BEE Partner, South Africa Economy Watch

Scenario No. 5

At the end of 2004, Singapore announced that it would be increasing its technical assistance to Cambodia, Myanmar, Laos and Vietnam by approximately US$30 million. Viewed by its government as part of the Initiative for ASEAN Integration, an initiative launched in 2000, Singapore will be providing assistance of a technical nature, in which it has the expertise. Why should Singapore take su_ch step, and what are the implications for global competitiven_ess.

Firstly, Singapore has an interest in the stability and welfar_{e o}f its neighbours, since these poorer countries, along with Singapore help to comprise the region. Read the rest of this entry »

Scenario No. 2

During 2004, the likelihood of a pan-Asian integrated economic and free trade arrangement came a step closer to fruition. At the Association of South East Asian Nations (ASEAN) summit in Laos, a number of important linkages took place, which will have far- reaching ramifications for the intensification of global competition between nations, and globalisation in general.’ China signed a Free Trade Agreement (FTA) with ASEAN (which consists of Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) at the summit. This will soon be followed by Japan, India and Korea. Japan, Korea and China are also considering an FTA amongst themselves, whilst India is contemplating an FTA with China. What appears to be emerging is an FTA between Japan, ASEAN, China, India and Korea, or what is being touted as JACIK. Analysts are predicting the expansion of ASEAN into a broader Asian economic community. Read the rest of this entry »