ASEAN chief proposes mechanism to help new members

   KUALA LUMPUR, Dec. 15 (Kyodo) -- Association of Southeast 
Asian Nations  (ASEAN) Secretary General Ajit Singh on 
Monday proposed setting up a financial mechanism to help new 
and prospective ASEAN members reform  their economic systems 
and catch up economically with more developed members of the 
grouping.
   "In our own part of the world, there is only the Asian 
Development  Bank (ADB)," Ajit told a business forum in 
Kuala Lumpur held amid an  informal ASEAN summit meeting 
here.
   "It is time, in my view, that we should also have another 
financial  mechanism, which is distinctly ASEAN, which can 
provide the necessary  funds and has the resources to help 
these new members embrace  market-oriented activities," he 
said.
   ASEAN's new members are Vietnam, which was admitted last 
year, and Laos  and Myanmar, which came in earlier this 
year. Prospective member Cambodia is expected to be allowed 
next year.
   Ajit, whose term expires at the end of the year, said the 
proposed  mechanism or fund could be loosely modeled on the 
European Bank for Reconstruction and Development, the Andean 
Development Corp. and the  Central American Bank for 
Economic Integration.
   He said funds could either come from ASEAN governments, 
the private  sector, governments outside the region and 
other lending institutions,  or from a combination of these.
   The mechanism or fund would provide loans, as well as 
invest and stand  as guarantor to commercially viable 
projects undertaken in Cambodia,  Laos, Myanmar and Vietnam 
with private sector participation.
   "The mechanism should not be encumbered by political 
pressure from any  quarter nor should it undertake its 
activities with any political  strings attached," Ajit said.
   He said it should not seek to supplant but rather 
complement the  activities of other organizations such as 
the ADB and those related to  Mekong Basin development.
   Together, the four countries have a population of about 
135 million  people, or nearly a quarter of the total 
population of ASEAN.
   "ASEAN has repeatedly emphasized that it would like them 
to be drawn  into the economic mainstream of ASEAN as soon 
as possible and not be  left behind. Nor would ASEAN like to 
see a second-class membership for  the lesser developed 
members," he said.