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The Progressive Response   10 September 1999   Vol. 3, No. 33
Editor: Tom Barry
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The Progressive Response (PR) is a weekly service of Foreign Policy in
Focus (FPIF), a joint project of the Interhemispheric Resource Center and
the Institute for Policy Studies. We encourage responses to the opinions
expressed in PR. 
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Table of Contents

I. Updates and Out-Takes

*** APEC & ASEAN: MULTILATERALISM IN ASIA PACIFIC ***
By John Gershman

*** CONGRESSIONAL STAFF INVESTIGATE U.S. POLICY IN IRAQ ***

II. Comments

*** THOUGHTS ON EAST TIMOR AND ERITREA ***
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I. Updates and Out-Takes

*** APEC & ASEAN: MULTILATERALISM IN ASIA PACIFIC ***
By John Gershman

(Editor's Note: The meeting of the Asia Pacific Economic Forum this week
and the post-electoral violence in East Timor focus international attention
on the role of regional institutions in dealing with regional crises. John
Gershman of the Institute for International Development Research offers an
overview and a critical analysis of these two multilateral institutions in
his FPIF focus essay, "Still the Pacific Century? U.S. Policy in Asia and
the Pacific" [forthcoming in an FPIF book published by St. Martin's Press],
which is excerpted here.)

The Asian financial and political crises exposed the weakness of regional
institutions. Unlike the formal institutional structures that manage
integration in North America under NAFTA or in the European Union, economic
integration in East and Southeast Asia is not guided by structural accords.
The inability of ASEAN, the oldest regional multilateral organization, to
respond effectively to the regional economic and environmental crises is
reflected in Singapore Premier Goh Chok Tong's observation that ASEAN "is
seen as helpless and worse, disunited in a crisis." A major stumbling block
is ASEAN's principle of nonintervention in the domestic affairs of member
countries. More recent developments suggest that this principle is slowly
being challenged. For example, the regional impact of the Indonesian forest
fires of 1997 led Malaysia, Singapore, and the Philippines to pressure
Indonesia to adopt policies to prevent a repeat occurrence, while Thailand
and the Philippines initially opposed Cambodia's entrance into ASEAN.

When, on occasion, Asian governments have attempted collective action on
economic issues without including the United States, as in Malaysian Prime
Minister Mohamed Mahathir's proposal for an East Asian Economic Caucus or
in the case of the ASEAN Free Trade Area, Washington has objected. For
example, one early attempt at a regional response to the Asian economic
crisis was Japan's August 1997 proposal for an Asian Monetary Fund. This
would have created a fund to protect Asian currencies from speculative
assaults in their financial markets. But the U.S. Treasury Department
torpedoed the proposal, arguing that it was duplicating the efforts of the
IMF. The U.S. does not advocate multilateralism in Asia, per se, but uses
multilateral institutions to advance U.S. corporate interests, as
exemplified in its approach to the Asia-Pacific Economic Cooperation forum
(APEC). 

APEC consists of 21 countries on both sides of the Pacific. Trade among its
members accounts for over half of world trade, and until the crisis, a
growing proportion of world output. Technically, APEC is a forum of
"economies" not countries, since Taiwan and the Peoples' Republic of China
do not recognize each other diplomatically, and Hong Kong entered APEC
first as a colony of Great Britain and is now a Special Administrative
Region of China. Originally, APEC was an informal group of 12 Asia-Pacific
economies: Australia, Brunei, Japan, South Korea, Malaysia, Thailand,
Singapore, Indonesia, the Philippines, Canada, New Zealand, and the United
States. They were followed by China, Hong Kong, and Taiwan (1991), Mexico
and Papua New Guinea (1993), Chile (1994), and Peru, Russia, and Vietnam
(1998).

APEC actually contains three parallel processes. The first is the original:
economic and technical cooperation promoting economic and human resource
development. The second process, a more explicit trade and investment
liberalization agenda, emerged in 1993 at APEC's first-ever Economic
Leaders Meeting. The "Bogor Declaration" released the following year stated
that APEC's goal was "free and open trade and investment" in the region, by
2010 for industrialized economies, and 2020 for developing members.
Resistance on the part of Japan and the ASEAN countries to the U.S. agenda
has led to relatively vague goals, many of which merely repeated
commitments under the WTO. At the 1997 Vancouver meeting APEC Leaders
agreed to liberalize trade in nine sectors ranging from environmental goods
to telecommunications--on a "fast track" basis covering $1.5 trillion in
trade (known as Early Voluntary Sectoral Liberalization) followed by
another six sectors at a later date. Most disturbing was the inclusion of
fisheries and forest products as sectors to be liberalized, sectors for
which rapid liberalization without ecological safeguards could have
disastrous consequences for sustainable development and food security in
the near term. Opposition to liberalization of the nine industry sectors
from several members--particularly Japan--ensured that the agreements at
the November, 1998 meeting did not significantly advance liberalization. 

The third, and weakest, process is the sustainable development agenda,
which emerged within APEC in 1993 and is currently stalled. To date, this
process has been characterized by a flurry of small-scale projects with
virtually no progress in linking environmental and economic integration
issues. Stalled progress has four main causes: poor leadership by the
wealthier countries, most prominently the U.S.; popular opposition to
APEC's free trade agenda, and the failure to connect the trade, investment,
and environmental tracks. The fourth is the weakness of pro-sustainable
development forces within negotiating governments (most of which are
dominated by commercial interests) and the inability of pro-sustainable
development forces from civil society to penetrate the national and
regional processes of policy formulation. 

APEC currently has two main nongovernmental interlocutors: the APEC
Business Advisory Council (ABAC, founded in 1995), which describes itself
as the private sector arm of APEC, and the Pacific Economic Cooperation
Council (PECC, founded in 1980), a tripartite, nongovernmental organization
committed to promoting economic cooperation and market-driven integration
in the Pacific Rim. APEC and its members do not have any guidelines for
participation by non-business civil society actors such as scientists and
NGOs, although the U.S. and some other members have brought some NGO
representatives to some of the ministerial meetings. In the late 1990s,
APEC meetings were marred by heavy-handed efforts by the host governments
to repress demonstrations and political opposition.

APEC's effectiveness in promoting sustainable development has been hampered
by the fact that, in President Clinton's words, "[the U.S. is] committed to
making [APEC] a vehicle for liberalization in the region." The U.S. has,
for example, used APEC countries to build support for free trade in the
WTO, as it did in November 1996 with the International Technology Agreement.

APEC is seen as something of a lame duck institution. As the only regional
economic institution, however, APEC is worth preserving, particularly if it
can catalyze subregional (e.g., ASEAN, Northeast Asian) cooperative efforts
on sustainable development. The U.S. could gain support for a sustainable
development agenda by stepping back from its liberalization-above-all-else
approach, explore instruments to regulate short-term capital flows, provide
resources to address the social and ecological costs of the crisis, and
increase its support for capacity-building efforts, particularly at the
sub-national level. Otherwise, APEC should be allowed to die a painless death.
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*** CONGRESSIONAL STAFF INVESTIGATE U.S. POLICY IN IRAQ ***

Earlier this week the congressional staff delegation to Iraq that IPS
Fellow and In Focus contributor Phyllis Bennis accompanied returned home.
The goal of the trip was to examine the effect of economic sanctions and
the effects of depleted uranium from U.S. bombing raids on the population.
It was the first visit by congressional members or staff to Iraq since 1991.

Setting the stage for the trip, a recent UNICEF survey on Child and
Maternal Mortality shows a dramatic increase in child mortality since the
Gulf War. The report estimates that there have been at least half a million
child deaths which could have been prevented and that "in the absence of
the prolonged measures imposed by the UN Security Council," Iraqis would
not have suffered the malnutrition and disease resulting in the increased
death rates. The report estimates that 20% of Iraqi children under five
suffer from stunted growth due to malnutrition. Criticism has been voiced
by UN administrators of the Oil-for Food program, the Red Cross, and
numerous religious leaders and human rights organizations. UNICEF officials
have estimated that some 5,000-6,000 Iraqi children under five die each month.

The staffers, representing Representatives Cynthia McKinney, Danny Davis,
Sam Gejdenson, Earl Hilliard, and Bernie Sanders, visited a children's
hospital in Baghdad, a bomb shelter, grain silos, and met with Deputy Prime
Minister Tareq Aziz during the five-day, fact-finding mission. Although the
State Department opposed the trip, the staffers and 40 nongovernmental
organizations involved in organizing the trip felt it was necessary to
obtain an on-the-ground assessment of the conditions. 

Previous In Focus briefs (U.S.-Iraq Conflict, Nov. 1997, available at
http://www.foreignpolicy-infocus.org/briefs/vol2/v2n51ira.html; and
U.S.-Iraq Policy, Oct. 1996, available at
http://www.foreignpolicy-infocus.org/briefs/vol1/IRAQ.html) have suggested
that U.S. policy be refocused. Bennis writes, "Current U.S. policy against
Iraq provides no vision for a strategic long-term approach that takes into
account a starving population, a crippled economy, and a blustering
military government. The policy was already eroding long before the current
crisis. It cannot be sustained indefinitely."

Bennis recommends that policy changes include:

* Military action should be eschewed in favor of truly diplomatic and
multilateral approaches.

* The UN Security Council should acknowledge that resolution 687's brutal
economic sanctions have failed.

*A redrawn UN mandate should work to limit potential Iraqi military
threats, while ensuring that Iraq's civilian population does not pay the
price for its government's unaccountability.

The delegation presents a new opportunity for these ideas to gain exposure
in a Congress that has been unwilling to consider alternatives to the
nine-year policy in Iraq. Such delegations should be encouraged as should
congressional hearings to review U.S. bombing and sanctions policy. Readers
who favor such a review are encouraged to express their support by
communicating with these and other congressional representatives:

Rep. Sam Gejdenson (D-CT)
Ranking Minority Member, House International Relations Com.
Email: [EMAIL PROTECTED]

Rep. Cynthia McKinney (D-GA)
Email: [EMAIL PROTECTED]

Rep. Danny Davis (D-IL)
Email: [EMAIL PROTECTED]

Rep. Earl Hilliard (D-AL)
Email: [EMAIL PROTECTED]

Rep. Bernie Sanders (I-VT)
Email: [EMAIL PROTECTED]
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II. Comments

*** THOUGHTS ON EAST TIMOR AND ERITREA *** 

(Editor's Note: FPIF contributor Dan Connell, author of policy briefs on
Eritrea and Sudan, offered the following commentary on events in East Timor
and similarities with the simmering conflict between Eritrea and Ethiopia.)

Both East Timor and Eritrea share the almost unique distinction (with
Western Sahara) of being former European colonies that were annexed by
neighboring third world states on the basis on pre-colonial claims. This
has made decolonization far more difficult, certainly far longer and
bloodier--and easier for the world to ignore. And it is now threatening
massive loss of life in both states at almost exactly the same time. Since
each former colony is small and strategically less significant than its
much larger pro-Western neighbor, the world is wringing its hands but
apparently unwilling to do what's needed to halt the carnage.

On East Timor, no one should be surprised at what's happening now. The
violence leading up to the elections foreshadowed it. The actions of the
armed forces before, during, and after the referendum underlined it, and
the political situation in Jakarta fueled it. What no one seems to be
talking about is that the likely next president (after voting is finished
late this fall) will be a woman who has always opposed independence for
East Timor. I think the current violence is a systematic attempt to undo
the referendum and play to changes in Jakarta that will later reverse it.
Major massacres will come next. And I also think that the Clinton
administration is doing essentially the same thing it did in
Rwanda--delaying action to the point where a disaster will happen of
potentially epic proportions. (Remember Bill's heart-rending apology in
Kigalai last year? Watch for it again in Dili.) The last straw, and exactly
what happened in Rwanda prior to the genocide there, is the pullout of the
UN, slated for tomorrow. Instead, the UN compound should be reinforced with
UN troops. And we should be sanctioning Indonesia today with arms embargoes
and hold-ups in IMF loans at the least--measures designed to squeeze the
regime, not starve the population (as Iraq). But troops on the ground are
what's needed right away, best from regional states. Yet, as most
commentators are now saying, Indonesia is more important to the industrial
states (what we used to call first world) than East Timor, so who's going
to buck Jakarta by ignoring its refusal on this?

Meanwhile, Ethiopia rejected the peace proposal with Eritrea this week, so
we can expect major fighting there, too, any day. As the Clinton
administration can't deal with more than one, perhaps two, crises at once,
this will also happen with no effective effort to stop it ahead of time,
though U.S. pressure on its historic ally in the region, Ethiopia, could do
so (and though U.S. involvement in crafting the current peace proposal has
been surprisingly useful). This, too, could take the form of arms and other
selected sanctions to hit the regime, not the people. It should start now,
today, with a Security Council resolution calling on Addis Ababa to accept
what is arguably a plan that incorporates its major publicly stated
concerns (with Eritrea agreeing to withdraw first from nearly all disputed
border areas). But this must happen very quickly as the clock is ticking
there, too. The end of the rainy season this month is what Ethiopia was
waiting for to restart the war, while feigning interest in the peace
process. (Will we now wake up to the fact that Ethiopia has other interests
in prolonging what they take to be a war of attrition that favors its
larger numbers?) This time, however, if Ethiopia launches more human wave
assaults along the frontier, Eritrea will undoubtedly strike back in other
ways, spreading the conflict away from the border. Taken together, this
will make the bloodiest war in the world even bloodier. The time to act in
this crisis, like that in East Timor, is yesterday.

Dan Connell <[EMAIL PROTECTED]>
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