ASIA-PACIFIC COUNTRIES ADOPT STRATEGIES TO IMPROVE INDUSTRIAL AND TECHNOLOGICAL DEVELOPMENT
Press Release
REC/20
ASIA-PACIFIC COUNTRIES ADOPT STRATEGIES TO IMPROVE INDUSTRIAL AND TECHNOLOGICAL DEVELOPMENT
19980226 BANGKOK, 24 February (United Nations Information Services) -- Asia-Pacific countries today adopted a Declaration and a Regional Action Plan, with recommendations on ways to strengthen industrial and technological development in order to sustain the growth momentum in Asia and the Pacific. The Bangkok Declaration on Strengthening Regional Cooperation for Industrial and Technological Development of the Asian and Pacific Region, including a Regional Action Plan, was adopted by some 30 countries of the Economic and Social Commission for Asia and the Pacific (ESCAP) region at the conclusion of a ministers' meeting held in Bangkok from 19 to 24 February.The Declaration expressed "great concern" at the recent turbulence in the financial sectors affecting several countries in the region, saying it "appears to be undoing years of development achievements". But ESCAP members also said they believed that the countries would "overcome their contemporary difficulties and regain their growth momentum".
The Meeting was deeply concerned at the continuing financial sector crisis in the region, observing that the crisis was a "reminder of the reality of globalization". It recommended that "urgent and permanent mechanisms should be instituted to monitor emerging trends and events so that early warnings could be given in avoiding future a economic crisis". It also proposed that ESCAP undertake a study to examine the effects of the present crisis on the industrial and technological development of the region.
The Declaration and Action Plan recommend ways to maintain the vast potential of industrial and technological growth in Asia and the Pacific through an array of strategies. Discussions during the four-day meeting focused on five policy issues reflecting the major concerns of ESCAP countries.
During the discussion of the item, industrial restructuring and complementarities, delegates said that "significant opportunities" existed in exploiting industrial complementarities on a regional and subregional basis. Asia-Pacific countries should work concertedly to strengthen economic links to make best use of the economies of scale as a "market" and "production area", as envisaged under AFTA and ASEAN Industry Cooperation (AICO).
The Declaration spells out that countries of the region should "improve the basis of their competitiveness and complementarities in manufacturing by promoting greater dialogue between policy makers, experts and private sector and public sector representatives". The Action Plan recommends that industries displaying strong complementarities should be identified in order to establish "cross country industrial growth zones" to exploit the complementarities with framework agreements among subgroups of countries and economies.
Delegates also recommended that "sun-rise industries", such as food processing, electronics hardware, biotechnology as well as conventional industries like paper, chemicals and cement needed focused attention for deriving benefits from industrial complementarities. A regional seminar will be organized by ESCAP in New Delhi in late 1998 to promote industrial complementarities between ASEAN and South Asia.
On the issue of investment-related technology transfer, the meeting called for increased information dissemination and sharing of expertise in fostering investment-related technology transfer in the region. It welcomed ESCAP's initiative to establish the Regional Network of the Boards of Investment for sharing information on relative strengths and investment opportunities to bring more foreign direct investment into the region.
Concerning private sector development and privatization, the meeting observed that the economies in transition and the Central Asian Republics of the Commonwealth of Independent States had encountered difficulties in trying to create a vibrant private sector, including lack of skilled business managers and entrepreneurs to set up industrial enterprises and function under market conditions. The ESCAP was therefore urged to continue and to strengthen its programme of assistance for private sector development in the economies in transition and the Central Asian Republics of the Commonwealth of Independent States.
On skills development, adequate and timely supply of skilled workers, managers and entrepreneurs was a key determinant in coping with the challenges of globalization, the delegates pointed out. The Bangkok Declaration calls for an "enabling environment for individual initiative and enterprise", investment in the vast human resources of the developing countries and the development of "technological skills", including entrepreneurial skills. It also calls for nurturing of the business community, including the private sector, so that the private sector can play its role in industrial and technological development.
Integration of the least developed countries, Pacific island countries and the economies in transition, the difficulties faced by these disadvantaged groups in achieving any meaningful progress with their industrialization efforts were discussed by the meeting. Speakers urged ESCAP to strengthen its
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investment promotion policies for these groups of countries. The Declaration emphasizes that special focus must be placed on the use of science and technology in alleviating poverty and improving the productivity of the rural economy in particular. Special measures should be taken to assist the least developed and landlocked countries, island developing and transitional economies in their integration into regional trade, investment, including foreign direct investment, it says.
Government representatives, including ministers, attending the meeting were from Australia, Bangladesh, Brunei Darussalam, China, Democratic People's Republic of Korea, France, India, Indonesia, Iran, Japan, Kyrgyzstan, Macau, Malaysia, Maldives, Myanmar, Nepal, Pakistan, Philippines, Republic of Korea, Russian Federation, Sri Lanka, Thailand, Turkmenistan, Turkey, United States, Vanuatu and Viet Nam. Also attending were representatives from other United Nations bodies, specialized agencies, intergovernmental organizations and non- governmental organizations, as well as ESCAP's regional institutions and projects and observers from Chile, Germany, Hungary, Peru, Romania and Switzerland.
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