IISS Cartagena Dialogue 2015
-
Upload
international-institute-for-strategic-studies-iiss -
Category
Documents
-
view
228 -
download
2
description
Transcript of IISS Cartagena Dialogue 2015
-
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA, 68 MARCH 2015
IISS Cartagena Dialogue
HOST NATION SUPPORT: MINISTRY OF NATIONAL DEFENSE, COLOMBIA
-
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA, 68 MARCH 2015
IISS Cartagena Dialogue
HOST NATION SUPPORT: MINISTRY OF NATIONAL DEFENSE, COLOMBIA
-
The International Institutefor Strategic StudiesArundel House | 1315 Arundel Street | Temple Place | London | wc2r 3dx | UK
www.iiss.org
April 2015 The International Institute for Strategic Studies
Director-General and Chief Executive Dr John Chipman
Editor Dr Nicholas Redman
Contributors Dr Sanjaya Baru, Virginia Comolli, Nigel Inkster, Antnio Sampaio, Katherine Slowe, Dr Isabel DiVanna Editorial Dr Ayse AbdullahEditorial Research James Howarth, Claire Willman
Production and Design John Buck, Kelly Verity
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any
form or by any electronic, mechanical, or other means, now known or hereafter invented,
including photocopying and recording, or in any information storage or retrieval system,
without permission in writing from the Institute.
The International Institute for Strategic Studies is an independent centre for research, infor-mation and debate on the problems of conflict, however caused, that have, or potentially
have, an important military content. The Council and Staff of the Institute are international
and its membership is drawn from over 90 countries. The Institute is independent and it
alone decides what activities to conduct. It owes no allegiance to any government, any group
of governments or any political or other organisation. The IISS stresses rigorous research with a forward-looking policy orientation and places particular emphasis on bringing new
perspectives to the strategic debate.
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
IISS Cartagena Dialogue
-
3Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Chapter 1
Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Chapter 2
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Chapter 3
Reception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Chapter 4
Social media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Chapter 5
Press coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Selected IISS publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Contents
-
4 IISS Cartagena Dialogue
Juan Manuel Santos, President of Colombia
-
5Foreword
The International Institute for Strategic Studies (IISS) is delighted to release and distribute this summary report of
the proceedings of the new international Dialogue following
in the footsteps of the successful Shangri-La Dialogue
(Singapore) and Manama Dialogue (Bahrain). The inaugural
IISS Cartagena Dialogue: The Trans-Pacific Summit was held
from 68 March in Cartagena, Colombia.
The focus of the summit was the developing relations
between the Latin American states of the Pacific Alliance and
key countries from the Asia-Pacific. The summit had a geo-
economic focus with a strong security and stability compo-nent. The four founding states of the Pacific Alliance Chile,
Colombia, Mexico and Peru have a combined GDP close to
that of Brazil and have growing relations with Asia. A number
of countries in Asia, especially China, Japan, South Korea, and
increasingly others, have economic and political interests in
the Pacific Alliance states.
The IISS Cartagena Dialogue explored the growing links
between the two sides of the Pacific and encouraged the
strengthening of political, diplomatic, economic and commer-cial links.
Foreword
-
6 IISS Cartagena Dialogue 2015
The summit brought together ministers and CEOs from
Chile, Colombia, Mexico and Peru, with additional partici-pation from Panama, the Inter-American Development Bank
and the IMF together with Brazil, China, Germany, Indonesia,
Japan, Korea, Malaysia, Philippines, Singapore, the UK, and
the United States. Further government and private-sector par-ticipants came from Argentina, Australia, Bahrain, Costa Rica,
Ecuador, France, Honduras, India, the Netherlands, New
Zealand, Russia and Spain, contributing their expertise and
perspectives to the trans-Pacific debate.
The IISS Cartagena Dialogue was a major inter-govern-mental summit with important private-sector and expert
engagement. Total delegate numbers were 363 from 28 coun-tries, allowing for inclusive representation but also sufficient
intimacy to permit easy networking. Ministers conducted
bilateral and multilateral meetings during the summit; oppor-tunities were available for private-sector meetings with gov-ernment representatives, as well as between the various busi-ness leaders in attendance.
The agenda of the IISS Cartagena Dialogue ensured that key themes of common interest were fully covered. Plenary
sessions provided an opportunity for Pacific Alliance gov-ernment leaders to define relations with the Asia-Pacific, and
likewise for Asia-Pacific leaders to outline their approaches to
the Pacific states of Latin America. Perspectives from business
leaders on trans-Pacific relations were also explored, as well as
Asian trade and investment in Latin American commodities.
Special sessions examined two geopolitical and security issues:
Insurgencies, Drugs and Security and Organised Crime and
the Informal Mining Sector. There were also special sessions
on Financial Services Integration: Asian and Pacific Alliance
Experiences and Trans-Pacific Connections: Commodities,
Trade and Investment. Further plenaries addressed a trans-
Pacific agenda for cooperation and experiences from both sides
of the Pacific on conflict resolution and rebuilding societies.
-
7Foreword
The Pacific Alliance is becoming a significant geo-eco-nomic entity. The free trade and liberal economic outlook
it represents significantly shapes wider debate in Latin
America. The common market it envisages offers inspiring
opportunities for investors and businesses alike. The interest
of the Alliance countries in engaging with the Asia-Pacific is
likely to attract more foreign direct investment from the Asia-
Pacific. North American and European businesses and inves-tors also have an interest in developing close ties with this
evolving formation.
The IISS Cartagena Dialogue was a major event in the 2015
calendar for those interested in Latin American geo-economic
and geopolitical trends. The Institute is committed to estab-lishing the Dialogue as an important multilateral event that
invited coordinated policymaking and engaged businesses in
the region. The IISS was delighted to have worked with the
Government of Colombia and in particular with the Ministry
of Defense, to organise this event. The IISS also warmly thanks
TV Caracol, the Abraaj Group, HSBC, Mitsubishi Corporation
and ICTSI for their enthusiasm and support for this successful
IISS Cartagena Dialogue.Dr John Chipman
Director-General and Chief Executive, IISS
-
8 IISS Cartagena Dialogue 2015
Juan Carlos Varela Rodrguez, President of Panama
-
9Executive summary
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA 68 MARCH 2015
IISS Cartagena Dialogue
CHAPTER 1
Agenda
-
10 IISS Cartagena Dialogue 2015
Mara ngela Holgun Cullar, Minister of Foreign Affairs, Colombia
-
11Agenda
Friday 6 March 2015ALL DAY Bilateral meetings between government officials
18:0019:00 CARACOL OPENING TELEVISED PANEL LOOKING TOWARDS THE PACIFIC
Chair: Juan Roberto Vargas, News Director, Caracol TV
Juan Carlos Pinzn Bueno, Minister of National Defense, Colombia
Senator Gabriela Cuevas Barron, Chair, Foreign Affairs Committee, Senate of the Republic of Mexico
Dr Chung Min Lee, Ambassador for National Security Affairs, Republic of Korea
Luis Alberto Moreno, President, Inter-American Development Bank
Dr Min Zhu, Deputy Managing Director, International Monetary Fund
19:0020:00 OPENING RECEPTION
20:0022:00 OPENING DINNER AND KEYNOTE ADDRESS THE PACIFIC ALLIANCE AND THE ASIA-PACIFIC: WHAT FUTURE
COOPERATION?
Opening remarks: Dr John Chipman, Director-General and Chief Executive, IISS
Keynote address: Juan Manuel Santos, President of Colombia
Agenda
-
12 IISS Cartagena Dialogue 2015
Saturday 7 March 201508:4509:00 OPENING OF THE SUMMIT
Dr John Chipman, Director-General and Chief Executive, IISS
09:0010:30 FIRST PLENARY SESSION THE PACIFIC ALLIANCE COUNTRIES AND ASIA
Chair: Dr John Chipman, Director-General and Chief Executive, IISS
Mara ngela Holgun Cullar, Minister of Foreign Affairs, Colombia
Jos Antonio Meade Kuribrea, Secretary of Foreign Affairs, Mexico
Claudio de la Puente Ribeyro, Vice Minister of Foreign Affairs, Peru
Edgardo Riveros, Vice Minister of Foreign Affairs, Chile
10:3011:00 BREAK
11:0012:30 SECOND PLENARY SESSION ASIAN PERSPECTIVES ON THE PACIFIC ALLIANCE
Chair: Dr John Chipman, Director-General and Chief Executive, IISS
Dr Min Zhu, Deputy Managing Director, International Monetary Fund
Cho Taeyul, Vice Minister of Foreign Affairs, Republic of Korea
Cesar Purisima, Secretary of Finance, Philippines
Toshiro Suzuki, Ambassador at Large for International Economic Issues, Japan
12:3014:30 LUNCH
14:3016:00 THIRD PLENARY SESSION THE TRANS-PACIFIC OPPORTUNITY: PERSPECTIVES FROM THE
BUSINESS COMMUNITY
Chair: Bill Emmott, Trustee of the IISS; former Editor, The Economist
Yorihiko Kojima, Chairman of the Board, Mitsubishi Corporation
David Bojanini Garca, Chief Executive Officer, Grupo SURA
Katia Bouazza, Head, Latin America and Capital Financing, HSBC Bank USA
Omar Lodhi, Partner and Regional Head of East Asia, The Abraaj Group
16:0016:30 BREAK
16:3018:00 FOURTH PLENARY SESSION CONFLICT RESOLUTION AND REBUILDING SOCIETIES
Chair: Dr Tim Huxley, Executive Director, IISS-Asia
Gen (Retd) scar Adolfo Naranjo Trujillo, Counsel Minister for Post Conflict, Human Rights and Security, Colombia
-
13Agenda
Dr Gino Costa, Former Minister of Interior, Peru
Dr Dino Patti Djalal, Former Vice Minister of Foreign Affairs, Indonesia
Senen Bacani, Member, Government Peace Negotiating Panel, Philippines
20:0022:00 GALA DINNER AND SPECIAL ADDRESS REFLECTIONS ON THE TRANS-PACIFIC CHALLENGE
Hosted by: Juan Carlos Pinzn Bueno, Minister of National Defense, Colombia
Sunday 8 March 201509:0011:00 SIMULTANEOUS SPECIAL SESSIONSGROUP I: INSURGENCIES, DRUGS AND INSECURITY
Chair: Virginia Comolli, Research Fellow for Security and Development, IISS
Gustavo Mohar, Founder and Director-General, Grupo Atalaya; former Secretary General, CISEN, Mexico
Javier Ciurlizza, Program Director, Latin America and the Caribbean, International Crisis Group
Tom Kramer, Researcher, Drugs and Democracy Programme, Transnational Institute
Sarah MacIntosh, Director-General for Defence and Intelligence, Foreign and Commonwealth Office, UK
GROUP II: SPECIAL SESSION II: TRANS-PACIFIC CONNECTIONS: COMMODITIES, TRADE AND INVESTMENT
Chair: Dr Nicholas Redman, Director of Editorial; Senior Fellow for Geopolitical Risk and Economic Security, IISS
Jorge Merino, Former Minister of Mines and Energy, Peru
Dr Octavio Pastrana, Member of the Board, Pemex
Jos Juan Ruiz Gmez, Chief Economist, Inter-American Development Bank
Dr Brendon Hammer, First Assistant Secretary, Americas Division, Department of Foreign Affairs and Trade, Australia
GROUP III: ORGANISED CRIME AND THE INFORMAL MINING SECTOR
Chair: Nigel Inkster, Director of Transnational Threats and Political Risk, IISS
Hernn de Solminihac, Former Minister of Mining, Chile
Csar Ipenza Peralta, Professor of Environmental Impact, ESAN Graduate School of Business
Lisa Viscidi, Director, Energy, Climate Change and Extractive Industries Program, Inter-American Dialogue
-
14 IISS Cartagena Dialogue 2015
Wangkai Lang, Managing Director, Mining MMD China (remarks delivered by Dr Wenguang Shao, Consulting Senior Fellow for China and International Affairs, IISS)
GROUP IV: FINANCIAL SERVICES INTEGRATION: ASIAN AND PACIFIC ALLIANCE EXPERIENCES
Chair: Dr Sanjaya Baru, Director of Geo-Economics and Strategy, IISS-Middle East
Dr Felipe Larran Bascun, Senior Adviser to the IISS; former Minister of Finance, Chile
Dr Luis Miguel Castilla, Ambassador of Peru to the US; former Minister of Economy and Finance, Peru
Dr Naoyuki Yoshino, Dean, Asian Development Bank Institute
Dr Wonho Kim, Professor, Hankuk University of Foreign Studies; President, Latin American Studies Association of Korea
11:0011:30 BREAK
11:3013:00 FIFTH PLENARY SESSION AN AGENDA FOR TRANS-PACIFIC COOPERATION
Chair: Dr John Chipman, Director-General and Chief Executive, IISS
Mauricio Crdenas Santamara, Minister of Finance and Public Credit, Colombia
Dr Marty Natalegawa, Former Minister of Foreign Affairs, Indonesia
Celso Amorim, Former Minister of External Affairs; former Minister of Defence, Brazil
Lee Ark Boon, Deputy Secretary (Trade), Ministry of Trade and Industry, Singapore
13:0013:15 STAGING BREAK
13:1514:00 CONCLUDING KEYNOTE ADDRESS THE TRANS-PACIFIC FUTURE
Juan Carlos Varela Rodrguez, President of Panama
14:0015:30 FAREWELL LUNCH
-
15Executive summary
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA 68 MARCH 2015
IISS Cartagena Dialogue
CHAPTER 2
Executive summary
-
16 IISS Cartagena Dialogue 2015
Juan Carlos Pinzn Bueno, Minister of National Defense, Colombia
-
17Executive summary
President Juan Manuel Santos opened the IISS Cartagena
Dialogue: The Trans-Pacific Summit on 6 March 2015 with a
keynote address. He described the integration of Colombia
with the Asia-Pacific as a dream, almost an obsession
during the past two decades. The Dialogue which brought
together the four Pacific Alliance states of Colombia, Chile,
Mexico and Peru, plus observer states from Latin America and
Asia represented a further step in Colombias trans-Pacific
relationships, Santos said. The countrys GDP growth has
averaged 5% annually in recent years, surpassing neighbouring
countries. It attracts today more foreign investment than ever,
thanks to the control of inflation and the reduction of poverty.
Approximately two million people have been lifted out of
poverty in the past four years, the president said, adding that
the goal is to eradicate poverty entirely within a decade.
President Santos told delegates that the peace process
with the FARC paved the way for more social and economic
progress. It held out the promise of ending the oldest conflict
in the western hemisphere, which had run for 50 years. He
spoke candidly about the difficulties of striking a balance
between peace and justice for victims in the talks with FARC
Executive summary
-
18 IISS Cartagena Dialogue 2015
being held in Havana, Cuba. Colombias goal, he said, is to
achieve a level of justice that allows peace. On a positive note,
he shared with the audience the experience of victims of the
conflict who journeyed to Havana and returned home more
willing to forgive than before. Colombia entered the talks from a position of strength
and increased security that was a result of the strengthening of the armed forces and the police, President Santos said.
The security forces were able to achieve significant victories
that debilitated FARC during the years prior to the Havana
talks. Improved security has also been one of the pillars of
Colombias economic and social progress, he added. These
advances have been supported by integration with the global
economy: Colombia now has preferential access to 1.5 billion
consumers in the Americas, Europe and soon the Asia-
Pacific. The Pacific Alliance, he said, is such a promising trade
initiative because it seeks deep integration between the four
current member countries. The Alliance, he added, is the most
dynamic platform for economy and trade in Latin America,
pursuing the free circulation of goods, services, capital and
people.
Juan Manuel Santos, President of Colombia
Click to see video
-
19Executive summary
The president highlighted the deepening integration of the
Pacific Alliance countries into Asian political and economic
fora such as ASEAN and APEC. One of the challenges for
Colombia is to diversify the range of its exports to Asia-Pacific
countries. Santos said Colombia will exploit its agricultural
potential to sell more food products to Asian countries,
where populations and incomes are rising, stoking increased
demand for food products. The IISS Cartagena Dialogue, the
president concluded, reaffirms Colombias role as a point of
contact between Asia and Latin America.
Shortly before President Santos gave the keynote address,
Caracol Television organised a debate involving delegates and speakers at the Dialogue, chaired by News Director Juan
Roberto Vargas and broadcast to 27 Latin American countries.
He began by asking panellists to assess the importance of
the relationship between Latin America and Asia. Juan Carlos
Pinzn Bueno, Minister of National Defense of Colombia,
described Asia as a benchmark for the world economy and
a centre of technological development; he noted that Latin
America was smaller but that the Pacific Alliance nevertheless
constituted a market of comparable size to Brazil or India, and
Dr John Chipman, Director-General and Chief Executive, IISS
Click to see video
-
20 IISS Cartagena Dialogue 2015
thus was an attractive partner for Asia. Dr Chung Min Lee,
Koreas Ambassador for National Security Affairs, agreed with
that assessment, predicting that the Pacific Alliance would
become a growth driver and core region within the Americas.
Luis Alberto Moreno Mejia, president of the Inter-American
Development Bank, noted the increased trade flows: Asias
share in Latin American trade rose from 8% in 2000 to almost
25% in 2014, although the distribution varied widely with
Mexico and Brazil dominating. A southsouth dialogue could
help Latin America close the gap with Asia on technology and
education, he said, but also help Asia handle the transitions
associated with urbanisation a process that Latin America has
largely completed. Dr Min Zhu, deputy director general of the
IMF, also noted the rapid increase in trade flows and said that
Latin America was already integrated in some Asian vertically
integrated supply chains. The closeness of the economies was
apparent in the high degree of correlation between Asian and
Latin American stockmarkets, he added.
Senator Gabriela Cuevas Barron, chair of the Mexican
Senates Foreign Affairs Committee, noted the lack of pan-
Pacific institutions to stimulate contacts between Latin
(lr) Juan Carlos Pinzn Bueno, Minister of National Defense, Colombia; Dr Chung Min Lee, Ambassador for National Security Affairs, Republic of Korea; Luis Alberto Moreno Mejia, President, Inter-American Development Bank; Dr Min Zhu, Deputy Managing Director, IMF; Senator Gabriela Cuevas Barron, Chair of the Mexican Senates Foreign Affairs Committee
Click to see video
-
21Executive summary
America and Asia, aside from the Trans-Pacific Partnership
(TPP) trade initiative. The Pacific Alliance, she added, has
great potential as a market and an exporter of some important
commodities such as silver and copper.
Mr Vargas then turned attention to the question of
insecurity and how that affected business decisions. Senator
Cuevas observed that, according to the UN, seven of the worlds ten most dangerous countries are located in Latin
America, and yet this had not proven to be a barrier to
investment. Insecurity, even in the worst-afflicted states,
was not uniform, she noted. Chung Min Lee suggested that
perceptions of Asian investors sometimes failed to keep pace
with improving realities in Colombia and Mexico, while also
noting that Asia suffered from inter-state tensions that were
largely absent in Latin America.
Minister Pinzn added that it was important to boost
security in order for investors to feel comfortable noting
that economic development was vital to underpin the security
gains made in Colombia in recent years. Touching on Dr Lees
comparison of security in Asia and Latin America, he said that
the latter enjoyed considerable security at the inter-state level
but low levels of security at the personal level.
Plenary 1: The Pacific Alliance Countries and AsiaOpening the first plenary session, Mara ngela Holgun Cullar, Minister of Foreign Affairs, Colombia, outlined the importance of the Pacific Alliance in supporting Colombias
development and integration in Asia. Colombias partners
share our vision, she said, but they have already built links to
Asia through trade agreements and we have benefited from
their experience and the ability to share diplomatic missions.
The Pacific Alliance is focused on Asia because it believes
the region is the lynchpin of the global economy in the 21st
century, the minister remarked.
Within Latin America, the agenda for cooperation within
the alliance includes migration, easing travel between the
-
22 IISS Cartagena Dialogue 2015
regions. Already these nations are reaping the benefits of
easier freedom of movement, the minister remarked, and are
continuing to work together despite changes of government
in member-countries. In Asia, the Pacific Alliance has started a
relationship with ASEAN a grouping that, like the alliance,
is a good example of open regionalism and ensuring stability
and prosperity.
Jos Antonio Meade Kuribrena, Secretary of Foreign Affairs, Mexico, reflected on the failure of Latin America
until recently to make a success of regional integration,
despite commonalities of language, culture, values, history
and aspirations. The Pacific Alliance, he suggested, marks
a change for the better. It has been assisted by having two
main objectives: to build a single, deeply integrated economic
space; and to create a platform to promote the countries in the
wider world and especially in Asia. A great deal of progress
has been made on the first objective over the last three years,
not only regarding trade but also visa and stockmarket
integration, he said.Secretary Meade said that the next step is to promote the
Pacific Alliance countries in the Pacific region and to create
(lr) Mara ngela Holgun Cullar, Minister of Foreign Affairs, Colombia; Jos Antonio Meade Kuribrena, Secretary of Foreign Affairs, Mexico
Click to see video Click to see video
-
23Executive summary
opportunities for business-to-business contacts. To that end,
they hope to hold an APEC-Pacific Alliance meeting on the
margins of the Latin American Economic Forum in April.
The theme of the Pacific Alliance being a response to
previous failed integration efforts was taken up by Claudio de la Puente Ribeyro, Vice Minister of Foreign Affairs,
Peru. Broader integration projects have been stymied by ideological and developmental differences among states,
he said, prompting Perus then-president Alen Garcia to
establish a vanguard for integration based on a core group
of solid democracies with similar outlooks on economic
and trade policy. The Pacific Alliance is the first integration
venture based on common interests rather than geographical
proximity, the vice minister said. It is open to other states
in the region, so long as they share the alliances values and
standards. Looking to Asia, the vice minister vowed to help and
support Colombias desire to join APEC. There is considerable
Asian interest in the Pacific Alliance, he added, noting that
there are 32 observer states, half of which are Asian. Speaking
of Perus own ties to Asia, he recalled that diplomatic relations
(lr) Claudio de la Puente Ribeyro, Vice Minister of Foreign Affairs, Peru; Edgardo Riveros, Vice Minister of Foreign Affairs, Chile
Click to see video Click to see video
-
24 IISS Cartagena Dialogue 2015
with China and Japan were established in the 1870s and that
today the country is home to the largest Chinese community
in Latin America and the second-largest Japanese community.
Today China is Perus leading trade partner and a major
investor too.Addressing another aspect of the Pacific Alliance,
Edgardo Riveros, Vice Minister of Foreign Affairs, Chile, observed that the world is now comprised of trade groupings,
making integration a necessity in order to create efficient
development and foreign-trade policies. The individual states
of the Pacific Alliance have forged many bilateral Free-Trade
Agreements (FTAs), he said, but acting individually is no
longer sufficient. The Pacific Alliance stands out because of
its desire to become a genuine regional platform. He affirmed
Chiles commitment to far-reaching trade liberalisation and
opening the trade in services and government procurement
within the Alliance.The Pacific Alliances Asian focus can help with important
domestic objectives, in particular the cause of reducing
inequality within Latin America, the vice minister said.
Asian expertise and experience in science, technology and
First Plenary Session
Click to see video
-
25Executive summary
innovation can help to narrow disparities of income and
opportunity within the Pacific Alliance states.
The debate that followed the speeches touched on
the question of whether the Pacific Alliances Asian focus
represented an effort to reduce economic reliance on China,
and also on the difficulty of balancing close security ties with
the US and growing trade ties with China a dilemma that is
common to some Asian and Latin American states. Dr Felipe
Larran Bascun, Chiles former Minister of Finance and
Senior Adviser to the IISS, raised the question of the Alliance widening or deepening, and whether that necessitated
institutional development. The two foreign ministers were
emphatic in their response. Secretary Meade said the Pacific
Alliances limited bureaucracy and institutionalism has
been hugely advantageous. Minister Holgun warned that the creation of a bureaucracy could deprive the alliance
of dynamism and creativity. It is essential to not create a
bureaucratic machine, she added.
Plenary 2: Asian Perspectives on the Pacific AllianceDr Min Zhu, Deputy Managing Director of the International Monetary Fund, observed that Latin Americas exports to Asia had risen substantially. Moreover, China and Japan
were providing significant capital flows to Latin America and
equity markets had become closely aligned. Asian economies
were now moving from export-led policies towards the
development of domestic economies, the expansion of the
middle class and a strong financial sector. Chinas current
spending on investment, at 44% of GDP, is unsustainable: a
cut to 34% of GDP over several years would have significant
adverse impacts on Latin American commodity markets. The
challenge is to establish a new normal in relations between
Asia and Latin America, moving beyond the commodity
cycle towards a more broad-based relationship involving
increased consumerism, services and agriculture. This should
involve not just the major corporations but also small and
-
26 IISS Cartagena Dialogue 2015
medium-sized enterprises (SMEs). Such an evolution would
have profound social and cultural implications. It would be
characterised by greater levels of technology transfer and increased investment in infrastructure and education, which
would bring substantial benefits including reductions in
income inequality.
Cho Taeyul, Vice Minister of Foreign Affairs, Republic
of Korea, emphasised the importance for South Korea of the Pacific Alliance. Already Seoul is negotiating bilateral
Free-Trade Agreements (FTAs) with the four Alliance states.
Although Korea has a long-standing relationship of trust with
Colombia, dating back to the Korean War, Seoul feels a sense
of camaraderie with all four Pacific Alliance states based on
a shared outlook. Latin America has been a laboratory for
competing theories of economic development, he said, but it
now appears that the open, free-trade model espoused by the
Pacific Alliance is carrying the day. Latin America as a whole
faces a shortfall in infrastructure: the cost of remedying it is
expected to rise to US$120 billion by 2020, the vice minister
stated. South Korean companies are well placed to work in
this sphere, creating high-quality jobs and added value.
(lr) Cho Taeyul, Vice Minister of Foreign Affairs, Republic of Korea; Dr Min Zhu, Deputy Managing Director of the International Monetary Fund .
Click to see video Click to see video
-
27Executive summary
Cesar Purisima, Secretary of Finance, Philippines, observed that the trans-Pacific alliance was not a new idea.
Some 450 years ago there had been a galleon trade between
Acapulco and Manila involving bullion on one side and
Chinese manufactured goods on the other. At that time, and
for most of recorded history, China had been the worlds
largest economy and it was now resuming that status. Asia
as a whole would soon account for two-thirds of the worlds
middle class, he stated. Re-establishing the galleon trade will
require clarity of vision. The Pacific Alliance, for instance,
should be clear about its role within Latin America. If it is
to be a hub for inter-American trade, it requires increased
connectivity and the negotiation of gold-standard FTAs ideally
involving the abolition of tariffs, since the transportation costs
of trans-Pacific trade already constitute a significant tariff.
Secretary Purisima added that the Pacific Alliance should
serve as a channel for information, to overcome the cultural
and linguistic barriers hampering trans-Pacific trade.
Ambassador Toshiro Suzuki of Japan said that his country would shortly have FTAs with all Pacific Alliance
nations once its negotiations with Colombia were concluded.
(lr) Cesar Purisima, Secretary of Finance, Philippines; Toshiro Suzuki, Ambassador at Large for International Economic Issues, Japan
Click to see video Click to see video
-
28 IISS Cartagena Dialogue 2015
The keidanren has set up a Pacific Alliance task force, and
in 2014 Prime Minister Shinzo Abe brought 250 Japanese
businessmen on his visits to Colombia, Mexico and Chile. To
fulfil its potential, he said, the Pacific Alliance has to overcome
several challenges including diversifying its production base
and increasing its manufacturing capacity. Japan is investing
heavily in Latin America and its involvement in Mexicos
automotive industry included the local sourcing of parts. The
Pacific Alliance should also integrate its value chain into the
global supply chain, improve infrastructure and logistics,
harmonise regulations and provide greater support for its
SMEs. Finally, the Alliance should raise productivity through
investments in education, training and technology. Japan was
ready to play a greater role in assisting in all these areas, the
ambassador concluded.
Questions and comments to speakers included an
emphasis on the need for the Pacific Alliance project to move
from a negotiated elite project to one that was more organic
and commanded broad popular support. It should move
beyond a focus on FTAs and address security and climate
change. Greater engagement with SMEs in the Pacific Alliance
Second Plenary Session
Click to see video
-
29Executive summary
was also needed, as currently they view greater engagement
with Asia as a source of unwelcome competition rather than
an opportunity. There was also discussion of the political
implications of greater trans-Pacific trade including the need
for states to maintain a balance in their relations with the USA
and with China.
Plenary 3: The Trans-Pacific Opportunity: Perspectives from the Business CommunityThis session was chaired by Bill Emmott, former editor, The Economist and an IISS Trustee. In his opening remarks Emmott emphasised the significance of the IISS inviting business leaders
to speak at the Cartagena Dialogue. Relationships between
nations are mediated not just by governments but also through
people-to-people and business-to-business interactions, he said.
Business plays an important role in the interaction between the
Pacific Alliance countries and the countries of the Asia-Pacific,
with growing trade and investment relations.
Speaking first, Yorihiko Kojima, Chairman of the Board, Mitsubishi Corporation, focused on three issues, namely, the importance of free trade to economic development
in the Asia-Pacific region, in the context of the growing
economic integration through Global Value Chains (GVC);
the expectations of Japanese business from the Pacific Alliance
countries and the relations between Japan and the Pacific
Alliance countries. He viewed the Trans-Pacific Partnership
(TPP) trade initiative as an attempt to address the needs of
multinational companies with trans-border investments
through GVCs. With an aggregate income of US$2 trillion
the Pacific Alliance economies were together as big as Italys
and, therefore, offered an attractive market opportunity for
Japanese companies. However, Mr Kojima felt, for trans-
Pacific trade to flourish it is necessary that there is political
stability and security in the Asia-Pacific region. Japan seeks
a stable, secure and peaceful Pacific region. Mr Kojima
commended the Japan-Colombia Economic Partnership
-
30 IISS Cartagena Dialogue 2015
Agreement (EPA) and viewed it as a good framework for
increasing trade and investment flows. He believed this
would encourage Japanese firms to invest in the region and
also set up joint ventures with Latin American firms in third
markets, especially Southeast Asia.
The second speaker, Omar Lodhi, Partner and Regional Head of East Asia, The Abraaj Group, drew attention to the growing significance of south-south trade and capital
flows and viewed the Pacific Alliance as an initiative that
would strengthen such flows. He identified three drivers of
change in Asia-Latin America relations: demographic change
in both regions; urbanisation; and the rise of a new middle
class. While Asian investment in the Latin American region
was still very low, he saw this rising, especially with the new
regulatory convergence in the region owing to regional blocs such as the Pacific Alliance. In fact the Pacific Alliance had
progressed further than ASEAN as far as financial integration
and regulatory convergence was concerned.The third speaker, Katia Bouazza, Head, Latin America
and Capital Financing, HSBC Bank USA, emphasised the relevance of the globalisation and integration of financial
(lr) Yorihiko Kojima, Chairman of the Board, Mitsubishi Corporation; Omar Lodhi, Partner and Regional Head of East Asia, The Abraaj Group
Click to see video Click to see video
-
31Executive summary
markets for policy makers, especially in emerging markets,
in dealing with the challenges posed by cross border flows
of capital. She said global banks like HSBC have opened up
investment opportunities in Latin America to international
investors and have also been active in taking Latin American
investors to attractive investment destinations. Any investor
seeks four pre-conditions for taking a cross-border investment
decision. Firstly, trade liberalisation and the free flow of
goods and services. Secondly, transparent dispute settlement
mechanisms. Thirdly, an initial level of protection to facilitate
growth of business. Fourthly, policy transparency and
stability. No one likes uncertainty, she emphasised.
The last speaker, David Bojanini Garca, Chief Executive Officer, Grupo SURA, listed the strengths of the Pacific
Alliance economies and emphasised the relevance of financial
services integration within the region for domestic and
overseas investors. While the integration of regional stock
markets was an important step forward in this regard, he
sought further liberalisation of policy with regard to pension
funds and outlined the potential benefits. Policymakers should
promote the benefits of regional integration within the Pacific
(lr) Katia Bouazza, Head, Latin America and Capital Financing, HSBC Bank USA; David Bojanini Garca, Chief Executive Officer, Suramericana Investment Group; Bill Emmott, Trustee of the IISS; former Editor, The Economist
Click to see video Click to see video Click to see video
-
32 IISS Cartagena Dialogue 2015
Alliance to businesses, he insisted, as many business leaders
were unaware of the opportunities offered by Pacific Alliance
economic integration. He saw the assertion of the rule of
law and the freedom of markets and democratic governance
as important attributes of the Pacific Alliance that would
reassure investors. He believed events like the IISS Cartagena
Dialogue would play an important role in increasing local and
global awareness regarding the Pacific Alliance.
In the discussion that followed participants underscored
the fact that the economic integration of the region had been
made possible by each of the governments pursuing sensible
economic policies. However, they emphasised the need
for greater regulatory convergence. In his intervention, Dr Felippe Larrain Bascunan, former finance minister of Chile,
underscored the importance of economic growth, policy
transparency and stability and democracy and the rule of law
to the success of the Pacific Alliance economies.
Plenary 4: Conflict Resolution and Rebuilding SocietiesThe session dwelt on the respective experiences of Asia and
Latin America in ending long-running internal conflicts
Third Plenary Session
Click to see video
-
33Executive summary
and then underpinning post-conflict stability. Gen (Retd) scar Adolfo Naranjo Trujillo, Counsel Minister for Post-Conflict Human Rights and Security, Colombia, began by announcing an agreement at the peace talks in Havana on
conflict de-escalation measures that will allow for demining
work immediately. The Havana talks, he said, are not the
result of a military stalemate; rather, they are the result of 15
years of strengthening the military, police and justice system.
The decision to negotiate rather than seek outright military
victory was ethical, the general said. It is important to show
that politics can work for all Colombians, so there is no need
to take up arms.
Gen Naranjo recalled that the authorities studied 37
negotiation models before embarking on its peace initiative,
to avoid repeating past failures. Planning for the post-conflict
phase is already underway, he said, because this is vital to
securing peace. In Havana, fundamental agreements have
been reached on rural and agricultural issues. Progress has
been made on political participation and the controversial
topic of narcotics. The government insists that FARC
acknowledges its reliance on the drug trade and explicitly
renounce it, otherwise narcotics could become a threat to
post-conflict stabilisation.
Dr Dino Patti Djalal, former Vice Minister for Foreign Affairs, Indonesia, recounted the steps that ended the three-
decade long conflict in Aceh that resulted in tens of thousands
of deaths. The Free Aceh Movement (Geraken Aceh Merdeka,
or GAM) was a formidable military force but the 2004 tsunami
changed the conflict dynamic entirely, he said, killing 200,000
people and causing so much devastation that GAM was
prompted to negotiate. Peace talks were completed in six
months. The key to this success lay in five attributes: leadership,
pragmatism, a forward-looking mindset, reconciliation and
patience. President Yudhoyonos leadership and his insistence
that a military solution would not provide a sustainable end to
the conflict was vital; he changed societys perception of what
-
34 IISS Cartagena Dialogue 2015
constituted victory. Once negotiations began, pragmatism
and flexibility were essential to making progress. Thus the
Indonesian government agreed to demilitarisation of territory
and the deployment of international observers. Equally
important was the agreement of both sides to face the future
rather than dwelling on past violations of human rights. All
these steps enabled reconciliation, by which enemies became
political partners, he concluded.
In contrast with the rapid resolution in Aceh, the conflict
involving the Moro Islamic Liberation Front (MILF) in
the Philippines took 17 years of protracted negotiations.
Senen Bacani, Member, Government of Philippines Peace Negotiating Panel, spoke about a process that is still potentially vulnerable. A confidence-building programme
has been put into effect and in 2014 the government and
MILF launched the Bangsamoro Development Plan to help sustainable peace and development. Decomissioning is
vital, Mr Bacani said. He identified four essential elements
for success in resolving conflicts: leadership, trust, historical
justice and supportive consensus. Whereas the points
regarding leadership and trust were largely in line with
(lr) Dr Dino Patti Djalal, former Vice Minister for Foreign Affairs, Indonesia; Senen Bacani, Member, Government of Philippines Peace Negotiating Panel
Click to see video Click to see video
-
35Executive summary
those offered earlier by Mr Djalal, Mr Bacani argued that a
commitment to look honestly at past crimes, to right wrongs
and make recompense, was vital for peace. It was also vital,
he insisted, to have a national consensus in support of conflict
resolution.Returning to the Latin American context, Dr Gino
Costa, former Minister of the Interior, Peru, argued that El Salvadors experience of ending an internal conflict was more
relevant for Colombia than Perus. In El Salvador there was no
ready military solution to the conflict, he said. The negotiation
centred on how the guerrillas could be brought into the political mainstream and what price the state would pay to
achieve their demobilisation. Politics has triumphed: two of
the six presidents since the peace was made have been from
the ranks of former guerrillas. However, the post-conflict
period has been very violent, with high levels of crime,
perhaps due to the failure to secure economic development.
Colombias explicit focus on planning for post-conflict
stabilisation was wise in the context of El Salvadors troubles,
Dr Costa said. However he cautioned that the drug trade made
the FARC conflict more difficult to solve while the Statute of
(lr) Dr Gino Costa, former Minister of the Interior, Peru; Gen (Retd) Oscar Adolfo Naranjo Trujillo, Counsel Minister for Post-Conflict Human Rights and Security, Colombia; Dr Tim Huxley, Executive Director, IISS-Asia
Click to see video Click to see video Click to see video
-
36 IISS Cartagena Dialogue 2015
Rome and the existence of the International Criminal Court
made a political pact less easy to construct.
The following debate touched on demobilisation
questions, societal attitudes and the tension between populism
and statecraft when addressing conflict resolution. Lieutenant
General (Retd) Syed Ata Hasnain, Senior Fellow, Delhi Policy
Group praised the prudence of the Indonesian government in
redefining its concept of victory. Too often national ego gets
in the way of peace, he said.
Gala Dinner and Special Address: Reflections on the Trans-Pacific ChallengeSpeaking at the Gala Dinner, Colombian Defence Minister Juan Carlos Pinzn Bueno highlighted Colombias counter-insurgency success during the past 15 years. The country was
able to strengthen the public security forces thanks to a special
tax aimed at expanding its capabilities and to Plan Colombia, the
aid package promoted by the US. Thanks to these efforts, he said,
approximately 90% of municipalities are now free of conflict.
The security forces in Colombia have developed capacities
for complex operations and had been able to move from
Fourth Plenary Session
Click to see video
-
37Executive summary
defensive to offensive operations that pushed the guerrillas
to remote regions of the country. Minister Pinzn added that
security strategies such as Sword of Honour and Green Heart
were built on the capacity of the forces to adapt according
to the shifting dynamics of armed groups. The countrys
security forces are now skilled in planning and coordinating
joint operations involving multiple agencies.
Building a long-term sense of security, Minister Pinzn
added, will take several years. The signing of a peace treaty
would be just the first step toward peace and the public forces
will be charged with maintaining the security environment
in order to achieve social and economic prosperity. He also
highlighted the armed forces involvement in the technical
talks with FARC to pave the way for the end of the conflict,
despite their 50-year-long struggle against the guerrilla
group.
Minister Pinzn expounded on the concept of
comprehensive security (seguridad integral) the combination of law enforcement and military tools with other state
institutions and services. He argued that the armed forces
are tasked with providing the basic security guarantees for
Juan Carlos Pinzn Bueno, Minister of National Defense, Colombia
Click to see video
-
38 IISS Cartagena Dialogue 2015
the state, but these need to be followed by strong institutions alongside education, health and job opportunities.
This comprehensive approach is needed, he said, to tackle
the shifting security dynamics in Colombia. Hybrid threats
operating through diffuse networks will continue to pose
challenges and require the attention of the armed forces. Hybrid
groups, the minister added, are driven both by political and
economic aims and benefit from technological innovations,
global capital flows and migration. He highlighted terrorism,
cyber attacks and transnational criminal groups engaged in
the exploitation of natural resources, such as illegal mining
and illegal fishing, as key security challenges ahead. These
complex threats underscore the important role that the armed
forces have to play in the future, as guarantors of peace,
development and prosperity.
The Colombian armed forces and police have adapted to
these transnational and diffuse networks of armed groups
through a process of modernisation, said Pinzn. Its public
forces are now in a position to share their experiences with
other countries. A total of 24,000 members of the military or
police agencies from 70 countries have undertaken training
with Colombian security practitioners. This experience and
the growing links with the AsiaPacific, he said, reinforce the
role of Colombia as a key regional and global actor.
Simultaneous Special Session I: Insurgencies, Drugs and InsecurityThe overarching theme was that both Asia and Latin America
are struggling to deal with the insurgents that rely on the drug trade and other forms of criminality, and have in some
cases become full-time criminals. Across Latin America,
organised crime groups are highly adaptable and resilient.
They have diversified their business activities, which include
drug production and smuggling but also extortion, illegal
mining, contraband, counterfeiting and human- and arms-
trafficking. Cartels are now vertically integrated in all these
-
39Executive summary
criminal activities which, a few years ago, they controlled
only tangentially. There is a relationship between the organisational level of
crime, and security. The fragmentation of cartels in Mexico,
as a result of government policies, has produced a more
disorganised criminal structure that is in flux and features
high levels of violence. Elsewhere, violence is increasingly
used for coercive reasons and the pattern of attacks has
become more selective.
Colombias conflict with the FARC is unique because it
is the only ideological conflict that predates the end of the
Cold War but continues today. Assuming that the peace
process reaches a successful conclusion, it will have regional
implications. One of the negative likely outcomes is that it will
intensify the level of criminal activity.
The slide of insurgency towards criminality is a global
phenomenon. In Myanmar, there is evidence of close links
between insurgents and organised crime. The country is
believed to be the second-largest opium producer in the
world; illegal mining and logging are also evident. Some
armed groups in the north of the country even operate
their own drug-control policies. Although ethnic Chinese
groups are deeply involved in Myanmars drug-trafficking,
(lr) Sarah MacIntosh, Director-General for Defence and Intelligence, Foreign and Commonwealth Office, UK; Javier Ciurlizza, Program Director, Latin America and the Caribbean, International Crisis Group
Click to see photos Click to see photos
-
40 IISS Cartagena Dialogue 2015
it would be a mistake to blame certain ethnic groups while
ignoring the reality that crime-enabled corruption reaches
high into the state apparatus. Until recently, the government
has focused on arresting addicts and low-level traffickers
but now it is considering a development-led approach that
will involve local communities and address the issue of land
rights, which goes to the heart of discontent, instability and criminality.
Some European states recognise the nexus between
insurgency and organised crime, as well as the transnational
nature of the threat. The UK, for instance, is providing
strategic assistance to partners to improve the socio-economic
environment, strengthen governance and institutions, build
criminal justice systems and disrupt crime. Yet there is also
a responsibility in Western societies to work on demand
reduction.
Special Session II: Trans-Pacific Connections: Commodities, Trade and Investment Trade has been the foundation of increased commercial
ties between Latin America and Asia in recent years, but
the cyclical downturn in commodity prices has revealed
a structural problem: Latin America is overdependent on
(lr) Gustavo Mohar, Founder and Director-General, Grupo Atalaya; former Secretary General, CISEN, Mexico; Tom Kramer, Researcher, Drugs and Democracy Programme, Transnational Institute; Virginia Comolli, Research Fellow for Security and Development, IISS
Click to see photosClick to see photos Click to see photos
-
41Executive summary
commodity exports to Asia. The discussion addressed two
principal themes: the importance of investing in mineral
exploration to ensure sufficient capacity in the next decade;
and the challenges of achieving diversification, through a
broader range of exports and the attraction of more foreign,
especially Asian, investment.
In Mexico, the government has embarked on an ambitious
reform of the oil sector with the aim of attracting the resources
necessary to increase output by 1m-2m barrels per day. This
has involved constitutional reform and political controversy,
in order to establish a new environment characterised by
sectoral liberalisation, protection for investment and higher
levels of transparency. In Peru, meanwhile, the authorities have
cut taxes in response to falling copper prices and are seeking
to attract still-higher levels of foreign investment in order to
address an expected 2m tonnes per year shortfall in supply to
the global market by the end of this decade. Companies from
China, Japan and Korea are all heavily involved. Chile, Peru
and Mexico together could account for 40% of global copper
output. In Peru and Mexico there is a challenge for investors
to ensure that new projects are undertaken in a way that
ensures the support of local communities. Partnership and
development are key to success.
(lr) Dr Octavio Pastrana, Member of the Board, Pemex; Jorge Merino, Former Minister of Mines and Energy, Peru
Click to see photos Click to see photos
-
42 IISS Cartagena Dialogue 2015
Diversification of exports from Latin America to Asia
will depend partly on how ready Latin American states
are to receive investment; currently, not all are. There is
potentially an investment bonanza at hand: up to half of
inward investment to Latin America could be of Asian origin
within the next five years, and some investment could flow
in the other direction too. Here the Pacific Alliance states
seem particularly well-placed, because of their commitment
to free markets, open competition and a rules-based system.
Investment will contribute to easing three structural
impediments on Latin American economies: informality and
low productivity; inadequate infrastructure; and income
inequality.
With the right preconditions in place, Latin America will
be able to diversify its export of goods and services to Asia,
and in particular to take advantage of the expected growth
in Asias middle class. This offers considerable opportunities
for services, in particular tourism. For instance, the number
of Chinese tourists going abroad each year is expected to
double to 200m by 2020 and their appetites will become
more sophisticated. Another growth area is agriculture, as
improving security in Latin America makes it possible to
cultivate undeveloped land; this could help to feed a growing
(lr) Dr Brendon Hammer, First Assistant Secretary, Americas Division, Department of Foreign Affairs and Trade, Australia; Jos Juan Ruiz Gmez, Chief Economist, Inter-American Development Bank; Dr Nicholas Redman, Director of Editorial; Senior Fellow for Geopolitical Risk and Economic Security, IISS
Click to see photos Click to see photos Click to see photos
-
43Executive summary
Asia while also lifting large numbers of Latin Americans out
of poverty and unemployment. The further development of
the Pacific Alliance economies will not only boost trade with
Asia, but also raise trade among members. Today, only 10% of
the Pacific Alliances trade is within the bloc but the alliances
recognition that trade is important for development should
have a positive influence across the continent.
Special Session III: Organised Crime and the Informal Mining Sector The session examined the links between criminal groups
and informal miners, an issue of growing concern for the
mineral-producing countries of the Pacific Alliance. The
boom in commodity prices during the 2000s boosted formal
economies but also encouraged non-state armed groups, both
guerrillas and organised criminals, to deepen their operations
in mineral-rich areas. Participants highlighted how attractive
the activity has become for inhabitants of rural areas, since
mining is now usually more profitable than agriculture.
In some parts of Colombia and Peru, armed groups are
now more likely to engage in informal mining than drug
trafficking, encouraged by state weakness. In Colombia,
over 80% of mineral extraction is unlicensed. Illegal actors
are able to conceal their involvement by tapping into trading
companies, which then mix the illegally-extracted minerals
with the legal supplies.
China is not only the main buyer of minerals from the
Pacific Alliance, but also has its own domestic problems with
informality. Efforts to tackle the problem started in earnest in
1997. By then, approximately half of Chinas coal output was
informal. The activity prospered thanks in part to corrupt local
officials, especially in regions where coal mining represented
a big portion of the economy. Criminal gangs have also
had involvement with the activity. But thanks to new laws,
regulations and a campaign by the national government,
several informal mines have been closed. The government
-
44 IISS Cartagena Dialogue 2015
has offered training for small farmers and set a nation-wide
inspections programme on coal safety, enforcing technical
standards, safety measures and promoting best practices.
Many international policies regarding informal mining
were discussed. Efforts by West African countries to apply
common regulations and tracking systems could serve as
examples for the Pacific Alliance, as long as these are carefully
adapted to local realities. On that front, speakers highlighted
that there still is little exchange of ideas and best practices
between member countries of the alliance.
Some incentives for small miners to seek entry into the
legal mining sector have been successful. Some Latin American
countries, for instance, have established official institutions to
help small miners to become legal and increase productivity
while complying with environmental regulations. The
guarantee of a minimum price for small miners was cited as a
particularly successful incentive because it protects producers
from variations in international commodity markets.
As Asia-Pacific countries are significant consumers of
mineral supplies, the session analysed the scope for greater
trans-Pacific cooperation. It was proposed that countries on
both sides of the Pacific increase information exchange to
ensure that minerals sent to Asia are from legal producers.
(lr) Csar Ipenza Peralta, Professor of Environmental Impact, ESAN Graduate School of Business; Hernn de Solminihac, former Minister of Mining, Chile
Click to see photos Click to see photos
-
45Executive summary
At present, the monitoring of the supply chain is conducted
occasionally by importers (mostly in Asia), on their own
initiative. The exchange of information between law
enforcement authorities and the establishment of a trans-
Pacific system to monitor mineral supplies could help reduce
informality and weaken organised crime.
Special Session IV: Financial Services Integration: Asian and Pacific Alliance ExperiencesSpeakers in this session considered four main opportunities:
the acceleration of growth in the four economies of Pacific
Alliance states compared to other South American players;
the size of the Pacific Alliance market as a major incentive in
attracting capital; the appetite to diversify investment streams;
and the aim to harmonise the taxation of capital flows and
currency exchanges.
While there was agreement on matters of incentivising
investment by reducing tariffs and taxes on transactions, there
was controversy about sources of investment in the Pacific
Alliance countries. This discrepancy was based on what
each speaker perceived to be the immediate needs and best
ways to deliver the economic and social goals of the Pacific
Alliance. Infrastructure was one topic of contention, with
(lr) Lisa Viscidi, Director, Energy, Climate Change and Extractive Industries Program, Inter-American Dialogue; Dr Wenguang Shao, Consulting Senior Fellow for China and International Affairs, IISS; Nigel Inkster, Director of Transnational Threats and Political Risk, IISS
Click to see photos Click to see photos Click to see photos
-
46 IISS Cartagena Dialogue 2015
some in the panel maintaining that it is critical to invest in
infrastructure to ensure that the states in the Pacific Alliance
can thrive long-term, while others referred to the need to
balance risk in portfolios, infrastructure being on the risky
side of investment. Pension funds were brought up as a major
element in the integration agenda, so the matter of whether
or not infrastructure should be a large part of portfolios was
heatedly debated.In discussing diversification of income streams and
business alliances, speakers concurred that in both regions
SMEs are critical, far more than in Europe and the US.
Integration there, they claimed, needs to revolve around
ensuring that lending mechanisms become far more robust.
The relative absence of suitable capital markets, especially
for new enterprises, and the perceived lack of support from
the state to small businesses, suggests that creative Asian
models can be shared across the two regions. For example,
the panel discussed how Hometown Investment Trust Funds
can go a long way to provide financing to SMEs, having
been successfully exported as a model from Japan to Peru,
Cambodia and Vietnam.
The panel made clear that creating the mechanisms to inject
capital is only part of the solution. The session also addressed
(lr) Dr Felipe Larran Bascun, former Minister of Finance, Chile, and Senior Adviser to the IISS; Dr Naoyuki Yoshino, Dean, Asian Development Bank Institute
Click to see photos Click to see photos
-
47Executive summary
the importance of harmonising taxation, as well as matters
of currency and liquidity. The Chiang Mai Initiative was
raised as a particularly successful model of currency reserve
fund. Its success is attributable to the fact that participant
countries have a high level of trust and knowledge of each
others macroeconomic features. Members of the Pacific
Alliance, moving towards financial integration, will need to
consider that unlike trade integration, financial integration is
about sharing risks and promoting transparency in ways that
enhance their relationship as well as an understanding of the
upside and downside of currency collaboration.
The session also yielded a consensus on Mercado
Integrado Latinoamericano (MILA), namely that efforts are
not as yet sufficient to ensure financial integration, and that
structural issues will be best addressed in coordinated micro-
reforms which, in turn, will help deliver a broader Pacific
Alliance framework.
Plenary 5: An Agenda for Trans-Pacific CooperationOpening the session, Mauricio Crdenas Santamara, Minister of Finance and Public Credit, Colombia, noted that his countrys strong economic performance of recent years
was based on achieving a level of trust among consumers,
(lr) Dr Wonho Kim, Professor, Hankuk University of Foreign Studies; President, Latin American Studies Association of Korea; Dr Luis Miguel Castilla, Ambassador of Peru to the US; former Minister of Economy and Finance, Peru; Dr Sanjaya Baru, Director of Geo-Economics and Strategy, IISS-Middle East
Click to see photos Click to see photos Click to see photos
-
48 IISS Cartagena Dialogue 2015
business and foreign investors. The minister noted that the
Pacific Alliance was conceived at a time of high commodity
prices, but now that the supercycle has passed the true value
of alliance has become apparent, as it offers increased markets
for the non-commodity sectors.
In addition, the Pacific Alliance helps Colombia and its
partners internationally, he said, noting the support that
Mexico and Chile had offered his country in joining the OECD.
The focus on Asia also underscores the connections between peace, development and global integration for Colombia. The
countrys peace process will enable the state to establish its
presence in territory where currently it is weak, he said. That
in turn will open rich territories for agricultural production,
and Asia will be the principal market for this output, creating
prosperity that will sustain peace.
Surveying trans-Pacific exchanges, Dr Marty Natalegawa, former Minister of Foreign Affairs, Indonesia, noted the expansion of ASEANs initiatives to build the security
architecture in the western Pacific in recent years, as well
as multilateral initiatives such as the East Asia Summit and
ASEAN Regional Forum. He also touched upon APEC, TPP
(lr) Dr Marty Natalegawa, former Minister of Foreign Affairs, Indonesia; Lee Ark Boon, Deputy Secretary (Trade), Ministry of Trade and Industry, Singapore
Click to see video Click to see video
-
49Executive summary
and the Forum for East Asia-Latin America Cooperation
(FEALAC) as institutions that serve as a bridging function to
Latin America.
Dr Natalegawa offered a two-point agenda for cooperation,
focused firstly on physical, institutional and people-to-
people connectivity, and secondly on promoting a peaceful
Pacific Ocean. It is important to not let sensitivities get in the
way of addressing this important subject and confronting
reality, he said. In building a new security architecture for the new century, he pointed to three objectives: improving
strategic trust, managing territorial disputes peacefully and
accommodating the rise of new powers.
Celso Amorim, Brazils former Minister of Foreign Affairs and former Minister of Defence, took up the theme
of peace and security by suggesting that the Pacific could
draw lessons from the South Atlantic by establishing a zone
of peace and cooperation. Central to this success, he said,
was the effort to separate the South Atlantic from the broader
ocean in a political sense. The former minister reminded
delegates that Mercosur was larger than the Pacific Alliance
and currently enjoyed higher levels of intra-bloc trade; that
(lr) Celso Amorim, Brazils former Minister of Foreign Affairs; Mauricio Crdenas Santamara, Minister of Finance and Public Credit, Colombia
Click to see video Click to see video
-
50 IISS Cartagena Dialogue 2015
organisation and UNASUR, moreover, are overtly political
projects designed to establish a zone of peace in which war
is inconceivable. By contrast, he noted, the Pacific Alliance
has no defence aspiration. Mr Amorim said Brazil is trying
to create a Defence Council of South America that would
stimulate high-technology industry across the continent and
ensure that more of the military equipment procured in Latin
America would be produced there.
Returning to the theme of trans-Pacific cooperation, Lee Ark Boon, Singapores Deputy Secretary (Trade), Ministry of Trade and Industry spoke about the importance of boosting connectivity between governments, business and
people. He argued for a strong regulatory infrastructure that
went beyond FTAs, also embracing investment protection and
double-taxation agreements.
Trade negotiations are often difficult because of the
internal dynamics in the participant states, he said, but insisted
that it was beneficial to tackle trade and investment barriers,
because the benefits are felt broadly. This refers in particular
to SMEs, that otherwise lack the resources to do business
across the Pacific Ocean. The deputy secretary concluded
Fifth Plenary Session
Click to see video
-
51Executive summary
with a bold proposal: to think strategically by concluding an
FTA between the Pacific Alliance and ASEAN, rather than
focusing on bilateral FTAs. A region-to-region FTA could
have huge benefits under rules of origin, he said, and would
allow companies in ASEAN and the Pacific Alliance to access
global value chains. It could also be a stepping stone towards
an Asia-Pacific FTA, he added.
The ensuing discussion touched on the possibility that the
Pacific Alliance could one day become a body embracing all
of Latin America, as the European Union which started as
the European Coal and Steel Community in 1951 has done
in Europe. There was also discussion around whether there
could be functional integration between the Alliance on one hand and Mercosur and other regional bodies on the other.
Minister Crdenas stressed that the Pacific Alliance is open to
all states who share the alliances outlook and values, but it
was essential that they adhere to the standards already agreed and implemented. Celso Amorim argued that Mercosur had
much better prospects of becoming the EU of Latin America
than Mercosur; he also warned that it was important to avoid
dividing Latin America between a pro-business, free-trading
Pacific and a statist South Atlantic. This would put peace in
jeopardy, he warned.
Concluding Keynote Address: Juan Carlos Varela Rodrguez, President of PanamaPresident Juan Carlos Varela Rodrguez of Panama delivered
the closing keynote address at the IISS Cartagena Dialogue.
His inspiring speech focused on three intertwined themes:
good governance, regional and international cooperation, and
prosperity.
The president urged fellow world leaders and civil
servants not to look at politics as a business but as a way
of serving society and addressing issues affecting citizens.
Strengthening democracy is, he argued, as crucial as dealing
with the challenge of organised crime currently affecting
-
52 IISS Cartagena Dialogue 2015
many countries in Latin America. State resources must be used
to improve life, he said. Leaders ought to lead by example and
prove that the state is capable of caring for its people and the
youth in particular. In this way, it would be possible to break
the foundation of criminal groups.
These considerations should be at the core of interactions between the region and Asian countries, the president
insisted. Priority should be given to human development and
continued efforts to eliminate inequality and unemployment,
and to ensure universal access to basic services and education. This will consolidate and unify society, while also bolstering peace and making the environment less attractive to
transnational criminal networks. In this context, he lauded the
Colombian peace process as a model worthy of emulation.
Turning to the Pacific Alliance, President Varela noted
that Panama is in the process of accession. He promised
cooperation with other regional powers on all fronts and cited
the many initiatives undertaken to contribute to national and
regional prosperity. Panama is expected to see GDP growth of
6-7% annually from 2016, fired by government investments,
and is positioning itself as a passenger and cargo hub.
Juan Carlos Varela Rodrguez, President of Panama
Click to see video
-
53Executive summary
Initiatives include the expansion of the Panama Canal, the
expansion of the international airport, and the development
of the South Caribbean cruise route.Increasingly, the president noted, Asian countries and
companies are investing and operating in Panama. China,
the second largest user of the Panama Canal, has invested
in construction. Singapore sponsored the building of a
technical school. South Korean technology can be found in local hospitals and the country has invested in energy and
mining. Japan is to finance and provide technical support to
improvement works in the Panama City bay.
These forms of cooperation no doubt foster prosperity but
ought to be accompanied by information exchanges such as
in the context of migration and border control, and by joint
efforts to ensue that the international financial system is not
exploited for criminal or terrorist purposes, the president said.
He concluded his address by stressing the need to build trust among nations to foster cooperation against transnational
challenges such as organised crime, natural disasters and
pandemics. In this respect, the IISS Cartagena Dialogue
was a welcome mechanism to promote the creation and
strengthening of bilateral and international ties, he averred.
-
54 IISS Cartagena Dialogue 2015
-
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA 68 MARCH 2015
IISS Cartagena Dialogue
CHAPTER 3
Reception
-
56 IISS Cartagena Dialogue 2015
-
57Reception
-
58 IISS Cartagena Dialogue 2015
-
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA 68 MARCH 2015
IISS Cartagena Dialogue
CHAPTER 4
Social media
-
60 Global Strategic Review 2014
Follow the IISS at @IISS_org
See all photos from The IISS Cartagena Dialogue and many other IISS events
FLICKR
See all video from the IISS
YOUTUBE IISS
TWITTER TWITTER CARTAGENA
Follow the conversation under #iisscartagena
IISS VOICES
IISS experts comment on a wide range of global defence and security issues
VOICES CARTAGENA
IISS experts comment on and discuss the themes from The IISS Cartagena Dialogue
FOLLOW US
EXPLORE
YOUTUBE CARTAGENA
See all video from The IISS Cartagena Dialogue
-
THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES
TRANS-PACIFIC SUMMIT, CARTAGENA, COLOMBIA 68 MARCH 2015
IISS Cartagena Dialogue
CHAPTER 5
Press coverage;Selected IISS publications
-
62 IISS Cartagena Dialogue 2015
-
63Press coverage
Caracol Radio6 March 2015
Santos instalar en Cartagena cumbre IISS Dialogue de lderes mundiales
Juan Manuel Santos
Con una cena privada el presidente Juan
Manuel Santos y el director del Instituto
Internacional de Estudios Estratgicos
(IISS por sus siglas en ingls), John
Chipman, instalarn este 6 de marzo
en Cartagena la tercera cumbre de
este organismo, denominada Dilogo
Cartagena, cumbre trans-pacfica.
Al evento asisten ms de 40 lderes
del mundo y tambin el presidente de
Panam, Juan Carlos Varela.
Ejecutivos de prestigiosas empre-
sas y ministros como la canciller Mara
ngela Holgun, elministro de hacienda
Mauricio Crdenas y de defensa Juan
Carlos Pinzn, compartirn experien-cias con los asistentes sobre dilogos in-tergubernamentales y el crecimiento de
las relaciones Asia - Latinoamrica.
La cumbre se cumplir hasta el
domingo 8 de marzo, y tamben habr
un espacio para hablar sobre la resolu-cin de conflictos, en la que delegados
de Indonesia y Filipinas comparti-rn sus experiencias. En dicho panel,
tambin participar el jefe negociador
del gobierno en La Habana, Humerto
De La Calle. As mismo, se buscar
el fortalecimiento de la Alianza del
Pacfico con el comercio asitico.
2015 Caracol RadioReprinted with permission
Press coverage
-
64 IISS Cartagena Dialogue 2015
El Universal6 March 2015
Poltica y comercio transpacfico, eje central del Dilogo de CartagenaAcadmicos, polticos y empresarios
de todo el mundo se renen desde hoy
en la ciudad para asistir al Dilogo de
Cartagena, un evento en el que se discu-tirn temas relacionados con la defensa,
seguridad y economa.
El Dilogo de Cartagena, que se
realiza en el hotel Hilton hasta el prximo 8 de marzo, es una iniciativa
del Instituto Internacional de Estudios
Estratgicos, IISS (por sus siglas en
ingls), en la que diversos pases refuer-zan sus relaciones en temas econmicos
y de seguridad.En el Dilogo de Cartagena, al que
asistirn delegaciones de 30 pases de los
cinco continentes, tomarn parte lderes
polticos, empresarios y altos funcio-narios de pases como Corea, Japn,
Filipinas, Indonesia, China, Panam,
Chile, Per y Colombia, entre otros.
El evento tendr como eje central
las relaciones entre los pases aliados
del AsiaPacfico y le dar un especial
nfasis a los enlaces crecientes entre los
dos lados de este ocano, fomentando el
fortalecimiento de redes polticas, diplo-mticas, econmicas, comerciales y los
acuerdos entre naciones sobre defensa y seguridad.
El Dilogo de Cartagena estar
encabezado por el presidente Juan
Manuel Santos, quien ser acompaa-do por los ministro de Defensa, Juan
Carlos Pinzn, de Hacienda, Mauricio
Crdenas Santamara, la ministra de
Comercio, Industria y Turismo, Cecilia
lvarez-Correa y la canciller, Mara
ngela Holgun.
2015 El UniversalReprinted with permission
US Department of State Official Blog6 March 2015
The US and the Pacific Alliance: Partners for Prosperity
David Thorne
Secretary Kerry entrusted me with the
mission of promoting a vision of eco-nomic diplomacy: a Shared Prosperity
Agenda. The premise of the agenda is
that security, stability, and prosperity
are inexorably intertwined. You cant
have prosperity without stability and
security, and there is no sustainable sta-bility without prosperity. A cooperative
and constructive regional arrangement
like the Pacific Alliance is an effective
way to advance peace and stability
and prosperity for all.
It is with this mission in mind that
I am in the historic port of Cartagena,
Colombia through March 8th for a con-ference sponsored by the prestigious
Institute for International Strategic Studies (IISS) regarding the Pacific
Alliance trade bloc, and the poten-
-
65Press coverage
tial for further economic integration
between Latin America and the Asia-
Pacific.
Formed in 2011, the Pacific Alliance
is composed of four of our southern
neighbors: Mexico, Colombia, Peru, and
Chile. The four countries possess a com-bined population of over 214 million,
38 percent of Latin Americas GDP, 50
percent of the regions exports, and 36
percent of foreign direct investment.
They also possess a geographic position
along the Pacific Rim and as global eco-nomic activity has shifted toward Asia,
the advantages of their location have become obvious.
The four alliance countries are cur-rently consolidating an ambitious
agenda, including signing a plurilateral
free trade agreement, eliminating visa
requirements, instituting educational
exchange and scholarship programs,
and integrating capital markets. The ex-istence of a group of countries in Latin
America dedicated to free trade and
a liberal approach to markets is inter-esting and will help the debate in the
region as a whole.The United States is one of thirty-
four countries with observer status to
the Pacific Alliance. The Alliance has ex-pressed interest in cooperation with ob-servers and the United States responded
has proposed cooperation in trade fa-cilitation, travel facilitation, small busi-ness, entrepreneurship and exchanges
between research institutions. Last month I visited Fort Worth,
Texas, to make closing remarks at the
US governments first official engage-ment with the Pacific Alliance. Under
the U.S. government-sponsored La Idea
program, entrepreneurs from all four
countries participated in two weeks of
engagement with U.S. investors at three
business incubators, one of which was in Fort Worth. I enjoyed mixing with the
attendees, several of whom told me that
they were already making deals with
U.S. companies they had met through
the program. They also told me that
in Fort Worth they had made excel-lent contacts among the other Pacific
Alliance participants from other coun-tries where they had not known anyone
before. In small ways like this we not
only build contacts for our own busi-ness people, but we encourage construc-tive ventures like the Pacific Alliance to
increase cooperation.
This weekends Cartagena Conf-
erence includes keynote remarks from
Colombian President Santos and min-ister-level representation from all four
Pacific Alliance countries. The event
includes a mix of government officials
from the Pacific Alliance and some of its
thirty-four observer countries business representatives, and non-governmental
trade and investment analysts.
I hope that the La Idea incuba-tor program and my participation
in the IISS Cartagena Dialogue are just the first of many efforts by the
United States to generate active prac-tical cooperation between the United
States and this dynamic regional bloc.
Congratulations to the Pacific Alliance
on their progress and best wishes as
they work to further integrate trade
and positive engagement between Asia
and the Americas.
-
66 IISS Cartagena Dialogue 2015
2015 US Department of State Official
BlogReprinted with permission
AFP7 March 2015
Santos inaugura en Colombia dilogo entre pases del PacficoEl presidente colombiano Juan Manuel
Santos inaugur este viernes en la
ciudad caribea de Cartagena (norte) un
dilogo entre los pases de la cuenca del
Pacfico, en el que se tocarn temas de
seguridad, comercio y cooperacin.
El llamado Dilogo de Cartagena,
que rene a decenas de lderes, empre-sarios y estrategas de casi 30 pases del
rea del Pacfico, se desarrollar hasta
el prximo domingo en esta ciudad del
Caribe colombiano.
Este dilogo est llamado a tener
una gran importancia para la integra-cin y la cooperacin entre las dos
orillas del mayor cuerpo de agua del
mundo, el ocano Pacfico, dijo Santos
en su discurso de apertura este viernes
por la noche.
La agenda de trabajo de esta cumbre
pasa por temas estratgicos como la se-guridad y la defensa, pero incluye otros
temas muy importantes como el comer-cio, la cooperacin y el bienestar social,
aadi el presidente colombiano.
El encuentro es organizado por el
Instituto Internacional para Estudios
Estratgicos (International Institute for
Strategic Studies, IISS) y el ministerio de
Defensa de Colombia.
Segn Santos, Colombia fue escogi-da como sede de esta cumbre estratgica
por sus avances en el proceso de paz con
la guerrilla de las FARC, que se desarro-lla desde 2012 en Cuba para poner fin a
un conflicto armado de ms de medio
siglo, por su buen desarrollo econmico
y por los avances que ha registrado la
Alianza del Pacfico.
El presidente colombiano ha sido
un impulsor del bloque regional de la
Alianza del Pacfico, integrado tambin
por Chile, Mxico y Per, y el cual tiene
como principal misin aumentar el in-tercambio comercial con la regin Asia-
Pacfico.
Queremos crecer juntos y progresar
juntos, queremos forjar una humani-dad en paz (...) sabemos que unidos los
pases del Asia-Pacfico con los pases de
Amrica-Pacfico tenemos la posibilidad
de hacer la diferencia, aadi Santos.
El sb