FIRST FIVE YEARS: HOW IT BEGAN AND WHAT IT HAS DONE

Asia”, which was reported to the East Energy “We, the Members of the Governing Board of Ministers’ Meeting also in August 2007. Based ERIA, hereby agree that: on the results of these projects and the thorough discussions of the Expert Group, the formal FIRST, the Institute shall be known as the Economic establishment of ERIA was agreed upon by all the Research Institute for ASEAN and , to leaders of the at the Third East be temporarily accommodated in the ASEAN Asia Summit in on 21 November 2007. Secretariat.

Excerpts from the Chairman’s Statement of the SECOND, the Institute shall function as an Summit read as follows: independent research institute but shall maintain and develop strong communication ties with [the] THE BEGINNING International Studies (CSIS), , and “13. We agreed to the establishment of the policy-making process. Especially, the Institute shall On 23 August 2006, during the 13th Consultation composed of experts from 16 East Asia Summit Economic Research Institute of [for] ASEAN and support ASEAN’s endeavor to build the ASEAN held between the ASEAN Economic Ministers (EAS) countries and the ASEAN Secretariat. The East Asia (ERIA) to be accommodated temporarily Economic Community (AEC) and support its role as and the Ministry of Economy, Trade and Expert Group had intensive discussions on the at the ASEAN Secretariat. We welcomed the the driver of the wider economic integration. The Industry of (AEM-METI) in Kuala Lumpur, overall idea of ERIA, in particular, its objectives, report submitted to us by the Expert Group, which results of its research works shall produce concrete the name “Economic Research Institute for activities, structure, research themes, and capacity focuses on research topics of strategic interest and tangible policy recommendations that shall ASEAN and East Asia (ERIA)” appeared for the building program. to the EAS countries. We encouraged the Expert meet the needs of Ministerial and National first time. In this meeting, Mr. Toshihiro Nikai, Group to continue its research work and we looked Leaders’ meetings. Japan’s Minister of Economy, Trade and Industry, At the Second East Asia Summit held on 15 forward to practical policy recommendations proposed to establish a think tank called ERIA January 2007 in Cebu, , Mr. Shinzo Abe, to further regional integration and strengthen THIRD, the Institute shall maintain its highest that would approximate an East Asia version of , formally proposed to partnerships in East Asia.” academic standards in its research activities, but the Organisation for Economic Co-operation and establish ERIA and the EAS Leaders welcomed said shall never become an “Ivory Tower” secluded Development (OECD) and committed to contribute proposal. Thereupon, on 1 April 2007, the Expert On 3 June 2008, ERIA was established as an from the actual economic realities and people’s more than 10 billion Japanese Yen in 10 years. A Group agreed on the Points of Convergence on organisation with its headquarters located at livings. It shall provide a tripartite-type forum joint media statement of said consultation later the Institutional Set-Up of ERIA, which defined the the ASEAN Secretariat and during its inaugural for policy dialogue and interactions among stated that the ASEAN Ministers welcomed Japan’s objectives, activities and policy interface of ERIA. Governing Board Meeting, Dr. Dinh Van An was researchers, policymakers, and civil society. proposal and requested Japan to discuss it further In addition, two test-run research projects were selected as Chairman, Prof. Hidetoshi Nishimura with the ASEAN Secretariat. started through a collaboration among 16 regional was appointed as Executive Director, and the FOURTH, the Institute shall provide meaningful research institutes. One was titled “Developing statement on the Establishment of the Economic resources for narrowing development gaps and In response to this, then ASEAN Secretary General, a Roadmap toward East Asian Economic Research Institute for ASEAN and East Asia (see enhancing research capabilities in countries in Mr. , initiated the creation of an Integration”, which was reported to the ASEAN below) was thereupon adopted. need for improvement of public policy-making and ERIA Expert Group chaired by Dr. Hadi Soesastro, Economic Ministers Meeting in August 2007, research abilities, to build up confidence of these Senior Fellow at the Centre for Strategic and and the other was the “Energy Security in East countries in the integration process.

14 Economic Research Institute for ASEAN and East Asia Annual Report 2013 Annual Report 2013 Economic Research Institute for ASEAN and East Asia 15 FIRST FIVE YEARS HOW IT BEGAN AND WHAT IT HAS DONE

FIFTH, the Institute shall function as a common ERIA’S STRUCTURE THE SETTING: RESPONDING TO THE REGION’S subregion-wide development, and promotion of asset to the ASEAN and East Asian countries Apart from the Governing Board which serves NEEDS people-to-people exchanges. in providing a common platform for rigorous as the highest decision-making body of ERIA, How has ERIA responded to the needs of the economic studies, and its activities shall be open ERIA is supported and advised by experts in its region in the past five years? Has it sufficiently Connectivity and narrowing the gap issues for cooperation with various prominent economic organisational set up. The Academic Advisory addressed ASEAN’s endeavour to build the AEC? In this regard, they encouraged the ERIA, the research institutions and organizations around the Council (AAC) is composed of a number of Has it helped in narrowing development gaps in Asian Development Bank (ADB) and the ASEAN world, just as the East Asian economic integration internationally renowned East Asia Summit the region and in improving the capabilities of Secretariat to work together to prepare as shall be wide open, not closed to the rest of the countries’ scholars and experts from universities, countries in need for better public policy making soon as possible a coherent master plan that world.” research institutions, the private sector, and research as they go through the regional would contribute to coordinating, expediting, international organisations and non-governmental integration process? And has it adequately upgrading and expanding subregional initiatives While ERIA’s headquarter is located at the ASEAN organisations. It provides advice and support helped in providing rigorous analysis and and promoting private sector participation. In Secretariat, it had to have more space for the to the Executive Director on the annual work recommendations to resolve regional economic addition, they called upon ERIA to provide policy conduct of its research activities and organisational program, review and evaluation of the research issues and crises? recommendations to stimulate economic growth operations. Thus, it set up an Annex office at the outcomes, and review and evaluation of the in the region, deepen regional integration and Senayan area, about 2 kms away from the ASEAN performance of the researchers. The first AAC At the height of the global economic and strengthen partnership in East Asia. Secretariat, which was officially opened on 17 meeting was held on 18 May 2009. financial crisis of 2008-09, 16 EAS countries September 2008, with Dr. Dinh Van An, Governing issued a statement in June 2009 titled “Joint Responding to this mandate, ERIA completed Board Chairman; Dr. Surin Pitsuwan, ASEAN ERIA has another advisory body outside of its Press Statement of the East Asia Summit on the the “Comprehensive Asia Development Plan Secretary General; Mr. Takamori Yoshikawa, Senior organisation, the Research Institutes Network (RIN), Global Economic and Financial Crisis,” which (CADP)” whose conceptual framework utilizes Vice Minister of Economy, Trade and Industry of which consists of a network of research institutes called for taking appropriate and coordinated the fragmentation theory and new economic Japan; and Mr. Primo Joelianto, Director General in the East Asia region. Recognizing the fact that measures against the impact of the financial geography. The CADP provides a grand spatial of Asia Pacific, Ministry of Foreign Affairs of a network of research institutions is the key to crisis and the downturn of the world’s economy design of economic infrastructure and industrial Indonesia, in attendance. ERIA’s academic/research activities, members of as well as strengthening the region’s growth placement in ASEAN and East Asia. It designates the Expert Group, which also provided support to potential and expanding demand. The 16 EAS the intended regions of analysis in terms of In full recognition of the key role that it will play, ERIA’s test-run research projects, established the Leaders expressed determination to address three tiers. Tier 1 includes countries/regions ERIA was also given the status of an International RIN in February 2009. The RIN has since supported these concerns through the acceleration of that are already in production networks and Organisation through a formal agreement ERIA’s research activity by providing country basic infrastructure improvement, strengthening where industrial agglomerations have started to between the Indonesian Government and the information and research findings from individual of policies and measures to expand domestic form. Tier 2 corresponds to countries/regions ASEAN Secretariat on 30 December 2008. With countries, and giving advice to ERIA’s research demand, expansion of assistance to the private that are not yet fully integrated into quick and all members of the ERIA Governing Board in themes and policy recommendations, as well as sector, in particular SMEs, and promotion of high-frequency production networks. Tier 3, on agreement, ERIA then operated on the basis of this encouraged the dissemination of ERIA’s research human resources development. More importantly, the other hand, consists of countries/regions status, with Mr. Hidetoshi Nishimura appointed as outcomes to policymakers, opinion leaders and they called for the need to advance regional that are not likely to come into high frequency its Executive Director. political leaders who implement policies. It has also cooperation efforts such as ASEAN integration, production networks in the short run but expect supported ERIA’s capacity building program since facilitation of trade and investment, promotion of new industrial development through better its establishment.

16 Economic Research Institute for ASEAN and East Asia Annual Report 2013 Annual Report 2013 Economic Research Institute for ASEAN and East Asia 17 FIRST FIVE YEARS HOW IT BEGAN AND WHAT IT HAS DONE

logistics infrastructure. The CADP emphasises the the ASEAN Summit leaders. To this date, the two The ERIA AEC Scorecard project and Mid-Term measured, Phase 2 of the ERIA Scorecard Project effectiveness of development strategies centered documents serve as the basis for implementing Review of the Implementation of the AEC did a survey of the ASEAN private business sector’s on economic corridors in promoting fragmentation connectivity-related projects that spur subregional Blueprint priority needs and found that the sector wanted of production activities. This is realised by development and people-to-people exchanges. Signed by the ASEAN Leaders at the 13th ASEAN to put more emphasis first and foremost on the connecting the different tiers along the corridors And since then, ERIA has worked closely Summit on 20 November 2007 (just before the improvement of trade facilitation measures such through reduction of service link costs and control with the ASEAN Connectivity Coordinating global financial crisis), the ASEAN Economic as custom clearance procedures and the National of agglomeration/dispersion effects. Committee (ACCC) and the ASEAN Secretariat Community (AEC) Blueprint lays the foundation for Single Window, and then of investment and in implementing the MPAC, especially on how to the creation of an ASEAN economic community. In transport facilitation measures. In addition, Phase ERIA further supplemented its work on the CADP develop Private-Public Partnership (PPP) in the April 2009, the Leaders of ASEAN signed the Cha- 2 also developed an alternative scoring system with its support on the drafting of two chapters in AMSs, and also organized Connectivity Symposia am Hua Hin Declaration on the Roadmap for the for these measures. Through the results of these the Master Plan on ASEAN Connectivity (MPAC) annually in collaboration with the ACCC and the ASEAN Community (2009-2015) and later agreed alternative scores for the core measures, the AMSs wherein findings from the CADP study were ASEAN Secretariat. on the accelerated time table for the realisation of had been able to see the true situation of how far utilised. The CADP was specifically mentioned with the ASEAN Community. they have gone towards achieving the objective of appreciation during the Fifth East Asia Summit held ERIA has also completed CADP-2, further having an ASEAN economic community by 2015. in Ha Noi on 30 October 2010 while the MPAC elaborating CADP and showing the huge potential In 2009, the ASEAN Economic Ministers (AEM) was endorsed during the 17th ASEAN Summit held in developing the Mekong- Economic requested ERIA to conduct a study that reviews Based on these experiences, the AEM 2011 on 28 October 2010. In this connection, ERIA’s Corridor which starts in Ho Chi Minh at the east the implementation of the AEC Blueprint as a Chair, H.E. Mari Elka Pangestu, in her 15 April support to the MPAC was likewise appreciated by end and reaches India at the west end. Based on complement to the official scorecard prepared 2011 letter to ERIA, requested ERIA to assist this study, the Heads of Government of Japan, and used by the ASEAN Secretariat on the ASEAN in undertaking the Comprehensive Mid- , Lao PDR, , and Viet implementation of the Blueprint. The ERIA study Term Review (MTR) of the AEC Blueprint and in Nam, during the 3rd Mekong-Japan Summit held is basically a compliance scorecard and focuses providing policy analyses/recommendations to in Bali on 18 November 2011, and following the on the status of the liberalisation and facilitation the AEM in order to (a) assess the effectiveness public announcement by ASEAN of Myanmar’s environment, and the eventual impact of the AEC of the adopted measures of the AEC Blueprint ASEAN Chairmanship for 2014, acknowledged the Blueprint. Because the ASEAN Secretariat’s AEC as well as the contribution of the AEC Blueprint need to formulate a comprehensive development scorecard mainly monitored the progress of tariffs, measures to economic growth, employment, study for Myanmar which will make “an important the ERIA scorecard study decided to add indicators competitiveness and social welfare within ASEAN, contribution to the enhancement of Intra Mekong that would also measure the progress in areas and to (b) provide recommendations to enhance and ASEAN connectivity”. Thereupon, they agreed such as investment and trade facilitation. Phase the implementation of the AEC Blueprint. On for ERIA to develop the Myanmar Comprehensive 1 of the ERIA Scorecard Project thus covered 28 August 2012, ERIA presented the output and Development Vision (MCDV). The MCDV is (1) investment liberalisation and facilitation; (2) highlights of its mid-term review at the 8th AEC expected to be utilised as the basis for Myanmar’s trade facilitation; (3) transport; and (4) logistics Council Meeting in Siem Reap. Said report and long term national plan. services. To determine which of the measures the prioritisation it presented were welcomed by listed in the Blueprint are the ‘core’ which needed ASEAN Leaders at the 21st ASEAN Summit in improvement and had to be monitored and Phnom Penh on 18 November 2012.

18 Economic Research Institute for ASEAN and East Asia Annual Report 2013 Annual Report 2013 Economic Research Institute for ASEAN and East Asia 19 FIRST FIVE YEARS HOW IT BEGAN AND WHAT IT HAS DONE

The ERIA AEC Scorecard Phase 3 then focused the ASEAN region, ERIA was able to put together Capacity building program on regulatory reform and improved regulatory several thought or issues papers under the project Finally, as the Statement on the establishment of coherence in the ASEAN countries to help named ASEAN Rising: Moving ASEAN and AEC ERIA mentions, ERIA is to help build the capacities bring about a more responsive and conducive Forward Beyond 2015. With its completion in 2013, of countries that are in need of improvements in environment for facilitation and liberalisation the report has been submitted to the High Level their research and policymaking capabilities to reforms. At the start of 2013, the Project Task Force on Economic Integration (HLTF-EI) and prepare them for the process of deeper regional entered its fourth phase which compares AEC presented in various roadshow presentations in the integration in the ASEAN region, especially in the commitments with actual implementation and ASEAN region in late 2013. CLMV (Cambodia. Lao PDR, Myanmar and Viet policies in the AMSs and analyses the reasons as Nam) countries. In this connection, ERIA has, since well as bottlenecks, if any, for the results. Towards realising Sustainable Development – its establishment, conducted a number of capacity studies on Energy building seminars on the topics related to regional FTA mapping and RCEP studies Since its establishment, ERIA has allocated integration in these countries. The memorable The first five years of ERIA were also punctuated by huge resources to studies related to sustainable first seminar was held on 28 January 2009 in its active involvement in the analysis and mapping development in this region, especially focusing on Community Forward into 2015 and Beyond”. For Phnom Penh. The theme was on the “Impact of of ASEAN free trade agreements (FTAs) with energy-related issues. In this light, ERIA has further this particular symposium, ERIA Executive Economic Integration to CLMV Countries”. Since various dialogue partners and the utilization of strengthened and enriched its capacity to do Director, Prof. Nishimura, together with ASEAN then, seminars have been organised in each CLMV said FTAs by ASEAN business sectors. At the same research on energy concerns as it established an Secretary General, Dr. Surin Pitsuwan, handed over country every year. In mid-2013, ERIA also started time, ERIA also provided intellectual support to the Energy Unit in April 2012 and designated a Special the Symposium’s set of policy recommendations the “Executive Capacity Building Program” which Regional Comprehensive Economic Partnership Advisor to the Executive Director on Energy dubbed as the “Jakarta Framework” to the is designed for government officials of CLMV and (RCEP) negotiation, delving into the importance Affairs. ASEAN Chair, H.E. . In Thailand at the level of Deputy Director General of the notion of “ASEAN Centrality” both as a 2012, the Third Symposium on “Realizing a More who will subsequently become the key players process facilitator and driver of the substance of ERIA-ASEAN Chair-Harvard University Symposia Integrated, Competitive, Equitable, and Resilient as senior officials in the field of transport, trade the RCEP negotiation. In addition to the above-mentioned activities, ASEAN Community” was held in Phnom Penh, and commerce, and development planning. The ERIA, as the only Sherpa organisation in the region, and the outcomes and recommendations of this capacity building programs have been conducted ASEAN and AEC beyond 2015 has likewise supported the Chair of ASEAN in the symposium were handed over to the ASEAN Chair, with the support of the Bangkok Research Center- Meanwhile, responding to the call first made by latter’s Summit activities every year. A typical H.E. Samdech Akka Moha Sena Padei Techo Hun JETRO Bangkok. the Indonesian President, H.E. Dr. Yudhoyono, example is the annual big symposium organised Sen, by Prof. Nishimura. And in 2013, the Fourth during the opening of the 18th ASEAN Summit in by ERIA, together with the year’s ASEAN Chair Symposium in Bandar Seri Begawan focused May 2011 to “start the discussion on what ASEAN country and Harvard University, on a topic that on “SME Development and Innovation Towards would be beyond 2015 and how to achieve such represents one of the deliverables of the Chair. a People-Centered ASEAN Community”. The vision”, ERIA embarked on a major undertaking In 2010, the first of this type of Symposium was symposium report was circulated during the 8th in 2012 which looked into various areas related to held in Ha Noi on the theme “Evolving ASEAN East Asia Summit in in 2013. ASEAN and AEC beyond 2015. Tapping the huge Society and Establishing Sustainable Social Security reservoir of experts and specialists largely from Net”. In 2011, the Second Symposium was held in Jakarta, with the theme on ”Moving ASEAN

20 Economic Research Institute for ASEAN and East Asia Annual Report 2013 Annual Report 2013 Economic Research Institute for ASEAN and East Asia 21