For the past five years or so, ASEAN has been confronted with strong challenges arising from three inter-related developments – the aftermath of the 1997-1998 financing crisis, the surge of globalization, and the rise of formidable competitors in East Asia and elsewhere.  ASEAN’s response can be summed up in one word – integration.

          For us, integration takes three forms.  The first is the integration of the Southeast Asian market.  Our market integration has several elements.  The reduction and eventual removal of tariffs on intra-ASEAN trade, as codified in the ASEAN Free Trade Area.  The dismantling of non-tariff barriers.  The harmonization of product standards.  The streamlining and coordination of customs procedures.  The liberalization of intra-ASEAN trade in services.  Strengthening our land, sea and air transport linkages.  Interconnecting our telecommunications.  Providing a regional framework for the development and use of information and communications technology.  The free flow of investments within ASEAN.

          The second form of ASEAN integration is bringing together all the elements of human development in one multi-faceted enterprise – economic development, the protection of the environment, the care of the disadvantaged, the health of the population, the education and training of children and adults, ensuring employment, the fight against crime and terrorism.

          Not least, we have the third form of integration, which is taking in the newer members, bringing them into the ASEAN mainstream, helping them to raise their level of development closer to the older members, and enabling them to take full part in the two other forms of regional integration.  This is why our leaders chose to call this effort the Initiative for ASEAN Integration, or IAI.

          Viewed in another way, IAI is a vital part of our effort to integrate ASEAN economically and strengthen its competitiveness in today’s global economy.

          As our leaders and ministers conceived it, IAI is made up of four components – infrastructure, information and communications technology, human resource development, and capacity-building for regional economic integration.  With the generous help of the Japanese government, for which we are extremely grateful, we held two brainstorming sessions to develop a program of concrete policy measures and projects in each of these areas.  These programs are embodied in a work plan that you have before you.  In some cases, they have been distributed in advance.

In most instances, the measures and projects laid down in the work plan are part of region-wide programs of ASEAN but are specially focused on the newer members.  Thus, most of the proposals in infrastructure are segments of the Singapore-Kunming Rail Link, the ASEAN highway network, the ASEAN Power Grid or the Trans-ASEAN Gas Pipeline Network.  The ICT component is derived largely from the e-ASEAN program and the recommendations in the ASEAN e-readiness assessment.  The part on regional economic integration is intended to help the CLMV countries take part in and benefit from AFTA, AICO, the ASEAN Investment Area, and other schemes for integrating the ASEAN economy.  The CLMV countries, as does all of ASEAN, consider human resource development as key to their advancement and to ASEAN integration.  Thus, HRD runs through all the components of IAI and is not confined to the strictly HRD section.

          Now, we are here to generate ideas on how best to carry out the work plan and form partnerships for doing so.  There are five things that I would like to emphasize:

          First, IAI has a six-year timeframe, but it is a dynamic enterprise and is open to adjustments and new ideas in response to changing circumstances.  It is a continuing endeavor.

          Secondly, the CLMV countries themselves played the leading role in putting together the work plan and have committed themselves to taking the necessary policy measures to make it possible to carry out the plan -- and to ensure that it is carried out.  In a very real sense, the CLMV countries own the work plan.

          Thirdly, the ASEAN-6, the older ASEAN members, are committed to doing their part in this endeavor.  Already, some of the ASEAN-6 have started to carry out a number of activities related to the work plan with the CLMV countries, singly or as a group.

          Fourthly, ASEAN acknowledges the very valuable work that institutions like the Asian Development Bank, the United Nations Development Programme, the UN Economic and Social Commission for Asia and the Pacific, and the Mekong River Commission have been doing in the geographic area of the CLMV countries, that is, the Mekong Basin.  We have held numerous discussions with these institutions to ensure that our efforts are coordinated and do not unnecessarily duplicate.  More than that, we are, in fact, working closely together in many areas.  We are deeply indebted to them for that, and we welcome their presence in this forum.

          Finally, the private sector has a critical role to play in this endeavor.  Some private companies had a hand in the formulation of the work plan.  In many respects, the participation of private enterprise is essential for its execution.

The partnerships that we expect to result from this forum may take a variety of forms.  Some of the organizations represented here may work in partnership with one or more of the CLMV countries or with all of them together.  They may do so in partnership with one or more of the ASEAN-6.  Or one or more of the older members may undertake activities with the CLMV countries.  Obviously, the private sector has many opportunities for participation.  I trust that there will be ample opportunity for productive discussions among the CLMV countries, the older ASEAN members, officers of the ASEAN Secretariat, and the non-ASEAN participants.

After me, Dhannanjaya Sunoto, Director of the ASEAN Secretariat’s

Bureau of Program Coordination and External Relations, will run through the work plan to explain its background and genesis, the concepts behind it, the forms of partnerships that might flow from this forum, and further steps that might be taken in the future.

          Rushda Thavaravej, Deputy Director-General of ASEAN-Thailand, will describe what the six older ASEAN members will be doing jointly with the CLMV countries.  Michael Tay, Director-General of ASEAN-Singapore, will tell us what individual older members of ASEAN have been doing in partnership with the CLMV countries as indications of more such partnerships in pursuit of the Initiative for ASEAN Integration.

          We could then have free and open discussions on any and all of these subjects.