1. What Role for Peer Review in Fostering Regional Integration? - Comments - 1 st OECD - Southeast Asia Regional Forum Jakarta 23-24 January 2007 Ki Fukasaku OECD Development Centre

2. 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. 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. 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. 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. 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. 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. 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. 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. 10 ASEAN/East Asia: Cases for Regional Peer Review?  Scope  Participants  Ownership  Capacity building

11. Thank you for your attention!