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Boao Forum, World Bank Propose to Cooperate on Economic Integration Issues
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The BOAO Forum for Asia and the World Bank organized a day-long seminar in Beijing Monday, at which they stated their intention to collaborate on a three-year program of economic studies and the promotion of international networks of expertise on Asian economic cooperation and integration.

The seminar was organized in two parts, the first marked by a discussion on the findings of a recent World Bank publication, East Asia Integrates.? The session was opened by Mr. Long Yongtu, Secretary General of the Boao Forum and Mr. Yukon Huang, Country Director for China at the World Bank.? It was attended by representatives of regional organizations, ambassadors from Asian countries and others involved in the Boao Forum's activities, and Chinese government officials, together with participants from think tanks, academic institutions and the media.

"Economic integration has become a necessity for all regions to cope with the challenges of the world economy today", said Mr. Long, "and we would like to ensure its success in Asia."? Messrs. Long and Huang mentioned that the reason for the two institutions to come together is to support the cause of regional cooperation by providing robust intellectual underpinnings for decisions regarding economic integration, regional policies and institutions.? In this connection, the Boao Forum and the World Bank intend to foster a more intense network of expertise within both the developed and developing countries, working towards strengthening Asian regional integration.? Mr. Long stressed that the Boao Forum is poised to become a leading and respected voice on Asian economic cooperation.? "A sound program of analytical and policy studies, combined with? active interchanges among experts is required to support the various debates that are currently taking place on Asian economic integration.? The Boao Forum, with its extensive involvement in such issues and ability to reach the highest level of policymakers, and the World Bank, with its tradition of development research, international experience, and reputation for capacity-building, are uniquely placed to support such efforts."

"Specifically," according to Mr. Huang, "the development agenda for the region - with its focus on growth, jobs, and social stability - and the trade policy agenda - with its focus on market access and competitiveness - are closely linked."? He went on to add that the proposed collaboration on economic studies would allow regional initiatives to be examined by the best analysts in the world, drawing on the vast international experience that has been accumulated already in other parts of the world.

In presenting the East Asia Integrates volume, Mr. Homi Kharas, Chief Economist for East Asia at the World Bank and co-editor said:? "In the context of the Doha development agenda, and from the likely outcome of the Cancun meetings, it is clear that pursuit of a 'trade for development' strategy is vital for East Asia."? He presented the highlights of the new book, stressing that it urged policymakers to broaden their approach beyond narrower, but important, technical considerations of trade policy to emphasizing development outcomes and links to social stability.

Countries must operate on three levels, the research suggests:? internationally, they can influence multilateral negotiations, and should pay particular attention to standards and to liberalization in agro-industries and services. Regionally, they can achieve deeper integration to promote regional production networks, and broader integration with scope? for gains in agriculture and other sensitive sectors.? Nationally, they need to take a more comprehensive approach to policy by adopting a consistent development strategy addressing logistics, environment and labor standards and poverty reduction as well as trade liberalization.

Mr. Fu Ziying, Assistant Minister of Commerce, Mr. Narendra Raj Pandey, Ambassador of Nepal and representative of SAARC, and Mr. Andriana Supandy, Counsellor of the Indonesian Embassy and representative of ASEAN provided their unique perspectives on progress towards economic integration and the challenge that lies ahead.? Comments from the audience suggested broad endorsement of the book's findings, with several participants stressing the importance of linking trade and development more closely.? They stressed the importance of bringing more empirical evidence to bear on questions of appropriate forms of regional cooperation, and welcomed the initiative taken by the Boao Forum and the World Bank to cooperate in this endeavor.

The second part of the day-long seminar was a technical workshop on Rules of Origin.? Mr. Homi Kharas, who presided over the workshop, stressed that Rules of Origin are a key element of the integration process.? They determine the eligibility of products to receive preferential access.? "Therefore," as described by Mr. Paul Brenton, a leading expert on the subject and World Bank staff member, "they are integral parts of preferential trade arrangements such as bilateral and regional trade agreements and the non-reciprocal preferences that industrial countries offer to developing countries."? In view of upcoming discussion on various East and Southeast Asian regional trade and investment arrangements, a serious consideration of this issue is required in the light of experiences gained in Asia so far and in other parts of the world.? The intention of the workshop, attended chiefly by technical experts from various Chinese agencies, think tanks and academic institutions, was to disseminate the latest knowledge on the subject, setting it in the context of evolving issues in East and Southeast Asian trade arrangements.

(China.org.cn September 8, 2003)

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