overview, trends and challenges
• Thank you for the interesting presentations
• Sometimes you used not your own sentences,
copied from websites or books
• Sometimes you used difficult words without
much explanation such as devaluation and
nominal GDP, monarchy, legislature, judiciary,
Diversity in ASEAN
• Political systems
• Economic systems
Problems in ASEAN
• Indonesia versus Malaysia (cultural conflict)
• Thailand versus Cambodia (border conflict)
• Problematic geography and connectivity
• Limited economic complementarity
• Policy of non interference in domestic affairs
• Illegal migration and human trafficking
• Natural disasters
ASEAN and economic globalisation
Some countries in ASEAN benefit from
globalisation, others might become the losers
in internationalised economic battlefields
ASEAN, USA and China
The Economist on December 4th:
“Their wealth depends on China, their security
on America. Which way should Asian countries
Examples of special interests
• Indonesia (member of G20)
• Singapore (fully developed country)
• ASEAN’s security community
• ASEAN’s economic community
• ASEAN’s socio-cultural community
• Watch http://www.youtube.com/watch?v=aiQhqN-NdQc
The ASEAN Economic Community in
By 2015 ASEAN aims to become a genuine
economic community in which goods,
services, people, money and ideas can freely
move throughout the entire ASEAN area.
Is this feasible?
Two lessons from the EU
First, on the negative side, ASEAN should avoid
some of the pitfalls that inward-looking
discrimination brought on the EU (especially in
agriculture), and would be potentially
catastrophic in the ASEAN context. Intra-ASEAN
trade is less than 25% of its global trade
compared with about 66% for the EU, indicating
that ASEAN members are already globally savvy
Second—and partly related—is that the
European experience illustrates that trade-
investment links matter. And these
relationships are shaping in large part the
economic structure of ASEAN economies.
While the CMLV ASEAN members remain at
the early stages of the economic
development process, the original ﬁve
ASEAN countries have seen tremendous
change in their productive structures in
general, and in trade in particular. .
The European experience shows that
establishing a common market goes well
beyond mere national treatment or most
favored-nation treatment in the regional
marketplace: economic cooperation must
reduce myriad transaction costs associated
with FDI, including those related to the labor
market, mutual recognition of product
standards, and the like.
Source: Plummer, M. (2006), The ASEAN
economic community and the European
ADB working paper series on regional
economic integration No. 1:
• What about Burma/Myanmar?
• What about a common currency?
• How will economic integration further take
• What about a borderless ASEAN?
• What about an ASEAN court of justice?
• What about an ASEAN parliament?