Investment In India | "Investment to seal tighter Asian links"

By: DAVID CROWE AND DENNIS SHANAHAN
Source: http://www.theaustralian.com.au
Category: Investment In India

The Asian Century white paper will set out investment policies to tighten links with key neighbours including China, India and Indonesia as differences over foreign ownership divide the Coalition.

The plan will also call for an overhaul of school and university education to make Asian languages a core part of the curriculum, warning that the country has gone backwards on Asian literacy in recent decades.

The Prime Minister and Russian President Vladimir Putin, who hosted this year's Asia-Pacific Economic Community forum in Vladivostok, both urged deeper economic integration in the region and backed university educational exchanges at every level.

At the 2012 APEC meeting in Russia's far east, at the site of the new Far East Federation University, leaders agreed to lower tariffs on 54 environmentally friendly products and increase mobility among universities throughout the Asia-Pacific. In concluding the forum yesterday, Mr Putin said the Asia-Pacific was now the area for world growth and that Russia was deliberately "turning east" because of the economic woes of the traditional European trading partners. Mr Putin said he hoped there would be greater and more direct links between Asia and Europe through Russia's land transport and the shipping lanes.

"All APEC economies are 'future lookers' and we want shared goals in education and business," Mr Putin said.

Before leaving the APEC forum to be with her family in Adelaide after her father's death, Ms Gillard told the ABC's Australia Network she would not comment on what was in the white paper, but said: "I would make this point. We are already at record expenditure for scholarships for people from our region to come and study in Australia.

"That's great for us, those people-to-people links, those future leaders of nations in our region, actually getting an experience in Australia. Obviously, I want to encourage young Australians to get out and do the same," she said. "We're very pleased that Russia, in its leading of APEC this year, has put this squarely on the agenda.

"The easier it is, the better for Australian universities who are very export-oriented and want to take Australian education into the region."

The Asia Century paper is being drafted by a taskforce led by former Treasury secretary Ken Henry. It is intended to be a statement of government policy intent, making the cabinet deliberations crucial to its final form.

Other members of the taskforce include Australian National University emeritus professor of economics Peter Drysdale, Corrs Chambers Westgarth chief executive John Denton, Telstra chairwoman Catherine Livingstone and three top public servants from departments representing the Prime Minister, Treasurer and Minister for Foreign Affairs.

The paper is understood to be in its final stages but must be signed off by a cabinet committee including taskforce members. This could take until the end of the month, leading to the release of the policy document in October.

Mr Denton said Australia's acceptance of Japanese foreign investment provided a model for a new agreement with China that could support growth while easing fears about foreign ownership.

"One of the lessons we should learn is the benefit of being a stable liberal democracy with an open economy," Mr Denton told The Australian.

"The relationship with Japan is a model for the relationship we need to foster with China, India and Indonesia."

Mr Denton said the way the Australian economy was opened up to Japanese investment showed great political leadership given the legacy of World War II.

"Look at the level of leadership that was shown in developing that relationship," he said.

"Think about the challenge involved. The political leadership was very important.

"That's the sort of approach you need to have."

Mr Denton said the relationship with India needed a stronger focus after years of mixed results, partly because Australia did not have a clear idea of how it wanted the bilateral relationship to develop.

Mr Denton said the white paper would set out clear pathways for education including improving language skills at all levels of school as well as universities, where there was a "real opportunity" to develop more expertise.

Source: http://www.theaustralian.com.au/business/markets/investment-to-seal-tighter-asian-links/story-e6frg94o-1226468546317