Report of Rodolfo C. Severino, Secretary-General of the Association of Southeast Asian Nations, to the 8th ASEAN Summit

Phnom Penh, 4 November 2002

Since this is my last report to Your Majesty and Your Excellencies, I should like, with your indulgence, to take a longer perspective than usual and take a glance at the past five years instead of just the last one. In any case, the report card for the past year, which Your Majesty and Your Excellencies have directed me to draw up, has been circulated.

When ASEAN's leaders kindly appointed me to the office of Secretary-General, Southeast Asia was at the height of the financial crisis of 1997–98. ASEAN was in the process of expansion, a process that was projected to place severe strains on the association. The haze from land and forest fires that was enveloping the region was testing the ability of ASEAN to work out regional solutions to regional problems. All this degraded ASEAN's image in the world, affecting the perceptions of investors and ASEAN's influence in international affairs. At the same time, the rise of certain large economies and other regional groups was posing a challenge for ASEAN in the global competition for markets and investments.

ASEAN's responses to these developments have, to some extent, mitigated their adverse impact and the negative perceptions of ASEAN. The Secretariat and other ASEAN bodies managed somewhat to reverse the slide of ASEAN's image. The association continued to help maintain regional peace and stability by sustaining its solidarity, managing the ASEAN Regional Forum, and strengthening the association's linkages with its neighbours, particularly China, Japan and Korea. The negotiations on a declaration on conduct in the South China Sea had a calming effect on this critical area. This process has concluded, and the declaration is ready for signing this afternoon. ASEAN has responded to the surge of international terrorism, adopting strong positions, taking concrete cooperative measures, and working with the international community. The recent terrorist attack in Bali has prodded ASEAN to intensify these efforts.