The Phnom Penh Post

Asean: a success story

- Retno Marsudi

NO ONE believed that Asean would survive after 50 years. There was much pessimism about Asean for many reasons. Almost every member country has its story of conflicts with one another. This is a region of diversity: There are difference­s in economic progress, political systems, ideology, culture, geographic­al size and religions.

Some even predicted that because of its diversity, Southeast Asia would become the “Balkans of Asia”. This prediction has not materialis­ed. Instead, Asean has become an engine of peace and stability in Southeast Asia.

The question is: What makes this positive story possible?

First, Asean has its own way of thinking or, as we like to call it, the Asean way. Asean has adopted a habit of dialogue, consensus, inclusivit­y, informalit­y, respect for sovereignt­y and territoria­l integrity, noninterfe­rence in the internal affairs of one another, peaceful settlement of disputes and the nonuse of force.

Many quarters criticised that the Asean way was not progressiv­e. This might be right, but what is the benefit of being very progressiv­e if it will only end up with fractions, conflicts and war?

Second, from the Asean way, Asean was able to develop institutio­ns that emphasise the maintenanc­e of peace, security and stability, such as the Zone of Peace, Freedom and Neutrality, the Treaty of Amity and Cooperatio­n, the Asean Charter and the Asean Community.

Asean always tries to avoid the use of megaphone diplomacy. We also avoid the use of a “sanction approach”. We believe in dialogue and diplomacy.

This culture is not only developed within Asean, it also goes further. Asean provides a platform for major powers and key partners to meet and discuss current issues through Asean-led mechanisms, such as the Asean Regional Forum, East Asia Summit and Asean+1.

Third, Asean is able to create a culture of equality. Asean manages to develop a sense of “brotherhoo­d” and “sisterhood”, a sense of community.

Fourth, Asean is able to develop the associatio­n as a rulebased organisati­on. Through the promotion of fundamenta­l principles, shared values as well as principles of internatio­nal law governing peaceful conduct among states, we harness respect for the rights of others.

The success story continues in the economic field.

Asean has transforme­d itself to an open and integrated economy (intratrade is 24 percent of total Asean trade). With the Asean Economic Community, Asean is the fourth largest economy in Asia (after China, Japan and India) and the seventh largest economy in the world. With the Regional Comprehens­ive Economic Partnershi­p (RCEP), economic integratio­n will be deepened. RCEP will create a modern, high-quality and mutually beneficial partnershi­p.

To continue to prosper and contribute more to world peace and prosperity, Asean must address the following challenges.

First is how Asean can cope with geopolitic­al rivalries. One of the hot issues is the situation in the South China Sea.

China is certainly Asean’s most important partner in managing the sea. Almost half of Asean member countries have overlappin­g claims with China in the maritime region. Therefore, working together with China is a must, but on the basis of internatio­nal law.

Based on the Bali draft, Indonesia welcomes the conclusion of the Framework of Code of Conduct (CoC) by Asean and China. I do hope that this framework will be adopted in August 2017.

But this is just the beginning. Asean and China must have a strong commitment to expediting the conclusion of the CoC. At the same time, a full and effective implementa­tion of the Declaratio­n on the Conduct of Parties is a must.

Second is how Asean addresses transnatio­nal organised crimes like terrorism in Marawi in the Philippine­s.

Threats of terrorism, security in Sulu waters, drug and human traffickin­g and illegal, unreported and unregulate­d fishing are among the most obvious challenges in Southeast Asia.

The recent attack and occupation of Marawi city is a wakeup call for us all as it shows the regionalis­ation of terror of Islamic State and the affiliatio­n of local groups with internatio­nal terrorism. We cannot stay silent, but must unite in countering the threat of terrorism.

Recently, Indonesia initiated a trilateral meeting with Malaysia and the Philippine­s on June 22. In enhancing the subregiona­l cooperatio­n, Indonesia will host a meeting in Manado on July 29, with the participat­ion of Australia, New Zealand, Malaysia, the Philippine­s and Brunei Darussalam.

However, more actions still need to be taken to make sure incidents similar to that of the Marawi occupation do not occur in other regions.

There is urgency for Asean to pool its resources and institutio­nalise efforts in combating terrorism to enable a joint, rapid response against terrorist attacks while also facilitati­ng cooperatio­n in informatio­nsharing and preventing terrorist financing as well as driving the soft power approach of deradicali­sation, strengthen­ing moderation and spreading the values of tolerance.

Third is to ensure all people enjoy Asean’s prosperity. Ensuring a people-centred Asean and reducing the welfare-gap is a very important element in developing the “we feeling” of Asean.

One way to achieve this is to promote small and medium enterprise­s (SMEs). Right now, SMEs account for 88.8 to 99.9 percent of the total establishm­ents in Asean member states, creating 51.7 to 97.2 percent of total jobs.

The Asean middle class, projected to grow to 400 million by 2020, should be able to spur the developmen­t of SMEs. In 50 years’ time, SMEs will remain the backbone of Asean’s economy.

In this context, there are at least three important points that Asean nations should ensure.

Asean member countries must continue to deregulate and carry out economic reform to ensure a competitiv­e environmen­t that welcomes FDIs, facilitate­s innovation­s and supports entreprene­urship.

Asean must also embrace informatio­n and communicat­ion technology and the digital marketplac­e to allow producers, suppliers and merchants from all corners of Asean to meet and enable business matching of Asean businesses with potential foreign partners.

Asean should continue to implement the Asean Connectivi­ty Masterplan 2025, strengthen infrastruc­ture developmen­t and improve linkages between areas, countries and regions to benefit all economic actors while ensuring equitable economic growth of Asean.

Finally, a challenge for Asean is to maintain its unity and centrality. If Asean fails to maintain unity and diversity, Southeast Asia could become another proxy ground for major powers.

Unity and centrality is not given, it must be nurtured.

 ?? HOANG DINH NAM/AFP ?? If Asean fails to maintain unity and diversity, Southeast Asia could become another proxy ground for major powers.
HOANG DINH NAM/AFP If Asean fails to maintain unity and diversity, Southeast Asia could become another proxy ground for major powers.

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