The three-day Association of Southeast Asian Nations (ASEAN) meeting in Thailand, which concludes today, is likely to leave mixed feelings among some of the 10 member nations. There has been agreement to establish a human rights watchdog, but the summit stopped short of criticizing the military junta in Myanmar with its abysmal human rights record. It did, however, urge the Myanmar regime to hold free and fair elections next year.
The ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. There has, however, been further accord on the long-debated vision of establishing an ASEAN common market, an Asian free trade area modeled in part on the original European Economic Community. Thus far the implementation of the limited trade and commerce agreements within ASEAN has been patchy. Malaysia has, for instance, implemented an open skies agreement but some other countries, anxious to protect their national carriers have been dragging their heels.
But big trees from little acorns grow. If ASEAN countries really do recognize the advantages of a properly functioning free trade area and are prepared to avoid protectionism toward inefficient sectors of their own economies, then the economic bloc could assume a powerful position in international trade. The harsh truth is that the Asian Tigers have not fulfilled their early promise. Though the transformation in some more forward-thinking states, such as Malaysia and Singapore, has been remarkable, other members, such as the Philippines have wallowed economically. If an ASEAN free trade area can be made to function strongly, then laggards like the Philippines and Laos and Cambodia can expect to benefit economically in the same way that Portugal, Spain and Greece have boomed since joining the EU.
ASEAN countries have to look to compete on as equal terms as possible with the rising economic dominance of India and China. A standardization of commercial regulation and the bringing of legal codes into line is a prerequisite for a strong internal market. This financial system needs to work efficiently across ASEAN borders so that capital is available to flow to the most productive opportunities. Concessionary funding can additionally be extended to struggling or emerging sectors in any of the 10 member countries. A strong economic bloc will be able to cut far more beneficial bilateral deals with India, China and Japan, to say nothing of the United States and the EU.
What is clearly not on the cards, and wisely so, is any thought whatsoever of political union. No such vision exists in part because ASEAN is not defined by the same notional borders as continental Europe. The essence is for these countries to pool their resources and talents and work coherently toward clearly achievable aim of close economic cooperation, which in time will lead to some form of economic union. There are, however, mountains to climb before that. What ASEAN leaders have to do now is set about building a level playing field so they have successes to applaud when they meet next year.
