Page 9 - AEC Digital Edition

ASEAN economic cooperation is a top-down initiative and hence awareness
among stakeholders is low and uneven
Looking back at ASEAN”s history, one notes that economic
cooperation came much later to the agenda than the pursuit
of peace and stability. ASEAN was instituted in 1967 so as
to promote peace and stability so that individual member
countries could focus on their domestic economies and
promote growth and development in a sustainable manner.
Hence, it was not until 1976 that they decided to cooperate
further to showcase their solidarity. Slowly, economic
cooperation became a form of diplomacy and most often
was carried out in foreign ministries in consultation with
the commerce or trade ministries.
But international trade is not carried out between
a few government agencies. Rather, it is a concern of
several sectoral government bodies, who may have
limited awareness regarding globalisation and economic
cooperation matters. In addition, countries of the region
were already undergoing a market-driven economic
integration, led by multinationals (MNCs). This led observers
of trade agreements to say that economic regionalism is a
AEC should be seen in conjunction with the ASEAN Political-Security Community
and ASEAN Socio-Cultural Community
Community building in ASEAN has to be seen in a
comprehensive manner, taking on board its economic,
political and socio-cultural aspects. An economic
community in ASEAN entails increased economic
cooperation, delivering on free flow of goods, services
and investments, equitable economic development and
reduced poverty. A political security community works
towards regional peace and stability while a socio-cultural
community encompasses regional cooperation in areas
like protection of the regional environment, limiting the
spread of contagious diseases, combating transnational
crime, and cooperation in responding to natural disasters.
It is hoped that all these put together will cultivate a sense
of regional identity.
In other words, the ASEAN Community is likely in
the future to be a region that is politically cohesive
Conclusion
The AEC blueprint is a complex and detailed document.
Despite a few failing measures, it is nevertheless a little early constant state of flux since the latest financial crisis, and the
to conclude that the AEC will not transpire. A more effective
way to judge the AEC is to go by its components and actions.
That is why member countries are also focusing on a priority
list, rather than the entire AEC blueprint.
It is only a decade since ten socially and economically
diverse countries have started this journey towards the
AEC. Awareness both among policy makers and final
users are just beginning. It should not be concluded yet
that the political leaders lack resolve and are trying to
compete with each other, thereby relinquishing on the
goal of the AEC.
Sanchita Basu Das is ISEAS Fellow and Lead Researcher (Economic Affairs) at the ASEAN Studies Centre, ISEAS – Yusof Ishak Institute, Singapore.
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subject of political elites, with almost no involvement
from other stakeholders. This has been accompanied by
a generalised low level of awareness of relevant economic
cooperation measures, particularly among the end-users.
Hence, despite low tariff levels for intra-regional trade, the
latest surveys indicate little interest among firms to utilise
the existing preferences.
It has only been of late, with the looming deadline of
2015, that private sector groups have begun to voice their
concerns. They have, in general, complained not about
tariff but about non-tariff barriers and problems with
other facilitation mechanisms. Even then, advocacy for
trade initiatives is not unanimous in nature. It is most often
driven by the relative strength of particular firms that bring
in more foreign direct investment to the country. Also most
government agencies, other than the foreign and commerce
ministries, generally lack detailed knowledge about the
AEC, and hence may not share the same vision on economic
cooperation matters.
and economically integrated, capable of cooperating
effectively on regional public goods.
Hence, AEC should not be seen solely with regard to
its economic aspects when judgements are made about
whether ASEAN can deliver on its community-building
commitments. ASEAN has managed to foster peace in the
region for more than two decades.
Its members have also engaged the major powers in
Southeast Asian affairs through various ASEAN- centred
forums and cooperative activities such as a free trade
area and through economic partnership. This has
contributed directly to the region”s stability. ASEAN has
also recognised the growing importance of cooperation
in the protection of the regional environment and other
regional public goods under the socio-cultural mode of
cooperation.
Nevertheless, now, more than ever, is the time when
the countries should come together to strengthen the
economic community. The global economy has been in a
exponential growth in social media has meant that every
event is instantly transmitted and discussed all over the
world. In such an environment, any form of co-operation
among countries is welcome. The AEC-2015 may not be able
to deliver on a fully integrated single market and production
base for ASEAN stakeholders, but it will likely be a stronger
group of nations on many counts. This will help ASEAN
members withstand the next global crisis with confidence,
whenever it arrives.
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