Page 7 - AEC Digital Edition

Myths & reality of the AEC

The ASEAN Economic Community (AEC) project suffers more detractors than supporters, with a majority
seemingly convinced that the initiative’s deliverables, namely an integrated production space with free
movement of goods, services, and skilled labour will not be achieved by the deadline set in December
2015.

While this “bald” statement has some merit, we must ask ourselves what the definition of economic
community was when ASEAN decided to form an AEC. Ms Sanchita Basu Das of The ASEAN Studies
Centre, ISEAS – Yusof Ishak Institute explains five crucial facts about ASEAN economic cooperation and
the AEC – which irrespective of any criticism, will proceed as planned.

AEC was not developed on the basis of the EU model, although there are some
relevant lessons to be learned from the latter

Yes, the term “economic community” for ASEAN resonates as a gradual process in ASEAN, with long term aspirations,
with the European style of integration, i.e. the European rather than as a mechanism with strict rules that apply,
Economic Community, but the similarities end there. irrespective of the economic nature of member economies
In reality, “economic community” conveys the ASEAN and changing global conditions.
governments” willingness to strive for deeper economic
integration. The AEC, along with the other two community There are many areas where ASEAN is different from
pillars – the ASEAN Political-Security Community and the the EU style of cooperation. For example, the EU is defined
ASEAN Socio-Cultural Community – is supposed to generate as a group of nation-states whose citizens may live, work
a sense of identity for Southeast Asia. While the European and study anywhere in the region. However, this is not
integration model has been studied as a form of successful applicable for ASEAN and is highly unlikely to be accepted
integration, many aspects have been adjusted keeping in anytime in the near future. The latest crisis in the EU is
mind the developments of Southeast Asian economies and also a reminder for the member countries of ASEAN that
culture. goals and targets have to be realistic in nature, as the
socio-economic diversity within a regional grouping may
Since the early days of ASEAN, the sovereignty of nation generate sensitivities overtime.
states and non-interference in domestic matters were
the key principles guiding the organisation. Economic Given this background, for ASEAN, a more acceptable
cooperation was sought in areas where it was felt necessary, definition of community is a region where the leadership
such as to provide economies of scale to multinationals class and an increasing number of businesses and ordinary
doing business in Southeast Asia or to anchor the people feel that they share a common identity. In doing so,
production networks that were already developing in the personal and national interests are likely to be advanced
broader Asian region. Economic cooperation is envisioned along with the growing political and economic cohesion
that eventually helps the region to progress.

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