Premium Essay

Asean Integration

In: Business and Management

Submitted By ooenriquez
Words 1621
Pages 7
ASEAN and its ECONOMIC INTEGRATION

1) Objectives of this paper
The objective of this paper is to dissect the concept of the ASEAN integration by looking into the history of the ASEAN, a brief analysis of the past treaties that have been passed and implemented, a scrutiny of the pillars of the ASEAN Economic Community (AEC) and the challenge it poses to all its member nations – including the Philippines.

2) Introduction

ASEAN, A brief history

Before analyzing the AEC or the treaties that ASEAN have passed, it is a need to understand the rationale and the history behind its formation. The goals and precepts the ASEAN have been outlined as such because of a myriad of significant historical events. South-East Asia was a region experiencing turmoil during the 1960s. Malaysia and Philippine relations were damaged between the years of 1962-66 owing to the conflict over Sabah. Singapore, Malaysia, and Brunei were all reeling from the departure of Great Britain as colonizers. This event led these countries posed a daunting challenge, both economically and politically, that these newly independent countries needed to overcome. Then the clash between Indonesia and Malaysia; in 1965 after just barely three (3) years after union of Indonesia and Malaysia the two (2) countries decided to sever their ties and declared themselves independent from each other. The Vietnam War was ongoing which was further heightened by the increasing popularity of communism in the South-East Asian region facilitated by the Cultural Revolution of China in 1967, all of which resulting to the formation of the ASEAN.

The birth of the ASEAN

The Association of Southeast Asian Nations is an intergovernmental organization established on the 8th of August 1967 through the Bangkok Declaration (ASEAN declaration) by its five (5) founding members, Indonesia, Malaysia, Philippines…...

Similar Documents

Premium Essay

Regional Integration - Asean

...Executive Summary One of recently formed regional groups was the ASEAN (Association of SouthEast Asian Nations) that comprises of 10 nations together. Together they are performing an important part in the global economy. With their increasing growth and continued togetherness the ASEAN’s presence is being recognized on the world map. East Asia is proving to be one of the world’s highly dynamic and fastest growing regions. These export driven economies are vast and hence required to develop an understanding of their model of business operation. My report gives information on the history on formation and emphasizes on the trading and integration between these ten economies that are members that forms the ASEAN to bring about a common platform in terms of fields like trading, manufacturing, finance and so on. The purpose of the report is to evaluate ASEAN’s formation and to view the possible favorable and unfavorable conditions. The different factors, the benefits of the integration and its limitations are described in the report below. With respect to my findings and details in the report through different sources on the internet, I feel that the formation ASEAN has benefited these countries and in turn helped them to make their mark in the global market place that is day by day becoming cost oriented. Introduction A regional integration is a method where in different states put into place an agreement to help develop cooperation through regional rules and institutions.......

Words: 1631 - Pages: 7

Premium Essay

Comparing Regional Integration: Apec and Asean

... PROJECT ON “COMPARING REGIONAL INTEGRATION: APEC AND ASEAN” Master of Commerce Semester-I (2013-2014) Submitted In Partial Fulfillment of the requirements For the award of degree of M.Com By VIshwanath Vinod Acharya Seat No: ______ Tolani College of Commerce Sher-e-Punjab society, Andheri (East), Mumbai-400 093 CERTIFICATE This is to certify that Vishwanath Acharya of M.Com Semester I (2013-2014) has successfully completed the project on “Comparing Regional Integration: APEC and ASEAN” under the guidance of Dr.Vasudev Iyer. Project Guide: ____________________________ Course Coordinator: ____________________________ External Examiner: ____________________________ Principal: ____________________________ DECLARATION I, Vishwanath Acharya , the student of M.Com Semester-I (2013-2014) hereby declare that I have completed the project on “COMPARING REGIONAL INTEGRATION: APEC AND ASEAN ” in the course Economics of Global Trade and Finance. The information submitted is true and original to the best of my knowledge. References have been cited wherever necessary. Date: ___________ Place: Mumbai Signature of Student Vishwanath V. Acharya ACKNOWLEDGEMENT Preparing the project on “Comparing Regional Integration: APEC and ASEAN ” has given me extensive practical knowledge related to the course. I would like to first thank our principal Dr.A.A.Rashid, for his valuable support in preparing this project. I express my deep sense of......

Words: 12230 - Pages: 49

Free Essay

Asean

... the Association of Southeast Asian Nations (ASEAN) has made a number of achievements towards regional peace, stability, and prosperity. Thailand has played an active role in ASEAN from the very beginning. Thailand is one of the founding members of ASEAN, together with Indonesia, Malaysia, the Philippines and Singapore.  The ASEAN Declaration or Bangkok Declaration was signed on 8 August 1967 at Saranrom Palace, Bangkok. As stipulated in the Bangkok Declaration, ASEAN was established with an aim to promote peace and stability, and accelerate economic growth, social progress and cultural development in the region through joint endeavors in a spirit of equality and partnership. Over the years, ASEAN has gradually evolved and expanded to include Brunei Darussalam (1984), Viet Nam (1995),  Lao PDR and Myanmar (1997), and Cambodia (1999). The peace and stability that the Southeast Asian countries have been enjoying today to a large  extent, largely due to ASEAN's role as a forum that promotes and fosters trust and confidence  amongst its Member States. ASEAN has successfully maintained peace, stability and security in  the region through the various frameworks and mechanisms, such as Zone of Peace, Freedom  and Neutrality (ZOPFAN) (1971),  Treaty  of  Amity  and  Cooperation  in  Southeast Asia (TAC) ......

Words: 2456 - Pages: 10

Premium Essay

Asean

...ASEAN is a region of immense and colourful cultural diversity, one that shares common historical threads.  ASEAN Member States promote cooperation in culture to help build an ASEAN identity. They seek to promote ASEAN awareness and a sense of community, preserve and promote ASEAN cultural heritage, promote cultural creativity and industry, and engage with the community.  ASEAN Leaders envision ASEAN as a community of caring societies, conscious of its ties of history, aware of its cultural heritage and bound by a common regional identity.  One of the main bodies in ASEAN cooperation in culture is the ASEAN Committee on Culture and Information (COCI). Established in 1978, its mission is to promote effective cooperation in the fields of culture through its various projects and activities. The COCI comprises representatives from national institutions like the Ministry of Foreign Affairs, Ministries of Culture and Information, national radio and television networks, museums, archives and libraries, among others. Together, they meet once a year to formulate and agree on projects to fulfil their mission. Activities in the area of culture include the conservation and preservation of cultural heritage, promotion and cooperation on cultural industry and the production of cultural showcases. To cite some examples, 2009 saw the production of the coffee table book “Water: A Unifying Force in ASEAN”, a workshop that gathered experts from the region to discuss the prevention of illicit......

Words: 271 - Pages: 2

Premium Essay

Asean

...Initiative for ASEAN Integration (IAI) and Narrowing the Development Gap (NDG) Narrowing the Development Gap Narrowing the Development Gap in ASEAN refers to reducing various forms of disparities among and within Member States where some pockets of underdevelopment persist. Measures in the ASEAN Political Security, Socio-Cultural and Economic Community Blueprints are targeted at policy reforms for narrowing the development divide to foster regional cooperation, greater social and economic integration, consistent with the objective of building an ASEAN Community in 2015. Initiative for ASEAN Integration The ASEAN Heads of State at their Summit in 2000 launched the Initiative for ASEAN Integration (IAI) with the objectives of Narrowing the Development Gap (NDG) and accelerating economic integration of the newer members of ASEAN, namely Cambodia, Lao PDR, Myanmar, and Viet Nam (CLMV). IAI Work Plans The efforts to narrow the development gap will be driven mainly by the IAI Work Plan (IAI-WP). The six-year IAI-Work Plans have been developed to assist the CLMV countries as well as ASEAN's other sub-regions to ensure that the economic wheels of their economies move at an accelerated pace. The first phase of the Work Plan covered the years 2002 to 2008. The current Work Plan (IAI-WP II) is based on key programme areas in the three Blueprints for the ASEAN Community: ASEAN Political-Security Community Blueprint, ASEAN Economic Community Blueprint and ASEAN Socio-Cultural......

Words: 4769 - Pages: 20

Premium Essay

Asean

...regional block is ASEAN, Association of Southeast Asian Nations. ASEAN established in 8 august 1967 in Bangkok. The member countries are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. ASEAN aim in 2015 is to have single market and political pact, for 2020 defense pact and currency union , now they have only visa free agreement. But as we will see later ASEAN is not only a trade block also have social cultural features. The other regional block is NAFTA, North America Free Trade Agreement. NAFTA signed in 1 January 1994. The member states are Canada, Mexico, and the United States of America. It is one of the biggest trade partnership agreements. The property of the block is defending pact only. The last one is MERCOSUR, Southern Cone Common Market. MERCOSUR was established in 26 March 1991. Full members are Argentina, Brazil, Paraguay, Uruguay, and Venezuela. Bolivia, Chile, Colombia, Ecuador, and Peru. Their plans to have political pact and currency union in the end of 2015, for now they have custom union, single market and visa free zone. The regional integration agreements made between countries starting from 1949 but most of them disappear in time. But the agreements were made after 1990, have more long life periods and commit more effectively. On august 8, 1967, five leaders, Indonesia, Malaysia, Philippines, Singapore and Thailand, signed the Association of South Asian Nations, ASEAN. This......

Words: 2937 - Pages: 12

Premium Essay

Asean Integration

...EXECUTIVE SUMMARY 1. Issues The meaning of Open Sky in the ASEAN must be determined. For the purposes of this Report, it is taken to refer to a situation of extensive liberalisation within the ASEAN region. It concentrates on the international links between members of ASEAN, and is not so concerned with domestic cabotage. The report does not focus on beyond rights, or on 5th freedom operations of non-ASEAN airlines within the region, though it recognises that these can have an impact on Open Sky arrangements. The rationale for Open Sky is taken to be to promote competition in the airline industry, and to give all airlines from ASEAN the scope to compete on intra ASEAN routes. Open Sky will also give airlines extra flexibility over their route development. Issues which need to be considered include: How well Open Sky will work in ASEAN? Will markets be competitive enough? Will there be shifts in hub location? Will anti competitive strategies affect operation? And will there be instability in the industry? 2. Experience of Open Skies Elsewhere There are many Open Skies bilateral agreements, and a few regional agreements. Few regional Open Skies agreements have led to substantial liberalisation or integration. The exception is Europe - Open Skies in Europe has meant the formation of a single aviation market. Significantly, this arrangement did not come about as a result of countries negotiating an open skies agreement - rather it was imposed on them by a......

Words: 11379 - Pages: 46

Free Essay

Asean 2015

...ONE IDENTITY ONE COMMUNITY ASEAN VISION 2015 (An excerpt from the ASEAN Economic Blueprint) Office of the Deputy Director General for Sectoral TVET Planning Office TESDA Complex, East Service Road, South Superhighway Taguig City, Metro Manila Tel. No. (02) 888 5652; 817 2675; 893 1966 www.tesda.gov.ph CODE: ST-PO 05-12-2012 ASEAN Vision 2015 I. ASEAN Economic Community The ASEAN Economic Community (AEC) shall be the goal of regional economic integration by 2015. AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. The AEC areas of cooperation include: a. human resources development and capacity building; b. recognition of professional qualifications; c. closer consultation on macroeconomic and financial policies; d. trade financing measures; enhanced infrastructure and communications connectivity; e. development of electronic transactions through e-ASEAN; f. integrating industries across the region to promote regional sourcing; g. enhancing private sector involvement for the building of the AEC. In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital. II. Declaration on the ASEAN Economic Blueprint The ASEAN Leaders adopted the ASEAN Economic Blueprint at the 13th ASEAN Summit on 20 November......

Words: 2988 - Pages: 12

Premium Essay

Asean Integration

...The ASEAN influential adopted the ASEAN economic blueprint at the 13 th ASEAN summit on 20 November 2007 in Singapore to serve as a coherent master plan guiding the establishment of the ASEAN economic community would it affect the locally operating entities? Basically, they can cope up simply because Philippines is one of the most significant exporters of modern services in sectors such as professional and information services they can cope up due to their contacts and the clients. The companies or entities can cope up to the competition by means of doing trades and investments. ASEAN economy began to rise again after they fall from 4.9-5.6 percent in 2010. The ASEAN faces an economic crisis in 1997/1998. The challenge is to sustain the economic recovery. They implement the proper monetary and fiscal policies. (ASEAN Economic Community Handbook, 2012) In a speech delivered at the Nikkei Asian review forum Friday, Purisima underscored the need for the association of Southeast Asian Nations (ASEAN) to invest heavily on infrastructure to maintain its current economic growth trajectory. “From roads and power sources to social infrastructure like health and education, the right investments will enable our young and populous region to take the driver’s seat towards robust global economic growth,” Purisima said.(PhilippineStar) Budget Secretary Florencio Abad noted in this year’s national budget, the Department of Public Works and Highways (DPWH) received the second largest......

Words: 1490 - Pages: 6

Free Essay

Asean

...Asean 2015 SO soon! Indeed time flies at lightning speed and here staring at us is Asean 2015! And what’s in it for us in academe? But first, a very brief overview of Asean. We are one of ten countries wishing to band together as a single market. We expect that by end of December this year Asean will have measures mostly in place which are designed, like the European Union, to reduce trade barriers and consequently attract more investments. We expect to have free flow of goods, services, investment and skilled labor among “us” – us, meaning the ten member countries of Southeast Asia with the 617 million people (2011 estimate) inhabiting Singapore, Indonesia, Malaysia, the Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. In the future, two other countries could be incoming members of Asean: Papua New Guinea (on candidate status since 1976) and Timor-Leste (on observer status since 2002). These two countries have a combined population of 7,300,000 (2011 estimate). Unlike the EU, Asean will likely not have a common currency and neither the same nor a similar governing structure. About education, four priorities in this area have been laid down by the Asean Education Ministers. These are first, promoting Asean awareness among Asean citizens, particularly the youth; second, strengthening Asean identity through education; third, building Asean human resources in the educational field; and fourth, strengthening the Asean University Network. Committees on......

Words: 9510 - Pages: 39

Premium Essay

Asean

...The seminar last monday was about the Asean Integration and its objectives thas is discussed by Mr. Dennis Layug. He explained that Asean Integration is collaborating with Comission on Higher Education, Bloomberg, Reuters, CISI and kaplan . Asean Integration is where all the agreement is signed by the 9 different country including Philippines. It all started here in our country year 1997 with the founder Narciso Ramos. I found the discussion very interesting when he started to tell the education status of different country including our country. He tells us that there is 12.4 million unemployed here in our country and 800,000 graduating this year and over 2 million expected foreign graduate, that may cause the biggest competition in the history of Philippine Education. The fact that it gets harder and harder to get a job each year threatens me. Im afraid that i will not be able to get a good job after i graduate. He also discussed the countries that is under ASEAN Integration and the other 6 country that recently join the ASEAN Integration. He also tell things about the Memoramdum of Understanding and that almost all the country is under K12 since then except to three countries Angola, Jubati and our country Philippines and some disadvantages of not impleting K12 to our country back then. He also explained the requirements inorder to be able to get a job to other country under ASEAN. We need an Education Training, Enough Experience, Certificates and Licenses in order to be......

Words: 496 - Pages: 2

Free Essay

Implications of Asean Integration on Philippine Economy

...  ABSTRACT The ASEAN regional integration visualizes the conversion of economies in Southeast Asia into a unified market and manufacturing base by promoting the unobstructed flow of goods and services. It signifies better chances of more market entries, lesser input costs, lower discharge expenditures, greater inflows of foreign investments, and wider options for quality commodities and services at reasonable prices. This research examines issues as to whether the benefits outweigh the costs of trade liberalization, its impacts on national economic growth, and the Philippines’ preparedness to overcome the impediments posed by the integration. Overall, the outcomes of the interviews show that the Philippines is not yet fully adapted to aligning domestic benchmarks with international standards although it has accomplished vital progress in certain sectors. The study also reveals that member affiliates and the Philippine economy can reap the benefits of the liberalization so long as they prevail upon their commitments to forge ahead with achieving the goals of the ASEAN Economic Community. Elimination of cross-border taxes, compliance with harmonized regulatory policies, and leaders’ steadfastness to attain the goals of the integration are the key factors for the success of the liberalization. Since the research deals more on the qualitative aspects, the authors recommend more statistical data gathering and in-depth quantitative analysis to obtain a more accurate......

Words: 3981 - Pages: 16

Premium Essay

Asean

...Association of Southeast Asian Nations The Secretariat of ASEAN at Jalan Sisingamangaraja No.70A, South Jakarta, Indonesia. The Association of Southeast Asian Nations,[4] commonly abbreviated ASEAN ( /ˈɑːsi.ɑːn/ ah-see-ahn,[5] rarely /ˈɑːzi.ɑːn/ ah-zee-ahn),[6][7] is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand.[8] Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include the acceleration of economic growth, social progress, cultural development among its members, the protection of regional peace and stability, and to provide opportunities for member countries to discuss differences peacefully.[9] ASEAN covers a land area of 4.46 million km², 3% of the total land area of Earth, with a population of approximately 600 million people, 8.8% of the world population. The sea area of ASEAN is about three times larger than its land counterpart. In 2010, its combined nominal GDP had grown to US$1.8 trillion.[10] If ASEAN were a single entity, it would rank as the ninth largest economy in the world. History ASEAN was preceded by an organisation called the Association of Southeast Asia, commonly called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961. The bloc itself, however, was established on 8 August 1967, when foreign ministers of......

Words: 8221 - Pages: 33

Premium Essay

Asean

...liberalize their trade and investment regime. Unfortunately, however, the progress to achieve the Bogor goals for the past 10 years has been so disappointing and undermined the momentum of the APEC process. He comes the importance of Bogor Goals. In spite of varying perception, it is the single most important goal of APEC cooperation. Next session will be more on ASEAN summit in Singapore 1992. And will show its ASEAN free trade area as a framework of initial cooperation. The third session will be much more interesting, will report about Osaka Agenda 1995 its 3 pillars of action, Shanghai Accord 2001 on trade facilitation plan and the APEC meeting in Busan 2005 for mid term stock. The mid term stock relates to the Bogor Declaration of 1994. The Bogor Goals set out in the declaration underpin all APEC plans and actions. Specifically, all member economies have determined to realize free and open trade. Table of Contents 1.0 Research into the original goals of forming APEC as an informal grouping 2.0 Include the resolutions of ASEAN Summit in Singapore in 1992 in launching an ASEAN Free Trade Area schedule as a framework of initial cooperation 3.0 Elaborate on the following landmark summits ; 3.1 The Osaka Agenda 1995 and its 3 pillars of actions 3.2 The Shanghai Accord 2001 on trade facilitation plan 3.3 APEC meeting in Busan, Korea 2005 for Mid Term stock takes of the programme 4.0 Assess and quantify the achievements and......

Words: 1640 - Pages: 7

Premium Essay

Asean

...Sangeeta Dutta ASEAN (The Association of Southeast Asian Countries) was established on 8th August 1967 in Bangkok by the five original member countries: Malaysia, Indonesia, Thailand, Singapore, and Philippines. In 1984 Brunei Darussalam joined ASEAN followed by Vietnam in 1995, Lao PDR and Myanmar in 1997 and Cambodia in 1999. It is a geo-political and economic organization of ten countries located in Southeast Asia. The main objective of ASEAN is the acceleration of economic growth, social progress and cultural development of its members along with the promotion of regional peace. Originally, ASEAN was meant to be an association of countries engaged in nation building. The end of World War II saw the emerging of Indonesia, Malaysia, Philippines and Singapore as sovereign independent nations. Nation building was often vulnerable to foreign intervention. It was important for the governing people to have free hands to conduct their policies without interference from neighbouring countries. Small countries like Singapore and Brunei are always in fear of the influences exerted by bigger neighbouring countries like Indonesia and Malaysia. ASEAN was established to ensure sovereignty stayed resolutely located at the national level. The primary principle of ASEAN was non­interference. ASEAN is open to the participation of all States in the Southeast Asian region which are willing to subscribe to its aims, principles and purposes. ASEAN aims to......

Words: 539 - Pages: 3