Sometimes, I despair of Asia's ability, literally, to get its act together. There have been numerous examples recently of events where some sort of concerted Asian response would have been desirable, even if only to make political and administrative leaders aware of the need for possible action.

So, let me propose a new Asian Secretariat with a hotline to presidential, prime ministerial  or cabinet offices throughout Asia.

First, soaring food and energy prices. Here is an obvious area where concerted regional action is warranted, whether to discuss issues such as availability of grain stocks and questions of distribution, or to share experiences (and maybe even come up with a common policy) on energy subsidies.

It was left to the Asian Development Bank to work out some kind of regional response on both issues, but the ADB is not a soverign policy-making body.

Food and energy issues have a global dismension and there are agencies such as the UN Food and Agriculture Organization or the International Energy Agency to deal with them at an international level. But it could do nothing but good to have a rapid response capability in Asia to supplement such mechansims.

For example, Japan has opened its rice stockpile to the Philippines, a move that surely should have been discussed in a regional context.

The surge in food and energy costs has forced inflation up to the top of the agenda for some governments and central banks in Asia (not least in Vietnam where inflation is now at an astonishing annualised rate of 25 per cent).

This, too, is a common regional problem that requires (demands) a common regional response, including possible joint action to appreciate currencies to reduece inflationary pressures.

I learned this week from reliable sources that, far from working towards such joint responses, Asian finance ministers are now backing away from the idea of any joint monetary initiative. Their view now, it appears, is that the yen has missed its chance to become a peg currency for Asia and the yuan is not yet ready.

In the meantime, a currency basket or Asian currency unit that could aid in joint revaluation of regional currencies is off the agenda.

Another example: US assistant secretary for nuclear energy Dennis Spurgeon came to Tokyo last week proclaiming loudly that nuclear generation of electricity (as an alternative to oil and other fossil fuels) is firmly back on the global agenda.

The US and Japan intend to cooperate on a major programme of research and development in nuclear power and on financing and building nuclear reactors, he declared.

Though the US offical did not say so in so many words, the thrust of his message was that, where the US and Japan give a lead, the rest of Asia should be content to follow.

Yet, if ever there was an area in which regional consultation and policy making is desirable, it is here. Is the rest of Asia really happy to 'go nuclear' in a big way just because the US and Japan say that it's the way to go and that it's safe (even while China is voicing fears about 'radiation sources' buried by the earthquake in Sichuan province). On teh subject of earthquaekes, the Financial Times reported this week that Swiss Re-the world's bigest reinsurance company- is at an advanced state of negotiations with four Asian governements to sell insurance policies that would pay out hunders of millions o fdollars in emergency and nationwide funding following a natural disaster. (Think of the Chengdu earthquake or Myanmar cyclone).

Score one for Swiss Re's opportunism but again where is the Asian initiative and joint response capability on such issues? It so happens that some 20 years ago, a very forward-thinking financial official in the Philippines came up with the idea of establishing an Asian reinsurance corporation or market to meet exactly such contingencies.

The idea got short shrift from Manila's neighbours because they judged it too rishy. Now that Europeans are suggesting it, presumably it will be judged respectabel. Whenever you look, it seems that Asian policymakers are too timid or unimaginative to pursure regional initiatives seriously, in anything from an Asian Monetary Fund or currency cooperation to adopting a common approach to food and energy issues.

And, when they do occasionally move, it seems to be at a pace that puts snails and tortoises comfortable out in front of the field.

So, why not establish a jointly funded governemnt secretariat, or call it what you will, with offices in all regional capitals of Asia, staffed by officicals whose job is to alert political leaders of issues that appear to require a regional response.

Their duties would be limited to reporting. If a sufficient number of the leaders felt that some reaction was justified, a regional summit could be convened, among leaders themselves or their representatives.

This would be different from the numerous think-tanks and working groups taht exist already in this region and whose measured pace of proceeding is not suited at all to the multiple challenges that crop up almost continuously.

Such a mechanism, although having only an advisory or alerting function initially, could create dialogue amony Asian leaders outside of occasional summits and chance encounters on the sidelines of other meetings.

It could then become an Asian community secretariat or commission. There may be better ideas but the need for Asian leaders to meet and talk on a regular basis than at presnet surely cannot be denied.