The Australia-ASEAN Dialogue

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1 The Australia-ASEAN Dialogue

2 Asia Today Before 1820, Asia generated more than half of the world s gross domestic product. Since then, the region underwent a period of decay and decline. Today, Asia is in the midst of a great transformation, and it is estimated that by 2035 it will be responsible for more than one half of the world s gross domestic product. Propelled by three decades of rapid economic growth, momentous political transitions, and intensified regional integration, Asia is no longer simply a fast-expanding and evolving region; it is increasingly the geopolitical epicenter for the global system itself. The goal of this series is to offer readers a front-row seat to view and better understand this kaleidoscope of regional change in all its dazzling dynamism and diversity. Who would have thought in 1978, when Deng Xiaoping came to power in Beijing, that China would soon begin a generation of double-digit economic growth? Who could have foreseen that Asia would become the region where the world s richest countries, Singapore and Brunei, would live shoulder-to-shoulder with the world s poorest, Afghanistan and Laos? The Asia Today series is designed to respond to the growing demand for sustained research and deep knowledge of contemporary Asia. It covers the full expanse of this vast region from China to India, Japan to Pakistan, Kazakhstan to Turkey, Mongolia to Israel, Iraq to Indonesia. The series editors, Takashi Inoguchi and G. John Ikenberry, aided by a 44-member advisory board, are dedicated to identifying fresh and penetrating studies of Asia by the region s foremost experts. Series Editors Takashi Inoguchi, Professor Emeritus, University of Tokyo and President, University of Niigata Prefecture, Japan G. John Ikenberry, the Albert G. Milbank Professor of Politics and International Affairs, Princeton University, Department of Politics, and the Woodrow Wilson School of Public and International Affairs Published by Palgrave Macmillan: Political Parties and Democracy: Contemporary Western Europe and Asia Edited by Takashi Inoguchi and Jean Blondel The Troubled Triangle: Economic and Security Concerns for the United States, Japan, and China Edited by Takashi Inoguchi and G. John Ikenberry Japan, the US, and Regional Institution-Building in the New Asia: When Identity Matters By Kuniko Ashizawa The Rise of Korean Leadership: Emerging Powers and Liberal International Order By G. John Ikenberry and Jongryn Mo Asia-Pacific Nations in International Peace Support and Stability Operations Edited by Chiyuki Aoi and Yee-Kuang Heng The Globalization of Chinese Propaganda: International Power and Domestic Political Cohesion By Kingsley Edney The Australia-ASEAN Dialogue: Tracing 40 Years of Partnership Edited by Sally Percival Wood and Baogang He

3 The Australia-ASEAN Dialogue Tracing 40 Years of Partnership Edited by Sally Percival Wood and Baogang He

4 the australia-asean dialogue Copyright Sally Percival Wood and Baogang He, Softcover reprint of the hardcover 1st edition All rights reserved. First published in 2014 by PALGRAVE MACMILLAN in the United States a division of St. Martin s Press LLC, 175 Fifth Avenue, New York, NY Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN DOI / ISBN (ebook) Library of Congress Cataloging-in-Publication Data The Australia-ASEAN dialogue : tracing 40 years of partnership / edited by Sally Percival Wood and Baogang He. pages cm. (Asia today) 1. Southeast Asia Foreign relations Australia. 2. Australia Foreign relations Southeast Asia. 3. Southeast Asia Foreign economic relations Australia. 4. Australia Foreign economic relations Southeast Asia. 5. National security Southeast Asia. 6. National security Australia. 7. Regionalism Southeast Asia. 8. ASEAN. I. Percival Wood, Sally, editor of compilation. II. He, Baogang, 1957 editor of compilation. DS525.9.A8A dc A catalogue record of the book is available from the British Library. Design by Newgen Knowledge Works (P) Ltd., Chennai, India. First edition: October

5 Contents List of Illustrations Foreword The Hon. Julie Bishop MP, Minister for Foreign Affairs Acknowledgments vii ix xi Introduction 1 Sally Percival Wood and Baogang He Part I Australia in Asian Regionalism 1 Australia and ASEAN: A Marriage of Convenience? 13 Sally Percival Wood 2 Hobnobbing with Giants: Australia s Approach to Asian Regionalism 33 See Seng Tan 3 The East Asia Summit: Navigating ASEAN Multilateralism 49 Avery Poole Part II Non-Traditional Security Challenges 4 Timor-Leste: From INTERFET to ASEAN 67 Michael Leach and Sally Percival Wood 5 Australian-ASEAN Counterterrorism Cooperation: A Paradigm Shift or Business as Usual? 87 Math Noortmann 6 Australia, ASEAN, and Forced Migration in Asia 107 Amy Nethery

6 vi Contents Part III Economic Relationships Old and New 7 Australia s Economic Relations with ASEAN: Learning to Deal with the Evolving Organization 127 Jiro Okamoto 8 Richer Relations? Four Decades of ASEAN-Australia Relations in Higher Education 145 Anthony Welch 9 Making a Sale vs Making it Safe: Prospects for ASEAN-Australia Nuclear Energy Cooperation 167 Sofiah Jamil and Lina Gong 10 The Australia-ASEAN AgriFood Opportunity 185 Claudine Ogilvie 11 Islamic Banking and Finance in Southeast Asia: Can Australia Find a Niche? 205 Imran Lum Afterword: ASEAN in Our National Imagination 225 Anthony Milner Selected Bibliography 235 Notes on Contributors 249 Index 255

7 Illustrations Figures 10.1 Arable Land per Capita in ASEAN and Australia, Fertilizer Consumption (Kilograms per Hectare of Arable Land), ASEAN s Renewable Internal Freshwater Resources (Billion Cubic Meters), A Sukuk Structure 215 Tables 8.1 Development Indicators of Selected Southeast Asian States Number of ASEAN Private Overseas Students, Post-Secondary, and Higher Education, Higher Education (573) Visas Granted, Australia 2013, by Country Contribution to R&D Performance by Sector Knowledge Economy Index (KEI), Knowledge Index (KI), and Related Indices in Selected Countries, Australia s Collaborative Publications and Citations , by Country 159

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9 Foreword The Hon. Julie Bishop MP, Minister for Foreign Affairs I congratulate the editors and contributors to The Australia-ASEAN Dialogue: Tracing 40 Years of Partnership for their initiative in developing this publication during the 40th anniversary of Australia ASEAN dialogue. This book makes an important contribution to the narrative of Australia s engagement with the Association of South East Asian Nations (ASEAN) which encompasses a region of critical and increasing importance for Australia. The Australia-ASEAN Dialogue: Tracing 40 Years of Partnership explores the many aspects of Australia s partnership with ASEAN. Our long-standing and deep relationship encompasses political, security, economic, and people-to-people cooperation. There is great value in exploring these themes and issues at a time when we review and renew our relationship. ASEAN is now a byword for cooperation among its ten culturally and politically diverse member states. Its economy grows strongly, with members having doubled their share of global GDP over 30 years. Today s ASEAN conversation is about prosperity, opportunity and regional integration through an ASEAN community. Many of the issues ASEAN faces are challenges that affect us all, including security, economic growth, trade, education, development, and disaster relief. ASEAN is working with partners like Australia to build the regional architecture to maintain stability and build prosperity for our communities. Australia will continue to support ASEAN as it deepens its integration. We are doing this in multiple ways: from connecting our people through initiatives such as student exchange through the New Colombo Plan and strong education links, to implementing the

10 x Foreword ASEAN-Australia-New Zealand Free Trade Agreement and negotiating a Regional Comprehensive Economic Partnership. Today ASEAN members are collectively Australia s second largest trading partner, and ASEAN members share of Australian trade is growing by 8 percent each year. Australia and ASEAN have come a long way since officials first formally met in Australia and ASEAN remain firm partners in promoting a region that is free from conflict, increasingly prosperous, economically open, and upholds international law and norms of behavior. The challenge for us now is to build on this solid foundation and to deepen our engagement. This publication is a welcome contribution to our efforts to strengthen Australia s relationship with ASEAN.

11 Acknowledgments It was at the Asia Pacific Roundtable in Kuala Lumpur, the signature annual event of the ASEAN-ISIS (Institutes of Strategic and International Studies) network, that the idea for a collection marking the significance of the Australia-ASEAN Dialogue Partnership germinated. Frank Frost must first be thanked for his encouragement and subsequent discussions as the idea progressed. Asialink s Jenny McGregor and Anthony Milner have been important influences in recognizing the centrality of ASEAN to Australia s interests, and thanks go to Asialink for partnering with Deakin University in hosting a Public Forum: Australia and ASEAN: Partners in More than Dialogue?. We extend our thanks to Thai specialist Thitinan Pongsudhirak and See Seng Tan from Singapore for their valuable contributions as speakers at the Public Forum and their participation in the subsequent Workshop at Deakin University: 40 Years of Australia-ASEAN Partnership: Not Just Dialogue. We also thank Alexander Chandra from Indonesia, Sofiah Jamil from Singapore, and Damian Evans from Cambodia who also travelled to Melbourne to join us for the Public Forum and Workshop. These events, which informed this book, were truly reflective of Australia-ASEAN collaboration. We also express our warm appreciation to those from the Department of Foreign Affairs and Trade (DFAT) who have shown strong support for this project, not only in engaging with these activities and sharing their expertise, but also in providing valuable assistance under the Australia-Indonesia Institute, Australia-Malaysia Institute, and Australia-Thailand Institute grants schemes. DFAT s support has reflected the high value placed on Australia s relations with ASEAN. Generous support has also been extended by Deakin University s School of Humanities and Social Sciences and the Centre for Citizenship and Globalisation. We sincerely thank Matthew

12 xii Acknowledgments Clarke and Fethi Mansouri for backing this project. Finally, we thank each of our contributors for their commitment to this collection and for being a part of the ongoing Australia-ASEAN dialogue. Sally Percival Wood and Baogang He April 2014

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