Speech
of
His Excellency Fidel V. Ramos
President of the Philippines
At the Manila Forum in preparation for the Asia-Europe Meeting in 1998

[Delivered at the Shangri-La EDSA Plaza Hotel, Manila, December 10, 1997]

A new Asian-
European partnership

I AM DELIGHTED to welcome to Manila all our guests from Asia and Europe—and to open this conference that brings our two continents together. You could not have chosen a more fitting site for this forum.

In 1521 mankind completed its map of the world when Ferdinand Magellan—sailing westward from Spain—touched land in our archipelago. His historic crossing of the Pacific from the Americas—when joined together with the earlier discovery of the Indies by other Europeans—finally defined the modern contours of the globe.

Seven months from now, we Filipinos will celebrate the centennial of our proclamation of Independence. In 1898 we broke free from the bonds that had tied our lives to Spain and Europe for more than four centuries. Today, we come full circle—in having the honor of bringing together representatives of the new Europe and the new Asia—a community of nations, now equally sovereign but closely interdependent—to discuss our common future.

This meeting continues the process of forging a new relationship between Asia and Europe which we inaugurated last year in Bangkok—when Asian and European leaders convened for the first Asia-Europe Meeting, or ASEM. In April next year, our leaders will be coming together in London for the second Asia-Europe Meeting.

None of us needs any instruction here on the far-reaching significance of this collective undertaking.

Beginning our journey together

If there is one theme that defines our labors, it is the search for partnership between Europe and Asia—a partnership between two economic and cultural powerhouses—one being the world’s largest single and wealthiest market; the other being the fastest-growing.

While we are all convinced this mighty enterprise will decisively shape developments in the 21st century, we also know we are just at the beginning of our journey together. We are still laying down the foundations for our partnership—defining a common vision; setting a common agenda; and building the mutual confidence and understanding that comes from working together.

It is especially at this stage that our heads of state and government seek the wisdom and support of civil society—especially those who play key roles in our intellectual and economic life.

I therefore welcome the convening of this Manila Forum as a manifestation of this support and an exercise that will be of immense value to our political leaders in preparing for next year’s ASEM summit.

Trade relations between Asia and Europe go far back to the time of the earliest civilizations. As Europe’s power rose from the Middle Ages, Europeans came to Asia not only as conquerors and colonizers, but also as traders, missionaries and educators. It was European thought and example that inspired Asia’s greatest minds and leaders of the late 19th and early 20th centuries to fight for their countries’ independence, and to create the nation-states that make up the Asia of today.

We have also drawn lessons from the tragedies this century has brought on our two continents. The two great wars of this century devastated many countries in Europe and Asia. And both our continents became battlegrounds of the Cold War—and continue to bear the scars the violence of that time has brought upon us.

Building a new relationship

Today, both our continents have embarked on regional economic integration, peaceful resolution of conflicts and cooperation. The new Europe is well on its way toward full economic union. The new Asia—despite its recent setbacks—promises to become the most exciting market of the early 21st century.

Despite these salutary changes, however, the relationship between Asia and Europe has diminished rather than expanded. Over the past half-century, Europe has concentrated its attention on its own hemisphere—while most Asian countries have become more closely integrated with each other and the Americas.

Although the volume of trade between Asia and Europe has indeed expanded during this time, it has not developed as fast as their trade with their other economic partners. Most Asians who studied overseas in the previous century looked primarily to Europe, but they no longer do so today.

Asia and Europe have drifted apart for various reasons, but mostly as a consequence of the failure to find a basis for building a new relationship over the ruins of the colonial past. This new relationship is what we are striving to build in our time—through ASEM, through this forum and through many other initiatives.

Beginning with the earliest efforts of ASEAN and the European Community some years ago, the dialogue between Asia and Europe has become animated—with the rediscovery of great opportunities that lie ahead. The growing roles of a resurgent Asia and a unified Europe on the world stage have refocused our eyes on each other and on the importance our relationship will have on the future of world peace and prosperity.

Transcending our differences

To build this new relationship, we must understand not only the bonds that unite us—but the differences that divide us. Our societies stand on the foundations of different cultures and civilizations. For many Europeans—be they businessmen, politicians or tourists—Asia is still an alien world, whose ways and customs are unfamiliar. Most Asians feel the same way about Europe.

Thus it is not surprising that, in building our relationship, we should encounter misunderstanding.

Nevertheless, isolation—even partial—is no longer a tenable option in this era of global interdependence that we are entering. For our enterprises to remain competitive and for our economies to remain viable, Asia and Europe must deal with each other. Since our foreign policies are increasingly driven by public opinion, we cannot risk cultural chauvinism, prejudice and ignorance about each other’s ways that could lead toward what one political scientist has called “a clash of civilizations.”

Bridging the cultural gap

Our societies must learn to appreciate each other’s values, sensitivities—and the social, economic and historical context of basic issues such as civil liberties, human rights, self-determination and sovereignty.

A deeper understanding of each other’s culture and values is especially important if we want to realize fully the immense potential for economic exchange and cooperation between us. We need to bridge the cultural gap that deters our enterprises from plunging boldly into each other’s markets. Business alliances can survive and flourish only if they are based on mutual understanding and mutual respect. Technology exchange, which lies at the heart of long-term economic partnership, can only expand and succeed if we understand how to make technology work within specific cultural and social contexts.

This is especially important for small and medium enterprises—or SMEs—which make up the vast majority of enterprises in Asia and Europe. While large multinational corporations have ample resources to operate effectively across borders and cultures, SMEs do not. Yet, SMEs—which are now awakening to the new technologies and opportunities of global business—can link our economies at the grassroots. Thus we must find ways to unlock this potential, by building bridges to facilitate the flow of goods, services, capital, information and technology among ourselves.

Promoting openness of economies and societies

It is also important for us to continue promoting the openness of our societies and economies. Open societies are best-equipped to survive and prosper in an era of rapid change and technological advances.

Our own experience with economic and social reforms in the Philippines over the past five years has proven us right, and I would like to share this with you.

We have turned our backs on protectionism, authoritarianism and overregulation—all of which have fostered inefficient monopolies, oligarchies and cartels that profited at the expense of small enterprises and consumers. Against the resistance of those who fear competition, we have liberalized and deregulated our economy—freeing our foreign-exchange market; lowering our tariff rates; introducing competition in our telecommunications, civil aviation, banking, insurance and shipping sectors; and promoting a larger private-sector role in infrastructure development.

I need not tell you what effects these reforms have had on our economy. You can see for yourselves the dynamism the Philippines has attained. From being the “sick man of Southeast Asia” in the 1980s, our country has become the region’s newest tiger cub.

The turmoil currently sweeping East Asia’s financial markets has affected us the least—and we continue to move toward our exit from the IMF program—which has been a controversial but necessary medicine our economy has had to take during the past many years.

Since Day One of the Ramos Administration, we have been convinced—and we remain convinced—that embracing the global economy is the right thing to do and that empowering our people for global competitiveness is the right path to the 21st century. We will therefore continue—and I am sure the next administration after June 30, 1998, will continue—to speed up the process of economic and social reform—our opening up to the world—within the context of the World Trade Organization, the Asia-Pacific Economic Cooperation (APEC) grouping and the ASEAN Free-Trade Area.

Development cooperation

Meanwhile, we should not forget an important element that complements our efforts to open up our economies—and that is development cooperation. Our experience has shown the importance of this factor, especially in our relations with the European Union. We recognize the continued need for development cooperation—but in a way that is more attuned to the needs of the present.

We therefore hope to develop in ASEM a dynamic framework for development cooperation that will support and encourage efforts at further economic and social reform.

I consider ASEM a crucial forum for Asia and Europe to nourish—in order that we all may move more effectively toward the goals of ensuring the success of the multilateral trading system—of maintaining world peace—and of promoting the common values of our societies.

I am sure that after we have put in place the needed policies and corrective measures in response to the financial difficulties we are facing, we the Asian economies will reemerge stronger and more committed to these goals. ASEM, as a partnership of Asian “tigers,” and European “lions,” will certainly be a potent force on the world stage.

A message from Manila

These key activities—of nurturing mutual understanding, transcending differences, promoting openness and forging development cooperation—make up the bedrock of partnership between the new Europe and the new Asia.

I believe this “Manila Forum”—in a broader way than the “Manila Framework” (for financial reform in APEC)—will contribute to this far-ranging effort by spelling out the many practical and concrete ways whereby we can promote and foster this spirit of partnership.

All of you who are gathered here are the people who understand the most what unifies and what separates Asia and Europe. Thus you can play important roles in promoting our mutual understanding. You the experts, the movers and shakers, are the bridges between cultures—and on you will depend the eventual success of the initiatives we will take in ASEM and of the broader cooperation between our two continents.

So it is my hope—which I am certain is shared by other Asian and European leaders—that in the next two days of deliberations, you will come up with concrete ideas and recommendations on how we—the ASEM leaders—should go forward in building this new partnership between the new Asia and the new Europe.

It will be my privilege to take your message—the message from Manila—to next year’s ASEM Summit in London. I look forward to your collective input to our discussions, coming from the leading representatives of Asian and European academe and enterprise.