Bridges Weekly Trade News Digest • Volume 7 • Number 43 • 17th December 2003

Leaders Adopt Common Vision On The Information Society

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JAPAN, ASEAN TO COOPERATE MORE CLOSELY

The ASEAN-Japan Commemorative Summit — a first-ever ASEAN meeting hosted by a non-member country — was held in Tokyo from 11-12 December 2003. A "Tokyo Declaration for the Dynamic and Enduring ASEAN-Japan Partnership in the New Millennium" and an "ASEAN-Japan Plan of Action" were signed at the Summit. The Declaration and Plan expressed Japan’s intention to liberalise trade, improve security, and create a broad "economic partnership" within the region. Japan intends to start free trade talks with Malaysia, Thailand and the Philippines in early 2004, aiming for a conclusion by the start of 2005, when Tokyo wants to start talks on an ASEAN-wide pact to be implemented by 2012. Japan also agreed to support ASEAN’s integration by enhancing regional and sub-regional developments in the Mekong region and Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA)". Japan also pledged USD 3 billion in aid to Southeast Asia.

Analysts noted that this two-day summit was a way for Japan to catch up with China and India in asserting regional influence. "I think all of it, including Japan’s (intention) to sign the Treaty of Amity and Cooperation (TAC) of ASEAN (a regional non-aggression pact ratified in 1976), is Koizumi’s way of showing the ASEAN countries that Japan is treating them well, out of concern about China’s influence," said Hisao Iwashima, a Japanese commentator. ASEAN members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

"Japan Pledges $3 Billion in Aid for Asia," AP, 12 December 2003; "Japan, ASEAN Boost Economic and Security Ties," REUTERS, 12 December 2003; "Japan, ASEAN leaders set to declare efforts to create East Asian community," AP, 12 December 2003.

CHINA CONSIDERING GREEN GDP INDEX

China is looking into the possibility of using a green Gross Domestic Product (GDP) index to track economic growth in relation to the environment. The Chinese State Environmental Protection Administration will be working with the National Bureau of Statistics on a project in this area; they will calculate a green GDP by subtracting resource depletion and other environmental externalities from the GDP, the traditional measure of economic growth. The green GDP index will evaluate the performance of local governments with the aim of fulfilling Premier Wen Jiabao’s vision of "balanced" and "sustainable" development. An official from the National Bureau of Statistics noted that although adopting such an index was a positive step towards sustainable development, difficulties in implementation and transparency remained, noting that, "people criticise our economic GDP figure for being a fake. What about the green GDP figure?"

For the past 25 years, China’s environment has suffered on many fronts as the country’s GDP has grown by eight percent on average every year. Ninety percent of cities have polluted water, the land is overcrowding due to high population density, deserts are advancing from the north and the Yellow River often dries up before it reaches the sea. According to Li Peiling, deputy director of the Institute of Sociology of the Chinese Academy of Social Science, China "might end up with a green GDP figure that is negative" if a green GDP index is adopted.

"Green GDP to push healthy growth," XINHUA online , 9 December 2003; "Researchers in China draw up green index," FINANCIAL TIMES, 9 December 2003.

REPORT HIGHLIGHTS TNC POWER

The ETC Group — a public interest group that, inter alia, monitors the consolidation of corporate power — has released a new report that analyses trends in commercial farming, food, health and nanotechnology (the manipulation of matter at the level of atoms and molecules). According to the report entitled "Oligopoly, Inc. — Concentration in Corporate Power 2003," transnational firms are becoming more powerful in shaping social, economic and trade policies. Based on the World Development Indicators Database, 51 of the world’s 100 largest economic entities were transnational corporations in 2002. Wal-mart, for example, earned more revenue that year than the GDP of Sweden or Austria. In pharmaceuticals, biotechnology, pesticide markets and food retail, the top ten companies control over 50 percent of world market shares. "Global technology cartels" have been created to allow corporations to sidestep the need for patent regulation by cross-licensing technology. The report highlights the need for the international community, with the aid of the United Nations to carefully monitor, raise awareness, and evaluate new technologies to ensure that corporate governance is regulated.

To access the report, please see: http://www.etcgroup.org/documents/oligopolyfinal.pdf

ICTSD reporting.

The World Summit on Information Society (WSIS) came to a close on 12 December with head of state and ministers from all over the world endorsing a common vision of a "people-centred, inclusive and development-oriented information society," and adopting a plan of action for bringing the benefits of information and communication technologies (ICT) to underserved countries. The overarching goal of the Summit had been to "gain the will and commitment of policy-makers to make ICTs a top priority, and to bring together public and private sector players to forge an inclusive dialogue based on the interests of all". A number of public-private partnerships were announced at the Summit, such as a Microsoft and UNPD five-year collaboration programme bringing ICT skills to underserved communities. In parallel to SWIS, civil society groups adopted their own declaration, emphasising the human rather than technological element of information and communication societies.

Phase two of WSIS will be held in Tunisia in 2005, set to address developmental aspects of ICTs.

To access the WSIS Declaration and Plan of Action, see http://www.itu.int/wsis/documents/doc_single-en-1161.asp and http://www.itu.int/wsis/documents/doc_single-en-1160.asp

"Global Information Society Summit Spurs Solidarity, Alliances But Hard Work, Action Ahead," WSIS PRESS RELEASE, 12 December 2003; "Civil Society Goes for Own WSIS Declaration," IPS, 12 December 2003.