Knowing Asean
HE 31st Asean Summit and Related Summits sets off on November 13-15 in Metro Manila, as the Philippines chairs the association this year. But what is Asean?
For sure, many know it’s the Association of Southeast Asian Nations, but beyond that will be a vague recollection of Indonesia, Malaysia, Philippines, and Thailand bonding together several decades ago.
Let’s pick out some important snippets published by the Asian Development Bank (ADB) about Asean so that we can appreciate more what is happening this week. (https://www.adb.org/features/asean12-things-know)
“The Association of Southeast Asian Nations was established in August 1967 with the signing of the ASEAN Declaration by Indonesia, Malaysia, Philippines, Singapore and Thailand. The original agreement was negotiated by foreign ministers in an isolated beach resort south of Bangkok using what was later called “sports-shirt diplomacy.” (Source: The History of Asean)
Next to the People’s Republic of China and India, ASEAN has the world’s third largest labor force and with over 600 million people, its potential market is larger than the European Union or North America. (Source: Asean Integration and the Private Sector)
Asean established the Asean Economic Community (AEC) in 2015 with the goal of allowing the free flow of goods, services, investments, and skilled labor, and the more free movement of capital across the region. (Source: 24th Asean Summit. Nay Pyi Taw Declaration)
The Asean Infrastructure Fund, established in 2011, is helping member states finance their vast infrastructure needs estimated at over $1 trillion from 2010 to 2020. That includes investments to build and strengthen cross-border transport and power grid links, crucial for the goal of achieving a single Asean market and production base. (Source: Asean Infrastructure Fund Brochure)
By opening sectors to competition and breaking down trade barriers, the new economic community potentially could lift ASEAN’s economic output by 7 percent by 2025 and generate around 14 million new jobs. (Source: ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity)
The Asean Economic Community Blueprint 2025 succeeds the initial AEC agreement, with a 10-year plan for implementation and further reforms. It aims to address difficult areas such as non-tariff barriers and trade in services. (Source: Will 2025 be the final deadline for the AEC?)
Asean’s key challenge is to translate the aspirations it has laid out in its 10-year blueprint into real reforms on the ground, and to ensure member states comply with their commitments. (Source: Will 2025 be the final deadline for the AEC?)
Yes, it’s not a perfect image, there are challenges as there will always be challenges. But Asean remains to be an economic force to contend with if all members bond together and aspire toward one vision of prosperity for all. But of course, that’s wishful thinking.