project on asean

8/11/2019 Project on Asean

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1. INTRODUCTION

The Association of Southeast Asian Nations (ASEAN) is a geo-

political and economic organization of ten countries located in Southeast

Asia, which was formed on 8th 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 km, 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.

ASEAN was preceded by an organization 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

countriesIndonesia, 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 ministersAdam Malik of Indonesia, Narciso

Ramos of the Philippines, Abdul Razak of Malaysia,S. Rajaratnam of
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Singapore, and Thanat Khoman of Thailand are considered the

organisation's Founding Fathers.

The motivations for the birth of ASEAN were so that its members

governing elite could concentrate on nation building, the common fear of

communism, reduced faith in or mistrust of external powers in the 1960s,

and a desire for economic development. The bloc grew when Brunei

Darussalam became the sixth member on 8 January 1984, barely a week

after gaining independence on 1 January. On 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.

During the 1990s, the bloc experienced an increase in both membership and

drive for further integration. In 1990, Malaysia proposed the creation of

an East Asia Economic Caucus comprising the then members of ASEAN as

well as the People's Republic of China, Japan, and South Korea, with the

intention of counterbalancing the growing influence of the United States in

the Asia-Pacific Economic Cooperation(APEC) and in the Asian region as a

whole.[18][19]This proposal failed, however, because of heavy opposition

from the United States and Japan. Despite this failure, member states

continued to work for further integration and ASEAN Plus Three was

created in 1997.

In 1992, the Common Effective Preferential Tariff (CEPT) scheme

was signed as a schedule for phasing tariffs and as a goal to increase

the regions competitive advantage as a production base geared for the world

market. This law would act as the framework for the ASEAN Free Trade
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Area. After the East Asian Financial Crisis of 1997, a revival of the

Malaysian proposal was established in Chiang Mai, known as the Chiang

Mai Initiative, which calls for better integration between the economies of

ASEAN as well as the ASEAN Plus Three countries (China, Japan, and

South Korea).

Aside from improving each member state's economies, the bloc also

focused on peace and stability in the region. On 15 December 1995,

the Southeast Asian Nuclear-Weapon-Free Zone Treaty was signed with the

intention of turning Southeast Asia into a Nuclear-Weapon-Free Zone. The

treaty took effect on 28 March 1997 after all but one of the member stateshave ratified it. It became fully effective on 21 June 2001, after the

Philippines ratified it, effectively banning all nuclear weapons in the region.


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2. THE FOUNDING of ASEAN

On 8 August 1967, five leaders the Foreign Ministers of Indonesia,

Malaysia, the Philippines, Singapore and Thailandsat down together in the

main hall of the Department of Foreign Affairs building in Bangkok,

Thailand and signed a document. By virtue of that document, the

Association of Southeast Asian Nations (ASEAN) was born. The five

Foreign Ministers who signed it Adam Malik of Indonesia, Narciso R.

Ramos of the Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam of

Singapore, and Thanat Khoman of Thailandwould subsequently be hailed

as the Founding Fathers of probably the most successful inter-governmental

organization in the developing world today. And the document that they

signed would be known as the ASEAN Declaration.

It was a short, simply-worded document containing just five articles. It

declared the establishment of an Association for Regional Cooperation

among the Countries of Southeast Asia to be known as the Association of

Southeast Asian Nations (ASEAN) and spelled out the aims and purposes of

that Association. These aims and purposes were about cooperation in the

economic, social, cultural, technical, educational and other fields, and in the

promotion of regional peace and stability through abiding respect for justice

and the rule of law and adherence to the principles of the United Nations

Charter. It stipulated that the Association would be open for participation by

all States in the Southeast Asian region subscribing to its aims, principles

and purposes. It proclaimed ASEAN as representing 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.


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It was while Thailand was brokering reconciliation among Indonesia,

the Philippines and Malaysia over certain disputes that it dawned on the four

countries that the moment for regional cooperation had come or the future of

the region would remain uncertain. Recalls one of the two surviving

protagonists of that historic process, Thanat Khoman of Thailand: At the

banquet marking the reconciliation between the three disputants, I broached

the idea of forming another organization for regional cooperation with Adam

Malik. Malik agreed without hesitation but asked for time to talk with his

government and also to normalize relations with Malaysia now that the

confrontation was over. Meanwhile, the Thai Foreign Office prepared a draft

charter of the new institution. Within a few months, everything was ready. I

therefore invited the two former members of the Association for Southeast

Asia (ASA), Malaysia and the Philippines, and Indonesia, a key member, to

a meeting in Bangkok. In addition, Singapore sent S. Rajaratnam, then

Foreign Minister, to see me about joining the new set-up. Although the new

organization was planned to comprise only the ASA members plus

Indonesia, Singapores request was favorably considered.

And so in early August 1967, the five Foreign Ministers spent four

days in the relative isolation of a beach resort in Bang Saen, a coastal town

less than a hundred kilometers southeast of Bangkok. There they negotiated

over that document in a decidedly informal manner which they would later

delight in describing as sports-shirt diplomacy. Yet it was by no means an

easy process: each man brought into the deliberations a historical and

political perspective that had no resemblance to that of any of the others. But

with goodwill and good humor, as often as they huddled at the negotiating

table, they finessed their way through their differences as they lined up their


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shots on the golf course and traded wisecracks on one anothers game, a

style of deliberation which would eventually become the ASEAN ministerial

tradition.

Now, with the rigors of negotiations and the informalities of Bang

Saen behind them, with their signatures neatly attached to the ASEAN

Declaration, also known as the Bangkok Declaration, it was time for some

formalities. The first to speak was the Philippine Secretary of Foreign

Affairs, Narciso Ramos, a one-time journalist and long-time legislator who

had given up a chance to be Speaker of the Philippine Congress to serve as

one of his countrys first diplomats. He was then 66 years old and his only

son, the future President Fidel V. Ramos, was serving with the Philippine

Civic Action Group in embattled Vietnam. He recalled the tediousness of the

negotiations that preceded the signing of the Declaration that truly taxed the

goodwill, the imagination, the patience and understanding of the five

participating Ministers. That ASEAN was established at all in spite of these

difficulties, he said, meant that its foundations had been solidly laid. And heimpressed it on the audience of diplomats, officials and media people who

had witnessed the signing ceremony that a great sense of urgency had

prompted the Ministers to go through all that trouble. He spoke darkly of the

forces that were arrayed against the survival of the countries of Southeast

Asia in those uncertain and critical times.

The fragmented economies of Southeast Asia, he said, (with) each

country pursuing its own limited objectives and dissipating its meager

resources in the overlapping or even conflicting endeavors of sister states

carry the seeds of weakness in their incapacity for growth and their self-

perpetuating dependence on the advanced, industrial nations. ASEAN,


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ASEAN Motto

The motto of ASEAN is One Vision, One Identity, One Community.

ASEAN Flag

1. The ASEAN Flag is a symbol of Member States unity and support for the

principles and endeavours of ASEAN and is a means to promote greater

ASEAN awareness and solidarity.

2. The ASEAN Flag represents a stable, peaceful, united and dynamic

ASEAN. The colours of the Flag blue, red, white and yellow represent

the main colours of the flags of all the ASEAN Member States.

3. The blue represents peace and stability. Red depicts courage and

dynamism, white shows purity and yellow symbolises prosperity.

4. The stalks of padi in the centre of the Emblem represent the dream of

ASEANs Founding Fathers for an ASEAN comprising all the countries in

Southeast Asia, bound together in friendship and solidarity.

5. The circle represents the unity of ASEAN.

ASEAN Emblem

1. The ASEAN Emblem shall be the official emblem of ASEAN.

2. The ASEAN Emblem represents a stable, peaceful, united and dynamic

ASEAN. The colours of the Emblem blue, red, white and yellow

represent the main colours of the state crests of all the ASEAN Member

States.


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3. The blue represents peace and stability. Red depicts courage and

dynamism, white shows purity and yellow symbolises prosperity.

4. The stalks of padi in the centre of the Emblem represent the dream of

ASEANs Founding Fathers for an ASEAN comprising all the countries in

Southeast Asia, bound together in friendship and solidarity.

5. The circle represents the unity of ASEAN.

ASEAN Day

8 August is observed as ASEAN Day.

ASEAN Anthem

1. The ASEAN Anthem is an expression of ASEAN unity. It also

strengthens the sense of ASEAN identity and belonging among the peoples

of the region.

2. The ASEAN Anthem is titled THE ASEAN WAY, with musical

composition and lyrics as attached.


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3. MEMBERS OF ASEAN

1. Brunei Darussalam

2.

Cambodia

3. Indonesia

4. Lao PDR

5. Malaysia

6. Myanmar

7. Philippines

8. Singapore

9. Thailand

10.Viet Nam


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4. ASEAN Charter

The ASEAN Charter serves as a firm foundation in achieving the

ASEAN Community by providing legal status and institutional framework

for ASEAN. It also codifies ASEAN norms, rules and values; sets clear

targets for ASEAN; and presents accountability and compliance.

The ASEAN Charter entered into force on 15 December 2008. A

gathering of the ASEAN Foreign Ministers was held at the ASEAN

Secretariat in Jakarta to mark this very historic occasion for ASEAN. With

the entry into force of the ASEAN Charter, ASEAN will henceforth operate

under a new legal framework and establish a number of new organs to boost

its community-building process. In effect, the ASEAN Charter has become a

legally binding agreement among the 10 ASEAN Member States. It will also

be registered with the Secretariat of the United Nations, pursuant to Article

102, Paragraph 1 of the Charter of the United Nations. The importance of the

ASEAN Charter can be seen in the following contexts:

New political commitment at the top level

New and enhanced commitments

New legal framework, legal personality

New ASEAN bodies

Two new openly-recruited DSGs

More ASEAN meetings

More roles of ASEAN Foreign Ministers

New and enhanced role of the Secretary-General of ASEAN

Other new initiatives and changes.


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DETAILS OF ASEAN's DEMOGRAPHY

Headquarters- Jakarta, Indonesia

Working language - English

Membership 10 states

Leaders-

Secretary General Le Luong Minh

Summit Presidency Brunei

Establishment-

Bangkok Declaration 8 August 1967

Charter 16 December 2008

Area- Total 4,479,210.5 km2

2,778,124.7 sq mi

Population- 2011 estimate 602,658,000

Density 135/km2

216/sq mi

GDP2011 estimate - Total US$ 3.574 trillion

Per capita US$ 5,930
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5. ASEAN Summits

The organisation holds meetings, known as the ASEAN Summit,

where heads of government of each member meet to discuss and resolve

regional issues, as well as to conduct other meetings with other countries

outside of the bloc with the intention of promoting external relations.

The ASEAN Leaders' Formal Summit was first held

inBali,Indonesia in 1976. Its third meeting was held in Manila in 1987 and

during this meeting, it was decided that the leaders would meet every five

years. Consequently, the fourth meeting was held in Singapore in 1992

where the leaders again agreed to meet more frequently, deciding to hold the

summit every three years. In 2001, it was decided to meet annually to

address urgent issues affecting the region. Member nations were assigned to

be the summit host in alphabetical order except in the case of Burma which

dropped its 2006 hosting rights in 2004 due to pressure from the United

States and the European Union. By December 2008, the ASEAN Charter

came into force and with it, the ASEAN Summit will be held twice in a year.

Till date (1976-2012) about 21 ASEAN SUMMITS have been held

thuroughout the 10 member countries.

ASEAN has emphasized regional cooperation on the three pillars of

security and sociocultural and economic integration. It has made most

progress in economic integration and aims to create an ASEAN Economic

Community (AEC) by 2015. The AEC would have a combined population

of over 566 million people and a gross domestic product of over $1.173

trillion. The foundation of the AEC is the ASEAN Free Trade Area (AFTA),

a common external preferential tariff scheme to promote the free flow of

goods within ASEAN. Other elements of economic integration, such as the
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free flow of investment and services and the elimination of non-tariff

barriers, have been added by the ASEAN leaders.

Through agreements such as the ASEAN Charter, signed in

November 2007, ASEAN's leaders are attempting to build a single market,

but without either a strong central executive (comparable to the European

Commission in the European Union) or a well-developed body of laws and

dispute settlement mechanisms (like those of the North American Free Trade

Association (NAFTA)). ASEAN members' historical reluctance to

encourage either of these elements stems from a fear of impinging on

ASEANs long-held principles of non-interference and consensus. However,

failure to integrate ASEAN's diverse markets will mean a loss of investment

and economic opportunities to regional competitors, such as China and

India. This tension between the need to integrate and the reluctance to yield

national sovereignty is the main factor affecting the development of the

AEC.


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6. ASEAN Structure

The supreme authority in ASEAN is the ASEAN Summit of national

leaders. Decisions made at the summit are intended to represent a consensusamong the ASEAN nations. Summit meetings have been held annually. The

chairmanship rotates among the members every year by alphabetical order.

The ASEAN Economic Community Council, formerly known as the

ASEAN Economic Ministers meeting, will meet twice yearly for the

development of the AEC.

ASEAN Free Trade Area

Common Effective Preferential Tariff scheme

Unlike the European Union, the ASEAN Free Trade Area (AFTA)

does not apply a common external tariff on imported goods. Rather, each

member may impose tariffs on goods entering from outside ASEAN based

on its national schedules. However, for goods originating within ASEAN,members must apply a tariff rate of between 0% and 5%, although the most

recent members - Cambodia, Laos, Myanmar and Vietnam - have been given

additional time to implement the reduced tariff rates. This is known as the

Common Effective Preferential Tariff (CEPT) scheme.

Members may exclude products from the CEPT in three cases:

1. Temporary exclusions are for products for which tariffs will

ultimately be lowered to between 0% and 5%, but which are being

protected temporarily by a delay in tariff reductions;


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Administration

The administration of AFTA is handled by the national customs and

trade authorities in each state. The ASEAN Secretariat has authority to

monitor and ensure compliance with AFTA measures. The charter is

intended to bolster the secretariats ability to ensure consistent application of

AFTA measures. Unlike in the European Union or NAFTA, joint teams to

ensure compliance and investigate non-compliance have not been widely

used. Disagreements may result between the national authorities. The

secretariat may mediate in a dispute, but has no legal authority to resolve it.

ASEAN has attempted to improve customs coordination through the

implementation of the Single Window project, which would allow importers

to make a single electronic submission of all information related to a

transaction. This information would then be shared with all other ASEAN

national customs authorities.

Dispute resolution

Although the ASEAN national customs and trade authorities

coordinate their activities, disputes can arise. As the secretariat has no legal

authority to resolve such disputes, they are resolved bilaterally by informal

means or through dispute resolution. The Protocol on Enhanced Dispute

Settlement Mechanisms governs formal dispute resolution in AFTA and

other aspects of ASEAN. Members may seek mediation and 'good offices'consultations. If these efforts are ineffective, they may ask the Senior

Economic Officials' Meeting to establish a panel of independent arbitrators

to review the dispute. Panel decisions can be appealed to an appellate body

formed by the Economic Community Council.


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ASEAN Investment Area

The ASEAN Investment Area (AIA) will encourage the free flow of

investment within ASEAN. Its main principles are:

a) the opening of all industries to investment, with exclusions to be

phased out according to schedules;

b) the immediate granting of national treatment to ASEAN investors

(with a few exceptions);

c) the elimination of impediments to investment;

d)

the streamlining of investment processes and procedures;e) enhanced transparency; and

f) the undertaking of measures to facilitate investment.

Full realization of the AIA and the removal of temporary exclusion lists in

manufacturing, agriculture, fisheries, forestry and mining are scheduled by

2010 for most ASEAN members and by 2015 for the newest members.

ASEAN Framework Agreement on Trade in Services

The ASEAN Framework Agreement on Trade in Services was

adopted at the Bangkok summit in December 1995. Members are negotiating

intra-regional services liberalization in several sectors, including air

transport, business services, construction, financial services, maritime

transport, telecommunications and tourism. Although some sectors, such asair transport, have liberalized more rapidly, others remain the subject of

continued negotiation, as do efforts to expand the scope of the agreement.


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ASEAN Industrial Cooperation Scheme

The ASEAN Industrial Cooperation Scheme provides an 'early

harvest' of the CEPT scheme for companies with cross-border operations

within ASEAN. Companies must be incorporated in ASEAN with 30% or

more ASEAN-origin equity and must involve some form of resource sharing

(such as shared technology, market sharing or consolidated purchases of raw

materials). The output of approved projects enjoy the CEPT rate of 0% to

5% tariffs immediately, as do raw materials and intermediate products. The

scheme has provided an early indication of how the administration of further

economic integration is likely to proceed. The approval process was

relatively slow and disjointed, with individual national governments often

applying inconsistent or contradictory criteria in assessing applications. The

scheme remains relevant in the newest member countries where

implementation of the CEPT has a longer phase-in period.

Free Trade Agreements

ASEAN has signed agreements on trade in goods and services with

China and Korea(1) and has finalized the Comprehensive Economic

Partnership Agreement with Japan on trade in goods. ASEAN is also

negotiating free trade agreements with India, the European Union, Australia

and New Zealand. Individual members, such as Singapore, Thailand,

Indonesia and the Philippines, have also concluded bilateral free tradeagreements. Harmonizing these national bilateral agreements with the

ASEAN agreements is an ongoing issue.


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7. FUNCTIONSof ASEAN

As set out in the ASEAN Declaration, some of its important functions are:

1. To accelerate the economic growth, social progress and cultural

development in the region through joint endeavours in the spirit of

equality and partnership in order to strengthen the foundation for a

prosperous and peaceful community of Southeast Asian Nations;

2. To promote regional peace and stability through abiding respect for justice

and the rule of law in the relationship among countries of the region and

adherence to the principles of the United Nations Charter;

3.

To promote active collaboration and mutual assistance on matters ofcommon interest in the economic, social, cultural, technical, scientific and

administrative fields;

4. To provide assistance to each other in the form of training and research

facilities in the educational, professional, technical and administrative

spheres;

5. To collaborate more effectively for the greater utilisation of their

agriculture and industries, the expansion of their trade, including the study

of the problems of international commodity trade, the improvement of

their transportation and communications facilities and the raising of the

living standards of their peoples;

6. To promote Southeast Asian studies; and

7. To maintain close and beneficial cooperation with existing international

and regional organisations with similar aims and purposes, and explore all

avenues for even closer cooperation among themselves.

There are many other functions of ASEAN.


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8. MAJOR ACHEIVEMENTS of ASEAN

A. AGRICULTURAL ACHEIVEMENTS

I. FOOD

Food Security

Acknowledging the important of food security to keep the stability,

and prosperity of the region, the ASEAN Member States signed the

Agreement on ASEAN Food Security Reserve (AFSRB) in 1979. Under the

Agreement, each ASEAN Member State should establish an ASEAN

Emergency Rice Reserve (AERR), a sum total of the basic food stock

(rice) maintained by each Member Country within its national

border. Presently, the total earmarked quantity for the AERR stands at

87,000 metric tons.

Food Safety

ASEAN has developed the ASEAN Food Safety Network website

(www.aseanfoodsafetynetwork.net) to provide useful information on food

safety.

II. AGRICULTURE

Crops

The ASEAN has worked efficiently and persistently to reduce the use

of pesticides on food crops. Another step forward in the regional effort to

control pesticide use to improve marketability of agricultural products and

prevent environmental degradation is the establishment of pesticide database

and network among ASEAN Member States. Through the coordination of

Malaysia, the ASEAN website for pesticides regulatory authorities


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Cooperative Business Forum (ACBF) was established in 2006 with

the objective to promote business linkages and trading among the

potential agricultural cooperatives within ASEAN.

Agricultural training and extension

The ability of farmers to select, adapt and apply technologies

plays a vital role in increasing agricultural production. ASEAN, in its

efforts to educate their farmers has promoted and intensified the

application of Integrated Pest Management (IPM), especially on fruits

and vegetables as a comprehensive approach to improve crop qualityand reduce crops losses.

Research and Development in Agriculture

Cooperation in the area of research and development in agriculture

was started in 2005. A number of activities have been initiated including the

establishment of the ASEAN Agricultural Research and Development

Information System (ASEAN ARDIS), development of the ASEAN

Directory of Agricultural Research and Development Centres in ASEAN,

and the Guidelines for the Use of the Digital Information System.

Biotechnology

Biotechnology is used as a tool to increase food productivity on a

sustainable basis. However, at the moment, there is public concern on

the use of biotechnology that need to be addressed by the respective

authorities.


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B. Economic Achievements Of ASEAN

The main achievement of ASEAN has been the maintenance of an

uninterrupted period of peace and stability during which the individualMember Countries have been able to concentrate on promoting rapid and

sustained economic growth and modernization. The dynamism of the

Southeast Asian economies is something many countries would like to

acquire for themselves. For about 25 years from 1970 to 1995, ASEAN's

GDP grew at an average annual rate of 7.0 percent. Today, Southeast Asia

has a total market of about 500 million people and a combined GDP of more

than US$ 700 billion.

Over the years, ASEAN's overall trade grew from US$ 10 billion in

1967, US$ 14 billion in 1970, US$ 134 billion in 1980, US$ 302 billion in

1990 to US$ 650 billion in 1995. With its combined trade value, ASEAN is

the fourth largest trading entity in the world after the European Union, the

United States and Japan.

ASEAN Economic Community (AEC)

Single Market and Production Base

Competitive Economic Region

Equitable Economic Development

Integration into the Global Economy

The ASEAN Economic Community (AEC) is the realisation of the

end goal of regional economic integration by 2015 of the ten (10) economies

of the ASEAN Member States, namely Brunei Darussalam, Cambodia, Lao

PDR, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand

and Viet Nam. The AEC will bring benefits to the peoples of ASEAN by


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creating a more conducive environment through transparency, predictability

and consistency for businesses to flourish. This will in turn benefit

consumers who will have access to a cheaper and wider range of goods and

services and enjoy more extensive consumer protection. The newer ASEAN

Member States of Cambodia, Lao PDR, Myanmar and Viet Nam stand to

also gain through the many opportunities for production networks created by

an AEC and the productivity enhancing effects of AECs emphasis on

best practices.

As a result, the AEC continued to make good progress. By end-March

2013,

around 78 percent of measures due under the AEC Blueprint have been

implemented, with significant gains across pillars including the following:

Per capita income in the region had risen from US$2,267 to US$3,759

in 2012;

Total trade of ASEAN grew by 16.8%, from US$2.05 trillion in 2010

to US$2.4 trillion in 2011;

intra-ASEAN trade reached US$598 billion from US$520 billion, an

increase of 15.1%, over the same period;

ASEAN continued to attract foreign investments, generating a record

US$114 billion FDI inflow in 2011, a 23% increase from US$92

billion in 2010;

The ASEAN Comprehensive Investment Agreement (ACIA) is now

enforced;

The landmark ASEAN Agreement on Movement of Natural Persons

(MNP) has been signed;


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9. Singapore And ASEAN

Singapore officially the Republic of Singapore, is a Southeast Asian

island city-state off the southern tip of the Malay Peninsula, 137 kms (85 mi)

north of the equator. An island country made up of 63 islands, it is separated

from Malaysia by the Straits of Johor to its north and from Indonesia's Riau

Islands by the Singapore Strait to its south. The country is highly

urbanized with very little primary rainforest remaining, although more land

is being created for development through land reclamation.

About Singapore

Head of State : President Tony Tan Keng Yam

Head of Government : Prime Minister Lee Hsien Loong

Capital : Singapore

Language(s) : English, Malay, Mandarin, Tamil

Currency : S$ (Singapore Dollar)

Ministry of Foreign Affairs of Singapore Website: www.mfa.gov.sg

SINGAPORE, Jan 21 (IPS Asia-Pacific) In late 2011, Singapore pledged

50 million Singapore dollars (40.7 million US dollars) to help its neighbours

Laos, Cambodia, Myanmar and Vietnam integrate better into the Association

of South-east Asian Nations (ASEAN) Economic Community that is to be in

place by 2015. In other words, the affluent city-state, one of the five

founding members of ASEAN, has been showing its political commitment to

the regions premier grouping. perhaps because it is already the most open


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economy among the 10 ASEAN member countries, the buzzword that the

ASEAN Economic Community (AEC) has become in several ASEAN

nations may not have excited too many younger Singaporeans.

Singapore is one of the founding memebers of ASEAN. Singapore is a

typical state in ASEAN. The republic is a disticnt contributor to the

economic life in the region, fulfills a needed role as a critic within ASEAN.

In a rising Asia, there is a bigger role that Singapore can play, including

providing leadership and exporting technological and infrastructural

services. Singapore occupiees a special place in the region. It has a

population of 1.3 million which is approximately 1% of the total population

of ASEAN counties. It is strategically located although linked to Malaysia

for resources and security purposes.

Singapore's role as a entrepot is vital to its immediate neighbours but

its function as a centre of communications, advanced technology, ship repair

& other services is enduring. Singapore's policy formulation and future

propsects in ASEAN is based on the following factors :

1. Strategic Position

Singapore is located within miles from Malaysia and Indonesia.

2. Demographic Factors

With a population ie 76% Chinese. Singapore must minimizeconcerns in Malaysia and Indonesia that it might become a satellite of the

People's Republic Of China.


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Singapore could become more influential, as a possible services

centre in the region. Noting that Singapore is the third largest economy in

ASEAN, as it gets more and more integrated, we need a place in ASEAN

thats going to be the services centre provide logistics, administrative,

accounting ... a whole suites of services. And theres one place which can do

that obviously, Singapore. But, he said, it cannot be done without

developing an active diplomatic footprint and an influential framework.

Asia is becoming increasingly influential on the world stage, with growing

power in the world economy. Singapore and partners in ASEAN are at the

centre of these developments. On what she saw as the next phase of re-

invention for Singapore, she said that financial services will remain key.

Nevertheless, she noted that the services sector is growing and Singapore

should also continue to find a niche in manufacturing. SIIA held a soft

launch of a new programme called Future 50, which aims to map out the 50-

year future for Singapore in Asia and the world. It will look at geopolitics,

social, environmental and other key trends. A report will be published in

2015.

Business people are naturally more aware of the impending

community because of the supposed opportunities and deeper business

linkages it will bring to the regional market of nearly 600 million people and

with a combined Gross Domestic Product of 1,858.7 billion dollars. The

AEC aims to deepen economic integration in the region through the creationof a single market and production base in ASEAN. This should result in a

freer flow of services, investments, capital and skilled labour.


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AECsImpact on Singapore

The masses in Singapore believe that ASEAN Economic Community

could help raise public expenditures and narrow inequalities in Singapore.If we can somehow integrate our markets with the emerging ones, we could

leverage on their growth, outsource our manufacturing, increase wages,

bring in cheap labour, build businesses cheaply, and allow Singaporeans to

find work even more easily as expats in the region, says Ben Ho, a

Singapore based young Economist.

It might bring about a sense of togetherness. It will definitely bring about

change,but whether positive or negative, well have to wait and see,adds

Ho . He also that the younger generation is too inward-looking that it fails to

see what is going on outside the city-state.

ASEAN should be an effective tool to help propel rapid growth in

Singapore. There should not be double taxation on goods; if import duty has

been paid upon entry into an ASEAN member country, these goods should

be free to be moved within ASEAN.

Of course, small countries, like Singapore, will have their international

voice elevated in the process [as] ASEAN will be our main platform for

international recognition, says Ho. On the other hand, Singapore could

very well be crowded out by the emerging markets.

I think that people in Singapore will not be very happy about it (AEC). We

might have even more of an influx of foreigners, which Singaporeans are

already complaining about.


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Ho adds, Perhaps, our neighbours emergence might be a threat to

our existence. Others, perhaps those monitoring the market (or doing

business), are very aware of the impact the stability of region will have on

trade.

ASEAN groups Cambodia, Brunei, Indonesia, Malaysia, Laos,

Myanmar, the Philippines, Singapore, Thailand and Vietnam. (END/IPS

Asia-Pacific)


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10. FUTURE PROSPECTS OF ASEAN

Over the next decade, ASEANs goal should be to firmly establish

itself as the essential regional organization in Asia, allowing economic

integration to revolve around it and asserting critical expertise in regional

trade and economic issues. To establish itself, ASEAN is planning to take

the following important steps to challenge its tradition of consensus and

weak central leadership.

Build the ASEAN Secretariat into a powerful and knowledgeable

body, with more staff, greater abilities to solve problems without

calling in all the ASEAN member states, and far more

sophisticated technical expertise about trade, economics, and

nontraditional security threats. This expansion would be paid for

by higher transfers of funds to the secretariat from wealthier

ASEAN members. The enhanced ASEAN Secretariat would have

its own aid disbursement apparatus, election monitoring unit, and

small peacekeeping force. For Singapore, Indonesia, or Brunei,

doubling or even tripling their annual outlays to the ASEAN

Secretariat would have minimal impact on their national budgets.

Appoint a more high-profile Southeast Asian leader as head of

ASEAN. Currently, a well-known retired civil servant from a

member state or a former foreign minister is often appointed.

Though well meaning, these ASEAN leaders have little

international profile. Instead, ASEAN should begin offering

leadership of the secretariat to internationally known former

Southeast Asian prime ministers and presidents, such as Goh Chok


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Tong of Singapore or (when he was younger) Fidel Ramos of the

Philippines.

Agree on a common ASEAN vision for future East Asian trade and

economic integration. Take actions to establish ASEAN leadership

toward that vision. Implement, without further delay, plans for an

ASEAN-wide FTA, including agriculture, for all members, by

2015. This should include reducing and ultimately eliminating the

large number of exceptions and carve-outs for certain sectors

already in place, which are diluting any potential FTA.

Combine the FTA with progress toward a real integrated economiccommunity in ASEAN by 2020. This means streamlining customs

procedures at all land and air borders, collaborating to speed up the

construction of new physical infrastructure, including region-wide

road and rail links, and collaborating to make all ASEAN nations

corporate legal codes based on similar principles and concepts.

Settle all remaining border disputes among ASEAN members,

such as those between Thailand and Cambodia over the Preah

Vihear Temple. Settling ASEANs own border disputes would put

ASEAN in a stronger position regarding territorial disputes with

other nations like China.

Take greater leadership in promoting Asia-wide trade

liberalization, particularly by moving to more quickly implement

its proposed deals with Japan and India. By finally concluding the

ASEAN FTA and putting into place these other agreements,

ASEAN would firmly establish itself as the core of any broader

Asian trade agreement and also gain valuable expertise in


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negotiating sensitive sectors of these deals, such as agriculture,

textiles, and telecommunications.

Reduce the number of annual ASEAN meetings, as well as the

number of issues covered, to a core of five to ten issues, mostly

relating to economic liberalization, regional integration, and

nontraditional security threats. In addition, expand the number of

non-ASEAN observers at ASEAN meetings, to include as broad a

range of East Asian and South Asian observer states as possible.

Make ASEAN an organization that allows and/or prioritizes

democratic members and has a broad, coherent policy on humanrights in Asia. Rewrite the ASEAN Charter to emphasize these

core issues, as well as regional values that reflect the growing

democratization of the region. The rewriting should also include a

clause allowing for the possibility of intervention in the case of

gross human rights abuses in one ASEAN member state, which

would make ASEAN more consistent with other regional

organizations. It would also afford ASEAN more moral and

rhetorical authority in international forums and make clear that, in

contrast to when ASEAN was founded, the group today is an

organization comprising primarily democratic and democratizing

nations.

Move away from consensus decision-making when possible,

especially during times of economic and diplomatic crisis in East

Asia, when speed is essential. One way to do this would be to shift

ASEAN decision-making on all issues to supermajority voting, in

which two-thirds of all ASEAN member states agree to support a

resolution for it to pass.


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End ASEANs practice of rotating honorary chairmanship of the

organization alphabetically, in order to prioritize its leading

members. This would allow ASEAN to adopt a more muscular role

in regional and global economic affairs and play a larger role on

the regional and international stages. The leading ASEAN member

states, such as Indonesia, Singapore, and the Philippines, have a far

larger bench of diplomats capable of advocating effectively for

ASEANs positions, in

English, at international forums, and many more in reserve to

represent at ASEAN. By contrast, in some of the smaller andpoorer ASEAN member states, seconding even a handful of the

most capable diplomats and ministers to handle ASEAN affairs

devastates these nations ministries.

Construct a mechanism to better help the poorer ASEAN members

bring their economies and foreign ministries up to the standard of

the richer members. This can include significantly boosting aid

transfers from richer ASEAN members to poorer ones, by creating

a mechanism such as the EUs structural funds for new members

from the former Eastern Bloc. It may essentially result in a two-tier

ASEAN similar in some respects to the European Union, but this is

preferable to the current ASEAN one-tier structure, which is not

flexible enough and hobbles the organization. ASEAN has already

taken strides in this two-tier direction by allowing poorer nations

more time to join the region-wide free-trade area.

Hold public referenda on significant ASEAN decisions in ASEAN

member states, in order to boost public buy-in and knowledge of

the organization. Though this strategy has its potential downsides,


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as seen in Europe, it is likely to make ASEANs decisions more

widely accepted by Southeast Asians and give ASEAN more

power to make proactive and potentially controversial decisions.

Prevent ASEAN member states from releasing information about

confidential intra-ASEAN discussions to any outside powers

before ASEAN has made decisions about an issue. Develop

mechanisms to punish ASEAN member states for such leaks.

Develop a unified position on disputed claims to the South China

Sea, as well as on how to address those claims. This position

should be one that is consistent with international maritime law,binds all signatories to an agreement on the South China Sea, and

is supported, in both public and private, by all ASEAN members.

Admit no new ASEAN members until at least 2020. Employ an

outside (i.e., non-ASEAN) consulting firm to analyze the readiness

of East Timor, and potentially Papua New Guinea, to participate

fully in all ASEAN affairs, at least at a level comparable to Laos,

Cambodia, and Myanmar.


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9. CONCLUSION

I the end i would like to conclude this research project by statuing that

ASEAN has a important role to play in establishing, maintaining &

strengthening world economic, political & business efficiency and harmony

not just the ASEAN region but throuhout the world. Singapore has a

important role to play in accomplishing this objective by performing the role

of a able and strong member of the ASEAN. The only long-lasting, stable

organization in East Asia capable of becoming the foundation of greater

integration is ASEAN. ASEAN contains no major powers, yet it has a

history of working together with the United States, China, and Japan and isseen as a neutral broker by most major powers. However, for ASEAN to

play this role, it will have to significantly transform itself over the next two

decades, building on its strengths while seriously revamping its secretariat,

its decision-making style, and its reach. By making its secretariat far

stronger, empowering a high-profile secretary-general to speak for ASEAN,

abandoning consensus decision-making, and demonstrating to the rest of

Asia that ASEAN can actually achieve its own free-trade area, ASEAN

would put itself in a position to lead Asian integration.


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