The 19th summit of the Association of Southeast Nations (Asean) began here today with the usual suspects under discussion: attempting a solution to the protracted dispute in the South China Sea and reclusive Myanmar's chairmanship of the 10-member organisation in 2014.
While there was progress on both fronts (see boxes), Asean leaders also moved to address what is likely to be the most important of concerns that will be raised in the coming days at the East Asia Summit. But the matter of global economy is one that has been largely overshadowed at the meeting here, so far, by the geo-politics of the region.
The impact of the economic crisis in Western economies is already telling on the Asean grouping, which with a combined gross domestic product of nearly $1.5 trillion remains export-driven, and some of the region's larger economies, including Singapore and Indonesia, recently trimmed growth targets.
But discussions today at the plenary session of the Asean summit also focused on the subject that has been central to India's economic strategy in recent years. "What struck me as a little different was the number of countries who mentioned the importance of inclusive growth. Most of them spoke in the context of what's happening in the world today," said Ricky Carandang, the Philippines secretary for communications, who attended the opening session in the absence of his president.
"That's always been something that countries like Laos and the Philippines have talked about, but it was interesting to note almost all the leaders said something about having to promote inclusive growth. That to me something a little new; what I noticed at this morning's plenary session was much more emphasis on that coming from countries that normally did not really pay that much attention to that kind of issue," he added.
Although Asean's rising economic importance is often acknowledged, it remains an organisation consisting of a disparate set of countries. While Singapore counts as one the most developed countries globally, other Asean members like Myanmar and Cambodia rank amongst the most impoverished.
The grouping's plans to create an Asean Economic Community, essentially being transformed into a single market and production base, by 2015 will be difficult without ironing out these massive disparities that exist within. At the same time, maintaining political stability will also be essential.
Carandang said the context in which "leaders were talking about it was that uneven growth ultimately could lead to political instability".
"And, if you want to grow the economy and at the same time, keep your political situation stable, then the benefits of growth must be felt by a wider percentage of the population," he added, referring to the developments in the Middle East and North Africa, as well as the Occupy Wall Street movement sweeping through the United States.
Indonesian foreign minister Marty Natalegawa, while briefing reporters on the discussions at the summit today, said Asean leaders remained cognizant of the economic dangers ahead, and that the issue would be further discussed at the 18-member East Asia Summit.
"Developments elsewhere can easily have a negative impact, (this is) the downside of globalisation. Indonesia is very familiar with this back in 1998-1999, we know what it's like and how events totally unrelated can have an impact on our region. As a result, I believe, during the discussions, not only at the leaders' level but also at the ministers' level, there is a conscious thought of two types," he said.
The first, Natalegawa explained, was the intent to ensure the continued resilience of the region's economy, so as to avoid a "negative contagion effect" from developments elsewhere.
"But on the other hand, there was also recognition of responsibility. East Asia, Asean and the wider region is becoming the main driver of global economic growth. So, the leaders, when they convene later at the East Asia Summit, must realise what they do here can have an impact on not only regionally but also at a global level," he said.
