A Brief Prelude of Intra-ASEAN Cooperation and Socio-Economic Structure
New regionalism or regionalization has
emerged as a significant trend in international affairs.
Now, countries have deepened cooperation
among other states and region.Along with the explicit benefits these processes
bring, fundamental pillars of the new regionalism are institutions and
organizations that provide integrated platforms.
It builds qualitatively modern forms of
interactions.The interdependence of markets exerts
reciprocal influence on the dynamics of economic processes in various regions
and strengthens trade relationships. In this aspect, the Association of
Southeast Asian Nations (ASEAN) is aninclusive model for extensive
collaboration.
It
is a front runner and substantially increasesthe socio-economic development of
Asia Pacific regional countries while enhancing multilateral cooperation.
Apart
from the regional economic, social and cultural development, ASEAN has an
ambitious agenda to promote regional peace and stability by adhering to justice
and the rule of law in the inter-state relationships.
In
its more than 40 years of history, ASEAN has steadily progressed in internal
economic integration.
In
2003, the ASEAN leaders established an ASEAN integrated community comprising
three pillars: security community, economic community, and socio-cultural
community.
In
this aspect, it can be seen that the ASEAN countries are inclined towards
resolving their internal disputes, combating Non-Traditional Security (NTS)
threats vis-à-vis cooperation under the ASEAN framework, and contributing to
the stability of the Asia Pacific region.
Therefore, the paper explains the
intra-ASEAN cooperative patterns and highlights the profound developments in
recent times.
The study also provides aprofound analysis
of thesocio-economic and political structure of ASEAN.
The ASEAN Economic Community
(AEC): A Robust Intra-StateFramework
ASEAN is amid three major pillars, i.e., political
security community, economic community, and socio-cultural community. The ASEAN
Economic Community(AEC)focusedon wider economic integration.In 2015, its
establishment paved the way for implementing its blueprint in recent times.
The primary AEC goals incorporatemultiple
sectoral dimensions. There are various
transformative mechanisms of ASEAN’s economic integration that are
interconnected.
AEC is an ‘’FTA-Plus’’ economic
integration, and it targets the level of market integration, similar to those
of the Economic Partnership Agreement. Thus, it is highly praised for its
integration and steady development process.
The broader vision of AEC2025 aims to
participate in the global value chainand attract Foreign Direct Investment
(FDI). Furthermore, it can be evaluated as a successful model of broader
association among different countries.
ASEAN envisions AEC2025 as a great achievement
towards hybrid alignment in the economic framework. Moreover, it has been
perceived that itsenhanced collaboration withsectoral cooperation, resilient
structure, and people-centered communityassociated with the global economy
would result in a boon for all parties involved.
It has five majortenants and multiple key features
that are beingcomprehensively described in the table below:
|
Tenants |
Features |
|
A
highlyprogressive and integrated economy |
·
Goods
& services ·
Conducive
strategies for Foreign Direct Investment (FDI) ·
Financial
sustainability ·
Facilitating
workforce and business sector ·
Enhancing
participation in global value chains |
|
Enhanced
cooperation-sectoral development |
·
Academic cooperation&E-Commerce, ·
Energy, Food, agriculture and forestry ·
Tourism ·
Healthcare ·
Transport |
|
A competitive,
transforming & dynamic structure of ASEAN |
·
Digital economy ·
Research and development ·
Science & Technological advancement. ·
Tariff’s feasibility ·
Good governance, regulatory reforms ·
Responsive regulations Regimes ·
Sustainable economic growth ·
Resolving trade-related Issues |
|
A
resilient, inclusive, people-oriented ASEAN |
·
Facilitating the micro&medium
enterprises (SMEs) ·
EncouragingPublic-private partnerships ·
Combining allstakeholders to contribute
to regional peace |
|
Global
ASEAN |
·
Develop coherent and investment-friendlyincentives
for maintaining external economic relation ·
Playing constructive role at other
international platforms ·
Maintain economic alliance with non-FTA
dialogue partners |
The
Intra-State ASEAN’s framework details mentioned abovereflect that these
countriesare likely to gaineconomic benefit from FTA in future and further foster
collaborative measures vis-à-vis reinvigorating financial stability, maintaining
investment flows, technology transfer, reducing intra-regional transactions
costs to doing business, and supporting policy reform.
Moreover,
it is also expected that the ASEAN's new member states would also
maximizelucrative outcomes from the socio-economic integration projects in the
region and beyond.
The
broader regional arrangements will help ASEAN countries overcome the conflictby
adhering toneeded reforms whileassisting in information sharing for conflict resolution
and crisis management.
Flexible
Paradigm of ASEAN and Regional Integration Theory
The
origins of regional integration theory can be traced back to Viner's
study in 1950. His workformulated a structure for analyzing the effect of
creating trade &customs union or regional/international organizations for
regulating the governments.
The
pillars of the regional integration theory amid broader economic aspects. It seeks
to explain the establishment of regional or international organizations.
In this
aspect, the theory also answers the major question ofhow regional organizations
expand their targets, competencies, and members? and what impact they have on
states and societies in their regions? ASEAN is a supranational body that has transnational
corporations and interest groups encouraged by the integration process.
Therefore,
the ASEAN framework can be seen through the prism of the regional integration
theory of international relations.
The wider
association enables a variety of ripple impactsand path-dependencies that takeconnectivity
beyond the regional confines. ASEAN covers the establishment and progress of
supranational policies.
The
member states promote beneficiaries of socio-economic progress. In this aspect,
the wider integration has remained successful because of several reasons:
a.
Robust interstate trade/commerce strategies
b.
Durable liberalization policies while setting
high goals
c.
The significant role of the FDI companies
d.
Promotion of trade with countries outside the ASEAN
region
e.
Efforts to curtail intra-regional disparities
f.
Upgrading and developing the transportation
infrastructure
Indonesia’s Substantial Role in
Fostering Intra-ASEAN Socio-Economic Structure
Indonesia is the major economic
power in the ASEAN region. Moreover, it has played a pivotal role as a mediator
between other ASEAN-states in resolving their disputes. Within ASEAN, Indonesia enjoys aleading
position.
Pakistan has the status of Sectoral
Dialogue Partner (SDP) in ASEAN.
Indonesia has been helping Pakistan to attain the status of a full
dialogue partner in the organization. The relationship between Indonesia and Pakistan
has marked significant progress in recent times.
The valuable asset of the relation
is that the ASEAN countries are convinced of Pakistan’s sincere intentions to
engage fruitfully with the region. In this aspect, ASEAN-Pakistan Joint
Sectoral Committee works effectively to seek deeper association with the Asia
Pacific and ASEAN countries.
Presently, China’s engagement with
ASEAN has increased manifold. Both are linked via multilateral frameworks,
institutional involvements, constructive engagements, and aid programs.
Moreover, the ASEAN countries are directly part of the Belt & Road
Initiative (BRI) and Asia Pacific Economic Cooperation (APEC) projects.
Therefore, the full inclusion of
China as a member state in ASEAN would be beneficial for the region and all
parties involved.
The writer of this article is Khalid
TaimurAkram, Executive Director, Center for Global & Strategic Studies
(CGSS), Islamabad
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