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Preparing
Australia for
the Asia Pacific
Century
Australia's Prime
Minister Kevin
Michael Rudd,
who swept to power
in December 2007,
has already made
his mark as an
articulate speaker
on international
issues. In a recent
address to Asia
Society AustralAsia
Centre Rudd has
given a call for
building an Asia
Pacific Community
in order to foster
the region's economic
development. Because
this century belongs
to the Asia Pacific
Region. Following
is the text of
Prime Minister
Rudd's speech.
The Government's
mission is to
build a strong
and fair Australia
capable of meeting
the new challenges
of the 21st century.
That means planning
for our long-term
future. It also
means planning
to meet our long-term
international
challenges.
Australia must
above all enhance
our regional and
global economic
competitiveness
if we are to secure
our future. Domestically
we need to lift
our productivity
growth. We need
to have the best-trained,
best-skilled work
force in the world.
Infrastructure
We will need world-class
infrastructure,
including high-speed
broadband. We
are committed
to policies that
will lift work
force participation
rates a critical
need with an ageing
population. And
we are committed
to continuing
population growth,
underpinned by
a continuing migration
program.
We are committed
to taxation reform
and business deregulation.
And underpinning
all must be a
commitment to
responsible economic
management injecting
every effort to
maintain macro-economic
stability.
Challenges
But Australia
faces additional
regional and global
challenges also
crucial to our
nation's future
climate change,
questions of energy
and food security,
the rise of China
and the rise of
India.
And we need a
strong system
of global and
regional relationships
and institutions
to underpin stability.
We also have to
make sure that
the open, rules-based
system of global
trade is maintained
and expanded.
It is the system
that has underwritten
our prosperity,
just as it has
underwritten the
prosperity of
the region.
When Australia
looks intrinsically
to the Asia-Pacific
region, we can
see significant
future challenges.
In the South West
Pacific the challenges
are great. Many
of the smaller
states in the
region will need
to work hard and
we will work with
them on establishing
the foundation
for a secure and
sustainable future.
Terrorism in South-East
Asia will remain
a continuing challenge.
And across wider
Continental Asia,
the rise of India
and China represent
great economic,
environmental,
energy policy
and security reverberations
for the future.
A core challenge
for Australia
is how do we best
prepare ourselves
for the Asia Pacific
century to maximise
the opportunities,
to minimise the
threats and to
make our own active
contribution to
making this Asia-Pacific
Century peaceful,
prosperous and
sustainable for
us all.
Foreign Policy
Tonight I would
like to respond
to that question
by talking to
you about the
third pillar of
the Government's
foreign policy
our policy of
comprehensive
engagement in
the Asia-Pacific
region.
Our alliance with
the United States
is the first pillar
of our foreign
policy and the
strategic bedrock
of our foreign
and security policy.
Since forming
Government, we
have reaffirmed
our support for
the alliance,
including in March
in Washington
when I met President
Bush. The alliance
the relationship
between Australia
and the United
States transcends
political parties
and Administrations
on both sides
of the Pacific.
I have also spoken
about the United
Nations the second
pillar of our
foreign policy.
The Government's
policy is that
a strong rules-based
international
system is in Australia's
national interest.
In March in New
York I met with
the UN Secretary-General.
I announced after
that meeting that
Australia would
seek a seat on
the UN Security
Council in 2013-2014.
If Australia wants
an effective United
Nations, we have
to be comprehensively,
not marginally,
engaged.
And that means
engaging with
key multilateral
partners around
the globe that
share our goals,
in particular
our partners in
Europe a principle
of multilateral
cooperation with
our European partners
I re-affirmed
in meetings with
the European Commission
in Brussels in
April.
Tonight I want
to talk about
the third pillar
of our foreign
policy, comprehensive
engagement with
Asia. It is a
pillar of our
foreign policy
because this Government
is committed to
strong, close,
cooperative relations
with the countries
of Asia. We have
interests that
we want to pursue
in the region.
And we believe
that we can also
make a strong
positive contribution
to the region
to its long-term
stability, prosperity
and sustainability.
We want to build
on our history
of political,
strategic, economic
and development
contributions
to the region
in the years ahead.
Tonight I'd like
to talk about
the future of
two of our critical
bilateral relations
in the region
Japan and Indonesia.
And I'd also like
to talk about
the future of
the regional architecture
of the wider region.
The changes now
taking place in
the global economic
and strategic
terrain are of
historic proportions.
Put simply, global
economic and strategic
weight is shifting
to Asia.
For the first
time in the settled
history of this
continent, we
find ourselves
in the region
that will be at
the centre of
global affairs.
This is a process
that began half
a century ago
and it has at
least that long
left to run. Japan
led the way with
its remarkable
post-war recovery
and rapid economic
growth. Korea,
Taiwan, Hong Kong
and Singapore
followed.
The countries
of South East
Asia in spite
of the 1997 financial
crisis have continued
to show strong
growth.
Then, in the 1990s
China and India
began to grow
rapidly.
By 2020, according
to one study last
year, Asia will
account for around
45 per cent of
global GDP. By
2020 it will account
for around one-third
of global trade.
By 2020, Asia's
share of global
military spending
will have grown
to nearly one
quarter.
Militaries throughout
Asia have sought
to modernise and
continued economic
growth will encourage
the acquisition
of higher technology
military systems.
And the region
contains continuing
potential flashpoints
Kashmir, the Taiwan
Strait, the Korean
Peninsula.
But there is more
to the story of
a changing Asia
than the economic
and strategic
picture. Demographics
are changing.
The countries
that developed
first have ageing
populations.
China's population
continues to grow,
but it too is
ageing.
China expects
its population
to peak at around
1.5 billion in
the 2030s. India's
population will
remain young and
will continue
to grow in the
decades ahead.
It will become
the most populous
nation in the
world by the middle
of the century.
The overall population
of the region
is continuing
to grow by 2020
it is projected
to be 4.6 billion
(out of a total
global population
of 7.7 billion).
A growing population
and higher standards
of living are
putting increasing
pressure on resources.
To drive these
growing economies
and to provide
the standard of
living these populations
require, demand
for energy is
growing dramatically.
APEC estimates
that among its
member economies
demand for energy
will grow by around
40 percent by
2020. Overall,
Asia's energy
consumption could
grow by around
two-thirds by
2020. Or, to put
it another way,
more than half
of the increase
in global energy
consumption to
2020 will come
from Asia.
Wealthier populations
are also demanding
more and better
food. We have
already seen the
rising cost of
food, globally
not just in Asia.
The rising population
needs more water
too.
We will see more
people in water
stress because
much of the population
growth in the
years ahead will
come in developing
countries that
already face fresh
water supply pressures.
The changes and
challenges for
Asia will be great.
So, for Australia,
engagement with
Asia is not just
a matter of historical
recognition of
the requirements
of geographical
proximity. Our
engagement with
Asia for the future
will be about
engaging with
a region of global
significance in
its own right.
It is the coincidence
of several imperatives
geographic, economic
and strategic.
It is engagement
with a region
that will be of
crucial importance
for the future
of our planet.
How, then, do
we best prepare
for the Asia-Pacific
century?
First, we have
to get our national
house in order
to maximise our
global competitiveness.
Then we need to
have good economic
and security relations
with the countries
in our region.
But there is a
brittleness in
a foreign policy
based only on
bilateral relations.
To remove some
of that brittleness,
we need strong
and effective
regional institutions.
Strong institutions
that will underpin
an open, peaceful,
stable, prosperous
and sustainable
region. We need
them because regional
institutions are
important in addressing
collective challenges
that no one country
can address alone
and they help
us develop a common
idea of what those
challenges are.
Challenges like:
• Enhancing
a sense of security
community (we
have something
to learn from
Europe where centuries
of animosity have
been transformed
into an unparalleled
degree of transnational
cooperation);
• Developing
a capacity to
deal with terrorism,
natural disasters
and disease problems
that definitionally
transcend national
boundaries;
• Enhancing
non-discriminatory
and open trading
regimes across
the region in
support of global
institutions;
and
• Providing
long-term energy,
resource and food
security.
I believe it is
time that we started
to think about
where we want
to be with our
regional architecture
in 2020. It is
nearly 20 years
since the first
APEC meeting in
Canberra.
When APEC started,
we spoke about
the gradual evolution
of regional architecture.
And that architecture
has evolved in
the intervening
20 years.
We have APEC,
the ASEAN Regional
Forum, ASEAN Plus
Three and, most
recently, the
East Asia Summit.
Each has its own
positive role
to play. But the
core question
is
what should the
long-term vision
for our region's
architecture be?
We believe that
we need to anticipate
the historic changes
in our region
and seek to shape
them; rather than
simply reacting
to them. We need
to have a vision
for an Asia Pacific
Community, a vision
that embraces:
• A regional
institution which
spans the entire
Asia-Pacific region
including the
United States,
Japan, China,
India, Indonesia
and the other
states of the
region.
• A regional
institution which
is able to engage
in the full spectrum
of dialogue, cooperation
and action on
economic and political
matters and future
challenges related
to security.
The purpose is
to encourage the
development of
a genuine and
comprehensive
sense of community
whose habitual
operating principle
is cooperation.
The danger in
not acting is
that we run the
risk of succumbing
to the perception
that future conflict
within our region
may somehow be
inevitable.
At present none
of our existing
regional mechanisms
as currently configured
are capable of
achieving these
purposes. That
is why the new
Australian Government
argues that we
should now begin
the regional debate
about where we
want to be in
2020. Such a debate
does not of itself
mean the diminution
of any of the
existing regional
bodies.
APEC, the ASEAN
Regional Forum,
the East Asia
Summit, ASEAN
Plus Three and
ASEAN itself will
continue to play
important roles,
and longer-term
may continue in
their own right
or embody the
building blocks
of an Asia Pacific
Community. There
will be wide ranging
views about this
across the region
some more supportive
than others. New
bodies and new
ideas will continue
to emerge.
Australia would
welcome the evolution
of the Six Party
Talks into a wider
regional body
to discuss confidence
and security building
measures in North
East Asia and
beyond and we
support the United
States in this.
I would also argue
that an Asia Pacific
Community by 2020
is consistent
with President
Bush's call for
the development
of a Free Trade
Area of the Asia
Pacific an ambition
we have consistently
supported as a
long-term goal.
The European Union
of course does
not represent
an identikit model
of what we would
seek to develop
in the Asia Pacific.
But what we can
learn from Europe
is this it is
necessary to take
the first step.
In the 1950s,
sceptics saw European
integration as
unrealistic. But
most people would
now agree that
the goal of the
visionaries in
Europe who sat
down in the 1950s
and resolved to
build prosperity
and a common sense
of a security
community has
been achieved.
It is that spirit
we need to capture
in our hemisphere.
Our special challenge
is that we face
a region with
greater diversity
in political systems
and economic structures,
levels of development,
religious beliefs,
languages and
cultures, than
did our counterparts
in Europe. But
that should not
stop us from thinking
big.
ASEAN
The Association
of South-East
Asian Nations
(ASEAN) is an
example of the
benefits of long-term
vision. In a diverse
region, ASEAN
has brought together
a varied group
and forged a common
outlook on many
questions. ASEAN
has built habits
of cooperation
and dialogue.
And ASEAN has
played a critical
role in building
and maintaining
peace in the region
through its work.
To take forward
the vision for
an Asia Pacific
Community during
the next six months,
the Australian
Government will
dispatch a high-level
envoy to the capitals
of the wider region
to discuss this
proposal. Subject
to that further
dialogue we would
envisage the possibility
of a further high-level
conference of
government and
non-government
representatives
to advance this
proposal.
I fully recognise
that this will
not be an easy
process just as
the establishment
of APEC was not
easy 20 years
ago. But the speed
and the scope
of changes in
our region means
we need to act
now. That is why
I am announcing
tonight the appointment
of Dick Woolcott
as Australia's
envoy on this
important matter
of unfinished
regional business
to continue and
hopefully complete
the work he began
on Prime Minister
Hawke's behalf
20 years ago.
I said before
that this is the
Asia Pacific Century.
Ours must be an
open region we
need to link into
the world, not
shut ourselves
off from it. And
Australia has
to be at the forefront
of that challenge,
helping to provide
the ideas and
drive to build
new regional architecture
something we have
not done for over
a decade.
We also need to
invest in our
relationships
with our partners
around the region.
In North East
Asia we will need
to continue to
build our relationships
with the economic
powerhouses to
which we are so
closely linked
China, Japan and
Korea.
In South East
Asia we have to
add even more
depth to our relationships
with our key partners
Indonesia, Malaysia,
Singapore and
others. In South
Asia, we need
to re-energise
our relationship
with the other
rising giant,
India. But, ahead
of my visit to
Japan and Indonesia
next week I want
to explain how
our Government
sees its relations
with these two
crucial partners.
In many ways,
our relationship
with Japan is
one of the foundations
of our regional
engagement. The
relationship between
Australia and
Japan is a comprehensive
strategic, security
and economic partnership
and beyond that
we have an enduring
friendship. And
I am committed
to adding even
more depth and
breadth to that
partnership.
Over the past
50 years, developments
in our relationship
with Japan have
often led the
way in our engagement
with the region.
From our trade
treaty in 1957,
through to working
together to establish
APEC in the 1980s
under Bob Hawke's
leadership, and
to our security
cooperation, developments
in our relationship
with Japan have
been at the forefront
of our regional
engagement.
Japan is an ancient
culture. Japan
is a global economic
power the world's
second-biggest
economy. Its economic
presence has made
a critical contribution
to many economies
around the world
including Australia.
It is a major
provider of development
assistance around
the globe.
Japan is also
one of the United
Nation's strongest
supporters. It
is a clear voice
on the world stage
for non-proliferation
of nuclear and
other weapons
bringing to the
debate its unique
and terrible history
as the only country
to have suffered
the effects of
a nuclear weapon.
Japan also represents
a significant
security presence
in our East Asian
hemisphere. So,
for Australia,
engaging with
Japan is a core
priority. We have
an enduring economic
relationship.
But we can still
do more to secure
a strong future
economic relationship.
I will be talking
with Prime Minister
Fukuda about how
we can accelerate
our negotiations
for a free trade
agreement (FTA).
We are also strategic
partners. When
I meet with Prime
Minister Fukuda
next week I hope
to be able to
take forward concrete
proposals for
strengthening
our security engagement
both bilaterally
and trilaterally
with the United
States. Prime
Minister Fukuda
and I will also
look at how Australia
and Japan can
cooperate more
both regionally
and globally.
Regionally, we
can look also
work more closely
together on our
development assistance
efforts in the
Pacific. Globally,
we can also work
together on climate
change. Prime
Minister Fukuda
has invited me
to attend the
G8 outreach meeting
in Japan in July.
Climate
Change
Climate change
will be a major
focus of the outreach
session and I
will be talking
to Prime Minister
Fukuda about how
we can work together
on the science
and the policy
of climate change.
Underlying the
economic relationship,
the political
relationship and
the strategic
relationship are
the people to
people links.
It includes students
travelling in
both directions
including those
who spend time
on home stay programs,
learning the language
and culture of
the other country.
Japanese is the
most studied foreign
language in Australia
more than 220,000
Australians are
studying Japanese
at public high
schools.
I have to acknowledge
here the problem
of whaling. We
have had, and
continue to have,
a frank dialogue
with Japan on
this. But I am
hopeful that we
will be able to
find a diplomatic
solution to what
is an important
disagreement among
friends.
Indonesia
Next week will
be my second visit
to Indonesia since
becoming Prime
Minister my first
having been to
the Bali climate
change meeting
in December. I
am looking forward
to sitting down
again with President
Yudhoyono and
talking through
the future of
our relationship.
We already have
a great history
to build on. Australia
under the ALP
took the initiative
to represent Indonesia's
interests at the
United Nations
in 1947. We were
a strong supporter
of Indonesian
independence in
1949. And, since
that time, our
histories have
been inseparable.
Our relationship
has now matured
and we have a
true partnership.
I have watched
Indonesia's remarkable
development in
recent years.
And it is worth
revisiting some
of the fundamentals
about Indonesia.
Indonesia is the
largest democracy
in Asia after
India. It is the
world's most populous
Muslim nation.
Since the financial
crisis in 1997
Indonesia has
made a strong
recovery. Its
economy is growing
at over six per
cent annually.
Its transition
to democracy and
its economic recovery
in the past decade
have been remarkable.
In Australia we
should have a
better understanding
of these changes
because our relationship
with Indonesia
is so important.
It is important
to us because
of the joint challenges
we face and the
need we have to
develop common
responses to these
challenges. For
instance on climate
change. I have
already had a
discussion about
increasing our
climate change
cooperation with
President Yudhoyono
when we met in
Bali and I want
to acknowledge
the President's
leadership on
this. Exploring
ways to further
this cooperation
will be a top
priority for my
visit to Indonesia
next week. I hope
to be able to
outline a way
forward for Australia-Indonesia
climate change
cooperation during
my visit.
In particular,
I believe there
is real scope
for us to cooperate
on the problem
of deforestation.
We also have a
strong base of
people-to-people
links. Nearly
400,000 people
travel back and
forth between
Australia and
Indonesia each
year. And around
15,000 Indonesian
students study
in Australia.
I am keen to make
sure that more
people in Australia
learn about Indonesia.
Indonesian is
one of the target
languages of our
Government's investment
of $62 million
dollars over the
next three years
to boost Asian
language study
in Australian
high schools building
on the 170,000
Australians who
already study
Indonesian at
public high schools.
And I am keen
to see Indonesians
learn more about
Australia too.
An important part
of this mutual
learning process
is inter-faith
dialogue. There
have been a number
of rounds of this
dialogue so far.
It is a good initiative
and one that I
hope can be broadened
over time. Our
shared global
interests and
the good people-to-people
links that we
share give us
a good base to
further develop
our bilateral
relationship.
We need to have
a vision of where
we want to take
the bilateral
relationship and
we need to work
towards that vision.
For me, it is
a vision of a
partnership built
on mutual respect
and mutual benefit.
Developing our
economic relationship
is an important
part of that.
We need to keep
working on our
free trade agreement
study. Our goal
is simple to make
it easier for
our business communities
to interact with
each other. We
also have to build
our defence and
security relationship.
We have a good
basis for cooperation
in the Lombok
Treaty, but we
need to do more.
In particular,
we need to further
our cooperation
in the security
field given our
common challenge
in terrorism.
Beyond our bilateral
relationship Australia
and Indonesia
can yield better
results for the
region and for
the world when
we work together
in a diplomatic
partnership that
goes beyond the
traditional bilateral
preoccupations.
For Australia,
cooperation with
Indonesia on regional
matters including
the East Asia
Summit is of central
importance.
Natural disasters
in Burma and China
in recent weeks
both with terrible
death tolls have
reminded us of
the need to for
regional cooperation
to have practical
results, by improving
coordination of
disaster response
efforts for instance.
Here APEC has
an important role
to play.
Australia and
Indonesia are
co-chairs of an
APEC task force
on emergency preparedness
and response.
It was established
after the Indian
Ocean tsunami
in 2004. And it
has already done
some good work.
When I visit Indonesia
next week, I will
be discussing
with President
Yudhoyono how
we can lift the
tempo of the task
force's work.
I have some specific
proposals to take
to the President
about how we can
do more to bring
together disaster
relief experts
from around the
region because
when a crisis
hits, our people
need to have ready
made networks
so we can respond
in a timely fashion.
In doing so, we
will need to build
on important initiatives
already advanced
elsewhere in the
region most recently
by Prime Minister
Fukuda of Japan.
As we look to
build a new regional
architecture for
2020 and beyond,
Indonesia will
be one of our
critical partners.
For Australia,
Indonesia is a
partner in nearly
every field of
endeavour. We
are committed
to building a
closer relationship
between our people,
our parliaments
and our institutions.
We are partners
in tackling climate
change. We are
partners in building
the region.
Next week in Indonesia,
I look forward
to talking with
President Yudhoyono
about how we take
this partnership
forward. About
30 years ago I
first set foot
in the wider region.
That experience
and my study of
Asian history,
language and cultures
at university
opened my eyes
to the importance
of the region
for Australia.
And it has left
me firmly of the
view that Australia
has to make itself
the most Asia-literate
country in the
collective West.
Asia is a diverse
continent and
we have to put
great effort into
building and maintaining
our engagement
into the future.
Our businesses,
our academic institutions
and our government
agencies need
to understand
Asia. This Government
will be investing
more in this direction.
Because we in
this nation have
a unique requirement
to fully comprehend
and engage with
the great new
global dynamics
of the Asia-Pacific
century. Australia
must play its
part in shaping
the region's future.
And that is what
the new Australian
Government intends
to do.
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