Towards an ASEAN Community

                   

The official flag of the ASEAN
image from:
 http://www.aseanic.org/_uploadedfile/images/asn-sli-1349145587-asean-logo-dalam.png

For the past few weeks, news about the ASEAN integration is all over the headlines. Besides the adjustment of Academic calendar by different universities to cope with our fellow ASEAN neighbors (which until now receives various reactions), a bigger project is about to unveil this 2015-The ASEAN Community. This essay aims to inform its readers on the ASEAN Community particularly, the ASEAN Economic Community 2015.  

                The Association of Southeast Asian Nations (ASEAN) is a regional organization founded on August 8, 1967 in Bangkok, Thailand. The signing of the Bangkok Declaration in 1967 by its founding members including Indonesia, Malaysia, Philippines, Singapore and Thailand established the organization along with its aims of facilitating greater cooperation in different issues within the region. Today, there are ten member states comprising ASEAN. The new member states of the organization are Brunei Darussalam (1984), Vietnam (1995), Lao PDR (1997), Myanmar (1997) and Cambodia (1999).

The current member states of ASEAN
image from:http://en.aectourismthai.com/images/blog/content1/20130207115027.jpg

                From the official website of the organization (see http://www.asean.org/asean/about-asean), each ASEAN member state adopts the following fundamental principles stated in the Treaty of Amity and Cooperation in Southeast Asia (TAC) of 1976.

1. Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;

2. The right of every State to lead its national existence free from external interference, subversion or coercion;

3. Non-interference in the internal affairs of one another;

4. Settlement of differences or disputes by peaceful manner;

5. Renunciation of the threat or use of force; and

6. Effective cooperation among themselves.

   

                Although many countries thought that the organization will not survive, ASEAN managed to stand different challenges and resolve some differences within the region through time. As part of its future plans, the organization established a vision for the region named as the ASEAN Vision 2020. In this vision, the member states agreed to create an ASEAN Community by 2020 that will further strengthen the ties among the relations of each member states. This ASEAN Community comprises three pillars which are the ASEAN political-security community, the ASEAN Social-Cultural community and the ASEAN Economic Community. Each of the three-pillars is explained further in their respective blueprints. (See http://www.asean.org/asean/about-asean for each pillar’s blueprint)

                In the 12^th ASEAN Summit held in Cebu, Philippines last January 2007, the organization decided to hasten the establishment of the ASEAN community, originally by 2020 to 2015. The said agreement is signed by member states in the Cebu Declaration on the Acceleration of the Establishment of the ASEAN Community by 2015. The declaration contains the acknowledgement of ASEAN member states towards establishing a single ASEAN Community in order to address common issues like security and economic development.

The ASEAN Economic Community

The ASEAN Economic Community map
image from: http://thumbs.dreamstime.com/z/asean-economic-community-aec-31019063.jpg

                This 2015 marks the launch of one of the Pillars of the ASEAN Community-the ASEAN Economic community. In accordance to the Bali Concord II signed in Bali, Indonesia last 2003, the region, by 2015 will transform into a single Common Market and production base which aims to make a “highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy”. In 2007, the meeting of different Economic ministers from each member states in Kuala Lumpur, Malaysia created the blueprint for this envisioned Economic community that identifies five core themes: (i) free flow of goods (ii) free flow of services (iii) free flow of investments (iv) free flow of capital and (v) free flow of skilled labor. Along with these components are the priority integration sectors and food, agriculture and forestry.

                In International Relations, a common market is a type of a Regional integration Agreements (RIA’s) which states engaged in order to enhance cooperation. A common market is defined as “the removal of tariff and non-tariff barriers plus, a common external tariff against non-member countries” (Layador,2014). In addition, a Common Market includes a “free movement of capital, labor and services” (Layador,2014). If we can remember, this is not the first time that a regional organization decided to come up with the vision of a ‘community’ higher that the state called the region. This is exemplified in the case of the European Union (EU). Each of the 28 member states adopted not just a common market but entered into an Economic and Monetary Union wherein states share a common economic and monetary policy (ex. Inflation target rates, single currency, investment policies and a common central bank) except for Great Britain who opt not to adopt the Euro currency and remain to use pound.

                   After defining what a common market is, we now move into some of the challenges or problems it may create. One possible problem is the “inconvenience and transactions costs of navigating through a big regional market with different currencies.” (Layador, 2014) This is exemplified in the early years of the European Union (EU) until 1992 upon the signing of the Maastricht Treaty which created the Euro currency. Before the treaty, all member states use different currencies in buying goods and services which are highly costly. Another problem posed by this integration is the transition period to a single common market. While it promises a highly competitive, monopoly-free markets, the possibility of local business and industries that previously enjoy national protection or subsidy might incur loses and struggle to compete against the international market in this period. Of course, these possible challenges are just possibilities. We are yet to find the effects of the Economic integration in 2015.

                     Are we ready for a regional integration? Although the idea of an 'ASEAN Community' is not that bad at all, we still need to look at the possible advantages and disadvantages of this event. After all, regional integration is not just a socio-cultural or economic phenomena. It is a political event that may somehow affect the future of each member states within the region.   

References:
The Euopean Union official Website:  http://europa.eu/legislation_summaries/institutional_affairs/treaties/treaties_singleact_en.html

ASEAN official website: http://www.asean.org/asean/about-asean

Lecture Handouts in Political Science 187- Special topics in international relations : regionalism-multilateralism

East African Community official website : http://www.eac.int/commonmarket/benefits.html