ASEAN: History and Functions
CONTENT
Sr. No.
PARTICULARS
Page No.
CHAPTER I – INTRODUCTION
1.1
History & Formation
8
1.2
Reasons for Formation
9
1.3
Objectives &Principles of The ASEAN
12
CHAPTER II – PERFORMANCE OF THE ASEAN
2.1
The ASEAN Charter
14
2.2
Economic Performance
15
2.3
Social Progress
20
2.4
Education & Human Development
23
2.5
Role in Sports Development
27
CHAPTER III – LIMITATIONS & CRITICISM
3.1
Criticism
29
3.2
Challenges
29
CHAPTER IV – CONCLUSION
4.1
ASEAN V/s EU
31
4.2
Conclusion
32
APPENDIX
5.1
Bibliography
33
Association of Southeast Asian Nations
Chapter I: Introduction
The Association of Southeast Asian Nations (ASEAN) is a geo-political and economic organisation of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.
ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world 's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2011, its combined nominal GDP had grown to more than US$ 2 trillion. If ASEAN were a single entity, it would rank as the eighth largest economy in the world.
During the last two decades, the economic dynamism of the East Asian region - Japan, China, the NIEs (Newly Industrialising Economies, i.e. Taiwan Province of China, Republic of Korea, Hong Kong) and ASEAN-6 (Brunei Darussalam, Malaysia, Indonesia, Philippines, Singapore and Thailand) – has drawn the world 's attention. Interest was directed at the ability of most of these countries to maintain their annual economic growth rate, especially when the world 's economic activity was slowing down. On average the East Asian economies experienced a high level of economic growth as compared with the other regions in the world.
Part of this Asian dynamism derives from the tight linkage between the flow of investment and trade with Japan, which performed extremely well, on the basis of its flexible production structures and its responsive policy to anticipate changes in the external circumstances. This development contributes positively to the implementation of an export-led development strategy.
It is within this dynamic situation that ASEAN reacts by proposing further economic cooperation on a larger scale within the framework of a trade liberalisation policy. A broader regional economic cooperation, both in terms of trade and investment, offers the potential of strengthening the export capabilities of the ASEAN region. An agreement to gradually reduce the tariffs through the Common. The crucial factors for the economic success of ASEAN as a central integrative economy at the regional level are the flows of trade and investment, and the assessment of its effectiveness.
The purpose of this paper is to describe the performance of ASEAN in depth. The paper focuses on the autonomous links that have developed in the ASEAN region through intraregional trade, and their relationship to global and intraregional investment. It also stresses the links of these trade and investment trends with the growth poles in the ASEAN regions.
1.1] History & Formation:
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 five countries – Indonesia, Malaysia, the Philippines, Singapore, and Thailand – met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration. The five foreign ministers – Adam Malik of Indonesia, Narciso Ramos of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand – are considered the organisation 's Founding Fathers.
In 28 July 1995, Vietnam became the seventh member. Laos and Myanmar (Burma) joined two years later on 23 July 1997. Cambodia was to have joined together with Laos and Burma, but was deferred due to the country 's internal political struggle. The country later joined on 30 April 1999, following the stabilisation of its government.
East Timor submitted a letter of application to be the eleventh member of ASEAN at the summit in Jakarta in March 2011. Indonesia has shown a warm welcome to East Timor.
Papua New Guinea was accorded Observer status in 1976 and Special Observer status in 1981. Papua New Guinea is a Melanesian state. ASEAN embarked on a program of economic cooperation following the Bali Summit of 1976. This floundered in the mid-1980s and was only revived around 1991 due to a Thai proposal for a regional free trade area.
The bloc grew when Brunei Darussalam became the sixth member on 8 January 1984, barely a week after gaining independence on 1 January
1.2] Reasons for Formation
1) Desire for regional security
ASEAN was formed in the waning days of Konfrontasi (Indonesia against Malaysia and Singapore) and the starting of the Sabah dispute between Malaysia and Indonesia. Hence the founding states wanted to bring stability to the region by reducing interstate tensions in an organization where common problems could be addressed. It was hoped that the benefits of cooperation would give these states a stake in regional peace and security.
2) Greater autonomy in the conduct of regional affairs
The newly-independent states did not want their sovereignty to be compromised, thus they believed a regional organization could help Southeast Asia manage its own affairs, rather than relying on foreign powers.
3) Economic development
In 1967, the communist insurgency was a threat to the founding states. The 1966 military takeover in Indonesia had been justified because of the communist threat, proving the potency of the communists. Hence to dent the communists ' popularity, states sought ways to develop their economies to raise the standard of living for their people. Thus a regional organization could result in economic cooperation, leading to greater economic development in individual state.
However, though state interests converged with regional interests, the latter did not prevail over state interests. ASEAN was seen as a vehicle to promote narrow state interests among the five founders, namely Indonesia, Malaysia, Singapore, Thailand and The Philippines.
State interests of Indonesia
1) Regional leadership
President Suharto hoped that the founding of ASEAN could further enhance Indonesia 's leadership role in the region. Instead of an aggressive and confrontational Indonesia led by his deposed predecessor Sukarno, Indonesia would be cooperative and seek leadership through cooperation with others.
2) Public relations exercise
Suharto had come to power on bloodshed in 1966. Thus the entry of Indonesia into a peaceful regional organization was to convince the world that Indonesia was not a destabilizing regime but a cooperative country.
State interests of Malaysia
1) State security
The communist threat was real in Malaysia and the government believed it could be threatened by the 'domino ' effect from fighting in Vietnam, Cambodia and Laos. Thus joining ASEAN could assure its security more by reducing tensions between states, so it could focus more on its local communist threat.
State interests of Singapore
1) Recognition as an equal and sovereign state
As a newly-established country which was never thought possible, and also seen as an economic parasite of the region, Singapore wanted to woo its neighbors so that they would be friendly towards it. Entry into ASEAN would directly assure it that other states recognized its sovereignty and acceptance.
2) Economic development
As the smallest country in ASEAN, Singapore lacked natural resources for economic development. Cooperation with other countries could provide it with natural resources as well as markets for its goods.
State interests of Thailand
1) State security
Similar to Malaysia, Thailand was wary of the Communist domino effect from Indochina. It did not want to rely solely on the US for its security, thus joining ASEAN could serve as a back-up.
State interests of The Philippines
1) Recognition & economic development
As the only Catholic-majority population in Southeast Asia, the Philippines were seen as foreign to the rest. It hoped that joining ASEAN could stress its Southeast Asian identity and hence remove its image as an 'American ' state. Additionally, ASEAN could hold possible economic cooperation by strengthening trade links and help it counterbalance its economic reliance on the US.
1.3] Objectives & Principles of the ASEAN
OBJECTIVES
The ASEAN Declaration states that the aims and purposes of the Association are:
1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations, and
2. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter.
In 1995, the ASEAN Heads of States and Government reaffirmed that “Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN.”
The Association represents the collective will of the nations of Southeast Asia to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom, and prosperity. (The ASEAN Declaration, Bangkok, 8 August 1967)
Fundamental Principles:
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the First ASEAN Summit on 24 February 1976, declared that in their relations with one another, the High Contracting Parties should be guided by the following fundamental principles:
Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;
The right of every State to lead its national existence free from external interference, subversion, or coercion;
Non-interference in the internal affairs of one another;
Settlement of differences or disputes by peaceful manner;
Renunciation of the threat or use of force; and
Effective cooperation among themselves.
The ‘ASEAN way’ is said to contribute durability and longevity within the organisation, by promoting regional identity and enhancing a spirit of mutual confidence and cooperation. ASEAN agreements are negotiated in a close, interpersonal process. The process of consultations and consensus is designed to engender a democratic approach to decision making. These leaders are wary of any effort to legitimise efforts to undermine their nation or contain regional co-operation.
Chapter II: Performance of the ASEAN
The Association of Southeast Asian Nations (ASEAN), while starting as a loose coalition of developing countries, is now recognized as an increasingly capable regional and international player. It has taken great strides to improve the status of its member nations in economic, social & political terms. It has undertaken various projects and establishes several policies f0r the benefit of all.
ASEAN has emphasised regional cooperation in the “three pillars”, which are security, sociocultural integration, and economic integration.
2.1] The ASEAN Charter:
The ASEAN Charter is a constitution for the Association of Southeast Asian Nations (ASEAN). It was adopted at the 13th ASEAN Summit in November 2007 On December 15, 2008, the members of ASEAN met in the Indonesian capital of Jakarta to launch a charter, signed in November 2007, with the aim of moving closer to "an EU-style community".
The charter turns ASEAN into a legal entity and aims to create a single free-trade area for the region encompassing 500 million people. Indonesian President Susilo Bambang Yudhoyono stated: "This is a momentous development when ASEAN is consolidating, integrating and transforming itself into a community. It is achieved while ASEAN seeks a more vigorous role in Asian and global affairs at a time when the international system is experiencing a seismic shift," he added, referring to climate change and economic upheaval. Southeast Asia is no longer the bitterly divided, war-torn region it was in the 1960s and 1970s." The charter 's aims included:
"Respect for the independence, sovereignty and territorial integrity of member states"
"Peaceful settlement of disputes"
"Non-interference in member states ' internal affairs"
"Right to live without external interference
2.2] Economic Performance: The regional grouping has made the most progress in economic integration by creating an ASEAN Economic Community (AEC) by 2015. The average economic growths of ASEAN 's member nations during 1989–2009 was Singapore with 6.73 percent, Malaysia with 6.15 percent, Indonesia with 5.16 percent, Thailand with 5.02 percent, and the Philippines with 3.79 percent. This economic growth was greater than the average Asia-Pacific Economic Cooperation (APEC) economic growth, which was 2.83 percent.
From CEPT to AEC
A Common Effective Preferential Tariff (CEPT) scheme to promote the free flow of goods within ASEAN lead to the ASEAN Free Trade Area (AFTA). The AFTA is an agreement by the member nations of ASEAN concerning local manufacturing in all ASEAN countries. The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Burma in 1997, and Cambodia in 1999. The latecomers have not fully met the AFTA 's obligations, but they are officially considered part of the AFTA as they were required to sign the agreement upon entry into ASEAN, and were given longer time frames in which to meet AFTA 's tariff reduction obligations.
The next step is ASEAN Economic Community (AEC) with main objectives are to create a: single market and production base highly competitive economic region region of equitable economic development region fully integrated into the global economy
Since 2007, the ASEAN countries gradually lower their import duties among them and targeted will be zero for most of the import duties at 2015.
Since 2011, AEC has agreed to strengthen the position and increase the competitive edges of small and medium enterprises (SME) in the ASEAN region.
Comprehensive Investment Area
The ASEAN Comprehensive Investment Area (ACIA) will encourage the free flow of investment within ASEAN. The main principles of the ACIA are as follows.
All industries are to be opened up for investment, with exclusions to be phased out according to schedules
National treatment is granted immediately to ASEAN investors with few exclusions
Elimination of investment impediments
Streamlining of investment process and procedures
Enhancing transparency
Undertaking investment facilitation measures
Full realisation of the ACIA with the removal of temporary exclusion lists in manufacturing agriculture, fisheries, forestry and mining is scheduled by 2010 for most ASEAN members and by 2015 for the CLMV (Cambodia, Lao PDR, Burma, and Vietnam) countries.
Trade in Services
An ASEAN Framework Agreement on Trade in Services was adopted at the ASEAN Summit in Bangkok in December 1995. Under AFAS, ASEAN Member States enter into successive rounds of negotiations to liberalise trade in services with the aim of submitting increasingly higher levels of commitments. The negotiations result in commitments that are set forth in schedules of specific commitments annexed to the Framework Agreement. These schedules are often referred to as packages of services commitments. At present, ASEAN has concluded seven packages of commitments under AFAS.
Single Aviation Market
The ASEAN Single Aviation Market (ASEAN-SAM) is the region 's major aviation policy geared towards the development of a unified and single aviation market in Southeast Asia by 2015. The aviation policy was proposed by the ASEAN Air Transport Working Group, supported by the ASEAN Senior Transport Officials Meeting, and endorsed by the ASEAN Transport Ministers. The ASEAN-SAM is expected to fully liberalise air travel between member states in the ASEAN region, allowing ASEAN countries and airlines operating in the region to directly benefit from the growth in air travel around the world, and also freeing up tourism, trade, investment and services flows between member states. Since 1 December 2008, restrictions on the third and fourth freedoms of the air between capital cities of member states for air passengers services have been removed, while from 1 January 2009, full liberalisation of air freight services in the region took effect. On 1 January 2011, full liberalisation on fifth freedom traffic rights between all capital cities took effect.
The ASEAN Single Aviation Market policy will supersede existing unilateral, bilateral and multilateral air services agreements among member states which are inconsistent with its provisions.
Free-trade agreements with other countries
ASEAN has concluded free trade agreements with China (expecting bilateral trade of $500 billion by 2015), Korea, Japan, Australia, New Zealand, and India. ASEAN-India bilateral trade crossed the $ 70 billion target in 2012 (target was to reach the level only by 2015). The agreement with People 's Republic of China created the ASEAN–China Free Trade Area(ACFTA), which went into full effect on 1 January 2010. In addition, ASEAN is currently negotiating a free trade agreement with the European Union. Republic of China (Taiwan) has also expressed interest in an agreement with ASEAN but needs to overcome diplomatic objections from China
Development gap
When Vietnam, Laos, Myanmar, and Cambodia joined ASEAN in the late 1990s, concerns were raised about a certain developmental divide regarding a gap in average per capita GDP between older and the newer members. In response, the Initiative for ASEAN Integration (IAI) was formed by ASEAN as a regional integration policy with the principle goal of bridging this developmental divide, which, in addition to disparities in per capita GDP, is manifested by disparities in dimensions of human development such as life expectancy and literacy rates. Other than the IAI, other programmes for the development of the Mekong Basin - where all four newer ASEAN members are located - that tend to focus on infrastructure development have been effectively enacted. In general, ASEAN does not have the financial resources to extend substantial grants or loans to the new members. Therefore, it usually leaves the financing of these infrastructure projects tointernational financial institutions and to developed countries. Nevertheless, it has mobilised funding from these institutions and countries and from the ASEAN-6 (Indonesia, Malaysia, Philippines, Brunei Darussalam, Singapore, and Thailand) themselves for areas where the development gap needs to be filled through the IAI programme. Other programmes intended for the development of the ASEAN-4 take advantage of the geographical proximity of the CLMV countries and tend to focus on infrastructure development in areas like transport, tourism, and power transmission.
From CMI to AMRO
Due to Asian financial crisis of 1997 to 1998 and long and difficult negotiations with International Monetary Fund, ASEAN+3 agreed to set up a mainly bilateral currency swap scheme known as the 2000 Chiang Mai Initiative (CMI) to anticipate another financial crisis or currency turmoil in the future. In 2006 they agreed to make CMI with multi lateralisation and called as CMIM. On 3 May 2009, they agreed to make a currency pool consist of contribution $38.4 billion each by China and Japan, $19.2 billion by South Korea and totally $24 billion by all of ASEAN members, so the total currency pool was $120 billion. A key component has also newly been added, with the establishment of a surveillance unit.
The ASEAN+3 Macroeconomic and Research Office (AMRO) started its operation in Singapore in May 2011. It performs a key regional surveillance function as part of the $120 billion of Chiang Mai Initiative Multilateralisation (CMIM) currency swap facility that was established by Finance Minister and Central Bank Governors of ASEAN countries plus China, Japan and South Korea in December 2009.
According to some analysts, the amount of $120 billion is relatively small (cover only about 20 percent of needs), so coordination or help from International Monetary Fund is still needed. On 3 May 2012 ASEAN+3 finance ministers agreed to double emergency reserve fund to $240 billion
Foreign Direct Investment
In 2009, realised Foreign Direct Investment (FDI) was $37.9 billion and increase by two-fold in 2010 to $75.8 billion. 22 percent of FDI came from the European Union, followed by ASEAN countries themselves by 16 percent and then followed by Japan and US.
Intra-ASEAN travel
With free visa among ASEAN countries, a huge intra-ASEAN travel occurred and on the right track to establish an ASEAN Community in the years to come. In 2010, 47 percent or 34 million from 73 million tourists were intra-ASEAN travel
Intra-ASEAN trade
Until end of 2010, Intra-Asean trade were still low which mainly of them were mostly exporting to countries outside the region, except Laos and Myanmar were ASEAN-oriented in foreign trade with 80 percent and 50 percent respectively of their exports went to other ASEAN countries.
2.3] Social Progress:
ASEAN Media Cooperation
The ASEAN Media Cooperation (AMC) set digital television standards, policies and create in preparation for broadcasters to transition from analogue to digital broadcasting, better promote media collaboration and information exchange to enhance voice, understanding, and perspective between ASEAN peoples on the international stage.
The ASEAN member countries aim media sector towards digitalisation and further regional media coaction. AMC establishes partnerships between ASEAN news media, and cooperate on information sharing, photo swapping, technical cooperation, exchange programmes, and facilitating joint news coverage and exchange of news footage.
Several key initiatives that were initiated under the AMC:
ASEAN Media Portal, The new ASEAN Media Portalwas launched 16 November 2007 by the ASEAN Secretary-General, Mr Ong Keng Yong, and witnessed by Singapore’s Minister for Information, Communications and the Arts, Dr Lee Boon Yang. The said portal aims to provide a one-stop site that contains documentaries, games, music videos, and multimedia clips on the culture, arts and heritage of the ASEAN countries to showcase the rich ASEAN culture and the capabilities of its media industry.
ASEAN NewsMaker Project, an initiative launched in 2009 that trains students and teachers to produce informational video clips about the lifestyle in their country. The project was initiated by Singapore to work closely with 500 primary and secondary students, aging from 9 to 16 years old, along with their mentors from the 10 ASEAN countries to produce informative videos promoting their respective country’s culture. Students underwent training for the NewsMaker software use, video production and responsible internet use.
ASEAN Digital Broadcasting Meeting, an annual forum for ASEAN members to set digital television standards and policies, and to discuss progress in the implementation of the blueprint to switchover from analogue to digital TV broadcasting by 2020. An issue was raised on the availability and affordability of Set Top Boxes (STB), thus ASEAN members were asked to make policies to determine funding for the STB, methods of allocation, subsidies and rebates and other methods for the allocation of STB. It was also agreed in the meeting to form a task force to develop STB specifications for DVB-T2 to ensure efficiency.
ASEAN’s Next Top Chef and The Legend of the Golden Talisman, two interactive games developed to raise awareness about ASEAN, and its people, places and cultures
New media and social media
During the 11th ASEAN Ministers Responsible for Information meeting held in Kuala Lumpur, Malaysia, ASEAN leaders recognised the emergence of new and social media as an important tool for communications and interaction in ASEAN today. The Ministers agreed that efforts should be made to leverage on social media to promote ASEAN awareness towards achieving an ASEAN community by 2015. Initially, ASEAN will consolidate the ASEAN Culture and Information Portal and the ASEAN Media Portal to incorporate new media elements.
SEA Write Award
The S.E.A. Write Award is a literary award given to Southeast Asian poets and writers annually since 1979. The award is either given for a specific work or as a recognition of an author 's lifetime achievement. Works that are honoured vary and have included poetry, short stories, novels, plays, folklore as well as scholarly and religious works. Ceremonies are held in Bangkok and are presided by a member of the Thai royal family.
ASAIHL
ASAIHL or the Association of Southeast Asian Institutions of Higher Learning is a non-governmental organisation founded in 1956 that strives to strengthen higher learning institutions, espescially in teaching, research, and public service, with the intention of cultivating a sense of regional identity and interdependence.
Heritage Parks
ASEAN Heritage Parks is a list of nature parks launched 1984 and relaunched in 2004. It aims to protect the region 's natural treasures. There are now 35 such protected areas, including the Tubbataha Reef Marine Park and the Kinabalu National Park.
2.4] Education and human development:
As the "collective entity to enhance regional cooperation in education", the ASEAN Education Ministers have determined four priorities that ASEAN efforts toward improved education would address:
(1) Promoting ASEAN awareness among ASEAN citizens, particularly youth
(2) Strengthening ASEAN identity through education
(3) Building ASEAN human resources in the field of education
(4) Strengthening ASEAN university networking
Nations such as Malaysia, Singapore, Indonesia, Thailand, and the Philippines have experienced rapid development over the past 20 years, and this has been visibly evident in their educational systems. Each country has developed unique - yet interconnected through ASEAN initiatives - human and physical infrastructure to provide youth education, a primary determinant in future capabilities and sustained economic growth for the entire region
School enrolment and participation
Participation in formal education is usually measured by the metric Gross Enrolment Ratio (GER) and Net Enrolment Ratio (NER). The NER demonstrates the extent of participation in a given age-specific level of education. The purpose of the GER is to show the total enrolment in a level of education regardless of age. The GER is expressed as a percentage of the official school-age population corresponding to the same level of education.
Primary education:
Brunei Darussalam had almost reached 100% net enrolment by 2001, while Indonesia has slowly moved downward from close to that enrolment percentage thereafter. The Philippines has been inching closer and closer to this target in recent years.
At the top are Malaysia, Singapore, and Thailand, which have shown consistent survival rates of close to 100%, indicating a very high retention of children in school through at least 5th grade.
Among the rest of the countries with rates ranging from 57% to 89% towards the end of the past century, Myanmar has maintained the largest improvements over the years.
Secondary education:
By 2001, Brunei Darussalam, Myanmar, Singapore, Malaysia, and the Philippines had achieved improvements in net enrolment ratios for secondary education of 11%-19% over those of 1990 or 1991.
Vietnam experienced the fastest growth rate in net enrolment between the years 1993 and 1998.
Singapore, the country with the highest overall achievement, has maintained consistently high net enrolment rates of above 90% since 1994.
Tertiary education:
The tertiary education has been left largely to the private sector. Tertiary education in Southeast Asia is, in general, relatively weak. In most cases universities are focused on teaching and service to government rather than academic research. Additionally, universities in Southeast Asia, tend to be financially handicapped and poorly supported.
University Network
The ASEAN University Network (AUN) is a consortium of Southeast Asian universities. It was originally founded in November 1995 by 11 universities within the member states. Currently AUN comprises 26 Participating Universities.
The Southeast Asia Engineering Education Development Network (SEED-NET) Project, was officially established as an autonomous sub-network of the ASEAN University Network (AUN) in April 2001 '. AUN/SEED-Net aimed at promoting human resources development in engineering in ASEAN. The Network consists of 19 leading Member Institutions from 10 ASEAN countries with the support of 11 leading Japanese Supporting Universities
Financial resources
Governments have a vested interest in investing in education and other aspects of human capital infrastructure, especially those governments of rapidly-developing nations such as those within ASEAN
To measure the investments in education by governments, we use the metrics of public current expenditure on primary education as a percent of GDP and expenditure per pupil as a percent of GDP. These two indicators are based on public current expenditure at all government levels on all public primary schools and subsidies to private educational institutions, teachers and pupils.
Primary education expenditure in the reporting ASEAN countries is usually lower than 3% of GDP, with the exception of Indonesia, which reported 5%.
Scholarship
The ASEAN Scholarship is a scholarship program offered by Singapore to the 9 other member states for secondary school, junior college, and university education. It covers accommodation, food, medical benefits & accident insurance, school fees, and examination fees. Scholarship recipients who then perform well in the GCE Advanced Level Examination may apply for ASEAN Undergraduate Scholarships, which are tailored specifically for undergraduate institutions in Singapore and in other ASEAN member countries. Singapore has effectively used this programme to attract many of the best students from the ASEAN region over the past several years, and scholars for the most part tend to remain in Singapore to pursue undergraduate studies through the ASEAN Undergraduate Scholarship programme.
Education as a determinant of human development
Statistically, educational attainment (as measured by average years of schooling) strongly correlates with subsequent income levels and development capabilities. An improvement in educational attainment will have a positive effect on a country 's income and human development (humanity) growth.
It is therefore evident that "universal access to, and completion of, primary or basic education is a self-evident goal upon which the foundations for building the human capacity rests. Increased participation, regardless of sex, in secondary and tertiary levels of education is a necessary step to be able to move forward in the process of achieving equity, capacity building, access to information, and strengthening science."
Literacy rates
Literacy indicators provide us with a measure of the number of literate persons within the population who are capable of using written words in daily and to continue to learn. The literacy rate essentially reflects the cumulative accomplishment of education in spreading literacy. The data of literacy rates in reporting countries of 15 to 24 years old reflect outcomes of the basic education process and is therefore considered an accepted measure of the effectiveness of that country 's education system 's investment in children. Among the eight ASEAN countries reporting six have made significant progress towards 100% literacy by 2000.
2.5] Role in sports development:
Southeast Asian Games
The Southeast Asian Games, commonly known as the SEA Games, is a biennial multi-sport event involving participants from the current 11 countries of Southeast Asia. The games is under regulation of the Southeast Asian Games Federation with supervision by the International Olympic Committee (IOC) and the Olympic Council of Asia.
ASEAN Para Games
The ASEAN Para Games is a biennial multi-sport event held after every Southeast Asian Games for athletes with physical disabilities. The games are participated by the 11 countries located in Southeast Asia. The Games, patterned after the Paralympic Games, are played by physically challenged athletes with mobility disabilities, visual disabilities,
FESPIC Games / Asian Para Games
The FESPIC Games, also known as the Far East and South Pacific Games for the persons with disability, was the biggest multi-sports games in Asia and South Pacific region. The FESPIC Games were held nine times and bowed out, a success in December 2006 in the 9th FESPIC Games in Kuala Lumpur, Malaysia. The Games re-emerged as the 2010 Asian Para Games in Guangzhou, China. The 2010 Asian Para Games debuted shortly after the conclusion of the 16th Asian Games, using the same facilities and venue made disability-accessible. The inaugural Asian Para Games, the parallel event for athletes with physical disabilities, is a multi-sport event held every four years after every Asian Games.
Football Championship
The ASEAN Football Championship is a biennial Football competition organised by the ASEAN Football Federation, accredited by FIFA and contested by the national teams of Southeast Asia nations. It was inaugurated in 1996 as Tiger Cup, but after Asia Pacific Breweries terminated the sponsorship deal, "Tiger" was renamed "ASEAN".
ASEAN 2030 FIFA World Cup bid
January 2011: As a result of ASEAN Foreign ministers at Lombok meeting, they agreed bid to host the FIFA World Cup in 2030 as a single entity.
May 2011: ASEAN will go ahead with its bid for the FIFA 2030 World Cup. It was a follow up to the agreement reached in January before
Chapter 3: Limitation & criticism
3.1] Criticism:
Non-ASEAN countries have criticized ASEAN for being too soft in its approach to promoting human rights and democracy in the junta-led Burma Despite global outrage at the military crack-down on peaceful protesters in Yangon, ASEAN has refused to suspend Burma as a member and also rejects proposals for economic sanctions. This has caused concern as the European Union, a potential trade partner, has refused to conduct free trade negotiations at a regional level for these political reasons. International observers view it as a "talk shop", which implies that the organisation is "big on words but small on action".
Head of the International Institute of Strategic Studies – Asia, Tim Huxley cites the diverse political systems present in the grouping, including many young states, as a barrier to far-reaching cooperation outside the economic sphere. He also asserts that in the absence of an external threat to rally against with the end of the Cold War, ASEAN has begun to be less successful at restraining its members and resolving border disputes such as those between Burma and Thailand and Indonesia and Malaysia.
During the 12th ASEAN Summit in Cebu, several activist groups staged anti-globalization protests. According to these leftist activists, the agenda of economic integration would negatively affect industries in the Philippines and would cause thousands of Filipinos to lose their jobs
3.2] Challenges:
Internal Challenges
One of the most serious obstacles to ASEAN integration is unresolved territorial disputes between member countries. Forum participants doubted that these disputes will be addressed comprehensively given the historical reluctance of ASEAN countries to discuss matters they describe as “internal affairs.” ASEAN’s “consensus approach” to decision-making, whereby a country can prevent the passage of a proposal if it disagrees with it, is highly inefficient when trying to reform the organization. This difficulty is compounded by the political instability and social upheaval within many of the member countries that rode the third wave of democratization.
External Challenges:
Participants identified three external challenges facing ASEAN: globalization, regional imbalances, and a lack of engagement mechanisms:
Many speakers contended that ASEAN’s development necessarily carries with it the drawbacks of globalization. For instance, rapid regional development has led to fierce competition between ASEAN countries. Others urged ASEAN countries already involved in international banking and foreign investment to strengthen their financial capabilities to avoid meeting the same fate as East Asian countries that were embroiled in the Asian financial crisis of the late 1990s. ASEAN countries are also worried that Western values have eroded support for their own values.
The second point of insecurity for ASEAN is its neighbors. The rise of large neighboring countries coupled with increased investment in their militaries and economies has made ASEAN countries extremely nervous. In recent years, American, Japanese, Chinese, and Australian interest in Southeast Asia’s affairs has also risen, making them worry that they may be marginalized.
The third challenge is ASEAN’s ability to cooperate and coordinate regionally and internationally. While many participants described ASEAN as a passive global player – one that is often an observer rather than an actor in its interactions with the world – they also acknowledge that its engagement capabilities are limited. ASEAN-initiated forums and summits are ineffective mechanisms for decision-making because they usually do not include global powers.
Chapter 4: Conclusion
4.1] Is ASEAN just another EU?
A central debate has focused on whether a meaningful comparison could be made between ASEAN and the European Union (EU), especially now that ASEAN has assumed legal status.
The aims of both bodies are quite similar: economic prosperity and the preservation of competitiveness in a globalizing world, regional security, and stronger influence vis-à-vis powerful neighbors. ASEAN seeks to mirror the EU’s economic integration. Furthermore, its three decision-making and implementing bodies mimic the EU’s set-up.
However, the respective forms of integration within the EU and ASEAN are fundamentally different. The EU is a supranational model of cooperation. Member countries share in decision-making that transcends national boundaries. ASEAN, on the other hand, is strongly committed to an intergovernmental approach in which integration allows states to cooperate in specific fields while retaining their sovereignty. This unwillingness to cede power for joint cooperative efforts hinders economic initiatives. This lack of unity can be seen in member states that, frustrated by slow progress on trade negotiations, broke rank to sign bilateral trade agreements. It reveals a gap in intra-ASEAN expectations: some members want collective negotiation and others want faster progress. It is unclear whether the Charter will allow for nimbler negotiations or resolve these issues at all.
4.2] Conclusion:
The Association of Southeast Asian Nations has come leaps and bound since its formation. It has played a major role in the prosperity and upbringing of its nation in terms of society & economy. Over the years, it has become a major force to be reckoned with. Attaining legal status just goes on to show the authenticity of this organization & its achievements. The ASEAN has done a lot for its member nations, but there are many improvements that can be made. The major disparity is shown when the ASEAN is compared to the EU or any other such organisation. Also, it has come under scrutiny as nothing but a political place where people talk big but the results are slow and laborious. Though this may not be the case, the ASEAN needs to put measures into place in order to successfully achieve its goals. The standard of living in most of its member countries is not that good, there is still poverty and illiteracy which can be eradicated. More focus needs to be put of infrastructural development of its less privileged member nations. Trade and foreign investment plays a huge part in the economy and need to be focused upon. The ASEAN has been majorly successful in achieving its goals, and the future will tell whether they can grow into a bigger and a more powerful organization.
Chapter 5: Bibliography http://www.aseansec.org/ http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations http://carnegieendowment.org/2008/11/28/asean-integration-and-its-effects/1t6j http://www.nti.org/treaties-and-regimes/association-southeast-asian-nations-asean/ http://webh01.ua.ac.be/cas/PDF/CAS03.pdf
Bibliography: http://www.aseansec.org/ http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations http://carnegieendowment.org/2008/11/28/asean-integration-and-its-effects/1t6j http://www.nti.org/treaties-and-regimes/association-southeast-asian-nations-asean/ http://webh01.ua.ac.be/cas/PDF/CAS03.pdf
Sr. No.
PARTICULARS
Page No.
CHAPTER I – INTRODUCTION
1.1
History & Formation
8
1.2
Reasons for Formation
9
1.3
Objectives &Principles of The ASEAN
12
CHAPTER II – PERFORMANCE OF THE ASEAN
2.1
The ASEAN Charter
14
2.2
Economic Performance
15
2.3
Social Progress
20
2.4
Education & Human Development
23
2.5
Role in Sports Development
27
CHAPTER III – LIMITATIONS & CRITICISM
3.1
Criticism
29
3.2
Challenges
29
CHAPTER IV – CONCLUSION
4.1
ASEAN V/s EU
31
4.2
Conclusion
32
APPENDIX
5.1
Bibliography
33
Association of Southeast Asian Nations
Chapter I: Introduction
The Association of Southeast Asian Nations (ASEAN) is a geo-political and economic organisation of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.
ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world 's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2011, its combined nominal GDP had grown to more than US$ 2 trillion. If ASEAN were a single entity, it would rank as the eighth largest economy in the world.
During the last two decades, the economic dynamism of the East Asian region - Japan, China, the NIEs (Newly Industrialising Economies, i.e. Taiwan Province of China, Republic of Korea, Hong Kong) and ASEAN-6 (Brunei Darussalam, Malaysia, Indonesia, Philippines, Singapore and Thailand) – has drawn the world 's attention. Interest was directed at the ability of most of these countries to maintain their annual economic growth rate, especially when the world 's economic activity was slowing down. On average the East Asian economies experienced a high level of economic growth as compared with the other regions in the world.
Part of this Asian dynamism derives from the tight linkage between the flow of investment and trade with Japan, which performed extremely well, on the basis of its flexible production structures and its responsive policy to anticipate changes in the external circumstances. This development contributes positively to the implementation of an export-led development strategy.
It is within this dynamic situation that ASEAN reacts by proposing further economic cooperation on a larger scale within the framework of a trade liberalisation policy. A broader regional economic cooperation, both in terms of trade and investment, offers the potential of strengthening the export capabilities of the ASEAN region. An agreement to gradually reduce the tariffs through the Common. The crucial factors for the economic success of ASEAN as a central integrative economy at the regional level are the flows of trade and investment, and the assessment of its effectiveness.
The purpose of this paper is to describe the performance of ASEAN in depth. The paper focuses on the autonomous links that have developed in the ASEAN region through intraregional trade, and their relationship to global and intraregional investment. It also stresses the links of these trade and investment trends with the growth poles in the ASEAN regions.
1.1] History & Formation:
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 five countries – Indonesia, Malaysia, the Philippines, Singapore, and Thailand – met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration. The five foreign ministers – Adam Malik of Indonesia, Narciso Ramos of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand – are considered the organisation 's Founding Fathers.
In 28 July 1995, Vietnam became the seventh member. Laos and Myanmar (Burma) joined two years later on 23 July 1997. Cambodia was to have joined together with Laos and Burma, but was deferred due to the country 's internal political struggle. The country later joined on 30 April 1999, following the stabilisation of its government.
East Timor submitted a letter of application to be the eleventh member of ASEAN at the summit in Jakarta in March 2011. Indonesia has shown a warm welcome to East Timor.
Papua New Guinea was accorded Observer status in 1976 and Special Observer status in 1981. Papua New Guinea is a Melanesian state. ASEAN embarked on a program of economic cooperation following the Bali Summit of 1976. This floundered in the mid-1980s and was only revived around 1991 due to a Thai proposal for a regional free trade area.
The bloc grew when Brunei Darussalam became the sixth member on 8 January 1984, barely a week after gaining independence on 1 January
1.2] Reasons for Formation
1) Desire for regional security
ASEAN was formed in the waning days of Konfrontasi (Indonesia against Malaysia and Singapore) and the starting of the Sabah dispute between Malaysia and Indonesia. Hence the founding states wanted to bring stability to the region by reducing interstate tensions in an organization where common problems could be addressed. It was hoped that the benefits of cooperation would give these states a stake in regional peace and security.
2) Greater autonomy in the conduct of regional affairs
The newly-independent states did not want their sovereignty to be compromised, thus they believed a regional organization could help Southeast Asia manage its own affairs, rather than relying on foreign powers.
3) Economic development
In 1967, the communist insurgency was a threat to the founding states. The 1966 military takeover in Indonesia had been justified because of the communist threat, proving the potency of the communists. Hence to dent the communists ' popularity, states sought ways to develop their economies to raise the standard of living for their people. Thus a regional organization could result in economic cooperation, leading to greater economic development in individual state.
However, though state interests converged with regional interests, the latter did not prevail over state interests. ASEAN was seen as a vehicle to promote narrow state interests among the five founders, namely Indonesia, Malaysia, Singapore, Thailand and The Philippines.
State interests of Indonesia
1) Regional leadership
President Suharto hoped that the founding of ASEAN could further enhance Indonesia 's leadership role in the region. Instead of an aggressive and confrontational Indonesia led by his deposed predecessor Sukarno, Indonesia would be cooperative and seek leadership through cooperation with others.
2) Public relations exercise
Suharto had come to power on bloodshed in 1966. Thus the entry of Indonesia into a peaceful regional organization was to convince the world that Indonesia was not a destabilizing regime but a cooperative country.
State interests of Malaysia
1) State security
The communist threat was real in Malaysia and the government believed it could be threatened by the 'domino ' effect from fighting in Vietnam, Cambodia and Laos. Thus joining ASEAN could assure its security more by reducing tensions between states, so it could focus more on its local communist threat.
State interests of Singapore
1) Recognition as an equal and sovereign state
As a newly-established country which was never thought possible, and also seen as an economic parasite of the region, Singapore wanted to woo its neighbors so that they would be friendly towards it. Entry into ASEAN would directly assure it that other states recognized its sovereignty and acceptance.
2) Economic development
As the smallest country in ASEAN, Singapore lacked natural resources for economic development. Cooperation with other countries could provide it with natural resources as well as markets for its goods.
State interests of Thailand
1) State security
Similar to Malaysia, Thailand was wary of the Communist domino effect from Indochina. It did not want to rely solely on the US for its security, thus joining ASEAN could serve as a back-up.
State interests of The Philippines
1) Recognition & economic development
As the only Catholic-majority population in Southeast Asia, the Philippines were seen as foreign to the rest. It hoped that joining ASEAN could stress its Southeast Asian identity and hence remove its image as an 'American ' state. Additionally, ASEAN could hold possible economic cooperation by strengthening trade links and help it counterbalance its economic reliance on the US.
1.3] Objectives & Principles of the ASEAN
OBJECTIVES
The ASEAN Declaration states that the aims and purposes of the Association are:
1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations, and
2. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter.
In 1995, the ASEAN Heads of States and Government reaffirmed that “Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN.”
The Association represents the collective will of the nations of Southeast Asia to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom, and prosperity. (The ASEAN Declaration, Bangkok, 8 August 1967)
Fundamental Principles:
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the First ASEAN Summit on 24 February 1976, declared that in their relations with one another, the High Contracting Parties should be guided by the following fundamental principles:
Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;
The right of every State to lead its national existence free from external interference, subversion, or coercion;
Non-interference in the internal affairs of one another;
Settlement of differences or disputes by peaceful manner;
Renunciation of the threat or use of force; and
Effective cooperation among themselves.
The ‘ASEAN way’ is said to contribute durability and longevity within the organisation, by promoting regional identity and enhancing a spirit of mutual confidence and cooperation. ASEAN agreements are negotiated in a close, interpersonal process. The process of consultations and consensus is designed to engender a democratic approach to decision making. These leaders are wary of any effort to legitimise efforts to undermine their nation or contain regional co-operation.
Chapter II: Performance of the ASEAN
The Association of Southeast Asian Nations (ASEAN), while starting as a loose coalition of developing countries, is now recognized as an increasingly capable regional and international player. It has taken great strides to improve the status of its member nations in economic, social & political terms. It has undertaken various projects and establishes several policies f0r the benefit of all.
ASEAN has emphasised regional cooperation in the “three pillars”, which are security, sociocultural integration, and economic integration.
2.1] The ASEAN Charter:
The ASEAN Charter is a constitution for the Association of Southeast Asian Nations (ASEAN). It was adopted at the 13th ASEAN Summit in November 2007 On December 15, 2008, the members of ASEAN met in the Indonesian capital of Jakarta to launch a charter, signed in November 2007, with the aim of moving closer to "an EU-style community".
The charter turns ASEAN into a legal entity and aims to create a single free-trade area for the region encompassing 500 million people. Indonesian President Susilo Bambang Yudhoyono stated: "This is a momentous development when ASEAN is consolidating, integrating and transforming itself into a community. It is achieved while ASEAN seeks a more vigorous role in Asian and global affairs at a time when the international system is experiencing a seismic shift," he added, referring to climate change and economic upheaval. Southeast Asia is no longer the bitterly divided, war-torn region it was in the 1960s and 1970s." The charter 's aims included:
"Respect for the independence, sovereignty and territorial integrity of member states"
"Peaceful settlement of disputes"
"Non-interference in member states ' internal affairs"
"Right to live without external interference
2.2] Economic Performance: The regional grouping has made the most progress in economic integration by creating an ASEAN Economic Community (AEC) by 2015. The average economic growths of ASEAN 's member nations during 1989–2009 was Singapore with 6.73 percent, Malaysia with 6.15 percent, Indonesia with 5.16 percent, Thailand with 5.02 percent, and the Philippines with 3.79 percent. This economic growth was greater than the average Asia-Pacific Economic Cooperation (APEC) economic growth, which was 2.83 percent.
From CEPT to AEC
A Common Effective Preferential Tariff (CEPT) scheme to promote the free flow of goods within ASEAN lead to the ASEAN Free Trade Area (AFTA). The AFTA is an agreement by the member nations of ASEAN concerning local manufacturing in all ASEAN countries. The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Burma in 1997, and Cambodia in 1999. The latecomers have not fully met the AFTA 's obligations, but they are officially considered part of the AFTA as they were required to sign the agreement upon entry into ASEAN, and were given longer time frames in which to meet AFTA 's tariff reduction obligations.
The next step is ASEAN Economic Community (AEC) with main objectives are to create a: single market and production base highly competitive economic region region of equitable economic development region fully integrated into the global economy
Since 2007, the ASEAN countries gradually lower their import duties among them and targeted will be zero for most of the import duties at 2015.
Since 2011, AEC has agreed to strengthen the position and increase the competitive edges of small and medium enterprises (SME) in the ASEAN region.
Comprehensive Investment Area
The ASEAN Comprehensive Investment Area (ACIA) will encourage the free flow of investment within ASEAN. The main principles of the ACIA are as follows.
All industries are to be opened up for investment, with exclusions to be phased out according to schedules
National treatment is granted immediately to ASEAN investors with few exclusions
Elimination of investment impediments
Streamlining of investment process and procedures
Enhancing transparency
Undertaking investment facilitation measures
Full realisation of the ACIA with the removal of temporary exclusion lists in manufacturing agriculture, fisheries, forestry and mining is scheduled by 2010 for most ASEAN members and by 2015 for the CLMV (Cambodia, Lao PDR, Burma, and Vietnam) countries.
Trade in Services
An ASEAN Framework Agreement on Trade in Services was adopted at the ASEAN Summit in Bangkok in December 1995. Under AFAS, ASEAN Member States enter into successive rounds of negotiations to liberalise trade in services with the aim of submitting increasingly higher levels of commitments. The negotiations result in commitments that are set forth in schedules of specific commitments annexed to the Framework Agreement. These schedules are often referred to as packages of services commitments. At present, ASEAN has concluded seven packages of commitments under AFAS.
Single Aviation Market
The ASEAN Single Aviation Market (ASEAN-SAM) is the region 's major aviation policy geared towards the development of a unified and single aviation market in Southeast Asia by 2015. The aviation policy was proposed by the ASEAN Air Transport Working Group, supported by the ASEAN Senior Transport Officials Meeting, and endorsed by the ASEAN Transport Ministers. The ASEAN-SAM is expected to fully liberalise air travel between member states in the ASEAN region, allowing ASEAN countries and airlines operating in the region to directly benefit from the growth in air travel around the world, and also freeing up tourism, trade, investment and services flows between member states. Since 1 December 2008, restrictions on the third and fourth freedoms of the air between capital cities of member states for air passengers services have been removed, while from 1 January 2009, full liberalisation of air freight services in the region took effect. On 1 January 2011, full liberalisation on fifth freedom traffic rights between all capital cities took effect.
The ASEAN Single Aviation Market policy will supersede existing unilateral, bilateral and multilateral air services agreements among member states which are inconsistent with its provisions.
Free-trade agreements with other countries
ASEAN has concluded free trade agreements with China (expecting bilateral trade of $500 billion by 2015), Korea, Japan, Australia, New Zealand, and India. ASEAN-India bilateral trade crossed the $ 70 billion target in 2012 (target was to reach the level only by 2015). The agreement with People 's Republic of China created the ASEAN–China Free Trade Area(ACFTA), which went into full effect on 1 January 2010. In addition, ASEAN is currently negotiating a free trade agreement with the European Union. Republic of China (Taiwan) has also expressed interest in an agreement with ASEAN but needs to overcome diplomatic objections from China
Development gap
When Vietnam, Laos, Myanmar, and Cambodia joined ASEAN in the late 1990s, concerns were raised about a certain developmental divide regarding a gap in average per capita GDP between older and the newer members. In response, the Initiative for ASEAN Integration (IAI) was formed by ASEAN as a regional integration policy with the principle goal of bridging this developmental divide, which, in addition to disparities in per capita GDP, is manifested by disparities in dimensions of human development such as life expectancy and literacy rates. Other than the IAI, other programmes for the development of the Mekong Basin - where all four newer ASEAN members are located - that tend to focus on infrastructure development have been effectively enacted. In general, ASEAN does not have the financial resources to extend substantial grants or loans to the new members. Therefore, it usually leaves the financing of these infrastructure projects tointernational financial institutions and to developed countries. Nevertheless, it has mobilised funding from these institutions and countries and from the ASEAN-6 (Indonesia, Malaysia, Philippines, Brunei Darussalam, Singapore, and Thailand) themselves for areas where the development gap needs to be filled through the IAI programme. Other programmes intended for the development of the ASEAN-4 take advantage of the geographical proximity of the CLMV countries and tend to focus on infrastructure development in areas like transport, tourism, and power transmission.
From CMI to AMRO
Due to Asian financial crisis of 1997 to 1998 and long and difficult negotiations with International Monetary Fund, ASEAN+3 agreed to set up a mainly bilateral currency swap scheme known as the 2000 Chiang Mai Initiative (CMI) to anticipate another financial crisis or currency turmoil in the future. In 2006 they agreed to make CMI with multi lateralisation and called as CMIM. On 3 May 2009, they agreed to make a currency pool consist of contribution $38.4 billion each by China and Japan, $19.2 billion by South Korea and totally $24 billion by all of ASEAN members, so the total currency pool was $120 billion. A key component has also newly been added, with the establishment of a surveillance unit.
The ASEAN+3 Macroeconomic and Research Office (AMRO) started its operation in Singapore in May 2011. It performs a key regional surveillance function as part of the $120 billion of Chiang Mai Initiative Multilateralisation (CMIM) currency swap facility that was established by Finance Minister and Central Bank Governors of ASEAN countries plus China, Japan and South Korea in December 2009.
According to some analysts, the amount of $120 billion is relatively small (cover only about 20 percent of needs), so coordination or help from International Monetary Fund is still needed. On 3 May 2012 ASEAN+3 finance ministers agreed to double emergency reserve fund to $240 billion
Foreign Direct Investment
In 2009, realised Foreign Direct Investment (FDI) was $37.9 billion and increase by two-fold in 2010 to $75.8 billion. 22 percent of FDI came from the European Union, followed by ASEAN countries themselves by 16 percent and then followed by Japan and US.
Intra-ASEAN travel
With free visa among ASEAN countries, a huge intra-ASEAN travel occurred and on the right track to establish an ASEAN Community in the years to come. In 2010, 47 percent or 34 million from 73 million tourists were intra-ASEAN travel
Intra-ASEAN trade
Until end of 2010, Intra-Asean trade were still low which mainly of them were mostly exporting to countries outside the region, except Laos and Myanmar were ASEAN-oriented in foreign trade with 80 percent and 50 percent respectively of their exports went to other ASEAN countries.
2.3] Social Progress:
ASEAN Media Cooperation
The ASEAN Media Cooperation (AMC) set digital television standards, policies and create in preparation for broadcasters to transition from analogue to digital broadcasting, better promote media collaboration and information exchange to enhance voice, understanding, and perspective between ASEAN peoples on the international stage.
The ASEAN member countries aim media sector towards digitalisation and further regional media coaction. AMC establishes partnerships between ASEAN news media, and cooperate on information sharing, photo swapping, technical cooperation, exchange programmes, and facilitating joint news coverage and exchange of news footage.
Several key initiatives that were initiated under the AMC:
ASEAN Media Portal, The new ASEAN Media Portalwas launched 16 November 2007 by the ASEAN Secretary-General, Mr Ong Keng Yong, and witnessed by Singapore’s Minister for Information, Communications and the Arts, Dr Lee Boon Yang. The said portal aims to provide a one-stop site that contains documentaries, games, music videos, and multimedia clips on the culture, arts and heritage of the ASEAN countries to showcase the rich ASEAN culture and the capabilities of its media industry.
ASEAN NewsMaker Project, an initiative launched in 2009 that trains students and teachers to produce informational video clips about the lifestyle in their country. The project was initiated by Singapore to work closely with 500 primary and secondary students, aging from 9 to 16 years old, along with their mentors from the 10 ASEAN countries to produce informative videos promoting their respective country’s culture. Students underwent training for the NewsMaker software use, video production and responsible internet use.
ASEAN Digital Broadcasting Meeting, an annual forum for ASEAN members to set digital television standards and policies, and to discuss progress in the implementation of the blueprint to switchover from analogue to digital TV broadcasting by 2020. An issue was raised on the availability and affordability of Set Top Boxes (STB), thus ASEAN members were asked to make policies to determine funding for the STB, methods of allocation, subsidies and rebates and other methods for the allocation of STB. It was also agreed in the meeting to form a task force to develop STB specifications for DVB-T2 to ensure efficiency.
ASEAN’s Next Top Chef and The Legend of the Golden Talisman, two interactive games developed to raise awareness about ASEAN, and its people, places and cultures
New media and social media
During the 11th ASEAN Ministers Responsible for Information meeting held in Kuala Lumpur, Malaysia, ASEAN leaders recognised the emergence of new and social media as an important tool for communications and interaction in ASEAN today. The Ministers agreed that efforts should be made to leverage on social media to promote ASEAN awareness towards achieving an ASEAN community by 2015. Initially, ASEAN will consolidate the ASEAN Culture and Information Portal and the ASEAN Media Portal to incorporate new media elements.
SEA Write Award
The S.E.A. Write Award is a literary award given to Southeast Asian poets and writers annually since 1979. The award is either given for a specific work or as a recognition of an author 's lifetime achievement. Works that are honoured vary and have included poetry, short stories, novels, plays, folklore as well as scholarly and religious works. Ceremonies are held in Bangkok and are presided by a member of the Thai royal family.
ASAIHL
ASAIHL or the Association of Southeast Asian Institutions of Higher Learning is a non-governmental organisation founded in 1956 that strives to strengthen higher learning institutions, espescially in teaching, research, and public service, with the intention of cultivating a sense of regional identity and interdependence.
Heritage Parks
ASEAN Heritage Parks is a list of nature parks launched 1984 and relaunched in 2004. It aims to protect the region 's natural treasures. There are now 35 such protected areas, including the Tubbataha Reef Marine Park and the Kinabalu National Park.
2.4] Education and human development:
As the "collective entity to enhance regional cooperation in education", the ASEAN Education Ministers have determined four priorities that ASEAN efforts toward improved education would address:
(1) Promoting ASEAN awareness among ASEAN citizens, particularly youth
(2) Strengthening ASEAN identity through education
(3) Building ASEAN human resources in the field of education
(4) Strengthening ASEAN university networking
Nations such as Malaysia, Singapore, Indonesia, Thailand, and the Philippines have experienced rapid development over the past 20 years, and this has been visibly evident in their educational systems. Each country has developed unique - yet interconnected through ASEAN initiatives - human and physical infrastructure to provide youth education, a primary determinant in future capabilities and sustained economic growth for the entire region
School enrolment and participation
Participation in formal education is usually measured by the metric Gross Enrolment Ratio (GER) and Net Enrolment Ratio (NER). The NER demonstrates the extent of participation in a given age-specific level of education. The purpose of the GER is to show the total enrolment in a level of education regardless of age. The GER is expressed as a percentage of the official school-age population corresponding to the same level of education.
Primary education:
Brunei Darussalam had almost reached 100% net enrolment by 2001, while Indonesia has slowly moved downward from close to that enrolment percentage thereafter. The Philippines has been inching closer and closer to this target in recent years.
At the top are Malaysia, Singapore, and Thailand, which have shown consistent survival rates of close to 100%, indicating a very high retention of children in school through at least 5th grade.
Among the rest of the countries with rates ranging from 57% to 89% towards the end of the past century, Myanmar has maintained the largest improvements over the years.
Secondary education:
By 2001, Brunei Darussalam, Myanmar, Singapore, Malaysia, and the Philippines had achieved improvements in net enrolment ratios for secondary education of 11%-19% over those of 1990 or 1991.
Vietnam experienced the fastest growth rate in net enrolment between the years 1993 and 1998.
Singapore, the country with the highest overall achievement, has maintained consistently high net enrolment rates of above 90% since 1994.
Tertiary education:
The tertiary education has been left largely to the private sector. Tertiary education in Southeast Asia is, in general, relatively weak. In most cases universities are focused on teaching and service to government rather than academic research. Additionally, universities in Southeast Asia, tend to be financially handicapped and poorly supported.
University Network
The ASEAN University Network (AUN) is a consortium of Southeast Asian universities. It was originally founded in November 1995 by 11 universities within the member states. Currently AUN comprises 26 Participating Universities.
The Southeast Asia Engineering Education Development Network (SEED-NET) Project, was officially established as an autonomous sub-network of the ASEAN University Network (AUN) in April 2001 '. AUN/SEED-Net aimed at promoting human resources development in engineering in ASEAN. The Network consists of 19 leading Member Institutions from 10 ASEAN countries with the support of 11 leading Japanese Supporting Universities
Financial resources
Governments have a vested interest in investing in education and other aspects of human capital infrastructure, especially those governments of rapidly-developing nations such as those within ASEAN
To measure the investments in education by governments, we use the metrics of public current expenditure on primary education as a percent of GDP and expenditure per pupil as a percent of GDP. These two indicators are based on public current expenditure at all government levels on all public primary schools and subsidies to private educational institutions, teachers and pupils.
Primary education expenditure in the reporting ASEAN countries is usually lower than 3% of GDP, with the exception of Indonesia, which reported 5%.
Scholarship
The ASEAN Scholarship is a scholarship program offered by Singapore to the 9 other member states for secondary school, junior college, and university education. It covers accommodation, food, medical benefits & accident insurance, school fees, and examination fees. Scholarship recipients who then perform well in the GCE Advanced Level Examination may apply for ASEAN Undergraduate Scholarships, which are tailored specifically for undergraduate institutions in Singapore and in other ASEAN member countries. Singapore has effectively used this programme to attract many of the best students from the ASEAN region over the past several years, and scholars for the most part tend to remain in Singapore to pursue undergraduate studies through the ASEAN Undergraduate Scholarship programme.
Education as a determinant of human development
Statistically, educational attainment (as measured by average years of schooling) strongly correlates with subsequent income levels and development capabilities. An improvement in educational attainment will have a positive effect on a country 's income and human development (humanity) growth.
It is therefore evident that "universal access to, and completion of, primary or basic education is a self-evident goal upon which the foundations for building the human capacity rests. Increased participation, regardless of sex, in secondary and tertiary levels of education is a necessary step to be able to move forward in the process of achieving equity, capacity building, access to information, and strengthening science."
Literacy rates
Literacy indicators provide us with a measure of the number of literate persons within the population who are capable of using written words in daily and to continue to learn. The literacy rate essentially reflects the cumulative accomplishment of education in spreading literacy. The data of literacy rates in reporting countries of 15 to 24 years old reflect outcomes of the basic education process and is therefore considered an accepted measure of the effectiveness of that country 's education system 's investment in children. Among the eight ASEAN countries reporting six have made significant progress towards 100% literacy by 2000.
2.5] Role in sports development:
Southeast Asian Games
The Southeast Asian Games, commonly known as the SEA Games, is a biennial multi-sport event involving participants from the current 11 countries of Southeast Asia. The games is under regulation of the Southeast Asian Games Federation with supervision by the International Olympic Committee (IOC) and the Olympic Council of Asia.
ASEAN Para Games
The ASEAN Para Games is a biennial multi-sport event held after every Southeast Asian Games for athletes with physical disabilities. The games are participated by the 11 countries located in Southeast Asia. The Games, patterned after the Paralympic Games, are played by physically challenged athletes with mobility disabilities, visual disabilities,
FESPIC Games / Asian Para Games
The FESPIC Games, also known as the Far East and South Pacific Games for the persons with disability, was the biggest multi-sports games in Asia and South Pacific region. The FESPIC Games were held nine times and bowed out, a success in December 2006 in the 9th FESPIC Games in Kuala Lumpur, Malaysia. The Games re-emerged as the 2010 Asian Para Games in Guangzhou, China. The 2010 Asian Para Games debuted shortly after the conclusion of the 16th Asian Games, using the same facilities and venue made disability-accessible. The inaugural Asian Para Games, the parallel event for athletes with physical disabilities, is a multi-sport event held every four years after every Asian Games.
Football Championship
The ASEAN Football Championship is a biennial Football competition organised by the ASEAN Football Federation, accredited by FIFA and contested by the national teams of Southeast Asia nations. It was inaugurated in 1996 as Tiger Cup, but after Asia Pacific Breweries terminated the sponsorship deal, "Tiger" was renamed "ASEAN".
ASEAN 2030 FIFA World Cup bid
January 2011: As a result of ASEAN Foreign ministers at Lombok meeting, they agreed bid to host the FIFA World Cup in 2030 as a single entity.
May 2011: ASEAN will go ahead with its bid for the FIFA 2030 World Cup. It was a follow up to the agreement reached in January before
Chapter 3: Limitation & criticism
3.1] Criticism:
Non-ASEAN countries have criticized ASEAN for being too soft in its approach to promoting human rights and democracy in the junta-led Burma Despite global outrage at the military crack-down on peaceful protesters in Yangon, ASEAN has refused to suspend Burma as a member and also rejects proposals for economic sanctions. This has caused concern as the European Union, a potential trade partner, has refused to conduct free trade negotiations at a regional level for these political reasons. International observers view it as a "talk shop", which implies that the organisation is "big on words but small on action".
Head of the International Institute of Strategic Studies – Asia, Tim Huxley cites the diverse political systems present in the grouping, including many young states, as a barrier to far-reaching cooperation outside the economic sphere. He also asserts that in the absence of an external threat to rally against with the end of the Cold War, ASEAN has begun to be less successful at restraining its members and resolving border disputes such as those between Burma and Thailand and Indonesia and Malaysia.
During the 12th ASEAN Summit in Cebu, several activist groups staged anti-globalization protests. According to these leftist activists, the agenda of economic integration would negatively affect industries in the Philippines and would cause thousands of Filipinos to lose their jobs
3.2] Challenges:
Internal Challenges
One of the most serious obstacles to ASEAN integration is unresolved territorial disputes between member countries. Forum participants doubted that these disputes will be addressed comprehensively given the historical reluctance of ASEAN countries to discuss matters they describe as “internal affairs.” ASEAN’s “consensus approach” to decision-making, whereby a country can prevent the passage of a proposal if it disagrees with it, is highly inefficient when trying to reform the organization. This difficulty is compounded by the political instability and social upheaval within many of the member countries that rode the third wave of democratization.
External Challenges:
Participants identified three external challenges facing ASEAN: globalization, regional imbalances, and a lack of engagement mechanisms:
Many speakers contended that ASEAN’s development necessarily carries with it the drawbacks of globalization. For instance, rapid regional development has led to fierce competition between ASEAN countries. Others urged ASEAN countries already involved in international banking and foreign investment to strengthen their financial capabilities to avoid meeting the same fate as East Asian countries that were embroiled in the Asian financial crisis of the late 1990s. ASEAN countries are also worried that Western values have eroded support for their own values.
The second point of insecurity for ASEAN is its neighbors. The rise of large neighboring countries coupled with increased investment in their militaries and economies has made ASEAN countries extremely nervous. In recent years, American, Japanese, Chinese, and Australian interest in Southeast Asia’s affairs has also risen, making them worry that they may be marginalized.
The third challenge is ASEAN’s ability to cooperate and coordinate regionally and internationally. While many participants described ASEAN as a passive global player – one that is often an observer rather than an actor in its interactions with the world – they also acknowledge that its engagement capabilities are limited. ASEAN-initiated forums and summits are ineffective mechanisms for decision-making because they usually do not include global powers.
Chapter 4: Conclusion
4.1] Is ASEAN just another EU?
A central debate has focused on whether a meaningful comparison could be made between ASEAN and the European Union (EU), especially now that ASEAN has assumed legal status.
The aims of both bodies are quite similar: economic prosperity and the preservation of competitiveness in a globalizing world, regional security, and stronger influence vis-à-vis powerful neighbors. ASEAN seeks to mirror the EU’s economic integration. Furthermore, its three decision-making and implementing bodies mimic the EU’s set-up.
However, the respective forms of integration within the EU and ASEAN are fundamentally different. The EU is a supranational model of cooperation. Member countries share in decision-making that transcends national boundaries. ASEAN, on the other hand, is strongly committed to an intergovernmental approach in which integration allows states to cooperate in specific fields while retaining their sovereignty. This unwillingness to cede power for joint cooperative efforts hinders economic initiatives. This lack of unity can be seen in member states that, frustrated by slow progress on trade negotiations, broke rank to sign bilateral trade agreements. It reveals a gap in intra-ASEAN expectations: some members want collective negotiation and others want faster progress. It is unclear whether the Charter will allow for nimbler negotiations or resolve these issues at all.
4.2] Conclusion:
The Association of Southeast Asian Nations has come leaps and bound since its formation. It has played a major role in the prosperity and upbringing of its nation in terms of society & economy. Over the years, it has become a major force to be reckoned with. Attaining legal status just goes on to show the authenticity of this organization & its achievements. The ASEAN has done a lot for its member nations, but there are many improvements that can be made. The major disparity is shown when the ASEAN is compared to the EU or any other such organisation. Also, it has come under scrutiny as nothing but a political place where people talk big but the results are slow and laborious. Though this may not be the case, the ASEAN needs to put measures into place in order to successfully achieve its goals. The standard of living in most of its member countries is not that good, there is still poverty and illiteracy which can be eradicated. More focus needs to be put of infrastructural development of its less privileged member nations. Trade and foreign investment plays a huge part in the economy and need to be focused upon. The ASEAN has been majorly successful in achieving its goals, and the future will tell whether they can grow into a bigger and a more powerful organization.
Chapter 5: Bibliography http://www.aseansec.org/ http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations http://carnegieendowment.org/2008/11/28/asean-integration-and-its-effects/1t6j http://www.nti.org/treaties-and-regimes/association-southeast-asian-nations-asean/ http://webh01.ua.ac.be/cas/PDF/CAS03.pdf
Bibliography: http://www.aseansec.org/ http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations http://carnegieendowment.org/2008/11/28/asean-integration-and-its-effects/1t6j http://www.nti.org/treaties-and-regimes/association-southeast-asian-nations-asean/ http://webh01.ua.ac.be/cas/PDF/CAS03.pdf
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