Fighting irrelevance: an economic community ‘with ASEAN characteristics’¹

Abstract

Contrary to expectations at the time, the financial crises of 1997-98 may have strengthened ASEAN. The backlash against a perceived unsympathetic Western response put ASEAN at center stage in new regional cooperative arrangements. Moreover, the rivalry between China and Japan for regional leadership has led them both to seek to negotiate regional partnerships with ASEAN as a whole. ASEAN, however, faces new challenges -particularly from rapid economic growth in China and India, and from the proliferation of preferential trade agreements (PTAs). ASEAN has made only slow progress in economic cooperation, which has fallen further behind schedule. The private sector makes little use of ASEAN's preferential arrangements because they afford little advantage over most-favored-nation tariffs. ASEAN has failed to address 'deeper integration' issues -the removal of 'beyond border' barriers to trade. Some of the bilateral PTAs that ASEAN countries have negotiated with extra-regional partners go further in removing barriers than ASEAN's own arrangements. ASEAN members continue to eschew binding commitments. Liberalization under ASEAN's auspices has not been sufficiently significant to encourage business groups to invest substantial resources in lobbying for deeper integration.

Power, leadership, and hegemony in international politics: the case of East Asia

“…65 Mounting rivalry can be seen as a source for structural change in this context. 66 There are other examples of intense rivalry that can be quoted to underline the argument made here. The Mekong River region is one such instance.…”

Living in the New Regional Context: Rethinking an ASEAN Economic Community

“…Its inability to cope with the crisis was due to a lack of instruments for dealing with economic and political consequences [10] [11]. In the meantime, China's accession to the WTO and the rise of emerging markets, particularly the BRIC (Brazil, Russia, India, China and South Africa), forced ASEAN members to cooperate so that the region would continue to attract businesses and investors.…”

“…He also points out that these obstacles are a result of government application and implementation rather than policies [29]. Consequently, ASEAN-X has "the potential to institutionalize a multi-tier ASEAN characterized by fragmented integration" [30].…”

Strategy Execution by Thai Large Companies for ASEAN Economic Community

“…In a more recent study, Ravenhill (2008) suggested that the financial crisis of 1997-1998 may have strengthened ASEAN member countries. Apart from that, the rivalry between China and Japan for regional leadership led them to seek negotiations with ASEAN.…”