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Australia Proposes Asia-Pacific Union, United States Included

Australia Prime Minister Kevin Rudd
Australia Prime Minister Kevin Rudd

AUSTRALIAN RULES: Australia Prime Minister Kevin Rudd recently outlined a plan to organize a new regional body of Asia-Pacific countries, similar to the European Union. Rudd envisions the Asia-Pacific bloc to be in place by 2020; China has already expressed support.

In an address to the Asia Society Australasia in Sydney, Australia, Wednesday, the prime minister called for cooperation among the countries of this growing region. Rudd added that he wants the new bloc to include, among many other countries, the United States, China, Japan, India, and Indonesia. Critics view the proposal as overly ambitious and unnecessary.

Cooperation Among Asian and Pacific Nations Key

Rudd, who was elected last November, stressed the importance of Asian and Pacific countries working together now for mutual benefit. Waiting would not be prudent.

"I believe it's time that we started to think about where we want to be with our regional architecture in 2020," Rudd said. (The Australian, 6/5/08)

Rudd envisions the new organization cooperating on economic and political issues. Experts say that the region's economic influence could grow exponentially, especially with the exploding middle-class in countries like India and China. (See sidebar.)

Politically, the new Asia-Pacific union could work to ease regional conflicts. Rudd pointed to the following territorial disputes as examples:

  • Taiwan Strait
  • Korean Peninsula
  • Kashmir Region

Is an Asia-Pacific Union Necessary?

Critics of Rudd's proposal deem it unnecessary.

Dennis Jensen, a member of Australia's House of Representatives, said he didn't see the need for an Asia-Pacific bloc. "We actually have or had very good relationships with all of the nations in the region so no, it's not necessary," Jensen said. (Australian ABC News, 6/5/08)

Australia's opposition party foreign affairs spokesperson, Andrew Robb, called the plan ‘presumptuous.'

"His first job is not to be making pronouncements about grand architecture for the region, telling China, Indonesia and Japan and India how they will be organized as a region by Australia in the next 20 years," Robb said. (BBC, 6/5/08)

Rudd has admitted his proposal is bold, but vital to the region's economic growth and political stability. And he doesn't appear to be alone.

China on Board with Australia Proposal

While Rudd's critics voiced their concern, one of the major players in the proposed Asia-Pacific union expressed its support.

Chinese officials said Thursday that they would back any plan that promotes cooperation in the region.

"We hope countries in the Asia-Pacific can make joint efforts to enhance exchanges, political mutual trust and deepen mutually beneficial cooperation so as to promote common development. Any proposal that's in line with this goal, we will support it," said Qin Gang, China's foreign ministry spokesperson.

The Australian prime minister has tapped former ambassador to Indonesia, Richard Woolcott, to spearhead the ambitious plan.

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Question for Readers:

Do you think an Asia-Pacific Union would help the U.S. economy?

"We can either stand back and allow things to drift, or we can say, actually, there should be a better way of handling this. And that's what we are putting forward as an ambitious proposal for the future. "

—Australian Prime Minister Kevin Rudd
BBC, 6/5/08)

Two recent studies support many analysts' predictions that some Asian-Pacific countries are poised for exponential economic growth.

  • According to a report from the global consulting firm, KMPG, the investment management industry in the Asian-Pacific region is on the verge of an explosion.
  • Datamonitor, an independent market analysis firm, called the growth potential for call centers "dynamic" in Asia Pacific.
  • Both firms pointed to the emerging middle class in countries like China and India. They also noted that two-thirds of India's population—estimated to be over 1.1 billion—is under 35.

As the middle class in India and China continues to grow, so will their purchasing power, driving the region's economy even more, experts say.

Full text of Kevin Rudd's speech to the Asia Society Australasia (The Australian, 6/5/08)

China expresses support for Australian PM's proposal of Asia-Pacific Community (Associated Press via International Herald Tribune, 6/5/08)

Rudd Moots EU-style Asia-Pac bloc (BBC, 6/5/08)

Rudd's Asia-Pacific bid a stunt: Downer (Australia ABC News, 6/5/08)

Investment Industry to Experience Exponential Growth (Press Trust of India via Business Standard, 6/5/08)

Responses (2)add comment

New world order

Richard Finn from WA said:
this has north american union written all over it. we though getting rid of Howard would help change america's control over the country. but nothing really changes. search north american union on youtube and u'll get it. hell in a hand basket, welcome to the new wolrd order. i wonder what own new currency will be called?
June 09, 2008

Not just unnecessary but inappropriate

James Meotti from Perth W.A said:
The future direction of this country , is the concern of all citizens of Australia , And not the self absorbed , supercilious grandeur's of Rudd.
With our natural resources , of coarse China would support the deluded notion . Rudd should concern himself with the affordability of life in Australia , which is in fact his job scope , i only wish he eventually relises that.
It will benefit the other said countries , and do little for us but to burden the Australian tax payer.
It has Paul Keating written all over it .
June 07, 2008

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