ASEAN

ASEAN (Association of Southeast Asian Nations)

is a political, economic and cultural regional
intergovernmental organization of States
located in Southeast Asia.

Area - 4 495 561 km2 (> EU).

Population - 580,846,000 people (> EU;>
NAFTA).
Population density is 129 people / km2.
GDP - $ 2.652.662 million
GDP per capita is $ 4,567.
Directly hosted by ASEAN countries are Indonesia,
Malaysia, Singapore, Thailand and the
Philippines. ASEAN was established on August 9,
1967 in Bangkok with the signing of the "ASEAN
Declaration", better known as the "Bangkok
Declaration". The Declaration stated that ASEAN
is open to all Southeast Asian countries that
recognize its principles, goals and objectives.
Later, ASEAN was joined by Brunei (January 7,
1984, 6 days after independence from the United
Kingdom), Vietnam (July 28, 1995), Laos and
Myanmar (July 23, 1997), Cambodia (April 30,
1999). There are currently 10 ASEAN countries.
Observer status, as well as chances of joining
ASEAN, are Papua New Guinea and East Timor.
ASEAN's initial role was more political than economic.
Initially, its most significant treaties were concluded
by member states in the field of political cooperation
in the field of security. ASEAN's activities were aimed
at promoting peace in the region and building a
society free from the influence of outside forces.
In the economic field, ASEAN member countries
are pursuing a line for integration and
liberalization in the Southeast Asian region.
Already in 1977, attempts were made to form a
free trade area. This year saw the ASEAN
Preferential Trade Agreement (PTA),
which was the first instrument for trade liberalization to
revive intra-regional trade, including the provision of
customs tariff preferences and the creation of benefits
for mutual trade.
 ASEAN Basic Documents

ASEAN Declaration (1967) = Bangkok

Declaration. A document that consolidates the
creation of ASEAN and sets the goals for this
organization (see below).
Declaration on the Area of Peace, Freedom
and Neutrality in Southeast Asia (1971) =
Kuala Lumpur Declaration. It stated that
neutrality in the region was a "desirable goal".
Friendship and Cooperation Agreement (1976) =
Balinese Treaty. In this treaty, the countries
agreed on the principles of mutual relations,
namely: respect for independence, sovereignty,
equality, territorial integrity and national
identity of each nation, the right to not interfere
in the internal affairs of the state, to refuse
methods of coercion in international relations,
to resolve conflicts peacefully. and other. The
treaty was adopted in response to a reduction in
tensions in the region after the end of the
Second Indo-Chinese War.
• Treaty establishing a Nuclear-Free Zone in Southeast
Asia = Bangkok Treaty (1995). This agreement is a
logical extension of the Kuala Lumpur Declaration.
• The main document that sets out the main political
and economic orientations of the Tenth for the short
term is the Asean 2020 Vision 2020: A Partnership
for Dynamic Program, adopted at the 5th Summit in
1997.
 ASEAN Goals
In accordance with the Bangkok Declaration, the
ASEAN goals are:
• acceleration of economic growth, social progress
and cultural development in the region;
• promoting peace and stability in the region
through the application of the principles of the
UN Charter.
• expansion of active cooperation and mutual
assistance in the field of economy, culture,
science, technology and training;
• developing more effective cooperation in industry
and agriculture;
• expanding mutual trade and improving the
standard of living of the citizens of the
participating countries;
• establishment of strong and mutually
beneficial cooperation with other
international and regional organizations;
• Indochina and Southeast Asia in general are
one of the world leaders in AIDS patients and
AIDS. Therefore, solving this problem is
extremely urgent and important.
 Comparison of ASEAN member countries

An interesting feature of ASEAN is that the member

countries of this organization are very different in
many ways. By World Bank classification (GDP per
capita):

below average income - Cambodia, Myanmar, Laos,

Vietnam, Indonesia;
above average income - Philippines, Thailand;
high income - Brunei, Malaysia, Singapore.
ASEAN includes both new industrialized countries (Singapore -
"dragon", first wave; Philippines, Thailand, Indonesia,
Malaysia - "tigers", second wave), and developing countries
- creditor countries (Brunei) and debtor countries
(Cambodia, Myanmar, Laos, Vietnam).
The state structure and form of government of the country
are also very different:
socialist republics (Laos, Vietnam);
constitutional monarchies (Kingdom of Cambodia, Kingdom of
Thailand, Malaysia - Sultanate Federation);
absolute monarchy (Sultanate of Brunei);
republics (Indonesia, Philippines, Singapore, Myanmar -
Myanmar's military government is criticized for brutally
suppressing the opposition and violating human rights).
 ASEAN Office
The ASEAN supreme body is the Summit of Leaders
(Heads of State and Government) of the Member
States, which has been held annually since 2001. The
summit is usually held 3 days and is followed by
meetings with the organization's partners in the region.
The annual foreign ministerial meetings are the
governing and coordinating body, starting from the
period when the summits were held every three years
and the meetings of the foreign ministers a year earlier
to prepare for a future meeting. Meetings of Ministers
of Finance and periodically of Ministers of Economy
and Agriculture are also held annually, but their most
important decisions are subject to the approval of the
Foreign Ministers' Meeting.
 ASEAN External Activity

The Asean Regional Forum (ARF) was established in 1994 as part of

preventive diplomacy. Meetings are held annually in one of the
capitals of ASEAN member countries. The goals of ARF are:

1) promoting constructive dialogues and consultations on policy

and security;

2) building friendly relations and preventive diplomacy in the Asia

Pacific.

In addition to ASEAN member countries, Australia, Bangladesh, East

Timor, EU, India, Canada, DPRK, China, Mongolia, New Zealand,
Papua New Guinea, Pakistan, Republic of Korea, Russia, USA
participated in the last forum.
The ASEAN Dialogue Partnership System has provided the
basis for the creation of a 10 + 3 East Asian Association of
East Asia (China, Japan, Republic of Korea), formalized in
2000, which includes, for example, thirteen or 10 + 1
(ASEAN + 1 from triple) in parallel with the Asean summit
meetings. Close relations with China, Japan and Korea were
initiated by Malaysia, which wants to create a kind of trade
and economic bloc in the Pacific region of Asia.
Its creation would align the position of East
Asian countries in dialogue with such
regional associations as the EU and
NAFTA. Since 2002, separate ASEAN-India
summits have been held. In November
2004, the ASEAN-Australia-New Zealand
Summit was organized on a one-off basis
in Vientiane to mark the 30th anniversary
of the establishment of dialogue
between them.
To support international relations, ASEAN has
established committees consisting of heads of
diplomatic missions located in cities such as
Brussels, London, Paris, Washington, Tokyo,
Canberra, Ottawa, Wellington, Geneva, Seoul,
New Delhi, New York, Beijing, Moscow,
Islamabad. Unfortunately, there is no
representative office in Kiev, and Ukraine and
ASEAN do not support any relations.
The countries of the Association of Southeast Asian
Nations (ASEAN) are making a major contribution to
stabilizing the global economic environment after the
global crisis, due to the rapid recovery of their
economies. According to ITAR-TARS, Secretary
General of the Association Surin Pitswana said on the
results of the first day of work, the 16th ASEAN
Summit opened in Hanoi on Thursday.
This year, economic growth in ASEAN countries will be about 4.5-5%. These are
quite impressive figures compared to the fact that in some developed countries
the main economic indicators continue to remain with a minus sign, - he said.
"At the same time, emerging economies, especially in the ASEAN and East Asian
countries, are quite successfully rebuilding their position after the global crisis,
which will allow them to become a locomotive capable of pulling out the global
economy."
 :

Asia-Pacific
Economic
Cooperation
 АPЕС

It is a Pacific Coast Economic Forum, established

in 1989 to promote closer economic
cooperation and free trade in the countries of
the Asia-Pacific region.
APEC Member States
 21 country
• Australia Philippines Papua New
Brunei Japan Guinea
Indonesia Hong Kong, Chile
Canada China Vietnam
Malaysia People's Peru
New Zealand Republic of Russia
South Korea China
Singapore Republic of
USA China
Thailand Mexico
 HISTORY AND REASONS FOR
APEC CREATION

The intertwining of the contradictions and interests of the

countries of the Asia-Pacific region led to the emergence of an
organization that could regulate the situation in the Pacific Ocean.
This idea came up long and hard: different variants of its
implementation were offered, differing both in composition of
participants and in goals. The US based military and political
interests and proposed the creation of an Asia-Pacific version of
NATO; Japan developed the idea of organizing on an economic
basis.
Pacific Organizations, Pacific Free Trade Area, Pacific Ring Community are
some of the organization's suggested names. In 1967, the Pacific Economic
Council was formed, in 1968 the first Pacific Conference on Trade and
Development was held, and in 1980 the Pacific Economic Cooperation
Council was established. none of these organizations served as
coordinating regional economic structure. In 1989, at the initiative of
Australia and with the support of the leading economies of the region, a
qualitatively new organization was created, which was able to formulate
specific tasks and directions of the association's work through the
synthesis of various concepts - the Asia-Pacific Cooperation Forum.
 Principles of activity

• Equal partnership
• Propensity for open dialogue
• Mutual benefits of economic co-
operation with developing countries
 Main goals and objectives:

• Establishing an organization should promote

the growing economic interdependence of the
Asia-Pacific (ACP) countries in services, capital,
technology;
• strengthening the open multilateral trading
system;
• increasing the degree of trade and
investment liberalization in the Asia-
Pacific region;
• strengthening and stimulating private
sector development;
• using free market principles to maximize
the benefits of regional cooperation.
 The founding documents of APEC
• Declaration on the joint determination of APEC's
economic leaders
• A program of action to achieve the stated goals
• APEC Manila Action Plan
• APEC Declaration
• Criteria for State Participation in APEC
 The organizational structure
• Summits
Ministerial meetings
Meetings of senior officials
A group of prominent figures
Pacific Business Forum
Trade and Investment Committee
Budgetary and Administrative Committee
Working groups
Secretariat
Economic Committee
 APEC SECRETARIAT

Established in 1993, located in Singapore, it

is APEC's primary support mechanism,
formulates projects, is responsible for their
evaluation and funding, coordinates
actions, and performs information and
public functions on behalf of APEC.
 BUSINESS ADVISORY BOARD

Established in 1995, comprising no more than three

business representatives from each APEC member
country. At the annual summits of the Heads of
State and Government of the APEC countries, the
members of the council present a report containing
the results of discussions on specific issues of
regional business cooperation.
APEC heads alternately different member states

for a term of one year. The country's head is

responsible for organizing ministerial meetings

and summits of heads of state and government.

Dress code - national costumes of the
host country
At the Singapore Forum, a
meeting of the APEC
Business Summit was held to
discuss a number of issues
related to the crisis
phenomena in the APEC
countries.
APEC 2010 Summit
At the summit of 2010, the leaders of
APEC member states continued until
2013 the moratorium on protectionist
actions and agreed to abolish some of
the precautionary measures taken during
the crisis.
 THE SCALE OF THE APEC:
THE SHARE OF MEMBER STATES IS
40.5% OF THE PLANETARY
POPULATION,
54.2% OF GDP AND 43.7% OF
INTERNATIONAL TRADE.
OPEC countries
Business card of organization

The Organization of
the Petroleum
Exporting Countries
(OPEC) is an
international
intergovernmental
organization
It was founded on
September 10-14,
1960 at a conference
in Baghdad.
• Initially, OPEC
headquarters were
located in Geneva

• Since September 1,
1965 the
organization has
been located in
Vienna
 Coordination and
unification of Member
States' oil policies

Identify the most effective

means of protecting the
interests of OPEC participating
countries

Objectives of Ensuring price stability in world

oil markets, preventing their
OPEC fluctuations

Attention to the interests of

oil producing countries

Attention to the interests of oil

producing countries
OPEC Member States in 2014
Iran
Iraq
Kuwait
Saudi Arabia
Venezuela
Qatar
Libya
United Arab Emirates
Algeria
Nigeria
Ecuador
Angola
 OPEC structure
conference
(Held twice a year,
develops a common
concept of activity)

Board of Governors
(Manages organization
between sessions;
executes conference
decisions)

Secretariat Committees Commissions

(Executive authority)
 OPEC structure.
Categories of Member States
Founding States
(Those who signed an agreement to
establish an organization in Baghdad in
1960: Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela)

Full members
(The above five countries plus Qatar,
Libya, UAE, Algeria, Nigeria, Ecuador,
Angola)

Associate members
(They do not have full membership, but in
certain circumstances may participate in
the OPEC conference)
OPEC membership

• OPEC members can

only become
countries with large
scale exports of
crude oil
• Admission to OPEC
membership
requires the
approval of 3/4 of
the founding
members and full
members
The largest exporters of oil

Саудовская
Аравия
17%
The rest
33% Норвегия
7%

Россия
7%

Mexico Иран
4% 6%
UAE Венесуэла
5% 6%
Nigeria Great Britain Iraq
5% 5% 5%
OPEC Observer Countries

• Russia (observer
and participant of
OPEC Conferences
since 1998)
• Mexico
• Egypt
• Angola
• Oman
Oil production and export
quotas

All members of the

organization, except
Iraq, are bound by
quotas for oil
production
Квоти на видобуток і експорт
нафти

В даний час на частку

країн-членів ОПЕК
припадає: понад 80%
світових достовірних
запасів нафти, 40%
світового
виробництва і більше
60% світового
експорту сирої нафти
OPEC Oil Basket Composition in
2009
• The oil basket is a
Country Brand of oil conditional concept
Saudi Arabia Arab Light introduced by the OPEC
international oil cartel to
Iraq Basra Light calculate the average price
for crude oil. The oil
Nigeria Bonny Light basket consists of a
Libya Es Sider conditional mixture of oil
of all brands produced by
Iran Iran Heavy the cartel member
Kuwait Kuwait Export countries.
Since January 2009,
Venezuela Merey OPEC's "basket" is
UAE Murban represented by 12 oil
brands by the number of
Ecuador Oriente member countries of this
Qatar Qutar Marine organization.
Algeria Saharan Blend
 Average OPEC Basket Prices
(USD)

120
108110106106

100 95

78
Price of 1 barrel in USD

80
69
61 61
60
51

40 36
28 28
24
23
20 19
20 16 17 17
12

0
1990 1995 2000 2005 2010 2015
History of OPEC development
and activity in 1960s

The organization was founded in September 1960 on the

initiative of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
Founded after the Seven Sisters cartel, which included
Exxon, Royal Dutch Shell, Texaco, Chevron, Mobil, Gulf Oil
and British Petroleum, lowered oil prices.
The purpose of OPEC is to control its resources and their
exploitation in the light of national interests; preventing
world market prices from falling.
The number of OPEC member countries has doubled since
the accession of Qatar (1961), Indonesia (1962), Libya
(1962), United Arab Emirates (1967), Algeria (1969).
History of OPEC development and
activity of 1970s

1973 - In the war between Egypt and Syria against Israel, the Western
world and the United States support the Israeli side. In response,
OPEC announced the first embargo that limits oil exports to Western
Europe and the United States. This was the cause of the world's first
ever oil crisis.
1974 - Oil prices jumped 130% to $ 7 a barrel.
1979 Oil price $ 18 per barrel.
The mid-70s - the "golden age" of OPEC.
By 1975, the number of OPEC member countries had grown to 13 at
the expense of Nigeria (1971), Ecuador (1973) and Gabon (1975).
History of OPEC development
and activity in 1980s

The West is establishing ties with the USSR, which is increasing

its oil supply. International oil companies have shifted their
focus to such important oil areas as the North Sea and the Gulf
of Mexico. The embargo contributed to the beginning of the
development of a giant field in Alaska.
OPEC's positions were weakened. In the 1980s, the price of oil
continued to decline. If in 1981 it reached $ 40 a barrel, then
in 1986 it came close to $ 10 a barrel
Cooperation with non-OPEC countries has been established.
History of OPEC development
and activity in 1990s
1990-1991 - Iraqi President Saddam Hussein calls on OPEC
to raise the sale price, which triggered the Persian Gulf War.
The invasion of Iraq in Kuwait and the Persian crisis that
followed deprived OPEC of its unity and affected oil prices,
which rose to $ 30 a barrel. As soon as the fear of oil
shortages caused by these military conflicts dissipated,
prices went down.
In 1998, OPEC countries lifted all restrictions on production
and exports, which did not slow to affect the state of the
markets - prices again fell below $ 10 per barrel.

OPEC Change: Gabon quit OPEC (1994), Ecuador ceased

membership of the organization in 1992, but returned in
2007. In 1998, Russia became an observer in OPEC.
History of OPEC development
and activity in 2000s

In the first years of the decade, OPEC's innovative price

mechanism helped to strengthen and stabilize oil prices.
In 2004, there is an increase in prices. Prices soar to a
record high in mid-2008, before falling amid the global
financial crisis and economic downturn.
OPEC is becoming a well-known organization in support
of the oil sector in the fight against the economic crisis.
In 2007, Angola joined OPEC, and in 2009 Indonesia
suspended its membership of the organization. Currently,
OPEC has 12 members. In 2008, Russia declared its
readiness to become a permanent observer in OPEC.
OPEC problem: uniting countries with
opposite interests
Saudi Arabia and other
countries in the
Arabian Peninsula are
low-population but
have huge oil reserves,
large investments from
abroad and have a very
close relationship with
the Seven Sisters
OPEC problem: uniting countries with
opposite interests
Nigeria is characterized
by high population and
poverty. This poor
country is
implementing costly
economic
development programs
and has huge debt.
Nigeria has to produce
and sell as much oil as
possible.
 OPEC problem: unstable
political situation in many
member countries
OPEC Issue: Unstable
political environment
in many member
countries
OPEC Issue: Unstable political
environment in many member
countries
Civil war in Libya
disrupts normal
operation in the
country's oil and gas
fields
OPEC Issue: Unstable political
environment in many member
countries
According to the UN,
April 2013 broke
records for the number
of people killed and
injured in Iraq over the
past 5 years.
OPEC and Russia
• Since 1998, Russia has
been an OPEC observer.
She participates in OPEC
sessions, expert
meetings and other
activities of the
organization with
representatives of non-
member countries.
• Russia is the initiator of
the regular Russia-OPEC
Energy Dialogue.
OPEC Conference November 27, 2014

OPEC has not changed its quotas for oil production,

leaving them at the previous level of 30 million barrels
per day.
Kuwait and Saudi Arabia were pleased with the cartel.
Qatar and the UAE also spoke in favor.
Smaller producers - Venezuela, Ecuador, Nigeria, Angola,
Algeria, Libya, Iran and Iraq - wanted to reduce
production and raise oil prices. But they did not hear.
The next OPEC conference will be held on June 5, 2015.
OPEC hopes that in 2015, the demand for oil will grow.
December 15, 2014
• Brent crude fell below $ 60 a
barrel
• The Russian currency
continues to fall in price: the
dollar costs almost 67 rubles,
the euro - more expensive 85
rubles
• December 14, 2014 UAE Oil
Industry Minister Suhail al-
Mazrui said OPEC does not
intend to reduce oil
production
• According to Russian experts,
the rise in the dollar can only
be broken now by "massive
unpredictable interventions"
or the growth of oil quotes