Teguh Rahardjo Indonesia s alt. Cost Chair

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1 Teguh Rahardjo Indonesia s alt. Cost Chair The Korea-ASEAN Science and Technology Innovation Forum Daejeon, Dec. 3-5, 2014

2 OUTLINE 1. ASEAN s Transformation 2. ASEAN s Challenges 3. ASEAN COST: Chronological History 4. ASEAN COST: Structure and Mandate 5. ASEAN Plan of Action 2

3 ASEAN s Transformation 3

4 Established in Bangkok, on 8 th August : Treaty of Amity and Cooperation (TAC) in Southeast Asia. A code of conduct governing relations among ASEAN members and between ASEAN and external powers 1984: Brunei Darussalam joined ASEAN 1995: Viet Nam joined ASEAN 1997: Lao PDR and Myanmar joined ASEAN 1999: Cambodia joined ASEAN 2003: Bali Concord II, to establish ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community 4

5 ASEAN Transformation (2) Vientiane Action Programme 2004 The Signing of the ASEAN Charter & Singapore Declaration on the ASEAN Charter 2007 Bali Concord II Entry into force of ASEAN Charter 15 December 2008 ASEAN Secretariat Jakarta ASEAN COMMUNITY 2015 ASEAN Political-Security Community (APSC) ASEAN Economic Community (AEC) ASEAN Socio-Cultural Community (ASCC) Cha-am Hua Hin Declaration on the Road Map for the ASEAN Community 2009

6 PILLARS AND ELEMENTS OF AEC 2025 Vision: Consolidation and Going Beyond Pillars and Elements: 1.An Integrated and Highly Cohesive Economy a. Finansial services liberalisation, b. Trade in services, c. Investment env., d... 2.Competitive, Innovative and Dynamic ASEAN a. Effective competition policy, b. Consumer Protection, c. Strengthening IPR coop., d. Productivedriven growth, Innovation, R&D, and Tech. Commercialisation, e Resilient, Inclusive and People-Centred ASEAN a. Strengthening the role of SMEs, b. Strengthening the role of the private sector, c Enhanced Sectoral Integration and Cooperation a. Transport, b. Telecommunication and Information Tech., c. E-Commerce, d. Finance, e. Energy, Power and Utilities, f. Food, Agriculture and Forestry, g. Tourism, h. Healthcare, i. Mineral, j. Science and Tech., k. Mega-trends such as robotics, digital manufacturing, etc. 5.Global ASEAN a. Review and improve ASEAN FTAs, b. Engaging with Regional and Global Patners

7 ASEAN s Challenges 7

8 ASEAN in Numbers Population (million) (*) GDP (USD billion) (*) GDP per capita (USD) (*) Merchand. Trade ($ billion) (*) Inward FDI (USD billion) (*) GCI (rank) Publicati on (**) Paten 2008 (***) Brunei , Indonesia , , Malaysia , , Philippines , , Singapore , , Thailand , , Cambodia Lao PDR , Myanmar Vietnam , ,904 - Sources: (*) : Compiled from ASEAN (2013) and UNCTAD (2012) ; (**): SIR SCImago Journal & Country ; (***): USPT data and ASEAN S&T State of Dev

9 ASEAN s STRENGTHs Strategically located in dynamic Asian region; generally robust economic growth; good macroeconomic fundamentals; market of 600 million people; abundance of natural resources and biodiversity; wide-ranging productive capabilities (in agriculture, manufacturing, and services); diversified exports by destination and product; mostly young, growing populations and expanding middle class; strong foreign direct investment (FDI) with strong production networks; progressive open trade and investment regimes; strong track record of regional cooperation

10 ASEAN S WEAKNESSES Development gaps between and within members in income, human capital, institutions, and infrastructure; disparities in population growth and population aging; disparities in economic growth lead to large labor deficits and surpluses among countries that spurred crossborder illegal migration; slow decision making and even slower implementation of AEC commitments due to need for consensus building and slow progress in domestic reforms; weak links between ASEAN and sub-regional programs such as the Greater Mekong Sub-region (GMS) and ASEAN growth triangles; Disparities in productivity on R&D and innovation capacity

11 ASEAN s OPPORTUNITIES Central strategic location, with high market potential; strong historical, cultural links throughout Asia; strong economic links with ASEAN+1 FTA markets in Australia, New Zealand, the PRC, India, Japan and the Republic of Korea; potential development of region-wide FTA with the PRC, Japan, the Republic of Korea, India, Australia and New Zealand (RCEP); rapidly rising middle class; deep manufacturing and technology links with Northeast Asia; financial cooperation with PRC Japan Republic of Korea in reserve pooling through the multi-lateralized Chiang Mai Initiative (CMIM)

12 ASEAN S THREATS Political security conflicts (territorial disputes); vulnerability of export-dependent economies to external shocks; lack of effective regional cooperation on climate change, water-energy-food security, and disaster management (drought, floods, earthquakes, volcanic eruptions)

13 ASEAN Committee on Science and Technology (COST): Chronological History 13

14 1. ASEAN was established by 8 August ASEAN Ad Hoc COST changed into Permanent COST (PCOST) in ASEAN Sub Committee on Protein was formed in st ASEAN Summit was conducted on Feb 1976) Bali Concord - ASEAN Secretariat was established in Jakarta ASEAN SC on Climatology was formed 5. PCOST was transformed into ASEAN COST in ASEC developed the Memorandum on Development Plan of S&T 6. 1 st Meeting of ASEAN COST (June 1978) 7. 1 st Meeting of the ASEAN Ministerial Meeting on S&T (1980) 8. ASEAN Plan of Action on S&T (APAST) for Development was formulated in 1981

15 9. Brunei Darussalam joined ASEAN in ASEAN Journal on S&T (AJSTD) was initiated st ASEAN Science and Technology Week (ASTW) was conducted in th AMMST was conducted in ASEAN Science Fund (ASF) was initiated - Advisory Body of the ASF (ABASF) was established - 8 Sub Committees were established 12. Viet Nam joined ASEAN COST in 1995, during the meeting of the ASEAN COST 32, in Bangkok 13. Medium-term Programme for ASEAN S&T Development ( ) was established 14. ASEAN Vision 2020 (1997), - Lao PDR and Myanmar joined ASEAN COST (during ASEAN COST -34, in Kuala Lumpur, Malaysia 15. Hanoi Plan of Action (HPA), , was endorsed in Cambodia joined ASEAN COST in 1999, ASEAN COST attended by 10 ASEAN Countries in the ASEAN COST 38 in Singapore - SCOSA was established

16 17. 1 st Informal AMMST, 8 April 2000, Genting Highlands, Malaysia - Augmentation of the ASEAN Science Fund 18. ASEAN Plan of Action on S&T (APAST) was adopted and extended up to th ASEAN Summit in Bali, Indonesia, ASEAN Concord II: Bali Concord II - Agreement to establish ASEAN Community (ASC, AEC, ASCC), started from APAST was endorsed in flagship programs and the Country Coordinator 1. Early Warning System for Disaster Risk Reduction (Indonesia); 2. Biofuels (Malaysia); 3. Application and Development of Open Source System (Indonesia); 4. Functional Food (Thailand); 5. Health (Singapore); 6. Climate Change (Phillipine & Viet Nam).

17 ASEAN COST: Structure and Mandate 17

18 ASEAN COST structure (ASEC) Indonesia ASEAN COST+3 ASEAN COST+1 ASEAN US Consultation meeting ASEAN Japan CCST Indonesia Malaysia Thailand Philippine & Viet Nam Singapore

19 VISION 2020 Vision (adopted by the ASEAN Heads of Gov., 1997): ASEAN in 2020 as a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in dynamic development and in a community of caring societies. Vision related to S&T development: A Community of Caring Societies a technologically competitive ASEAN competent in strategic and enabling technologies, with an adequate pool of technologically qualified and trained mainpower, and strong networks of S&T institutions and centers of excellence 19

20 MANDATE Mandate (ASEAN Declaration): "ASEAN shall promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific and administrative fields and provide assistance to each other in the form of training and research facilities in the educational, professional, technical and administrative spheres. Mandate related to S&T development (Krabi Innitiative): Attaining a technologically competitive of ASEAN, competent in strategic and enabling technologies, with adequate pool of technologically qualified, trained manpower and strong networks of scientific and technological institutions and center of excellence through S&T cooperation and supporting each others. 20

21 ASEAN PLAN OF ACTION: Aspiration, Transformation from APAST to APASTI

22 APAST : was endorsed in 2007 Extended to 2015 OBJECTIVES: To foster science and technology (S&T) as a key factor in sustaining economic growth, enhancing community well-being and promoting integration in ASEAN through human resource, research and technology development and provision of technical services to meet the needs of economic integration; To apply S&T tools and methodologies to enhance economic and industrial planning; To formulate a systematic approach in the implementation of the ASEAN help-asean programmes to address the S&T needs and strengthen the S&T infrastructure of less developed Member Countries; To use S&T as a major tool for ASEAN to move forward in a unified and cohesive manner

23 APAST : was endorsed in 2007 Extended to 2015 STRATEGIC THRUSTS: Intensifying R&D collaboration and promoting technology commercialization; Developing S&T human resources; Networking of S&T centres of excellence and programmes; Promoting S&T awareness and utilization; Strengthening S&T infrastructure and support systems; Forging closer cooperation with dialogue partners and other relevant organizations on regional projects

24 APAST : was endorsed in 2007 Extended to Sub Committees (Biotechnology, Microelectronic and IT, Material S&T, Space Application, Marine S&T, Non-conventional Energy Research, Meteorology and Geophysics, Food S&T, Infrastructure and Resource Development) 6 flagship programs and the Country Coordinator 1.Early Warning System for Disaster Risk Reduction (Indonesia); 2.Biofuels (Malaysia); 3.Application and Development of Open Source System (Indonesia); 4.Functional Food (Thailand); 5.Health (Singapore); 6.Climate Change (Philippine & Viet Nam).

25 PROGRESS OF APASTI KRABI innitiative (2010) proposed the theme for the next ASEAN PLAN of ACTION: Science, Technology and Innovation (STI) for a Competitive, Sustainable and Inclusive ASEAN Transformation APAST /15 APASTI

26 Source: ASEAN COST-6O dan 6 th IAMMST, Krabi, Des 2010 Rationale Thematic Tracks ASEAN 2015 Vision of ASEAN Leaders Roles of STI A Balance of Competitiveness and Human Development (People-oriented STI) Reinventing ASEAN Scientific Community for a Meaningful Delivery of STI Agenda in ASEAN ASEAN Innovation for Global Market Energy Security Water Management Digital Economy, New Media & Social Network Biodiversity for Health & Wealth Green Technolog y Food Security Science for Life Paradigm Shifts STI Enculturation Bottom-of-the - Pyramid Focus (BOP) Youth-focused Innovation STI for Low- Carbon Society Public-Private Partnership Platform Courses of Action Organisational restructure for a meaningful delivery of STI agenda in ASEAN Develop mechanisms to pursue partnerships and cooperation with other stakeholders in STI Enhance ASEAN Plan of Action on S&T for and leverage the recommendations of the Karbi Retreat for development of future APAST beyond 2015 Implement monitoring and evaluation mechanism for the implementation of STI thematic tracks

27 PROGRESS OF APASTI PARADIGM SHIFTS: Enculturation: a need to mainstream STI into ASEAN citizens way of lives. Innovation eco-systems are to be created in ASEAN community at all levels Bottom-of-the pyramid focus: transforming the ASCC Blueprint emphasis on HD necessitates the improvement of quality of life of ASEAN population Youth focus: recognizing the vibrancy and dynamism of ASEAN young generation, enriching their lives and learning environment with STI as an important foundation Low-carbon society: well prepared for the challenges of climate changes, ASEAN needs Green STI integration platform in its transformation towards low-carbon society Public-Private Partnership: the ASEAN private sector previously assuming limited role in scientific and technological activities should be mobilized to the forefront of the novel STI era

28 PROGRESS OF APASTI Framework Paper on Post 2015 (draft): Pillar : Competitive, Innovative and Dynamic ASEAN Element: Productiove-driven growth, Innovation, R&D, and Tech. Commercialisation: - Improving AMS labour productivity and TFP performance - Improve the innovation and technological capability - Development of national and cross-border mechanism for promoting the innovation - Supporting the research and technology park, development of joint corporate, government and/or university lab, and supporting fiscal and non fiscal policy Pillar : Enhanced Sectoral Integration and Cooperation Element: Science and Technology -Vision and goals of STI that was adopted in The 8 th Informal ASEAN Ministerial Meeting on Science and Technology (IAMMST-8) held on 25 August 2014 in Bogor, will serve as guidance in the formulation of APASTI

29 STI VISION: PROGRESS OF APASTI A Science, Technology and Innovation-enabled ASEAN which is innovative, competitive, vibrant, sustainable and economically integrated GOALS: 1.Economically integrated ASEAN involving active collaboration between the public and private sectors, and talent mobility; 2.Deep awareness of STI and the beneficial impacts of STI on the Bottom of the Pyramid; 3.Innovation-driven economy leveraging ICT and with a strong engagement of our youth in STI; 4.ASEAN Innovation reaching Global Markets; 5.ASEAN innovation addressing the Grand Challenges of the new millennium; 6.Active R&D collaboration, technology commercialization and entrepreneurship; and network of center of excellence

30 PROGRESS OF APASTI TRANSFORMATION APAST - APASTI Current Committee of Science and Technology (COST) ASEAN Science Fund (ASF) ASEAN Plan of Action for Science and Technology (APAST) Future Committee of Science, Technology and Innovation (COSTI) ASEAN Science, Technology and Innovation Fund (ASTIF) ASEAN Plan of Action for Science, Technology and Innovation (APASTI)

31 PROGRESS OF APASTI ONGOING PROCESS (Consultant s Proposal): Thematic Themes (discussion): 1. ASEAN Innovation, 2. Digital ASEAN, 3. Natural Resources (Water Management), 4. Infrastructure, 5. Food Security, 6. Energy & Environment, 7. Biodiversity (Health and Wealth), 8. Green Technology, 9. Human Capital, 10. Medical Health High Impact Program (discussion): 1. The ASEAN 2020 Economic STI Challenge 2. ASEAN STI Communication and Awareness Campaign 3. ASEAN STI Resource Development Initiative 4. ASEAN STI Human Capital Development 5. ASEAN STI Private Sector Leadership 6. ASEAN STI Capital First ASEAN Science, Technology and Innovation Fund (ASTIF) (discussion): 1. Source of Investment 2. Mechanism 3. Management

32 PROGRESS OF APASTI NEXT AGENDA for FINAL DRAFT OF APASTI (Tentative): Nov 25 Dec 15 Dec 22 Dec 30 : Final version : Final Review Meeting in Hanoi, Vietnam : Cost endorsement to the final version : Adoption by the Minister of AMS

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