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A Critical / Progressive Look @ Regional Integration

RegionsWatch was set up in February 2004 to "monitor work of regional organisations; raise awareness of other regionalisms; provide constructive & progressive critiques of global regional integration initiatives". This blog will seek to continue the work that was being done in RegionsWatch's Observatory

Friday, June 30, 2006

Week of 26/6/06: RegionsWatch News: ECOWAS Airline in the Offing; ASEAN Looks Inwards; Bilateral Issues dominate OAS

comments would be much appreciated! have a good weekend!:-)

Week of 26/6/06                                                                             Edition#1

 

Dear RegionsWatcher,

 

 

Efforts to promote regional integration are, at best, problematic; and at worst, headache-inducing.

 

Problematic, because whilst others are trying to collaborate, bilateral issues—as exemplified by article#3 crop up. The genesis? Well, at the OAS General assembly held at the beginning of June, bilateral disputes dominated, with Venezuela taking the cup for the country being targeted for interfering in other regional neighbour’s domestic pie. First of all, Peru was complaining that Chavez of Venezuela was interfering in Peru’s presidential campaign; the second complaint originated from Nicaragua, which was complaining that Chavez, yet again, was “meddling in its internal politics ahead of presidential elections to be held later this year.”

 

Now, Argentina, one of the MERCOSUR heavyweights, has lodged a complaint with the regional organisation that Uruguay is planning to “build pulp mills on the River Uruguay”, and this will send polluted water to Argentina. Argentina is said to have filed a complaint at the Hague-based International Court of Justice in May to block the plan, “but some OAS officials have said they hope the dispute could be handled by the organisation.”

 

The third major complaint from the OAS General Assembly is from Bolivia, an associated member of MERCOSUR that “is expected to press for the return of coastal land lost to Chile in a war in the 1800s.”

 

I guess you could look at the bright side, and argue that that they are complaining suggests they want old issues resolved before they move full steam on the regional aspects.

 

Let’s switch to the other side of the world—to ASIA—for a second before we come to Africa, where some interesting things are happening.

 

If articles#8 and 6 are anything to go by, we can definitely see that world-wide, regional initiatives are the talk of the town—and no less than in Russia, where Putin is looking to the so-called Shangai Cooperation Organisation (SCO) for “introducing new patterns for successful international cooperation.”

 

Russian premier Putin maintains the SCO, which groups RUSSIA, CHINA, KAZAKHSTAN, KRYGYZSTAN, TAJIKISTAN, and UZBEKISTAN, is becoming an “influential regional organisation”—especially as, in his view, it is fast becoming “an important factor for maintaining stability in Eurasia since its establishment five years ago.”

 

Putin has hailed “multilateral cooperation”, and more collaborative efforts to push forward the regional in that region so as to combat the menace of “terrorism, separatism and religions extremism.” The fight against drug trafficking is also slated to be one of the issues that will unite the SCO in their fight to make it an effective regional organisation.

 

The Observers of SCO are SAARC members Pakistan and India; and Iran, and Mongolia. As the article maintains, “economic cooperation” and “cooperation among enterprises and financial institutions”—terms that often represent the platitude of regional integration –- are evidently high on the SCO’s agenda. And, no surprise here, the private sector is also seen as the quintessential engine of boosting the region to greater heights.

 

As for ASEAN (article#6), the regional body’s Singaporean chief, Ong Keng Yong, said earlier this month during a meeting with Economy, Trade and Industry Minister Toshihiro Nikai “that he views Nikai’s idea of concluding a free trade agreement between the 10 ASEAN members” very positively.

 

The need to “accelerate” FTA talks between Japan and ASEAN were also discussed “so as to promote economic integration in East Asia.” It has been a year since the talks started, and come March 2007, they ought to have concluded.

 

Not at all bad for ASEAN which will be celebrating a good sixty years of its existence next year!

 

Now article#5 is more of a reminder about how SDT, or Special and Differential Treatment in Asia might just suffer a bit of a setback, given the advice being given by a Chinese researcher on Chinese companies in southern china.

 

His research suggests that it is better for Chinese companies in southern China to “look at investing in other Asian countries where he says start-up costs and wages are much lower than on the mainland.” Now, whilst China is going round the world—recently being in some selected African countries—trying to shore up support so that its putative appetite for markets, oil and countries to dump its cheap goods can be satiated, it is important to note that this year, the country itself will be concluding negotiations on a CHINA-ASEAN Free Trade Area.

 

According to the article, China “will also provide developing countries with 10 billion US dollars worth of preferential loans, one third of which” will go to ASEAN countries.

 

Now, Africa could be described as the continent with the least problematic and headache-inducing regional integration efforts—in the sense that the regional organisations are pretty much well-established already, with some being 30 years old (ECOWAS),and others being 11 years (COMESA) old. What is not quite working is the role of the private sector—that is if article#2 is anything to go by.

 

The article suggests that when it comes to COMESA, Zimbabwe is quite zealous about promoting industry: “if Zimbabwe’s balance of trade is to improve, it must adopt a high level of aggressiveness with the business sector taking advantage of the opportunities that arise from regional integration to increase exports.” This seems rather anathema to a country that, some while back, was extolling the virtues of nationalising its mining sector—much to the chagrin of the voracious and rapacious multinational mining companies

 

Truth be told, Zimbabwe is a founding member of the FTA that was established in October 2000 with the regional grouping of COMESA. Libya “has expressed a willingness to join the FTA next month.”  Before 2000, the article maintains, the country enjoyed a positive balance with COMESA. In 2005, however, its import bill sky-rocketed to US$641.6 million, while its exports declined considerably, resulting in a negative trade balance. Small wonder, therefore, that the Deputy Minister of Industry and International Trade, Mr. Phineas Chihota, wants the private sector to be involved.

 

What can be said rather emphatically about the ECOWAS region and the private sector is that the regions’ indigenous private sector has worked rather well.

 

So well, in fact, that the region might just have its regional airline—ECOAIR—(article#1) ready by 2007, after news of its creation was announced in the Senegalese capital of Dakar in 2005. This is what Gervais Djodo, chairman of the board of directors of SPCAR (Society for the promotion of a regional air transport company) was earlier this month.

 

The initiative, the article maintains, “was launched with the strong support of the ECOWAS investment and development bank and other financial institutions (as BCEAO and WADB), [and] involves partners including the Association of SADC Chambers of Commerce and Industry (ASSCI)…”

 

The whole objective behind a regional airline in fact stems from the fact that international/foreign companies dominate the African skies. Now, whilst the Yamoussoukro Declaration exists, constituting “an opportunity for integration to facilitate the free movement of peoples and commodities”, whilst simultaneously not being “in the interest of foreign air companies, eager to retain their quasi-monopoly on the Africa aviation market, of which they control 75%”, the implementation of Yamoussoukro might just be that element that would redress the imbalance of foreign operators in favour of African air companies.

 

If a regional airline flows from that, all the better for West Africa!

 

 

Happy Regions Watching!

Emmanuel.K.Bensah

RegionsWatch Creator/Editor

 

 

 

 

 

 

 

 

 

ARTICLES

 

  1. West Africa expects new regional airline in 2007
  2. Chihota Hails Comesa FTA's Efforts to Promote Investments
  3. Bilateral Issues Take Center Stage at OAS General Assembly
  4. Black Sea Region States United by Commitment to Common System of Values
  5. South China regions told investing in ASEAN territories cheaper than at home
  6. ASEAN chief backs Nikai's proposal on E. Asia-wide FTA, policy body
  7. Mandelson: ‘June decisive for WTO talks’
  8. Putin hails SCO as new mode of international cooperation

 

1.      West Africa expects new regional airline in 2007

From: http://news.africast.com/africastv/article.php?newsID=58896

DAKAR, June 05 -- The new West African airline company, whose creation was announced in Dakar in 2005 will be operational in 2007, according to Gervais Djondo, chairman of the board of directors of SPCAR (society for the Promotion of a regional air transport company).

SPCAR, which is responsible for setting up the company, has started working to make this ambitious project a reality. The aim is not only to fill the vacuum left by Air Afrique`s disintegration, but essentially also to compensate for the dearth in air traffic between the various regions of the continent.

This initiative, launched with the strong support of the ECOWAS investment and development bank and other financial institutions (as BCEAO and WADB), involves partners including the Association of SADC Chambers of Commerce and Industry (ASSCI) and does not exclude the participation of other companies operating in Africa.

"With the support of the African Airlines Associations (AFRAA), we were able to build fruitful relations with the major African air companies and several presidents of companies have vowed to offer their assistance whenever necessary," Djondo told PANA here in an interview.

While insisting on the creation of regional companies and the grouping of small African air carriers, the Tunis meeting on the African air transport sector paved the way for Air Afrique` successor.

"The assistance of African States is indispensable to us. We cannot realise our ambition if we lack political support," the chairman of SPCAR`s board said, as he expressed awareness about difficulties to penetrate the African air market, where liberalisation still lags.

Though the Yamoussoukro Decision was adopted in 2000 by the heads of States to liberalise the African sky, it continues to encounter obstacles despite several appeals by AFRAA to States to ensure effective implementation of that their commitment.

A decisive step was later made in Tunis, following the intervention of Alpha Oumar Konare, Chairperson of the African Union Commission, insisted on the necessity to make an assessment in every country in order to identify the various factors hindering implementation of the decision.

"The Yamoussoukro Decision is a positive development. It constitutes an opportunity for integration to facilitate the free movement of peoples and commodities," Djondo stressed in support of Konare`s suggestion that "every single party transcends its national egoistic interests".

The Yamoussoukro Decision does not seem to be in the interest of foreign air companies, eager to retain their quasi-monopoly on the Africa aviation market, of which they control 75%, the rest being left to African operators.

The implementation of the Yamoussoukro Decision as well as incentives for the creation of regional groups of African operators appear as decisive factors when it comes to the development of a continental network by African operators, whose share in the market has propescts for growth.

To attain this result, intensive campaigns have been launched by the African Airlines Associations (AFRAA) among its members in order to invite them to pursue collective action in their discussions aiming at the adoption of air agreements with third party operators.

"The domination of the African sky by foreign carriers has worsened after the air transportation agreements signed at the level of the European Union," observed Christian Folly-Kossi, AFRAA secretary general.

He believes "the continental market should be controlled by African air companies".

The campaign yielded positive results, as the Tunis plan of action acknowledges the necessity "to negotiate with the European Union transitional measures relating to the implementation of the community clause," before the end of the current year.

A negotiation strategy reinforcing the African policy in the field of aviation and relating to air agreements with third parties would allow the adoption, in 2008, of directives for negotiations between African and third party States. - ANGOP

2. Chihota Hails Comesa FTA's Efforts to Promote Investments
from: http://allafrica.com/stories/200606050899.html


The Herald (Harare)
NEWS
June 5, 2006
Posted to the web June 5, 2006
Harare

THE Common Market for Eastern and Southern Africa (Comesa) Free Trade Area (FTA) has created a huge economic space with large investments and trade potential for member states.

The Deputy Minister of Industry and International Trade, Mr Phineas Chihota, commented that the Government appreciates the efforts being put in place by industry to prepare for the impending deeper form of integration in the Comesa region. "As the Government, we are aware that collective effort is best for the stabilisation and growth of the economy. "When Comesa was established in 1994, one of its objectives was the removal of structural and institutional weaknesses of member states so that they are able to attain collective and sustained economic development," said the deputy minister during a ZNCC workshop in Harare last week.

The region has made significant strides, and hence the unlocking of opportunities for its members to boost trade and strengthen economic relations. The regional grouping established a Free Trade Area in October 2000. Zimbabwe is a founder member of the FTA. Libya has expressed a willingness to join the FTA next month. The trade bloc offers producers and manufacturers an enlarged market with over 380 million people and intra-Comesa trade has grown at an average of 7 percent every year since the establishment of the FTA, with a higher increase reflected among the intra-FTA member states. However, despite such an opportunity, Zimbabwe's share of intra-Comesa exports has declined while imports from the region have risen sharply.

Prior to 2000, Zimbabwe enjoyed a positive balance of trade with Comesa. In 2005, however, Zimbabwe's import bill shot to US $641,6 million, while its exports declined from US$271,6 million to US$192,8 million, which reflected that Zimbabwe had a negative balance of trade of US$448,8 million, in which the business community should push exports and improve the balance of trade. If Zimbabwe's balance of trade is to improve, it must adopt a high level of aggressiveness with the business sector taking advantage of the opportunities that arise from regional integration to increase exports. Anything short of this will result in the country increasing its import bill culminating in a negative balance of trade.

"I would like to take this opportunity to challenge the business community to attack the Comesa market and indeed other markets, with vigour," said the deputy minister. He added that, the ministry of industry is ready to partner with the private sector and develop a collective approach to export market development. This will lead to a number of trade missions to Kenya, Zambia, Equatorial Guinea, Brazil, Venezuela, China, Vietnam, South Korea and Malaysia. The deputy minister urged those wishing to join these trade missions with a view to marketing their products to liaise with his ministry's Department of International Trade.

The ministry will soon launch the National Export Strategy whose objective is to boost value added exports. The deputy minister called on the private sector to complement Government policy on industrial development as well as advising the Governmen t on the way forward for industrial revival and development. The next milestone on Comesa's integration agenda is the transformation of the FTA into a customs union by 2008, characterised by deeper integration and the merger of customs territories into a single customs territory. This will see countries agreeing to eliminate tariffs and other restrictive regulations on trade to create a more conducive trading environment.

At the regional level, Comesa has adopted a harmonised system of commodity, that is the common tariff nomenclature to ensure the smooth functioning of the customs union. To regulate the flow of trade into, within and out of the union, there is need for a common basis for customs legislation and procedures. Already member states have developed a draft customs management Act that is currently being finalised and by so doing Zimbabwe, through the Zimbabwe Revenue Authority, has participated actively in the drafting of this Act.

Negotiations on the common exter nal tariff (CET), a prerequisite for a customs union, are also underway. Member states have agreed to levy lower tariffs of 0-5 percent on raw materials. This will have a positive impact on the stimulation of investment activities and industrial growth. "For those industries that are producing and exporting raw materials, this means more competition," said Minister Chihota.

 


Copyright © 2006 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).


 

3.

Bilateral Issues Take Center Stage at OAS General Assembly

From: http://www.voanews.com/english/2006-06-05-voa5.cfm

 

By Brian Wagner
Santo Domingo
05 June 2006

 

 

Foreign ministers from the Americas have gathered in Dominican Republic for the general assembly of the Organization of American States. The agenda includes discussions of measures for improving economic and social conditions across the region. But the talks are dominated by bilateral disputes among OAS member states.

Official photo of foreign ministers from 34 countries that are participating in the XXXVI General Assembly the Organization of American States in Santo Sunday, June 4, 2006

Official photo of foreign ministers from 34 countries that are participating in the XXXVI General Assembly the Organization of American States in Santo Sunday, June 4, 2006

Officials from the 34-nation Organization of American States are holding a series of meetings to discuss regional initiatives and bilateral concerns. The main theme of the meeting is good government and development in the knowledge-based society.

OAS Secretary General Jose Miguel Insulza told delegates in Santo Domingo that a major concern is the lack of technological resources in many nations in Latin America and the Caribbean. He says expanding access to technology is a key step to improving education, governance and other social conditions. He also recognized recent disputes between some member states because of differences over trade, politics or human rights issues.

Mr. Insulza said OAS members should be able to overcome their differences on trade issues and continue to advance regional integration, while recognizing each other's differences and holding a respectful debate.

One issue already dominating the OAS talks is Peru's complaint that Venezuelan President Hugo Chavez interfered in Peru's presidential election campaign. Peru accused Mr. Chavez of intervening on behalf of nationalist candidate, Ollanta Humala.

Peru's Foreign Minister Oscar Maurtua said his delegation has been asking OAS leadership to respond to its concerns. He says the Peruvian delegation has reaffirmed its position of serious concern about Venezuela's clear interference in Peru. He adds that the Chief of the Electoral Observation Mission for the Organization of American States, Lloyd Axworthy, has also criticized the Venezuelan leader's comments. The Peruvian delegates say they are still awaiting a response from top OAS officials about their complaints.

Nicaragua has also accused President Chavez of meddling in its internal politics ahead of presidential elections to be held later this year.

Another issue expected to draw attention at the general assembly is Argentina's complaint that Uruguay's plans to build pulp mills on the River Uruguay will send polluted water to Argentina. Argentina filed a complaint at the International Court of Justice last month to block the plan, but some OAS officials have said they hope the dispute could be handled within the organization.

Also at the meeting, Bolivia is expected to press for the return of coastal land lost to Chile in a war in the 1800s.

 

  1. Black Sea Region States United by Commitment to Common System of Values

From: http://www.panarmenian.net/news/eng/?nid=18308

 

/PanARMENIAN.Net/ “Countries of the Black Sea region have rich and at the same time dramatic history of co-existence,” Armenian President Robert Kocharian stated when addressing Black Sea Forum for Dialogue and Partnership. “The Black Sea has always been a center of strategic interest. This led to many devastating wars that have formed its current political map, ethnic and religious diversity. However, this all has also resulted in substantial interrelation of our cultures and traditions. Partially that is why there are so many similarities in the process of transformation underway in our countries. This is true in case with the internal transformation, aimed at deepening of democracy and transparency of the society. This also influences the shaping of new types of foreign interactions in the context of the changing world.

We are present at the formation of new dynamic processes, changing the region, forming new perceptions about it. Two objective questions come across: how possible is a common direction of development of the region? Will this lead to the formation of the new regional identity, based on a common interest and inherited cultural interaction? Our Forum is called to address these challenging issues,” the Armenian leader remarked.

“We shall first evaluate the level of motivation in each country of the region. Secondly, we shall work out approaches increasing our mutual will for partnership. For Armenia, with limited natural resources and emphasized entrepreneurial mentality of the people, the choice was clear. Transformation for us primarily meant the liberalization of economy, open trade regimes, and a competitive environment. These reforms substantially changed the structure of Armenian economy. Today over 85 per cent of GDP is produced in private sector, with over 40 per cent of it being produced in small and medium businesses. Annual growth of GDP during last five years has averaged at above 12 per cent. It is natural, that we watch openness and regional cooperation as the most effective way for our development. Only lazy people do not speak about benefits of regional cooperation. It is an axiom, which however comes across many obstacles, which are often of a subjective nature. There is a need for pragmatic evaluation of the positive and negative realities.

Let us first assess what unites us:
- Commitment to a common system of values and readiness to play along the same rules.
- Obvious, tangible economic benefit of regional integration processes.
- Common challenges and threats to the stability and security caused by the increasing transnational crime, extremism and terrorism.

Meanwhile, we are divided by:
- Unresolved ethnic conflicts,
- Certain deficit of trust, caused by the negative experiences of the history of the region.

I am confident that we shall concentrate on those elements which unite us. We shall take steps to harmonize our reforms, achieve unification of trade regimes and transportation tariffs. There is a need for joint investment projects in the infrastructures of the region. First of all, for energy and transportation projects, covering the entire Black Sea basin, and increasing its economic attractiveness. This will create favorable environment for resolution of existing conflicts. Through cooperation to the settlement, through communication to a bigger trust – that is the best formula for overcoming the controversies, based on a search for a common interest,” Robert Kocharian said, reported RA leader’s press office.

 

 

5.  South China regions told investing in ASEAN territories cheaper than at home

From: http://english.people.com.cn/200606/05/print20060605_271197.html

A Chinese researcher suggests Chinese companies in southern China look at investing in other Asian countries where he says start-up costs and wages are much lower than on the mainland.

Addressing a recent forum for businesses in the Pan Pearl River Delta, You Aiqiong, a researcher with the Guangdong Provincial Academy of Social Sciences, says that with a shortage of migrant workers in Guangdong, labor-intensive businesses should take the advantage of a new investment agreement being negotiated between China and ASEAN.

You cited a research by Hong Kong Exporters' Chamber of Commerce which showed that launching a garment factory with 1,000 workers in Viet Nam would require an investment between 6 million and 7 million Hong Kong dollars. The same factory would cost several times that amount if it were on China's mainland.

The Pan Pearl River delta region encompasses Hong Kong, Macao and nine mainland provinces and autonomous regions accounting for one fifth of the country's territory, and one third of China's population.

This year China is expected to conclude negotiations on a China-ASEAN Free Trade Area. It will also provide developing countries with 10 billion U.S. dollars worth of preferential loans, one third of which will go to ASEAN nations, said You.

Moreover, the Chinese Government will add an extra five billion U.S. dollars worth of preferential loans to support Chinese companies investing in member nations of the ASEAN.

Source: Xinhua

6. ASEAN chief backs Nikai's proposal on E. Asia-wide FTA, policy body

FROM: http://asia.news.yahoo.com/060614/kyodo/d8i80keg1.html

Kyodo) _ The chief of the Association of Southeast Asian Nations expressed support Wednesday for the Japanese trade minister's offer of setting up a free trade area in East Asia and a regional policy coordination body modeled after the Organization for Economic Cooperation and Development, Japanese officials said.

Visiting ASEAN Secretary General Ong Keng Yong said during a meeting with Economy, Trade and Industry Minister Toshihiro Nikai that he views Nikai's idea of concluding a free trade agreement between the 10 ASEAN members, Japan, China, South Korea, India, Australia and New Zealand positively, they said.

Ong also said ASEAN will support the establishment of the regional policy proposal body by drafting a road map to realize the long-term goal, they added.

The head of the Southeast Asian regional body met with Nikai ahead of the two-day World Economic Forum on East Asia in Tokyo from Thursday.

The Singaporean chief of the Jakarta-based ASEAN secretariat also stressed the importance of accelerating FTA talks between Japan and the regional body as a whole so as to promote economic integration in East Asia, the officials said.

Japan has been in official FTA talks with ASEAN since April last year and the two sides aim to conclude negotiations by March 2007.

 

Nikai suggested that as the first step to launching the regional policy coordination entity, a research center should be set up somewhere in ASEAN counties, they said.

The minister also called on ASEAN to incorporate Japanese investors' voices in the regional policy making process, they said.

Ong was quoted as saying the upcoming economic ministers' meetings of ASEAN and its regional partners slated for August in Kuala Lumpur would be a good occasion to discuss Nikai's proposals.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

7. Mandelson: ‘June decisive for WTO talks’

From: http://www.eupolitix.com/EN/News/200606/8bece867-f855-425b-bf2c-e595e2f70e15.htm

 

Europe and its trading partners must speed up the pace of global talks ahead of key elections in the US and Brazil, according to Peter Mandelson. 

“The electoral agenda in the US and Brazil risks undermining the Doha round if no progress has been achieved by the end of the month” the EU trade commissioner told the French press.

General elections in Brazil in October and mid-term elections in the US in November could see a shift in both countries’ negotiating position.

In particular, there are fears that a change to the balance of power in the US Congress could seriously undermine Washington’s stance.

“I believe President Bush is committed to finding an agreement and that his administration is aware of the benefits expected from the Doha round,” Mandelson said.

“But Congress is less convinced, preferring to focus on agricultural issues.”

“I think, however, that priority must be given to the economic dimension of the agreement rather than to narrower political considerations.”

Global trade talks remain stalled after WTO members failed to reach an agreement on trade liberalisation last April.

Agriculture has been the main stumbling block, with the EU and the US both accused of protecting their markets by developing nations.

“The EU will have to prove flexible if it wants to speed up the round,” Mandelson said.

But he stressed: “I have not made any new proposal and do not plan to do so in order to respect the mandate I was given by European countries.”

The EU is also negotiating bilateral agreements with South Korea and the Asean countries.

“Bilateral agreements are convenient tools to cover areas not falling within the scope of the WTO,” Mandelson said.

“However, they should not be seen as a substitute for multilateralism.”

 

8. Putin hails SCO as new mode of international cooperation

From: http://english.people.com.cn/200606/14/eng20060614_273750.html

Russian President Vladimir Putin has hailed the Shanghai Cooperation Organization (SCO) as introducing new patterns for successful international cooperation.

Putin made the remarks in an article published on the eve of the SCO's 2006 summit to be held on Thursday in Shanghai, China. The summit will celebrate the fifth anniversary of the group's establishment.

Terming the SCO as an "influential regional organization," Putin said the SCO, which groups Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, has become an important factor for maintaining stability in Eurasia since its establishment five years ago.

Countries in the region have long realized the importance of joining forces to meet new challenges faced by them, Putin said. Only on the basis of multilateral cooperation and through their own efforts, can peace and economic development in the region be guaranteed, he said.

Reviewing the SCO's achievements in resolving the border problems among members, Putin elaborated on the organization's successful cooperation in a number of areas, including security, economy and culture.

Facing the menace of "the three evil forces" of terrorism, separatism and religious extremism, members of the SCO had had discussions on the importance of joining efforts in fighting terrorism and begun practical work on it long before the Sept. 11 terrorist attacks on the United States, Putin said.

The member states already have effective means to counter the threat of terrorism, separatism and extremism, the president said, adding that the next move will be coordination and cooperation in the fight against drug trafficking.

Maintaining regional stability has been the focus of the member states' attention and extensive cooperation has been conducted among them in this regard, with emphasis being laid on coordinating actions and working out specific measures, the president said.

Putin also highlighted the SCO's cooperation with observer states, including India, Pakistan, Iran and Mongolia.

With an open approach toward dialogues, the SCO is ready to work together with other countries and organizations to promote peace, stability and development, Putin stressed.

Economic cooperation among the member states has become increasingly important to the SCO itself, Putin said.

There are huge potentials for effective and mutually beneficial cooperation in the region, he said, adding that people's standards of living in the region will be greatly improved through such cooperation.

Regional integration will help bring into full play the member states' competitive advantages in energy, resources supply and transportation, he said.

The SCO also places cooperation among enterprises and financial institutions high on the agenda, he added.

Within the framework of the SCO, humanistic and cultural exchanges have become increasingly active, Putin said.

The SCO has also accumulated rich experience in cultural exchanges and academic dialogue, and documents on educational cooperation are being drawn up, Putin said, adding that bilateral cooperation in tourism and sports should be extended to multilateral levels.

The SCO has set a model for equal partnership in Eurasia. The strategic aim of such an partnership is to enhance regional security and stability, promote economic progress and push forward the process of regional integration while maintaining the national and cultural identities of each member.

Based on "the Shanghai Spirit" characterized by mutual trust, openness and transparency, non-coercion and consensus, the SCO has laid down a solid foundation for making even greater contributions to efforts to resolve global issues in the present-day world, Putin said.

Source: Xinhua

 

 

 
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