Overall aid relationships will decline except in the poorest countries such as Philippines, Mongolia, Vietnam, Laos and Cambodia but political imperatives is likely to mitigate the reductions in bilateral aid in the form of ATP and ELT, institution-building and training within technical cooperation.
There are significant flash-points and issues that can imperil the success of the region or pose problems in political and economic relations:
Hong Kong's transfer to China
military build-up especially in China and Korea
political succession and leadership in China and Indonesia
reunification of Korea
the Spratly Islands conflict
potential ethnic/religious conflict in Indonesia, Malaysia, Cambodia
slowdown of maturing economies
uneven development particularly in China, Indonesia and Vietnam
Increasing wealth and the increasing size of the Asian middle class will result in greater demands for political evolution to democratic values together with stability. These changes will also generate an increasing interest in exposure to a wider range of international culture.
The economic might of the region will carry considerable weight which over the next five years will result in a greater demand for influence on the world stage. The growth of regional powers and new economic groupings make East Asia a difficult but rewarding challenge.
The Council will need to be flexible in structure and innovative in its programmes if it is to promote Britain effectively in the region. We will need to expand our reach, actively support trade, innovate in English language teaching and increase the volume and quality in exchanges of people to win friends across the region.
5.
REGIONAL PRIORITIES
To maximise the impact of GIA through use of third party funding and entrepreneurial activity.
To extend the overseas network, both through GIA and DTE.
To increase British exports
To diversify services to meet fast-changing demands.
To provide both policy and implementation services to ODA.
To maximise the use of regional resources.
To promote Britain as the access point to Europe.
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