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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SHANGRI-LA HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	23/05/94 
Tajuk/Title  	: 	THE 27TH INTERNATIONAL GENERAL 
			MEETING OF THE PACIFIC BASIN 
			ECONOMIC COUNCIL "THE PACIFIC ERA 
			-- A VISION FOR THE FUTURE" 


 
    First  of  all, I would like to thank PBEC for inviting
me to speak before you today.    I  value  this  opportunity
because  I  know who really are the most important actors in
the making of the future of the Pacific.
2.   It is not the great leaders of the Pacific who are  the
most important builders of the Pacific community that is yet
to  be.    It  is not the officials and bureaucrats who will
build  the  Pacific  community  of  cooperative  peace   and
prosperity  that  I  hope  will flourish in the twenty-first
century.
3.   It is not the great intellects and the  powerful  media
that  will construct the Pax Pacifica that will be worthy of
the aspirations  of  the  peoples  of  the  Pacific.    Most
certainly,  all will have to rise to the challenge.  At some
point or other, all will have to play the most  critical  of
roles.
4.           Yet,  right or wrong, it is simply my view that
the   most  important  sustained  builders  of  the  Pacific
community that must be built in the days, weeks,  years  and
decades   ahead   will   be   the   workers,   managers  and
entrepreneurs of the business communities of  the  countries
of the Pacific rim.
5.    I do not say this because I am speaking before so many
captains of industry  and  commerce  of  this  vast  region,
before  so  many  of the business leaders of the Pacific.  I
have  repeatedly  stressed  this  point   at   meetings   of
government  leaders  and at other meetings where such a view
is often regarded as heretical.  I might as well  repeat  it
before  an  audience which must regard such a view as merely
obvious.
6.   I am sure we can all agree that peace and stability are
essential pre-requisites for the Pacific Age.  Without peace
and without stability, all the basic assumptions on progress
have to go back to the drawing board.  Fortunately for us in
the Pacific, not perhaps for 150  years  has  the  strategic
environment been so conducive for peace and stability. In so
many  parts of the Pacific, peace and stability have already
broken out or are being strengthened.
7.   I am fully aware of the awesome conflict  potential  in
the  Korean peninsula that could change the entire strategic
picture and future of the Pacific. I know of the possibility
of the division of Canada.   I am aware  of  the  issues  in
Mexico  and  some of the internal security concerns in north
and central America.   But I am very  confident  that  China
will  not  break up, that the Japanese are not going to lose
their senses and there will be no violent maritime  conflict
in the region.
8.   All these and other security issues that will be thrown
up  in the course of time can be dealt with the old mind-set
of confrontation, power  and  deterrence,  which  can  never
create   a  warm  and  cooperative  peace,  which  can  only
guarantee the rigidifying of a status quo  and  the  vicious
circle  of  enmity,  armament, suspicion and hatred.   To be
sure, there are circumstances under which there is no better
choice.  But the Pacific of today and tomorrow is a  Pacific
of better choices.
9.      There  are  now  tremendous opportunities to go by a
different path,  to  cooperate  with  those  with  whom  one
disagrees,  with  whom  one has yet to come to an agreement.
There are so many opportunities to  work  with  those  whose
perspectives   and  interests  differ  from  one's  own  yet
presents possibilities of  harmonisation,  or  at  worst  an
agreement  to  agree to disagree without being disagreeable.
This is the path of cooperative security, of trying  to  get
along,  of  trying  to  understand  one's  adversary and the
security concerns of others, of trying to accommodate and to
embrace, to strengthen acquaintanceships, to build the bonds
of friendship.
10.  It is a central paradox of peace-making that true peace
is best made when there is peace.  It is too late  when  the
clouds  of  conflict  have begun to gather.   Now and in the
years ahead, to ensure the Pacific Era that we want to  see,
we  must  together work intimately and diligently to build a
Pacific Peace worthy of the name of the ocean  which  washes
all our shores.
11.  It also seems somewhat obvious that we should build not
only  a  community  of  cooperative  peace  but  also mutual
prosperity.  I believe there are at least  two  pillars  for
such  an endeavour which should be stressed at this point in
time.
12.  The first is to ensure a Pacific  market  system  which
unleashes  the  ferocious  force of enterprise and catalyses
all the synergistic potential of the Pacific.  The second is
to ensure the  development  of  a  Pacific  economic  system
firmly wedded to open regionalism.
13.    We  have  seen  the bankruptcy of the central command
economy.  On the other hand, we have seen what can  be  done
when  markets  are  opened  and liberated and when goods and
services are  freed  to  respond  to  the  commands  of  the
marketplace rather than the specific targets and dictates of
bureaucrats,  planners  and  politicians.  We have seen what
China has been able to achieve, what Vietnam has  been  able
to  accomplish.    We should seek the further opening of the
transition economies and the wedding of all our economies to
the market system.
14.  What makes sense within the  context  of  the  domestic
economy  makes  sense  also  within  the  international  and
Pacific economy.   The command  economy  makes  nonsense  in
terms  of domestic economics.  It makes nonsense in terms of
the international economy.
15.   Our Pacific Era must  also  be  built  upon  the  firm
foundation of a liberalising Pacific economic system that is
fast  reducing  the  obstacles  to  the  flow  of  goods and
services.  I believe that we owe it  to  the  world  and  to
ourselves  to  also  proceed  on  the  basis of lowering the
obstacles to businesses located outside the Pacific rim.   A
mercantilist  Pacific  makes as much sense as a mercantilist
Canada or a mercantilist  Japan  or  a  mercantilist  United
States.
16.    However  macho  we  are on the Pacific, we must never
forget the global community.  I believe we must  escape  the
trap  that  has been a source of weakness in Western Europe.
It is very difficult to find Europeans who believe that they
are incredibly  Euro-centric.    At  the  same  time,  I  am
confident  most of you will agree with me when I say that it
is difficult to find Europeans who are not in fact,  whether
they know it or not, incredibly Euro-centric.
17.  We of the Pacific must never forget our global frame of
reference  and  our global frame of operations.  The Pacific
community  which  we  should  seek  to  build  must  not  be
inward-oriented  and  discriminatory towards the rest of the
world.   We would be  foolish  if  we  of  the  Pacific  get
together  in  order  to  circle  our  wagons,  to  raise the
barricades and to keep  everyone  else  out.    Our  Pacific
community  must be open to the world, to the exports and the
investments,   technology   and    comprehensive    economic
penetration of the rest of the world.
18.    Even as we must be committed to open globalism at the
global level, and to open super-regionalism at  the  Pacific
level,  we  must be committed to open regionalism in all the
various regional schemes upon which we embark.    The  North
American  Free  Trade  Area  (NAFTA) and the free trade area
between Australia and New Zealand (ANZCERTA) must  all  seek
to  reduce  the  barriers  to  external economies as well as
reducing the barriers to the  participating  member  states.
The  same must hold for whatever is tried in East Asia.  Any
East Asian scheme for economic  cooperation,  including  the
EAEC,  which  has  been  the  victim  of  so much deliberate
misinformation,  must  be  wedded  to  this  idea  of   open
regionalism.
19.    I  have  so  far outlined what I mean by `cooperative
peace' and `cooperative mutual prosperity'.  Let me  try  to
clarify what I mean by the term `a true Pacific Community'.
20.    I believe that the true Pacific community that has to
be patiently built  must  be  robust,  must  be  infused  by
friendship and a sense of community.  It must be egalitarian
and  democratic.    And  it must be beneficial to all of the
members of our Pacific family.
21.  It must be a community that will endure, not a  Pacific
construct  founded  on  a  transient  passion or a temporary
association of convenience that might be here today and gone
tomorrow.
22.  We should understand, indeed welcome, the enthusiasm of
those who  have  just  discovered  the  Pacific.    But  the
building  of  such a true Pacific community is not a task to
which we should come with wide-eyed romanticism, idealism or
impatience. There is little room for romanticism  and  every
reason for being realistic, for exploiting pragmatism to its
fullest  potential.   Our idealism must be without illusion.
There is need for a  constructive  impatience  but  an  even
greater   need   for   sobriety   and  the  stamina  of  the
long-distance runner.
23.  We must be prepared for a journey of a thousand  miles.
Not  because  there  is virtue in long journeys, but because
the  journey  towards  a  true  Pacific  community  must  of
necessity  be  long.   This is unfortunate.  But that is the
way that it is.
24.    Second,  what  we  must  build,  I  believe,   is   a
relationship  between  us based on a sense of community, "as
within a family or a group of friends".
25.  A true Pacific community, a Pacific village  or  family
or  group  of  friends will need to be founded on knowledge,
familiarity,  understanding,  empathy,  mutual  regard   and
mutual respect.
26.  Let us face the facts squarely.  Many of us around this
Pacific  rim  are  as strangers, whose acquaintanceship with
each other can be measured in terms of  months  rather  than
years.    Many  of  us  hardly  know  each other, are hardly
familar with each other.  It can be no surprise  that  there
are  enormous  gaps  in  understanding.    Indeed,  in basic
knowledge.
27.  At present there appears to be a  gross  imbalance  not
only  in  knowledge  but also with regard to mutual respect.
One is sometimes tempted to think that those who know  least
about  others  are  the  most  likely to tell them what they
should be doing with regard to the running of their  present
and the making of their future.
28.    My advocacy of egalitarianism and democracy is not an
attempt to fly in the face of reality.  In life,  some  will
always  be  more  equal  than others.   Chile is not Canada.
Canada is not China.  Hong Kong is not Japan.  And Japan  is
not the United States.  Even within the family, we know that
there are older brothers and sisters.  But the play of power
and  size  and leadership should take place within a roughly
egalitarian framework.   Although the  different  shades  of
grey will be there, we all know when something is definitely
non-egalitarian  and  when something is clearly egalitarian.
Whatever may have been  the  record  of  the  past,  in  the
future,  we  cannot  move  forward, a true Pacific community
cannot be built, on  the  basis  of  hegemony  and  imperial
command.
29.    We  are  also  deeply  committed to the building of a
Pacific community that is democratic and consensual and that
operates  on  the  basis  of   democratic   and   consensual
principles.    We all know how frustrating democracy can be.
But it is the best form so far devised for the governance of
society.  This is as true for the governance of a  civilised
community  of  states, as it is true for the governance of a
civilised community of citizens.
30.  We all know how infuriatingly difficult it is to get  a
consensus,  especially  when  so many from so many different
backgrounds, perspectives and interests are involved.    But
what is the alternative?  To pretend agreement when there is
none?    To  go  through  the motions of adopting the finest
formulation of words, with no intent to see them through and
to honour them in the spirit as well as in the letter?    To
sign  agreements  and  to  mount the most intense search for
loopholes  even  before  the  ink  is  dry?    What  is  the
alternative  to  building  a community through consensus? To
bulldoze? To bludgeon?   To bully?   You can  legislate  for
some  things.  But you cannot legislate for a meeting of the
minds, for a  feeling  of  sympathy  and  affection  between
friends  and  the bonds that bind a family together.  A true
Pacific community can only be built  through  the  deepening
and  widening of consensus over a large range of shared ends
and shared perceptions on the means.
31.            Most obviously, it is extremely important for
all who are involved in the  Pacific  process  of  community
building  to  feel  that they are benefitting, that they are
getting something they would otherwise not get.
32.  There are those who believe in historical inevitability
-- and the historical inevitability of the  Pacific  as  the
future  economic  centre of gravity of the world.  I believe
that things are inevitable only if we make them so.
33.  Our `Pacific Era' will be stillborn if we  quarrel  and
fight  amongst  ourselves,  if  we divide the Pacific, if we
create discriminatory trading blocs, if we draw a line  down
the Pacific, if we are unwilling to extend to each other the
normal  rules  and  regulations -- like Most Favoured Nation
(MFN) -- that are the norms between trading economies.
34.  I am sure you will also  agree  that  a  `Pacific  Era'
cannot  be  sustained  if  we do not play fair, if we do not
open more  fully  to  each  other,  if  we  do  not  further
liberalise our economies.
35.  I am sure you will also agree that a `Pacific Era' will
not  be  fostered  if we do not engage fully all the dynamic
possibilities of working together; if we do not exploit  all
the synergistic opportunities afforded by the fact that each
of us have different strengths and comparative advantages.
36.   Obviously, Governments have a major role to play.  But
I do not believe that in the forseeable  future  Governments
have all that great a role to play.  The Almighty help us if
we  were  to  create the Pacific analogue of the `Eurocrats'
who have played such an interventionist role in Europe.
37.  To try to build a Pacific community along the lines  of
the  European  Community  would  be extremely disruptive and
damaging to the long term building of a  Pacific  community.
The  conditions are not there.  It would be disastrous.
38.   Instead  of a ton  of legal documents,  a  phalanx  of
bureaucracy  forcing  the pace of integration; instead of an
artificially forced process, what Governments should  do  is
merely establish the framework within which people-to-people
contact  can  flourish,  the  ambience  and framework within
which entrepreneurs can go about  their  daily  business  of
profiting   from  Pacific  dynamism,  thereby  building  the
relationships  of  investment,   trade   and   comprehensive
economic  interdependence which are the brick, the steel and
the cement of our embryonic Pacific community.
39.   Let me therefore end as  I  began,  by  stressing  the
importance  and the role of the private sector.  You, ladies
and gentlemen are the most important builders.
40.  Prosper from the Pacific.   Prosper with  the  Pacific.
Build  the  web of mutual regard, interdependence and common
interest that will withstand the test  of  time.    No  more
solid  foundation  can  be found for the making of a Pacific
Era that hopefully will span and go beyond the  twenty-first
century.

 
 



 
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