Assessment in

Geopolitics and the World Economic System

Topic: ASEAN: Association of Southeast Asian Nations

Case Reference:
Understanding ASEAN: Seven Things you need to know
By Vinayak HV, Fraser Thompson, and Oliver Tonby

Participants
Lilesh Sonawane
Swapnil Shinkar
Bhausaheb Sanap
Abhayraj Chavan

ISBS MBA D 22
ISBS MBA D 24
ISBS MBA D 27
ISBS MBA D 37

Guided by
Prof. Manmohan Vyas

Part 1: What is AEAN all about?

Introduction
The Association of Southeast Asian Nations (ASEAN) is an international organization.
On 8th August 1967, Malaysia, Thailand, Indonesia, Singapore, and the Philippinesformed the
ASEAN. At that time, communism was growing in Vietnam, and these five countries were
also facing problems inside their countries. In this background, these five countries created
ASEAN as a show of common display of cooperation. In short, the purpose of the
organization is political and economic cooperation.
There was an earlier organization. Its name was the Association of Southeast Asia (ASA). It
was an international organization of Philippines, Malaysia, and Thailand. These three
countries had formed ASA in 1961. It is named because all the countries in it are a part
of Southeast Asia.
In 1976, ASEAN countries held a conference in Bali. After this, these countries started closer
economic cooperation. But, by the mid-1980s, the activities of the ASEAN had slowed down.
By 1991, Thailand proposed a free trade area. The ASEAN countries meet annually to discuss
many matters.
Originally there were only five members of the ASEAN. Brunei joined the ASEAN on 8
January 1984. Vietnam joined the ASEAN on 28 July 1995. Laos and Myanmar joined the
ASEAN on 23 July 1997. Cambodia became a member on 30th April 1999. Some other
countries, such as East Timor may soon join ASEAN.

Some information about ASEAN countries is as follows:

About 8% of the population of the world lives in ASEAN countries. About 240
million Muslims live in these countries, mostly in Indonesia, Malaysia, and Brunei.
About 170 million Buddhists live in these countries, mostly
in Thailand, Myanmar, Laos, Cambodia, Vietnam, and Singapore.

The major products of the ASEAN countries are electronics, petroleum, and wood.
The total Gross domestic product of these countries are $1,073.9 billion USD.

All the countries of the ASEAN countries have old cultures, and different types of
governments.

The ASEAN countries had created an ASEAN Regional Forum (ARF). 27 countries
are members of the ASEAN Regional Forum. The leaders of these countries meet and
discuss various matters, especially security and economic cooperation. The current
members in the ARF
are: Malaysia, Thailand, Indonesia, Singapore, Philippines, Vietnam, Brunei,Laos, My
anmar, Cambodia, Australia, Canada, the People's Republic of China, the European
Union, India, Japan, North Korea, South Korea, Mongolia, New
Zealand, Pakistan,Papua New Guinea, Russia, Timor-Leste, United States, and Sri
Lanka.[1]

The ASEAN holds a meeting every year. The meeting lasts for 3 days, and the
members discuss many things.

Why asean is important?

ASEANs geostrategic importance stems from many factors, including the strategic location
of member countries, the large shares of global trade that pass through regional waters, and
the alliances and partnerships which the United States shares with ASEAN member
countries. Recognizing its geostrategic importance, the US cooperates with ASEAN and its
member states on a multitude of intitatives ensuring security and stability in the region.
ASEAN is one of the largest economic zones in the world; growth has been rapid and
relatively stable since 2000.

AIMS AND PURPOSES

As set out in the ASEAN Declaration, the aims and purposes of ASEAN 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 of common 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.
FUNDAMENTAL PRINCIPLES
In their relations with one another, the ASEAN Member States have adopted the following
fundamental principles, as contained in the Treaty of Amity and Cooperation in Southeast
Asia (TAC) of 1976:
1. Mutual respect for the independence, sovereignty, equality, territorial integrity, and
national identity of all nations;
2. The right of every State to lead its national existence free from external interference,
subversion or coercion;
3. Non-interference in the internal affairs of one another;
4. Settlement of differences or disputes by peaceful manner;
5. Renunciation of the threat or use of force; and
6. Effective cooperation among themselves.
ASEAN COMMUNITY
4

The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of
ASEAN, agreed on a shared vision 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.
At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN
Community shall be established.
At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment
to accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu
Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015.
The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security
Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. Each
pillar has its own Blueprint, and, together with the Initiative for ASEAN Integration (IAI)
Strategic Framework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for an
ASEAN Community 2009-2015.
Please click here for the ASEAN Political-Security Community Video.
Please click here for the ASEAN Economic Community Video.
Please click here for ASEAN Socio-Cultural Community Video.
Please click here for ASEAN History and Purposes.
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.

Part 2: ASEAN & India

Part 3: ASEAN & other international unions

ASEAN is a regional organization that is in the Southeast Asian region while the EU
is a coalition of European countries. There are both similarities and differences in the both
organizations, in various aspects. There is a fundamental difference between ASEAN aiming
to become the next EU and ASEAN moving towards the direction of EU. While the first
suggests a goal of replication of EU into Southeast Asian context, the later suggests a
borrowing of concepts to be contextualized. In this section, both questions would be
answered collectively. Before examining if ASEAN would move towards EU, we must first
compare and contrast ASEAN and EU. In brief, EU is in a level of supra-national cooperation while ASEAN is in a level of inter-national co-operation. This fundamental
difference is the net result of the various differences present in the various levels of
comparison between the two organizations.

The aims of ASEAN and EU are almost identical, or at least comparable and there is
hope for peace and security, the safeguarding of national independence against interference
from external actors, the quest for economic prosperity and social security, and more and
more the preservation of the national competitiveness in the age of globalization.

A Comaparison among ASEAN, European Union and SAARC

BASIC INFORMATION
European Union

ASEAN

SAARC

Establishment

August 8, 1967 = 38 December 8, 1985 =

years
20 years

Member
Population
Religion

European Coal and

Steel
Community
(ECSC) in 1951 = 54
years
27 countries
455 million
Christianity

Environment

Democratic

Democratic,
monarchy, autocracy

8 countries
1.5 billion
Hindu,
Muslim,
Buddhist, Christian
etc.
Democratic,
monarchy, autocracy

ASEAN
Manufacturing and
agriculture
Single market and
community
is
expected by 2020

SAARC
Agriculture
and
manufacturing
Single market and
community are future
targets

10 countries
530 million
Muslim, Buddhist,
Hindu, Christian etc.

Economy

Nature
of
economy
Community
market

European Union
the Knowledge
based
service sector
and Single market and
community

Economic Policy

Fiscal policy

Monetary policy

European Union
Euro countries (16
members out of 27
EU members) follow
common
fiscal
policy.
Euro countries (16
members out of 27
EU members) follow
a common monetary
policy. For example,
European
Central
Bank alone control
the money supply
and interest rate in
the Euro zone.

ASEAN
SAARC
No common fiscal No common fiscal
policy
policy

No
common No
common
monetary policy
monetary policy

Science And Technology

European Union
ASEAN
Attitude
towards Driving for Invention Technology adoption
new technology
and innovation
Rather
than
innovation
Knowledge
Fully matured
Emerging
Industry
Spending on R&D
Around 2 percent of About 0.5 percent of
GDP
GDP
National Innovation Matured
Emerging
System

SAARC
Technology adoption
rather
than
innovation
Emerging
About 0.5 percent of
GDP
Emerging

Institution

Institution

Attitude

Membership
condition

European Union
Common institutions
to guide association
properly such as
European
Commission,
European Parliament,
Council
of
the
European
Union,
European Court of
Justice,
European
Court of Auditors.
Sacrificing national
sovereignty
for
greater and United
Europe

a
democratic
government,
a good human
rights record

properly
functioning market
economy.

ASEAN
No such common
institution to guide
the association.

SAARC
No such common
institution to guide
the association.

Reluctant to sacrifice Reluctant to sacrifice

national sovereignty national sovereignty

No such condition

No such condition

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Association of
Southeast Asian Nations

11