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Interim ReportOctober 16,2002Initiative toward Japan-ASEAN Comprehensive Economic Partnership Discussion Group
1.Significance of the economic partnership
1-1. The peace and prosperity of the world are crucially dependent on East Asia's ability to achieve peace and stability and regain its dynamism as a region.
2.Procedures and Objectives of the Partnership
2-1. Affirm commitment to the Japan-ASEAN Economic Partnership through a formal declaration at the Japan-ASEAN Summit, and point the direction toward the realization of the Partnership Initiative.
3-1. Trade liberalization should be promoted through the conclusion of free trade agreements.
3-2. Improving systems for strengthening economic integration
3-3. Promoting intellectual exchange, human resource training, and environmental cooperation |
Initiative toward a Japan-ASEAN Comprehensive Economic Partnership Discussion GroupInterim ReportOn January 14, 2002, Prime Minister Koizumi delivered, in Singapore on his ASEAN visit, a policy speech proposing a Japan-ASEAN Comprehensive Economic Partnership Initiative (hereinafter referred to as "Partnership Initiative"). Its objective is to achieve results of the economic partnership between Japan and ASEAN by promoting cooperation in such diverse fields as finance, information and telecommunications technologies, science and technology development, intellectual exchanges, human resource development, small and medium-size enterprises, and competition policy. These results can be brought about through the dramatic removal of barriers in trade, investment, and other areas of activity. In response to the proposal, the Chief Cabinet Secretary decided on April 22, 2002 to form an Initiative toward Japan-ASEAN Comprehensive Economic Partnership Discussion Group (hereinafter referred to as "Discussion Group") to tackle the broad question of how the Partnership Initiative should be developed. The Discussion Group organized by the Chief Cabinet Secretary consists of the eight academics listed below. This interim report draws on materials submitted at the meetings as well as discussions generated among the participants. It is a frank, interim record of the Discussion Group's basic thinking on the Partnership Initiative and of the Discussion Group's concern over future problems. |
| Hajime Izumi: | Professor of International Relations, University of Shizuoka |
| Takatoshi Ito: | Professor, Research Center for Advanced Science and Technology, the University of Tokyo |
| Shujiro Urata: | Professor of Economics, School of Social Sciences, Waseda University |
| Shinichi Kitaoka: | Professor, Graduate School of Law and Politics, the University of Tokyo |
| Ryosei Kokubun: | Professor, Faculty of Law, Keio University |
| Takashi Shiraishi: | Professor, Center for Southeast Asian Studies, Kyoto University |
| Akihiko Tanaka: | Professor of International Politics, Institute of Oriental Culture, the University of Tokyo |
| Yukiko Fukagawa: | Associate Professor, Economics Department, Aoyama Gakuin University |
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1.Significance of the economic partnership 1-1. The peace and prosperity of the world are crucially dependent on East Asia's ability to achieve peace and stability and regain its dynamism as a region. Over the past decade or so, there have been major realignments in the world order along regional lines. From the late 1980s onwards, with the breakup of the Soviet Union and the end of the Cold War, Europe once divided into Eastern and Western blocs has made great strides toward market integration and the formation of a security community based on the pledge to never again engage in war. Elsewhere, the United States spearheaded the conclusion of the North American Free Trade Agreement (NAFTA), and negotiations toward the formation of the Free Trade Area of Americas (FTAA) have begun. Such moves toward regional integration and collaboration are not and should not be meant to create exclusive enclaves of member states. Regional partnerships seek to address and tackle various region-wide problems that cannot be dealt with by such international institutions as the World Trade Organization (WTO) and International Monetary Fund (IMF) amidst the growing complexity of international economic and trading systems. Through regional cooperation, these partnerships in turn aim to contribute to the expansion and enhancement of the global partnership. The role that regional institutions can play in complementing the activities of global institutions (such as supplementing IMF financial support) is substantial, and its potential for creating mechanisms capable of addressing developments in regional affairs makes this partnership an integral part of larger, putative global efforts along the same lines (for example, wide-ranging tariff cuts proposed by the WTO). Moreover, in the era of globalization, corporations do business on global and regional scales, and goods and capital cross national borders on an unprecedented scale and with unprecedented speed. A regional economic partnership is particularly important if Asia is to forestall the recurrence of destabilizing situations like the 1997-1998 economic crisis and to ride the tidal waves of opportunities and changes wrought by globalization instead of being overwhelmed by them. Our collective security, prosperity, and welfare can be realized by such a partnership. The East Asia region, encompassing Japan, Korea, China, Taiwan, and ASEAN countries, has attained an economically high degree of integration over the past two decades through regional economic development centering on Japan. Moreover, two political frameworks for Asia/Pacific and Asia/Europe cooperation were instituted through the Asia Pacific Economic Cooperation (APEC) and the Asia-Europe Meeting (ASEM). Despite its membership in these two organizations, however, and despite its de facto regional unity, East Asia -- unlike Europe or North America -- does not have its own region-based framework for cooperation. The goal of working toward peace and prosperity on both regional and global levels can be pursued by Japan within an institutional framework through the forging of economic partnerships to enhance trade and investment in East Asia and make this region a hub of global development in the 21st century. An economic partnership between Japan and ASEAN is a major component of the effort to make East Asia a hub of global development. The economic partnership between Japan and ASEAN will enhance Japan's investments in ASEAN, develop human resources, and improve technology levels in order to increase the rate of economic growth in the ASEAN region. Imports from Japan, in turn, are likely to increase if the income levels of ASEAN countries go up and the domestic markets expand. Along with economic growth in the ASEAN region, the improvement of manufacturing technology in ASEAN will push up the export of consumer goods and intermediate goods from ASEAN to Japan and the rest of the world. ASEAN as a production base is becoming more and more important for Japanese industries, even as Japanese consumers can also enjoy the benefits of these closer economic ties. An economic partnership also generates income by transferring limited resources from less competitive industries to more competitive industries in the global market along with the liberalization of trade and investment. It vitalizes the economy by stimulating competition and spurring investment on research and development. It is demonstrated by Japan's own experiences. As Japan entered the period of high economic growth and liberalization, limited resources were channeled through the operations of the market from labor-intensive industries to capital-intensive industries and subsequently to knowledge-intensive industries, where high technology and sophisticated design vitally mattered. There cannot be a positive outlook for the Japanese economy without further structural change under competition and market mechanisms.
About one-third of the world population lives in East Asia, and regional partnership is becoming more viable as an institutional option owing to greater de facto economic interdependence. In this region, conflicts generated during the Imperialist and Cold War eras have come to an end, and the region is now primed for peaceful coexistence and close cooperation. In the 1980s, people in this region overestimated the power of Japan and made much of the expansion of the so-called Japanese "influence". These days, however, they have come to recognize the importance of revitalizing the Japanese economy and forging greater cooperation with Japan to ensure the long-term stability and prosperity of East Asia. On the other hand, this region is made up of countries with diverse political regimes, and security concerns remain very much on the domestic and international agenda. There also exists a wide economic gap among countries in East Asia, as the region is characteristically marked by a wide range of (sometimes contentious) religious, ethnic, and cultural differentiation. Economic partnership between Japan and ASEAN is of great significance for constructing a peaceful and prosperous neighborhood capable of promoting the freedom of people in this region. 1-3. The key to maintaining and upgrading Japan's living standards lies in East Asia becoming the hub of global development. Over the last decade, Japan has been saddled with a sluggish economy, bad debts, hugely bloated government deficit, deflation, poor performance of industries, hollowing-out of domestic industries, and other problems. A decreasing birth rate and the consequent reduction of population may further exacerbate the worsening economic conditions. Economic development in East Asia after the 1990s did and can contribute to shoring up the Japanese economy in many ways. One of the reasons why East Asian countries can be of support to Japan is that a large number of Japanese corporations, especially manufacturing firms, have invested in ASEAN countries and China, establishing in the region their base for production and marketing, and maintaining thereby their competitive edge in the global market. At the same time, Japan can maintain its people's standard of living by importing consumer and intermediate goods from East Asian countries and thus keeping up industrial competitiveness. The aim of economic partnership includes that of enabling public sectors to catch up with the level of transnational collaborations among private sectors, and ensuring that regional cooperation be envisioned and substantiated along desirable lines. In East Asia, the presence of Japanese corporations and the Japanese economy remains significant. Therefore, if Japan takes a giant step toward economic liberalization now, it will surely make an extremely important contribution to the economic development of East Asia as a whole. 1-4. Regional partnership is also important for bringing about reforms in Japan. Regional partnership can lead to the reviewing of political, economic, and social systems in Japan and help push for reforms by overcoming domestic vested interests, sectionalism, and conventional reliance on the rule of precedence. Since the world is changing rapidly in the age of globalization, Japan has no other alternative for survival than to take seriously the globalism of "Japan in the world" and "Japan in Asia" if it wants to continue to enjoy being as safe and prosperous as it has been thus far. This kind of globalism, however, necessitates reforming our domestic systems. What we should try and do now is to formulate and implement ways of reforming our domestic systems. To make this goal a reality, government organizations should formulate their policies in light not only of sectoral interests but more importantly the national interest. For example, protection of employment and domestic industries is often used as a justification for resisting regional partnerships and liberalization under the WTO. However, if an industry which has already lost international competitiveness continues to be protected, resources remain in less competitive industries without being utilized in promising industries. Given the resulting stagnation of the economy, promising industries or highly skilled and talented people may be forced to go overseas in search of better opportunities. This will lead to industrial hollowing out, unemployment, lower incomes, and the decline of industries that do require protection and the loss of the domestic markets that they depend on. Although such policies appear, at face value, to ensure employment and income, potential employment opportunities and incomes lost under these policies far exceed those generated by protected employment and income. In contrast, a liberalization policy can effectively draw out the competitive potential of the Japanese economy. Consumers' needs are subject to incessant changes and diversification. We cannot even maintain current employment levels without continuous research on and development of products that appeal to consumers. What is needed in the Japanese economy are industrial products that are supported with high technology and sophisticated design, food products that are differentiated by brand and quality which meet world-wide demands, and the power to create those products and provide quality services. The goal of economic partnership and liberalization for Japan is to regain this power. |
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2.Procedures and Objectives of the Partnership 2-1. Affirm commitment to the Japan-ASEAN Economic Partnership through a formal declaration at the Japan-ASEAN Summit, and point the direction toward the realization of the Partnership Initiative. Responding to the proposed Initiative toward Japan-ASEAN Comprehensive Economic Partnership made by Prime Minister Koizumi in January this year, Japan and ASEAN have already begun consultations on the scope of the economic partnership between Japan and ASEAN as a whole. Japan has already agreed to bilateral economic-partnership consultations with countries that are ready to discuss the initiative with Japan. Based on such agreements, Japan has begun consultations with Thailand and the Philippines. Therefore, the direction of the partnership should be set during the Japan-ASEAN Summit Meeting scheduled for November 5th. This should be done by following up on the Partnership Initiative proposed by Prime Minister Koizumi through confirmation of the commitment to comprehensive economic partnership between Japan and the ASEAN10, and charting the concrete progress of the partnership talks made since January. First, the leaders of Japan and 10 ASEAN countries should affirm through a political declaration that economic partnership between Japan and the ASEAN will be beneficial to both Japan and ASEAN; that both Japan and ASEAN will commit to the Initiative for Comprehensive Economic Partnership; and that the objective of the Initiative is the economic partnership between Japan and ASEAN as a whole. Second, the political declaration should include the following basic items in its directives for materializing the Partnership Initiative.
Realistically, for the time being, the Japan-ASEAN economic partnership initiative will materialize through the conclusion of a series of bilateral comprehensive economic partnership agreements. In this case, the following should be noted:
2-2. Envision the economic integration of East Asia, in which the Initiative toward the Japan-ASEAN Comprehensive Economic Partnership will play a constitutive role. The Japan-ASEAN economic partnership is meant to lay the foundation for realizing a peaceful and prosperous East Asia that will serve as a hub of global development, and promote the freedom of the people in the region. It must be linked with the Japan-Korea economic partnership. Such a perspective should also factor in the economic partnership between China and ASEAN. The basic aim is to construct a vision of the East Asian regional economic partnership as a whole, within which the Japan-ASEAN economic partnership is to be positioned, and to propose and implement specific measures toward its realization. |
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3.Individual Sectors In order to materialize the Japan-ASEAN economic partnership, new systems which enable the free and smooth transfer of goods, services, money, human resources, and information must inevitably be put in place. The partnership should include the following points: 3-1. Trade liberalization should be promoted through the conclusion of free trade agreements. 3-1-1. Free trade agreements should be in conformity with WTO regulations. Generally, each country can maximize its profit by liberalizing global trade and investment. However, liberalization under the WTO has not so far proceeded as expected. Regional free trade agreements that are consistent with WTO rules can be a driving force of integration on both global and national levels. Many countries have already signed regional economic agreements. Although WTO regulations do not require member countries to abandon all tariffs, tariff reduction should nevertheless cover "substantially all items" without excluding any specific areas. Ideally, we must minimize the specification of exceptions in making free trade agreements. If we cannot avoid excluding some particular items, we have to show our accountability through the analysis and estimation of the cost/benefits of these exceptions. More specifically, in judging the benefits and losses for our country, we have to consider the following three factors: decrease in profits for domestic manufacturers, increase in profits for consumers owing to the elimination of tariffs, and increase in profits for domestic manufacturers due to corresponding tariff reductions of counterpart countries. 3-1-2. Effects of tariff elimination should be evaluated with reference to actual conditions. In negotiating free trade agreements, Japan should make no exception of sectors including agricultural and fishery goods. If the negative effects of tariff elimination are to be cited, utmost care and responsibility should go into illustrating how much and on which specific item(s) the negative effects will be felt. Japan has already reduced tariffs under WTO regulations. For most of the trade items, tariff rates are less than 10%; for some items, tariff rates are even less than 1%. Considering that the exchange rate fluctuates by more than 10%, we have to estimate realistically how much damage tariff eliminations actually wreak. The production of some trade items is not very large, and tariffs are imposed mainly to protect other items that compete with them. While consumers' needs are widely variegated and many products are differentiated for sale, we have to make an objective and realistic analysis of how much the differentiated products compete each other. The crucial issue should be the improvement of the productivity of the sectors protected so far. We should be positive about making free trade agreements while bearing in mind the options that will act as safeguards in case of actual damages inflicted by unexpected increase in imports after tariff eliminations. 3-1-3. Economic security should aim at promoting prosperity and ensuring the welfare of the people. The core principle of economic security is the safe, steady, and low-cost provision of goods. Energy security for example is essentially concerned with providing inexpensive and stable energy supplies, and energy policies should address the diversification of suppliers, the maintenance of sufficient reserves, energy saving measures, and the development of new energy sources that will substitute for petroleum. When it comes to food security, the main concern is also that of steadily supplying food at a less expensive price. Diversification of sources, securing of reserves, and structural reforms, and not protecting domestic industries, should serve as policy instruments. In considering security problems, we should have a clear image of what constitutes possible threats. In dealing with energy security, the issue is how we can secure the transportation route from Middle East to Japan; in dealing with food security, our concern is how to secure diversified and stable food sources that are not vulnerable to the climatic impact of particular regions and sudden changes in worldwide supply and demand, etc. Furthermore, since food safety is a paramount issue from the consumers' point of view, establishing a system for circulating and sharing information on food safety in East Asia is important. 3-2. Improving systems for strengthening economic integration 3-2-1. Creating a system to improve the efficiency of economic activity and protect assets The success of economic partnerships as well as free-trade agreements depends in large part on reducing the cost of cross-border economic activities, protecting assets, and lowering the risks while raising the prospects of overall economic activities. A number of measures can be adopted to these ends. For example, simplification of customs procedures and electronization of trade documents can greatly reduce procedural costs. Cooperation and systems upgrade are required for regulating illegal drugs and the illegal entries of goods and people, etc. Equally important are reduction of trade barriers in services, transparency in government procurements, promotion of tourism, and others. As for investment, effective measures include the abolition of local content requirements, protection of invested assets, securing of national treatment, abolition of regulations on foreign capital rate, etc. No less important are policies for enhancing economic integrity in ASEAN countries, strengthening cooperation among regional development organizations, extending investment opportunities in ASEAN countries, elaborating ASEAN "Graduation" programs based on strategic review of ODA projects, and encouraging closer economic partnership voluntarily forged in the private sector. Expanding information networks and constructing information centers (hubs) for the entire region are also essential for creating prosperity in East Asia. We should also consider harmonizing and upgrading the copyright systems among East Asia countries, upgrading mechanisms for determining and protecting intellectual property, fighting piracy of goods, enhancing mutual recognition of standards, expanding services on technical contracts, and cooperating on the formulation of competitive policies to regulate anticompetitive activities such as cartels in order to maximize the benefits of liberalization on trade and investment while minimizing the potential damages. 3-2-2. Building safe and smooth transportation systems Upgrading transportation systems is a critical component of closer economic partnership between Japan and ASEAN. Inter-governmental cooperation is necessary for fighting against sea piracy, and for patrolling the South East Asian Sea, which is the key sea-lane connecting Japan and Middle East. Securing the safety of sea transportation in this zone is important for Japan's own economic security. If Japan wishes to play a central role in its economic partnership with ASEAN and the rest of East Asia, Tokyo must seek to regain its position as the hub of transportation in East Asia. The key factor is obviously the presence of convenient and user-friendly airports. Currently, Narita International Airport is far from being convenient and accessible. For example, 24-hour arrivals and departures services are available in most of the main airports in East Asia whereas they are not in Narita Airport at present. Access from Tokyo is not optimum. The drastic review of regulations and restrictions and the extention of one-day business trip zones to East Asia by increasing international flights at Haneda Airport both in early morning and at late night, should be undertaken. Upgrading and expanding seaports and airports are of great significance for the Japan-ASEAN economic partnership as a way of coping with the huge increase in volume of goods and their geographic distribution. Japan cannot maintain its core position in the economic integrity of East Asia without reducing the cost of distributing its goods. Improvements in distribution method are also very important for the economic development and integrity of ASEAN countries. For example, the improvement of the distribution system operating along the Mekong River is likely to have a profound impact on the economic development of Vietnam, Laos, and Cambodia. 3-2-3. Constructing efficient financial markets and stabilizing exchange rates People in East Asian countries, including Japan, are notable for their huge savings. The Japan-ASEAN economic partnership will rely critically on upgraded financial and capital markets that can ensure the smooth and effective circulation of such capital for investment within the region, and Japan is expected to play a significant role in upgrading these markets. For example, promoting cooperation among stock exchanges in this area can increase regional transactions and make international transactions and settlement easier, thereby furthering the putative integration of financial and capital markets. It is also worthwhile to discuss the sharing or exchange of information among authorities, the establishment of a registration system for securities (i.e., a system that enables transactions of government bonds, corporate bond and stocks without requiring excess paperwork such as rewriting registrations), extending the office hours of "Bank of Japan Net", and promoting settlement in yen. Furthermore, a system should be devised to avoid excessive fluctuations in exchange rate as a means of expanding trade and investment in the region. In 2000, an agreement was reached among ASEAN, Japan, China and Korea in Chiang Mai, Thailand to establish a network of bilateral monetary swap transactions aimed at monitoring exchange rates that are inconsistent with market fundamentals, and protecting the respective economies from currency crisis caused by market failure. Based on the "Chiang Mai Initiative", Japan should conclude currency swap agreements with countries in the region, and further strengthen cooperative efforts in the money market and exchange, with the sharing of macro-economic data and policy consultation as prerequisites. 3-2-4. Facilitating the free movement of people Under globalization, a large number of countries in the world compete for highly skilled labor and devote their energies to building human capital-intensive industry. Japan is no exception. In 1999, in an effort to revitalize the national economy and society and in line with developments in the globalization of labor, the Japanese government made a cabinet resolution to promote a more positive acceptance of foreign workers with specialty and/or technical skills. However, there still remain various regulations which restrict the entry of certain types of skilled workers. For example, non-Japanese nurses who completed their nursing courses at universities in Japan and qualified for licenses in Japan are allowed to work in Japan only for a limited training period. Currently, the largest number of people who come to Japan for specialized and/or technical work are engaged in the entertainment business. There are a number of other areas that are in urgent need of human resources required to vitalize Japanese economy. We need to review various regulations drastically, and establish a working system which can utilize human resources from East Asia in sectors that require the infusion and expansion of labor as needed by the Japanese economy and society. Liberalizing the movement of people as much as possible is of critical importance for industrial development. For example, if industries need to go outside of Japan to obtain highly qualified engineers for their information processing needs, the industries as a whole would perforce have to relocate outside Japan. Hiring foreign skilled or expert labor should not be seen as a threat to the employment of Japanese people. On the contrary, the presence and contribution of skilled foreign workers or experts will spur industrial development, economic growth, employment, and the improvement of our living standard. Cooperative efforts at standardizing examination systems and cross- certification are partly under way among information processing engineers, technicians, and architects, and these cooperative efforts should continue to be promoted and extended to other areas. In this context, we must give due consideration to technical cooperation aimed at creating common standards of expertise among ASEAN countries and Japan. There are many specialized and/or technical forms of labor that are urgently needed in Japan, among them engineering and care managerial positions. Japan should consider developing these human resources with reference to existing systems for human resource development in Europe and Singapore as well as potential problems created by the entry of foreign labor into Japan. 3-3. Promoting intellectual exchange, human resource training, and environmental cooperation 3-3-1. Intellectual exchanges The aim of intellectual exchanges is to build intellectual communities based on mutual understanding, dialogue, and mutual trust. In this respect, broadly based intellectual exchanges, including inter-university, academic and educational exchanges, play an important role in cementing the partnership between Japan and ASEAN. Intellectual exchange should not be thought of as a one-sided contribution from Japan to ASEAN, but should be reciprocal. To facilitate such exchanges, it will be necessary to foster professional linkages among academics and organize a consortium among universities in Japan and in ASEAN countries, among other measures. It will also be important for universities in Japan to set up outreach programs and/or branch schools in ASEAN countries. So far, academic exchanges between Japan and ASEAN are heavily concentrated in the natural sciences. Exchanges in the fields of social sciences and humanistic disciplines are equally instrumental in creating an intellectual community based on mutual understanding and trust. Educational exchanges are also essential. Current educational exchanges between Japan and ASEAN consist of one-way inflows from ASEAN to Japan. Japanese students should be encouraged to study in ASEAN countries. For example, if universities in Japan and ASEAN countries can work together to establish a consortium and a system for cross-recognition of credits, such efforts can lead to an increase in the number of Japanese students studying in ASEAN countries as well as ASEAN students studying in Japan. Internet schools which utilize information technology and e-Learning systems can potentially create extensive networks for facilitating educational exchanges and human resources development. 3-3-2. Regional understanding and cultural exchanges So far, very few publications on the Japan-ASEAN relationship have appeared in Japan and the ASEAN countries. More publications on the topic are needed to enrich knowledge of this particular topic and to promote public, lay people's understanding of the issues. Support for research and publication can have large gains and yields at relatively low cost. The same thing can be said about promoting the publication of works on politics, economy, culture, society, history and literature in languages in East Asian countries as well as in Japan. Drawing impetus from the designation of 2003 as "Japan-ASEAN Exchanges Year", we should work toward promoting cultural exchange. People in ASEAN countries have over the past few decades become more and more interested in comics, animation, fashion, music (J-Pop), and other cultural artifacts from Japan. We can work on introducing Japanese culture to ASEAN people while introducing the pop culture, literature, and histories of ASEAN countries to the Japanese people. 3-3-3. International cooperation to promote elementary and secondary education Developing human resources through enriched elementary and secondary education has important implications for the economic development of ASEAN countries as well as for Japanese corporations doing business in ASEAN countries. Japan can draw on its own educational experiences to help support and meet the educational needs of ASEAN countries. It can help upgrade elementary and secondary education by sending Japanese teachers to ASEAN countries, inviting teachers from ASEAN countries, developing curriculum and educational materials, etc. With this perspective, Japan should review and expand its cooperative ventures with ASEAN countries beyond the realms of economy and technology, and give serious consideration to other forms of substantial achievements that the Japan-ASEAN economic partnership can effect in the medium and long terms. Human resource training is a pillar of ASEAN economic integration, particularly in the case of Vietnam, Laos, Myanmar, and Cambodia, and their respective integration into ASEAN. Japan must recognize the necessity of cooperation in this area as part of its support for the economic integration of ASEAN. Needless to say, both Japan and ASEAN should strive to provide people with jobs after their training so that they can make use of their skills in Japanese enterprises or in Japan. 3-3-4. International cooperation to preserve the environment ASEAN countries are engaged in rapid economic development, and the population in these countries is expected to increase. Proper formulation and implementation of environmental protection policies are necessary in order to effectively deal with the environmental deterioration caused by rapid economic growth and the transfer of goods and services promoted by the partnership. In most ASEAN countries, provisions for environment protection are far from being sufficient, although emission standards, environment assessment, and designation of nature protection area have gradually improved. It is important for Japan to extend assistance in enabling ASEAN countries to develop environment protection policies through environment ODA, and other forms of support. Japan must accord full attention to the impact of the economic partnership initiative on the environment. Promoting environmental cooperation also contributes to economic development of Japan and ASEAN countries through the development of environmental industries. Enforcing proper environmental policies is critical in addressing and solving problems such as dumping toxic wastes and pollution, and much care should be made to ensure equality of treatment and enforcement both among East Asian countries and within one country (in cases, for example, where a double standard that requires only foreign companies to strictly implement emission standards exists). How to cope with environment problem such as global warming is nowadays a global issue for both developed and developing countries. Ongoing decrease in biological diversity and the degradation and diminishing of forests in ASEAN countries are likely to have worldwide repercussions. We must also deal with the increase in emission of greenhouse effect gas that accompanies economic development. In addition, this region faces cross-border environmental problems such as haze from forest fires. Japan considers the need to address the global environmental problem one of the most important agendas of its foreign policy, and it is very significant for Japan to contribute its share of protecting global environment by supporting ASEAN countries in their effort to deal effectively with environmental problems. Particularly in the case of the global warming, broad-based cooperation is necessary to increase developing countries' awareness of environmental problems and their ability to cope with them, and to set up "clean development mechanisms" (CDM) based on the Kyoto Protocol. |
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4.Conclusion The world is now at a great turning point in history. We cannot squarely face our future by adopting a defensive posture. In Japan, the problems of aging and decreasing birth rate are becoming more and more serious. In order to maintain the kind of security and prosperity that it has enjoyed so far, Japan has to contribute its share of making peace, stability, and prosperity possible both worldwide and in East Asia. It should play a positive and active role as a member of the world as well as of East Asia, the hub of global development. To this end, we must undertake drastic reforms of our political, economic, and social systems in Japan so that people will want to live, work, raise children, and be educated in Japan. We need to attract valuable human resources, and revitalize the Japanese economy. Regional partnership is the first step toward the realization of this objective, and we ourselves must strive to embody the initiative by overcoming domestic interests, sectionalism, and conventional reliance on the rule of precedence, keeping always in mind our national interest. |