Presentation on theme: "The Idea of “East Asian Economic Community” from Business Perspective"— Presentation transcript:
1 The Idea of “East Asian Economic Community” from Business Perspective APEC OFFICIAL SYMPOSIUMSeptember 27, Kakutaro KitashiroChairman, KEIZAI DOYUKAI(Japan Association for Corporate Executives)Chairman of the Board, IBM Japan Ltd.
2 AGENDA Growing East Asia and Challenges The Principles of East Asian CommunityRecommendations to Realize the East Asian Community
4 GDP Growth Rate Projection for 2015 JapanUSEUChinaIndiaASEAN４NIEｓWorld Bank(2006)1.73.62.06.15.5IEA(2004)22.214.171.124.04.73.8Japanese Gov.(2004)126.96.36.199.94.1Average3.06.04.84.3The source : 2006 White Paper on International Economy and Trade
5 21.2% (36.3 times in monetary terms) GDP Growth in East AsiaEast Asia : (ASEAN10+Japan,China,Korea)198020052015 (Forecast)East Asia’s share in global GDP *216.3%20.2%27.0% *3East Asia’s share in global export *414.1%26.6%-East Asia’s share in World Investment *56.8%21.2% (36.3 times in monetary terms)*2 Calculation is based on the IMF World Economic Outlook Database.*3 METI, Trade and Industry 2006 White Paper on Internal Economy and Trade 2006,Figure*4 *5 Prepared by the Mitsui Global Strategic Studies Institute(UNCTAD World Investment Report 2005)
6 Intra-regional Trade Ratio EU15East AsiaNAFTA60%54%45%’93:Single Market completed’87:Single European Act’93:ASEAN CEPT’94:NAFTAThe source : 2005 White Paper on International Economy and Trade
7 Japanese Trade Dependency on East Asia 19982005Increase (of which Chinese contribution)Share of Japan’s exports to East Asia34.0%47.9%+13.9% (+8.2%)Share of Japan’s imports from East Asia35.6%44.7%+9.1% (+4.8%)*7 Compiled by Mitsui Global Strategic Studies Institute based on data from IMF Direction of Trade Statistics,CD-ROM July 2006, and ADB Key Indicators of Developing Asia and Pacific Countries.
8 GDP per Capita 1990 2005 Japan 24,724 dollars 35,787 dollars Singapore Brunei15,049 dollars**17,632 dollarsSouth Korea5,893 dollars16,422 dollarsMalaysia2,432 dollars5,040 dollarsThailand1,528 dollars2,577 dollarsChina342 dollars1,703 dollarsIndonesia628 dollars1,259 dollarsPhilippines725 dollars1,159 dollarsVietnam97 dollars612 dollarsLaos210 dollars463 dollarsCambodia106 dollars375 dollarsMyanmar68 dollars*8 Sources: “Global Economic Trends” edited by the Cabinet Office, Office of the Director General of Policy Coordination, and IMF World Economic Outlook.** Based on the figure as of 1992 for Brunei.
9 The World Competitiveness Factors Ranking EconomyCountry RankingGovernmentEfficiencyBusiness EfficiencyInfrastructureHong Kong2116Singapore375Japan173123Taiwan18241420China Mainland193037MalaysiaThailand32212848Korea384745Philippines494456Indonesia60515761Source: IMD WORLD COMPETITIVENESS YEARBOOK 2006
10 Tariff ComparisonThe source : 2006 White Paper on International Economy and Trade
11 Effect on Trade Promotion $191BThe risk of political instability4%Custom clearanceProcess17%$148BEstimated Effect of Trade Facilitation Measures56%Transparency*110%Streamlining ofport operations29%*1 : Enhance the transparency of customs clearance formalitiesThe source : 2006 White Paper on International Economy and Trade
13 Various Functional and Regional Cooperation the Bali Regional Ministerial Meeting on Counter-TerrorismJapan, China and Korea CooperationThe Chiang Mai Initiative , The Asian Bond Market InitiativeUK France Germany CanadaＥＵASEAN + 3Aus. NZＰＮＧUS豪州 ＮＺNorth Korea Mongolia IndonesiaMalaysiaPhilippinesSingaporeThailandBruneiVietnamLaosMyanmarCambodiaThe East Asian summitブルネイ ベトナム ラオス ミャンマーカンボジアインドネシアマレーシア フィリピン シンガポールタイJapanChinaKorea日 本 中 国 韓 国Bangladesh Sri LankaIndiaインドRussiaThe Bali ProcessPakistanReCAAPARFThe Asian Bond FundASEANThe Source ： The Ministry of Foreign Affairs of Japan, Asian and Oceanian Affairs Bureau
14 Approach to the East Asian Community Road map for the realization of a “community”Share the common goalOne step at a timeBuilding equal partnershipsExpansion centering on the ASEANRealization of an open communityCreation of a disparity correction mechanism within East Asian region
15 Objective and Basic Principles Co-prosperity and co-existence within the East Asian regionBasic PrinciplesDemocracyMarket economyBasic human rights
16 Basic Rules of the East Asian Community Mutual cooperationNon-intervention in other countries’ internal affairsPeaceful resolution of disputesRenunciation of the use of military forceCorrection of regional disparitiesEqual partnerships
17 Realize the East Asian Community Recommendations toRealize the East Asian Community
18 Recommendations to Japanese Gov. Early realization of heads of state summits between Japan and China/South KoreaOpen the market for agricultural products, etc. for the facilitation of intra-regional FTAs/EPAsEstablish an East Asian Regional Development FundLaunch a Council on the Promotion of the East Asian Community
19 Innovation for Sustainable Growth in Asia TalentWorkforce TrainingPublic expenditure on educationPromote Market EconomyMaximize FDI through deregulationODA and East Asian Regional Development FundCommercial system within the regionCorporate Social Responsibility in the local communitiesKey to InnovationTalentInvestmentInvestmentInfrastructureInfrastructureCouncil on Competitiveness, Innovate America (2004)
20 Conclusion Co-prosperity and Co-existence within the East Asian region Japan: Four RecommendationsEast Asia: Innovation for Sustainable Growth
23 Foreign Direct Investment FDI to East AsiaForeign Direct Investment20042005Growth RateContributionShareEast AsiaJapan7,8093,223△ 58.7△ 0.60.3China54,93679,12744.03.18.2NIES60,00061,95188.8.131.52Korea9,2464,339△ 53.10.4 Taiwan1,8981,625△ 14.4△ 0.0 Hong Kong34,03635,9055.53.7Singapore14,82020,083184.108.40.206ASEAN47,74911,374220.127.116.11 Thailand1,4144,008183.4 Malaysia4,6243,976△ 14.0△ 0.1 Indonesia1,0232,258120.8 Philippines6881,13264.50.1World Total782,839964,74423.2100.0The source : JETRO White Paper on International Trade and Foreign Direct Investment 2006