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Asia Pacific Executive Forum SUMMARY REPORT EAST-WEST CENTER Summary Report Asia Pacific Executive Forum SUMMARY REPORT Doing Business in a Changing Asia: A Strategic Vision January 16-19, 2001 East-West Center, Honolulu Sponsored by the East-West Center, East-West Seminars in Partnership with Frost & Sullivan The Asia Pacific Executive Forum "Summary Report" summarizes the presentations, discussions and conclusions of the conference. The Summary Report reflects the diverse perspectives of the participants and does not necessarily represent the views of the East- West Center or its sponsors. The price per copy is $20.00 plus shipping and handling. For more information, please contact: Publications Sales Office East-West Center 1601 East-West Road Honolulu, Hawaii 96848-1601 U.S.A. E-mail: [email protected] Tel: (808) 944-7145 Fax: (808) 944-7376 Website: www.EastWestCenter.org For more information on East-West Seminars, please contact: E-mail: [email protected] Tel: (808) 944-7682 Fax: (808) 944-7600 © East-West Center 2001 TABLE OF CONTENTS Preface Acknowledgements Executive Summary Welcome and Opening Remarks Dr. Charles E. Morrison, President, East-West Center Mr. Aroop Zutshi, President, Asian Operations, Frost & Sullivan, San Jose Keynote Address: Asian Options and the New American Administration Professor Tom Plate, Professor, Policy Studies and Communications Studies, University of California, Los Angeles; Pacific Perspectives Columnist Moderator: Dr. Charles E. Morrison, President, East-West Center Corporate Restructuring After the Asian Crisis Mr. David D. Hale, Global Chief Economist, Zurich Financial Services, Chicago Moderator: Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Post-Cold War U.S. Interest in the Asia Pacific Dr. Charles E. Morrison, President, East-West Center Moderator: Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Shifting Trading Arrangements in Asia Pacific: Implications for Market and Nonmarket Strategies Dr. Vinod Aggarwal, Managing Director, Nonmarket Strategy Group, Frost & Sullivan, San Francisco Moderator: Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Keynote Luncheon Address: Protecting You and Your Business: Report on Terrorism and Other Risks Mr. Myron R. Fuller, Special Agent in Charge, U.S. Federal Bureau of Investigation, Honolulu Moderator: Ms. Karen Knudsen, Director, Office of External Affairs, East-West Center Key Issues for Doing Business in the Asia Pacific: Energy, Environment and Business, and Population Is Energy the Region's Achilles Heel? Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Environment and Business, Ms. Lyuba Zarsky, Program Director, Globalization and Governance Program, The Nautilus Institute, Berkeley Aging Asia, Dr. Andrew Mason, Senior Fellow, East-West Center and Professor and Chair, Department of Economics, University of Hawaii, Honolulu Co-Moderator: Dr. Vinod Aggarwal, Managing Director, Nonmarket Strategy Group, Frost & Sullivan, San Francisco Co-Moderator: Dr. Jefferson Fox, Acting Director of Studies, East-West Center Political Changes in Asia: An Overview 21 Dr. Muthiah Alagappa, Senior Fellow, East-West Center Moderator: Dr. Vinod Aggarwal, Managing Director, Nonmarket Strategy Group, Frost & Sullivan Panel Session: A Business Agenda for the Region 23 Mr. Roberto F. de Ocampo, President, Asian Institute of Management, Makati City, Philippines Mr. Bob Ellison, Director, SwapNet Limited Mr. James B. Gebhard, (retired) Regional Vice President, Southeast Asia, Hughes Electronics International Corp. Moderator: Dr. Vinod Aggarwal, Managing Director, Nonmarket Strategy Group, Frost & Sullivan Panel Session: Japan 27 Competitive Telecom Environment and IT Ventures Will Become the Driving Force of the New Economy in Japan, Dr. Sachio Semmoto, Founder, Chairman, and CEO, eAccess Ltd. Tokyo, Japan U.S.-Japan Relations, Dr. David McClain, Dean and First Hawaiian Bank Distinguished Professor of Leadership and Management, College of Business Administration, University of Hawaii, Honolulu Moderator: Dr. Susan J. Pharr, Edwin O. Reischauer Professor of Japanese Politics and Director, Program on U.S.-Japan Relations, Harvard University Panel Session: China 32 Where is China Heading? Mr. John Thomson, Managing Editor, China Online Inc., Chicago U.S.-China Relations, Dr. Susan L. Shirk, Professor, Graduate School of International Relations and Pacific Studies, University of California, San Diego and Research Director, Institute on Global Conflict and Cooperation, San Diego Moderator: Mr. Dennis Donahue, Coordinator, Media Program, East-West Center India: New Market Opportunities 37 Mr. Aditya Sapru, Director, India Operations, Frost & Sullivan, Mumbai, India Moderator: Mr. Dennis Donahue, Director, Media Program, East-West Center Keynote Luncheon Address: 40 Election 2000: What Really Happened? Mr. Neil S. Newhouse, Partner, Public Opinion Strategies* Alexandria, Virginia Moderator: Mr. Charles E. Morrison, President, East-West Center The Koreas 43 Dr. Ungsuh Kenneth Park, President and CEO, KOHAP Corporation, Seoul Moderator: Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Panel Session: ASEAN 46 Mr. Jusuf Wanandi, Chairman, Supervisory Board, Centre for Strategic and International Studies, Jakarta His Excellency Rodolfo C. Severino Jr., Secretary General, ASEAN Moderator: Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Concurrent Roundtable Sessions 50 Track A Information Technology and Telecommunications Roundtable Discussion Co-chairs: Dr. Mark Hukill, Associate Professor, School of Travel Industry and Management, University of Hawaii, Honolulu Mr. Manoj Menon, Director, Technology Practice (Asia Pacific), Frost & Sullivan, Singapore Track B 52 Banking and Finance Roundtable Discussion Co-Chairs: Dr. S. Ghon Rhee, K. J. Luke Chair of International Finance and Banking and Executive Director, Asia-Pacific Financial Markets Research Center, University of Hawaii, Honolulu Mr. Paul Tarn, Director, International Business Development, OffRoad Capital Corp., San Francisco Track C 54 Energy Industry Roundtable Discussion Co-Chairs: Dr. Fereidun Fesharaki, Senior Fellow, East-West Center Mr. Larry M. Rinek, Director of Consulting, Industrial Technologies, Frost & Sullivan, San Jose Appendices Program Agenda 59 Speaker Participant List 66 Sponsor Profiles 70 PREFACE The "Asia Pacific Executive Forum - Doing Business in a Changing Asia: A Strategic Vision" (January 16-19, 2001) was sponsored by the East-West Center in partnership with Frost & Sullivan, an international marketing consulting company. Supporting organizations included the Pacific Basin Economic Council, the U.S. Department of Commerce, the International Trade Administration, the U.S. Commercial Service, and the Honolulu Export Assistance Center. Designed as a corporate retreat, the Asia Pacific Executive Forum brought together senior multinational executives, government policymakers and experts from the East-West Center and Frost & Sullivan for intensive dialogue on critical issues facing Asia Pacific and their impacts on economics and business in the region. The two-day meeting provided a unique opportunity for corporate leaders to gain insights into and discuss key issues relating to the future economic and business outlook in Asia Pacific. Participants benefited from analyses of political trends in the region, shifting trade arrangements, and changing U.S. policies towards major Asian countries. Panel sessions focused on Japan, China, South Korea, and ASEAN, as well as corporate restructuring, energy, population and aging, and the environment. Participants also attended sessions on key industry sectors, including information technology and telecommunications; banking and finance; market engineering; and energy. Participants were also invited to schedule private consultations with East-West Center and Frost & Sullivan experts on specific areas of interest. ACKNOWLEDGEMENTS The East-West Center's East-West Seminars and Frost & Sullivan would like to acknowledge the speakers and moderators for contributing their knowledge and expertise on the critical issues addressed at the forum. The forum could not meet its objectives without the participation of the audience for providing lively and informative discussions on the key issues. The organizers would like to extend their special thanks to the supporting organizations: The Chamber of Commerce of Hawaii, the Pacific Basin Economic Council, Red Herring Communications, and the U.S. Department of Commerce's U.S. Commercial Service, Honolulu Export Assistance Center. Lastly, warm expressions of appreciation are extended to Ms. Jane Skanderup at the Pacific Forum/CSIS for the task of rapporteuring and writing the summation of the forum, Mr. Ken Banks, the copyeditor, for completing the summary draft for publication in a timely manner, and Mr. John Countryman and Mr. Takashi Yamamoto for rapporteuring and providing the summaries during the forum's roundtable sessions. ii Executive Summary The Asia Pacific Executive Forum addressed a variety of topics. The purpose of the meeting was to facilitate dialogue and not necessarily to come to conclusions. Some of the more salient points made by presenters or other participants are summarized below. Weak political leadership in much of Asia and the Pacific reflects the relatively newness of the political systems and the magnitude of the challenges facing rapidly changing societies. As the economic crisis demonstrated, many Asian countries are still in the process of developing modern states and
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