Economics- Asean

History of ASEAN: ASEAN was originally formed out of an organization called the Association of Southeast Asia (ASA), an alliance consisting of the Philippines, Malaysia, and Thailand that formed in 1961. As such, ASA is considered the predecessor to ASEAN. The Association of Southeast Asian Nations (ASEAN) is a political and economic organization of countries located in Southeast Asia. ASEAN was formed on August 8, 1967 by the Philippines, Malaysia, Thailand, Indonesia, Singapore, as a display of solidarity against Communist expansion in Vietnam and insurgency within their own borders. ASEAN itself was established on August 8, 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 (also known as the Bangkok Declaration). The five foreign ministers, considered the organization's Founding Fathers, were Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand. The founding fathers envisaged that the organization would eventually encompass all countries in Southeast Asia. Brunei Darussalam became the sixth member of the ASEAN when it joined on January 8, 1984, barely a week after the country became independent on January 1. It would be a further 11 years before ASEAN expanded from its core six members. Vietnam became the seventh member—and the first Communist member of ASEAN—on July 28, 1995, and Laos and Myanmar joined two years later in July 23, 1997. Cambodia was to have joined the ASEAN together with Laos and Myanmar, but was deferred due to the country's internal political struggle. Cambodia later joined on April 30, 1999, following the stabilization of its government. Thus was completed the ASEAN-10 —the organization of all countries in Southeast Asia. The ASEAN region has a population of about 500 million, a total area of 4. 5 million square kilometers, a combined gross domestic product of almost US$ 700 billion, and a total trade of about US$ 850 billion. Members of ASEAN: Member Countries | |[pic] |[pic] |[pic] |[pic] |[pic] | |Brunei Darussalam |Cambodia |Indonesia |Laos |Malaysia | | | | | | | |[pic] |[pic] |[pic] |[pic] |[pic] | |Myanmar |Philippines |Singapore |Thailand |Vietnam | The ASEAN was founded by five states, mostly from maritime Southeast Asia: the Philippines, Indonesia, Malaysia, Singapore and Thailand. The British protectorate of Brunei joined the ASEAN six days after the country became independent f rom the United Kingdom on January 8, 1984. The mainland states of Vietnam, Laos and Myanmar were later admitted. Vietnam joined the ASEAN on July 28, 1995. Laos and Myanmar were admitted into the ASEAN on July 23, 1997. Cambodia became the newest member when it was admitted on April 30,1999. The Melanesian state of Papua New Guinea has observer status in the ASEAN. East Timor on the other hand is expected to formally apply for full membership at the 2006 39th Annual Ministerial Meeting of ASEAN Foreign Ministers in Kuala Lumpur. The association includes about 8% of the world's population and in 2003 it had a combined GDP of about USD$700 billion, growing at an average rate of around 4% per annum. The economies of member countries of ASEAN are diverse, although its major products include electronics, petroleum, and wood. The ASEAN countries are culturally rich. It includes more Muslims than any other geopolitical entity. About 240 million Muslims live mostly in Indonesia, Malaysia and Brunei. Buddhism constitutes the main religion of mainland Southeast Asia and there are about 170 million Buddhists in Thailand, Myanmar, Laos, Cambodia, Vietnam and Singapore. Roman Catholicism is predominant in the Philippines. Through the Bali Concord 11 in 2003, Asean has subscribed to the notion of democratic peace, which means all member countries believe democratic processes will promote regional peace and stability. Also the non-democratic members all agreed that it was something all member states should aspire to. Objectives of ASEAN: The ASEAN Declaration states that the aims and purposes of the Association are: (1) To accelerate economic growth, social progress and cultural development in the region 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. FUNDAMENTAL PRINCIPLES ASEAN Member Countries have adopted the followi ng fundamental principles in their relations with one another: †¢ 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. General information of ASEAN: Members |[pic]  Brunei | | |[pic]  Cambodia | | |[pic]  Indonesia | | |[pic]  Laos | | |[pic]  Malaysia | | |[pic]  Myanmar | | |[pic]  Philippines | | |[pic]  Singapore | | |[pic]  Thailand | | |[pic]  Vietnam | |Seat of Secretariat |Jakarta | |Secretary General |Ong Keng Yong | |Area |4,480,000 km2 | |Population | | |  Ã¢â‚¬â€œ Total  (2004) |592,000,000 | |  Ã¢â‚¬â€œ Density |122. 3 peop le/km? | |GDP (2003) | | |  Ã¢â‚¬â€œ Total |$2. 72 trillion (PPP) | |  Ã¢â‚¬â€œ Total |$681 billion (Nominal) | |  Ã¢â‚¬â€œ GDP/capita |$4,044 (PPP) | |  Ã¢â‚¬â€œ GDP/capita |$1,267 (Nominal) | |Formation |Bangkok Declaration | |  Ã¢â‚¬â€œ Signed | | | | | | |  Ã¢â‚¬â€œ 8 August 1967 | |Currencies |Bruneian Dollar (BND), | | |Rupiah (IDR), Riel (KHR), | | |Kip (LAK), Kyat (MMK), | | |Ringgit (MYR), Peso (PHP), | | |Singapore Dollar (SGD), | | |Baht (THB), Dong (VND) | The ASEAN Summit: The organization holds annual meetings in relation to economic, and cultural development of Southeast Asian countries. The ASEAN Leaders' Formal Summit was first held in Bali, Indonesia in 1976. At first there was no set schedule due to domestic issues in the member countries. In 1992, leaders decided to hold meetings every three years; and 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 Myanmar which dropped its 2006 hosting rights in 2004 due to pressure from the United States and the european union. The formal summit meets for three days. The usual itinerary is as follows: ? ASEAN leaders hold an internal organization meeting. ASEAN leaders hold a conference together with foreign ministers of the ASEAN Regional Forum. ? Leaders of 3 ASEAN Dialogue Partners (also known as ASEAN+3) namely China, Japan and South Korea hold a meeting with the ASEAN leaders. ? A separate meeting is set for leaders of 2 ASEAN Dialogue Partners (also known as ASEAN-CER) namely Australia an d New-Zealand. At the 11th ASEAN Summit in Kuala Lumpur, Malaysia, new meetings were scheduled. ? East Asia Summit – converging ASEAN and six dialogue partners namely China, Japan, South Korea, Australia, New Zealand and India. ? ASEAN-Russia Summit – meeting between ASEAN leaders and the President of Russia. ASEAN Formal Summit | |Number |Date |Country |Place | |1st |1976 February 23 – February 24 |[pic]  Indonesia |Bali | |2nd |1977 August 4 – August 5 |[pic]  Malaysia |Kuala Lumpur | |3rd |1987 December 14 – December 15 |[pic]  Philippines |Metro Manila | |4th |1992 January 27 – January 29 |[pic]  Singapore |Singapore | |5th |1995 December 14 – December 15 |[pic]  Thailand |Bangkok | |6th |1998 December 15 – December 16 |[pic]  Vietnam |Hanoi | |7th |2001 November 5 – November 6 |[pic]  Brunei |Bandar Seri Begawan | |8th |2002 November 4 – November 5 |[pic]  Cambodia |Phnom Penh | |9th |2003 Oc tober 7 – October 8 |[pic]  Indonesia |Bali | |10th |2004 November 29 – November 30 |[pic]  Laos |Vientiane | |11th |2005 December 12 – December 14 |[pic]  Malaysia |Kuala Lumpur | |12th |2006 December 11 – December 14 |[pic]  Philippines |Metro Cebu | |13th |2007 |[pic]  Singapore |Singapore | |14th |2008 |[pic]  Thailand | |15th |2009 |[pic]  Vietnam | | Logo and Flag of ASEAN: [pic] The New ASEAN logo represents a stable, peaceful, united and dynamic ASEAN. The colors of the logo — blue, red, white and yellow — represent the main colors of the crests of all the ASEAN countries. The blue represents peace and stability. Red depicts courage and dynamism. White shows purity and yellow symbolizes prosperity. The ten stalks of padi represent the dream of ASEAN's Founding Fathers for an ASEAN comprising all the ten countries in Southeast Asia bound together in friendship and solidarity. The circle represents the unity of ASEAN. [pi c] Flag of ASEAN In 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established comprising three pillars, namely, ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. ASEAN SECURITY COMMUNITY To build on what has been constructed over the years in the field of political and security cooperation, the ASEAN Leaders have agreed to establish the ASEAN Security Community (ASC). The ASC shall aim to ensure that countries in the region live at peace with one another and with the world in a just, democratic and harmonious environment. It has the following components: political development; shaping and sharing of norms; conflict prevention; conflict resolution; post-conflict peace building; and implementing mechanisms. It will be built on the strong foundation of ASEAN processes, principles, agreements, and structures, which evolved over the years. ASEAN ECONOMIC COMMUNITY Its goal is to create a stable, prosperous and highly competitive ASEAN economic region in which there is a free flow of goods, services, investment and a free flow of capital, equitable economic development and reduced poverty and socio-economic disparities in year 2020. The ASEAN Economic Community shall establish ASEAN as a single market and production base, turning the diversity that characterizes the region into opportunities for business complementation and making the ASEAN a more dynamic and stronger segment of the global supply chain. ASEAN’s strategy shall consist of the integration of ASEAN and enhancing ASEAN’s economic competitiveness. In moving towards the ASEAN Economic Community, ASEAN has agreed on the following: †¢ Institute new mechanisms and measures to strengthen the implementation of its existing economic initiatives including the ASEAN Free Trade Area (AFTA), ASEAN Framework Agreement on Services (AFAS) and ASEAN Investment Area (AIA); †¢ Accelerate regional integration in the following priority sectors by 2010: air travel, agro-based products, automotives, e-commerce, electronics, fisheries, healthcare, rubber-based products, textiles and apparels, tourism, and wood-based products. Facilitate movement of business persons, skilled labor and talents; and strengthen the institutional mechanisms of ASEAN, including the improvement of the existing ASEAN Dispute Settlement Mechanism to ensure expeditious and legally-binding resolution of any economic disputes. Other major integrati on-related economic activities of ASEAN include the following: †¢ Roadmap for Financial and Monetary Integration of ASEAN in four areas, namely, capital market development, capital account liberalization, liberalization of financial services and currency cooperation; †¢ Trans-ASEAN transportation network consisting of major inter-state highway and railway networks, including the Singapore to Kunming Rail-Link, principal ports, and sea lanes for maritime traffic, inland waterway transport, and major civil aviation links; †¢ Roadmap for Integration of Air Travel Sector; Interoperability and interconnectivity of national telecommunications equipment and services, including the ASEAN Telecommunications Regulators Council Sectoral Mutual Recognition Arrangement (ATRC-MRA) on Conformity Assessment for Telecommunications Equipment; †¢ Trans-ASEAN energy networks, which consist of the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline Projects; †¢ Initiative for ASEA N Integration (IAI) focusing on infrastructure, human resource development, information and communications technology, and regional economic integration primarily in the CLMV countries; †¢ Visit ASEAN Campaign and the private sector-led ASEAN Hip-Hop Pass to promote intra-ASEAN tourism; and †¢ Agreement on the ASEAN Food Security Reserve. ASEAN SOCIO-CULTURAL COMMUNITY The ASEAN Socio-Cultural Community envisages a Southeast Asia bonded together in partnership as a community of caring societies and founded on a common regional identity. The Community shall foster cooperation in social development aimed at raising the standard of living of disadvantaged groups and the rural population, and shall seek the active involvement of all sectors of society, in particular women, youth, and local communities. ASEAN shall ensure that its work force shall be prepared for, and benefit from, economic integration by investing more resources for basic and higher education, training, science and technology development, job creation, and social protection. ASEAN shall further intensify cooperation in the area of public health, including in the prevention and control of infectious and communicable diseases. The development and enhancement of human resources is a key strategy for employment generation, alleviating poverty and socio-economic disparities, and ensuring economic growth with equity. Among the on-going activities of ASEAN in this area include the following: †¢ ASEAN Work Programme for Social Welfare, Family, and Population; †¢ ASEAN Work Programme on HIV/AIDS; †¢ ASEAN Work Programme on Community-Based Care for the Elderly; †¢ ASEAN Occupational Safety and Health Network; ASEAN Work Programme on Preparing ASEAN Youth for Sustainable Employment and Other Challenges of Globalization; †¢ ASEAN University Network (AUN) promoting collaboration among seventeen member universities ASEAN; †¢ ASEAN Students Exchange Programme, Youth Cultural Forum, and the ASEAN Young Speakers Forum; †¢ The Annual ASEAN Culture Week, ASEAN Youth Camp and ASEAN Quiz; †¢ ASEAN Media Exchange Programme; and †¢ Framework for Environmentally Sustainable Cities (ESC) and ASEAN Agreement on Transboundary Haze Pollution. EXTERNAL RELATIONS: The ASEAN Vision 2020 affirmed an outward-looking ASEAN playing a pivotal role in the international community and advancing ASEAN’s common interests. Building on the Joint Statement on East Asia Cooperation of 1999, cooperation between the Southeast and Northeast Asian countries has accelerated with the holding of an annual summit among the leaders of ASEAN, China, Japan, and the Republic of Korea (ROK) within the ASEAN Plus Three process. ASEAN Plus Three relations continue to expand and deepen in the areas of security dialogue and cooperation, transnational crime, trade and investment, environment, finance and monetary, agriculture and forestry, energy, tourism, health, labor, culture and the arts, science and technology, information and communication technology, social welfare and development, youth, and rural development and poverty eradication. There are now thirteen ministerial-level meetings under the ASEAN plus Three process. Bilateral trading arrangements have been or are being forged between ASEAN Member Countries and China, Japan, and the ROK. These arrangements will serve as the building blocks of an East Asian Free Trade Area as a long term goal. ASEAN continues to develop cooperative relations with its Dialogue Partners, namely, Australia, Canada, China, the European Union, India, Japan, the ROK, New Zealand, the Russian Federation, the United States of America, and the United Nations Development Programme. ASEAN also promotes cooperation with Pakistan in some areas of mutual interest. Consistent with its resolve to enhance cooperation with other developing regions, ASEAN maintains contact with other inter-governmental organizations, namely, the Economic Cooperation Organization, the Gulf Cooperation Council, the Rio Group, the South Asian Association for Regional Cooperation, the South Pacific Forum, and through the recently established Asian-African Sub-Regional Organization Conference. Most ASEAN Member Countries also participate actively in the activities of the Asia-Pacific Economic Cooperation (APEC), the Asia-Europe Meeting (ASEM), and the East Asia-Latin America Forum (EALAF). ASEAN Vision â€Å"2020†: This was said at one of its summit. We, the Heads of State/Government of the Association of Southeast Asian Nations, gather today in Kuala Lumpur to reaffirm our commitment to the aims and purposes of the Association as set forth in the Bangkok Declaration of 8 August 1967, in particular to promote regional cooperation in Southeast Asia in the spirit of equality and partnership and thereby contribute towards peace, progress and prosperity in the region. We in ASEAN have created a community of Southeast Asian nations at peace with one another and at peace with the world, rapidly achieving prosperity for our peoples and steadily improving their lives. Our rich diversity has provided the strength and inspiration to us to help one another foster a strong sense of community. We are now a market of around 500 million people with a combined gross domestic product of US$600 billion. We have achieved considerable results in the economic field, such as high economic growth, stability and significant poverty alleviation over the past few years. Members have enjoyed substantial trade and investment flows from significant liberalization measures. We resolve to build upon these achievements. Now, as we approach the 21st century, thirty years after the birth of ASEAN, we gather to chart a vision for ASEAN on the basis of today's realities and prospects in the decades leading to the Year 2020. That vision is of ASEAN as a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. ASEAN shall have, by the year 2020, established a peaceful and stable Southeast Asia where each nation is at peace with itself and where the causes for conflict have been eliminated, through abiding respect for justice and the rule of law and through the strengthening of national and regional resilience. STRUCTURES & MECHANISMS: The highest decision-making organ of ASEAN is the Meeting of the ASEAN Heads of State and Government. The ASEAN Summit is convened every year. The ASEAN Ministerial Meeting (Foreign Ministers) is held annually. Ministerial meetings on the following sectors are also held regularly: agriculture and forestry, economics (trade), energy, environment, finance, health, information, investment, labor, law, regional haze, rural development and poverty alleviation, science and technology, social welfare, telecommunications, transnational crime, transportation, tourism, youth. Supporting these ministerial bodies are committees of senior officials, technical working groups and task forces. To support the conduct of ASEAN’s external relations, ASEAN has established committees composed of heads of diplomatic missions in the following capitals: Beijing, Berlin, Brussels, Canberra, Geneva, Islamabad, London, Moscow, New Delhi, New York, Ottawa, Paris, Riyadh, Seoul, Tokyo, Washington D. C. and Wellington. The Secretary-General of ASEAN is appointed on merit and accorded ministerial status. The Secretary-General of ASEAN, who has a five-year term, is mandated to initiate, advise, coordinate, and implement ASEAN activities. The members of the professional staff of the ASEAN Secretariat are appointed on the principle of open recruitment and region-wide competition. ASEAN has several specialized bodies and arrangements promoting inter-governmental cooperation in various fields including the following: ASEAN Agricultural Development Planning Centre, ASEAN-EC Management Centre, ASEAN Centre for Energy, ASEAN Earthquake Information Centre, ASEAN Foundation, ASEAN Poultry Research and Training Centre, ASEAN Regional Centre for Biodiversity Conservation, ASEAN Rural Youth Development Centre, ASEAN Specialized Meteorological Centre, ASEAN Timber A Partnership in Dynamic Development: We resolve to chart a new direction towards the year 2020 called, ASEAN 2020: Partnership in Dynamic Development which will forge closer economic integration within ASEAN. We pledge to sustain ASEAN's high economic performance by building upon the foundation of our existing cooperation efforts, consolidating our achievements, expanding our collective efforts and enhancing mutual assistance. We will create a stable, prosperous and highly competitive ASEAN Economic Region in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. We resolve, inter-alia, to undertake the following: †¢ Maintain regional macroeconomic and financial stability by promoting closer consultations in macroeconomic and financial policies. Advance economic integration and cooperation by undertaking the following general strategies: fully implement the ASEAN Free Trade Area and accelerate liberalization of trade in services, realize the ASEAN Investment Area by 2010 and free flow of investments by 2020; intensify and expand sub-regional cooperation in existing and new sub-regional growth areas; further consolidate and expand extra-ASEAN regional linkages for mutual benefit cooperate to strengthen the multilateral trading system, and reinforce the role of the business sector as the engine of growth. †¢ Promote a modern and competitive small and medium enterprises (SME) sector in ASEAN which will contribute to the industrial development and efficiency of the region. †¢ Accelerate the free flow of professional and other services in the region. †¢ Promote financial sector liberalization and closer cooperation in money and capital market, tax, insurance and customs matters as well as closer consultations in macroeconomic and financial policies. Accelerate the development of science and technology including information technology by establishing a regional information technology network and centers of excellence for dissemination of and easy access to data and information. †¢ Establish interconnecting arrangements in the field o f energy and utilities for electricity, natural gas and water within ASEAN through the ASEAN Power Grid and a Trans-ASEAN Gas Pipeline and Water Pipeline, and promote cooperation in energy efficiency and conservation, as well as the development of new and renewable energy resources. †¢ Enhance food security and international competitiveness of food, agricultural and forest products, to make ASEAN a leading producer of these products, and promote the forestry sector as a model in forest management, conservation and sustainable development. meet the ever increasing demand for improved infrastructure and communications by developing an integrated and harmonized trans-ASEAN transportation network and harnessing technology advances in telecommunication and information technology, especially in linking the planned information highways/multimedia corridors in ASEAN, promoting open sky policy, developing multi-modal transport, facilitating goods in transit and integrating telecommunica tions networks through greater interconnectivity, coordination of frequencies and mutual recognition of equipment-type approval procedures. †¢ Enhance human resource development in all sectors of the economy through quality education, upgrading of skills and capabilities and training. †¢ Work towards a world class standards and conformance system that will provide a harmonized system to facilitate the free flow of ASEAN trade while meeting health, safety and environmental needs. †¢ Use the ASEAN Foundation as one of the instruments to address issues of unequal economic development, poverty and socioeconomic disparities. promote an ASEAN customs partnership for world class standards and excellence in efficiency, professionalism and service, and uniformity through harmonized procedures, to promote trade and investment and to protect the health and well-being of the ASEAN community, †¢ enhance intra-ASEAN trade and investment in the mineral sector and to contribute towards a technologically competent ASEAN through closer networking and sharing of information on mineral and geosciences as well as to enhance cooperation and partnership with dialogue partners to facilitate the development and transfer of technology in the mineral sector, particularly in the downstream research and the geosciences and to develop appropriate mechanism for these. USE OF THE NAME â€Å"ASEAN†: The Presidium Minister for Political Affairs/Minister for Foreign Affairs of Indonesia, the Deputy Prime Minister of Malaysia, the Secretary of Foreign Affairs of the Philippines, the Minister for Foreign Affairs of Singapore, and the Minister of Foreign Affairs of Thailand do hereby declare 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). – ASEAN Declaration, Bangkok, 8 August 1967 I. NON-GOVERNMENTAL ORGANIZATIONS The ASEAN Standing Committee, at its meeting in Manila on 16-18 June 1986, adopted the Guidelines for ASEAN Relations with Non-Governmental Organizations, which included a provision on the use of the name â€Å"ASEAN. † The relevant provision states that, an affiliated NGO â€Å"may use the name ‘ASEAN’ and display the official ASEAN emblem in correspondence, communications, and at its official meetings so long as the displaying of such emblem is non-commercial in nature. † II. PRIVATE SECTOR The ASEAN Standing Committee, at its meeting in Jakarta on 10 January 1979, adopted the Guidelines on the Use of the name â€Å"ASEAN† by the Private Sector. Below are the main points: Member countries shall exercise some measure of control on the use of the name â€Å"ASEAN† by the private sector for business purposes. This administrative control shall be exercised where official registration is required by law for setting up a company, such as a trading company, whether as a corporation or sole proprietorship. Any request for the use of the name â€Å"ASEAN† should satisfy the following conditions: (i)The entity should be regional in character involving all members of ASEAN; (ii)The name â€Å"ASEAN† should not be brought into disrepute by its usage; iii)The entity should be indigenous to ASEAN; (iv)The usage of ASEAN should not have any negative effect on the aims and objectives of ASEAN; The entity should have the sponsorship of any of the ASEAN Nation al Secretariats. ASEAN Regional Forum: [pic] ASEAN Regional Forum: —  ASEAN countries —  Other ASEAN Regional Forum participants. ASEAN regularly conducts dialogue meetings with other countries and an organization, collectively known as the ASEAN dialogue partners during the ASEAN Regional Forum(ARF). The ASEAN Regional Forum is an informal multilateral dialogue of 25 members that seeks to address security issues in the Asia-Pacific region. The ARF met for the first time in 1994. The current participants in the ARF are as follows: ASEAN, Australia, Canada, People's Republic of China, European Union, India, Japan, North Korea, South Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, Russia, East Timor, and the United States. Bangladesh was added to ARF as the 26th member, starting from July 28, 2006. Outlook of ASEAN: Realizing the vision of ASEAN’s founding fathers of an association of all Southeast Asian countries is thus hardly the end of ASEAN history. It is rather a call for a renewed commitment to broader regional solidarity among the peoples of Southeast Asia. ASEAN has learned to draw strength from unity not only among governments but also among its diverse peoples. The ASEAN experience and the ASEAN process must reach out to all spectra of our societies,† said former Foreign Minister Prachaub Chaiyasan of Thailand in 1997. â€Å"Through ASEAN this region will become a grassroots-supported and close-knit community bound together no t only by common interests but by shared values, identity and aspirations among our peoples. † ASEAN faces the future with confidence. Its strong foundation and remarkable achievements will serve Southeast Asia well as it pursues higher goals in the new millennium. ASEAN’s leaders have reaffirmed that co-operative peace and shared prosperity should be the association’s basic goals. Towards these goals ASEAN shall remain a driving force in building a more predictable and constructive pattern of relationships among nations in the Asia-Pacific region. ASEAN will move towards greater economic integration, emphasizing sustainable and equitable growth. ASEAN will nourish a caring and cohesive Southeast Asian community, whose strength lies in fostering a common regional identity and a shared vision of the future. Overview: The ASEAN declaration of 1967 exhorts the association to attain its economic, social and cultural aims through â€Å"joint endeavors† and â€Å"active collaboration and mutual assistance. † Regarding its political objective of regional peace and stability, however, the Declaration contains no equivalent exhortation. It speaks only of â€Å"respect for justice and the rule of law† and â€Å"adherence to the principles of the United Nations Charter. † It makes no impassioned call for the ASEAN member states to take common political positions. The restraint with which ASEAN’s founders expressed the political aim of their brainchild was understandable. They did not want their intentions to be misunderstood. They did not want ASEAN to be mistaken for a military grouping among political allies-as some of its predecessors had been. Moreover, at the time of ASEAN’s conception, Southeast Asia was beset by instability aggravated by underdevelopment. The ASEAN pioneer states themselves were just beginning to learn to trust one another, while nursing he hangover of bitter disputes of recent years. The newborn ASEAN was, therefore, presented as a sub regional grouping for economic, social and cultural cooperation. But security concerns and political purposes were never far from th e ASEAN founders’ intentions. As a key figure in ASEAN diplomacy, former Indonesian Foreign Minister Ali Alatas has pointed out, â€Å"The truth is that politics attended ASEAN at its birth. It was the convergence in political outlook among the five original members, their shared convictions on national priority objectives and on how best to secure these objectives in the evolving strategic environment of East Asia which impelled them to form ASEAN. ASEAN spent almost the whole first decade of its existence developing and refining the concepts that form the basis of its work and methods of cooperation. In those early years its ministerial and other meetings became occasions for fostering trust and goodwill, for developing the habit of working together informally and openly. In the process ASEAN leaders realized that their countries could never attain national stability and socioeconomic development if Southeast Asia-afflicted with strife and cold War rivalry-remained in poli tical turmoil. The ASEAN member states strove for resilience, both individually as nations and collectively as a sub regional grouping; for they knew the association would not amount to much if external powers regularly intervened in Southeast Asian affairs. At the First ASEAN Summit in Bali in February 1976, the member countries signed the Treaty of Amity and Cooperation in Southeast Asia, which spelled out the basic principles for their relations with one another and the conduct of the association’s programme for cooperation: †¢ 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; †¢ Noninterference in the internal affairs of one another; †¢ Settlement of differences or disputes by peaceful means; †¢ Renunciation of the threat or use of force; and †¢ Effective cooperation among themselves. The treaty envisaged these principles as the foundation of a strong Southeast Asian community. It stated that ASEAN political and security dialogue and cooperation should aim to promote regional peace and stability by enhancing regional resilience. And this resilience shall be achieved by cooperation in all fields among the member countries. Following these principles and guidelines, Southeast Asia embarked on a journey towards regional solidarity that has been steady and sure. Through political dialogue and confidence building, ASEAN has prevented occasional bilateral tensions from escalating into confrontation among its members. And by 1999 the vision of an ASEAN is including all the countries of Southeast Asia as members had been achieved. Achievements in Political Collaboration: Since 1967 ASEAN has forged major political accords that have contributed greatly to regional peace and stability, and to its relations with other countries, regions and organizations. Foremost among these are: Zone of Peace, Freedom and Neutrality. On 27 November 1971 the foreign ministers of the then five ASEAN members met in Kuala Lumpur and signed the Zone of Peace, Freedom and Neutrality (ZOPFAN) Declaration. It commits all ASEAN members to â€Å"exert efforts to secure the recognition of and respect for Southeast Asia as a Zone of Peace, Freedom and Neutrality, free from any manner of interference by outside powers,† and to â€Å"make concerted efforts to broaden the areas of cooperation, which would contribute to their strength, solidarity and closer relationship. ZOPFAN recognizes â€Å"the right of every state, large or small, to lead its national existence free from outside interference in its internal affairs as this interference will adversely affect its freedom, independence and integrity. † Another five years passed before the next major development in political cooperation came about-the First ASEAN Summit in Bali, when the ASEAN leaders signed three major documents: the Declaration of ASEAN Concord, the Treaty of Amity and Cooperation in Southeast Asia, and the Agreement Establishing the ASEAN Secretariat. Declaration of ASEAN Concord. Departing from the more circumspect Bangkok Declaration, the Declaration of ASEAN Concord stated for the first time that the member countries would expand political cooperation. It also adopted principles for regional stability and a programme of action for political cooperation. The programme called for holding ASEAN summits among the heads of government; signing the Treaty of Amity and Cooperation in Southeast Asia; settling intraregional disputes â€Å"by peaceful means as soon as possible†; improving the ASEAN machinery to strengthen political cooperation; studying how to develop judicial cooperation including the possibility of an ASEAN extradition treaty; and strengthening political solidarity by promoting the harmonization of views, coordinating positions and, where possible and desirable, taking common action. Treaty of Amity and Cooperation (TAC) in Southeast Asia. TAC raised the provisions of the Kuala Lumpur Declaration to the level of a treaty to which other Southeast Asian countries could accede and with which the nonregional countries could associate themselves. The treaty enshrines the following principles: mutual respect for one another’s sovereignty; noninterference in internal affairs; the peaceful settlement of intraregional d isputes; and effective cooperation. The treaty also provides for a code of conduct for the peaceful settlement of disputes. And it mandates the establishment of a high council made up of ministerial representatives from the parties as a dispute-settlement mechanism. To this day, TAC remains the only indigenous regional diplomatic instrument providing a mechanism and processes for the peaceful settlement of disputes. Southeast Asia Nuclear Weapon-Free Zone. At the ASEAN Summit in Bangkok on 15 December 1995, the leaders of all the ten Southeast ASEAN countries signed the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ). As a key component of ZOPFAN, the SEANWFZ treaty ex-presses ASEAN’s determination to contribute to-wards general and complete nuclear disarmament and the promotion of international peace and security. It also aims to protect the region from environmental pollution and the hazards posed by radio-active waste and other toxic materials. The SEANWFZ treaty came into force on 27 March 1997. ASEAN is now negotiating with the five nuclear-weapon states on the terms of their accession to the protocol which lays down their commitments under the treaty. ASEAN has put in place the SEANWFZ Commission and the Executive Committee of the commission to oversee implementation of the treaty’s provisions and ensure compliance with them. The association adopted procedural and financial rules governing the work of the treaty bodies at the seco0nd meeting of the SEANWFZ Commission in Bangkok in July 2000. Settlement of the Cambodian Conflict. One of the most important chapters in the history of ASEAN diplomacy took place during the Cambodian conflict. The ASEAN-sponsored resolutions at the UN General Assembly, which called for a durable and comprehensive political settlement in Cambodia, received consistent support from the international community. With Indonesia as interlocutor, ASEAN maintained its dialogue with all parties to the conflict. This eventually led to the Jakarta Informal Meetings at which the four Cambodian factions discussed peace and national reconciliation. The process proved to be protracted, requiring the help of many states and the United Nations. It extended to the early 1990s, culminating in the 19-nation Paris Conference on Cambodia, which was chaired by France and Indonesia. On 23 October 1991 the Paris Conference on Cambodia produced the Comprehensive Political Settlement of the Cambodian Conflict. This settlement paved the way for the formation of the Cambodian Supreme National Council, in which four factions participated, and the holding of elections supervised by the United Nations Transitional Authority on Cambodia. Nineteen ninety-nine will be remembered as the year when the vision of ASEAN’s founders to build an association comprising all the Southeast Asian countries was fully realized. The admission of Cambodia to ASEAN on 30 April 1999 in Ha Noi completed the association’s efforts towards regional cohesion, 32 years after the original five members-Indonesia, Malaysia, Singapore, the Philippines and Thailand-first got together. Insular and peninsular Southeast Asia and all of mainland Southeast Asia are now joined in one association. The region is no longer divided between ASEAN and non-ASEAN, between mainland and maritime Southeast Asia. Recent Issues and Concerns: It is in ASEAN’s ability and readiness to resolve political differences affecting its members and other countries in the Asia-Pacific region that the association’s commitment to political co-operation is put to the test. More often than not, that commitment has been affirmed and the ASEAN approach to solving potentially explosive issues vindicated. These issues include territorial and jurisdictional disputes in the South China Sea; self-determination for East Timor; nuclear proliferation in Northeast Asia and South Asia; weapons of mass destruction; and the impact of globalization. South China Sea. Like many other parts of the world, Southeast Asia faces territorial disputes among its members and nearby states. In these disputes ASEAN has consistently pursued a policy of cooperation in seeking the peaceful settlement of differences. In 1992, recognizing that any conflict in the South China Sea could directly affect peace and stability in the region, ASEAN issued a declaration â€Å"urging all parties concerned to exercise restraint in order to create a positive climate for the eventual resolution of all disputes. ASEAN further â€Å"emphasized the necessity to resolve all sovereignty and jurisdictional issues about the South China Sea by peaceful means, without resort to force. † The Manila Declaration of 1992, which pr oposed a modus vivendi in the South China Sea, represents one of the most remarkable demonstrations of political solidarity among ASEAN members on strategic issues of common concern. On the suggestion of ASEAN, ASEAN and China have been working on a Code of Conduct to govern state behavior in the South China Sea. The ASEAN-China Senior Officials’ Consultations Working Group on the Code of Conduct in the South China Sea met four times this year to negotiate a working draft code of conduct covering principles and norms of state-to-state relations, peaceful settlement of disputes and cooperation. East Timor. ASEAN supported the implementation of the agreement between Indonesia and Portugal on the question of East Timor and the 5 May 1999 agreements between the United Nations and the Indonesian and Portuguese governments about the modalities for the popular consultations of the East Timorese. The consultations were held on 30 August 1999. As violence rocked the territory following the referendum, the ASEAN leaders who were in Auckland for the APEC Economic Leaders’ Meeting gathered to address the problem. Some of them agreed to contribute, at great expense, to the International Force for East Timor, which was formed upon Indonesia’s invitation. The UN Transitional Administration in East Timor (UNTAET) was subsequently set up, with a Filipino general taking over the command of the peacekeeping force. A Thai general has since succeeded him. Other ASEAN members have been extending humanitarian and other forms of assistance to East Timor. ASEAN has called on the international community to help East Timor achieve peace, stability and prosperity during its transition to full independence, which would contribute to the stability of Southeast Asia. Following the separation of East Timor from Indonesia, ASEAN has declared its position that a united, democratic and economically prosperous Indonesia is basic to the maintenance of regional security. In this context, the association emphasized its support for Indonesia’s territorial integrity. Northeast Asia. At the Seventh ASEAN Regional Forum in July 2000, the participation for the first time of the Democratic People’s Republic of Korea in the ARF process was welcomed-a significant step in the rapid evolution of the situation on the Korean Peninsula and thus in the security environment of the Asia-Pacific region. North Korea’s ARF membership provides additional opportunities for dialogue and exchanges between North Korea and those ARF countries with key roles in the Korean situation. ASEAN expressed support for the historic summit between the North and South Korean leaders, held in Pyongyang on 13-15 June 2000. It also commended the 15 June North-South Joint Declaration, the first agreement signed at the highest level since the division of the Korean Peninsula in 1945. Challenges of globalization. The Seventh ASEAN Regional Forum observed that although the security outlook for the region remains positive, uncertainties and challenges-particularly those posed by globalization-would increasingly require ARF’s attention. The Seventh ARF also considered the economic, social and human components of security and the need to promote regional cooperation in dealing with regional security issues. It discussed both the positive effects and the repercussions of globalization, including greater economic interdependence among nations and the multiplication of security threats like transnational crime. In responding to globalization, ARF felt it necessary for nations to strengthen their individual and collective capacities to meet the challenges affecting their common security. ARF has reaffirmed the need for Southeast Asian countries to continue efforts, through dialogue and cooperation at national and international levels, in dealing with the economic, social and political impacts of globalization so as to ensure sustained economic and social development. ASEAN and intra-ASEAN relations: weathering the storm? In April 1999, ASEAN formally admitted Cambodia thereby completing its declared goal of grouping together all ten Southeast Asian countries under its umbrella. This was the culminating event in the latest phase of ASEAN's enlargement. This process, however, had been problematic from the start. The entry of Cambodia, Laos, Myanmar and Vietnam without any clear criteria for admission has raised questions regarding the preparedness of these countries to participate in ASEAN. More importantly, it led to strains in ASEAN's relations with its dialogue partners over the legitimacy of some of the governments in power in these countries. The was further complicated by the economic upheaval caused by the financial crisis which struck Southeast Asia in 1997. The impact of these events on ASEAN has put into question the association's growing role as a leading player in Asia-Pacific affairs. More importantly, it has raised issues which are central to ASEAN's continued existence. Bibliography: 1. www. google. com. 2. www. ASEANsec. org. 3. Introductory Managerial Economics-II (By D. M. Mithani)