What
are the benefits of forging ASEAN Economic Community 2015?
The
Association of Southeast Asian Nations (ASEAN) is an
inter-governmental organization represented by the Heads of State or
Government of Brunei Darussalam, the Kingdom of Cambodia, the
Republic of Indonesia, the Lao People’s Democratic Republic,
Malaysia, the Union of Myanmar, the Republic of the Philippines, the
Republic of Singapore, the Kingdom of Thailand and the Socialist
Republic of Viet Nam. Thus, ASEAN was established with the following
specific aims and purposes: (a) economic growth, social progress, and
cultural development in the region through joint endeavor in the
spirit of equality and partnership, (b) respect for the rule of law,
(c) active collaboration and mutual assistance on matters of common
interest in the economic, social, cultural, technical, scientific,
and administrative fields, (d) assistance to each other in the forms
of training and research facilities in the educational, professional,
technical, and administrative spheres, (e) collaboration in
agriculture, industries, expansion of trade, transport and
communication facilities, and raising the standard of living of the
people, (f) promotion of Southeast Asian Studies, and (g) beneficial
cooperation with the existing international and regional organization
with similar aims and purposes. Article 9 of the ASEAN Charter states
the ASEAN Community Councils. The ASEAN Community Councils is
comprised of the ASEAN Political-Security Community Council, ASEAN
Economic Community Council, and ASEAN Socio-Cultural Community
Council. It is under the ASEAN Economic Community Council that takes
the lead of forging of the ASEAN Economic Community 2015.
There
are certain benefits of forging the ASEAN Economic Community 2015.
First, there is cooperation in Industrial Development (IC) which is
based on the principles of resource pooling and market sharing that
facilitates effective exploitation of economies of scale and the
region’s complementary location advantages. Second, there is
cooperation in the ASEAN Free Trade Area which enhances ASEAN’s
position as a competitive production base to service the global
market. This can be achieved through increased intra-ASEAN trade,
greater specialization, economies of scale, and increased foreign
direct investments which should be attracted to a new single ASEAN
market. Third, ASEAN finance cooperation provides a framework for
enhanced cooperation in banking, financial, and capital markets
development, customs matters, insurance matters, taxation, monetary
policy cooperation, and human resource development in the area of
finance. This also stipulates joint efforts in anti-smuggling and
customs control activities, mutual technical assistance, customs
modernization, and upgrading customs skills for present and future
challenges. Fourth, there is a common ASEAN position in the reform of
the international financial architecture which the global effort to
resolve the current crisis must recognize the diverse circumstances
and priorities of individual economies at different stages of
development. Fifth, there is cooperation in investment which helps
ASEAN attract more foreign Direct Investment. Finally, there is
cooperation in food, agriculture, and forestry which improve the
competitiveness of ASEAN agriculture and forestry products. This will
be reviewed for a more dynamic food security arrangement to enhance
intra-ASEAN trade and promote food production under the principle of
comparative advantage.
In 1999, the economic situation in ASEAN had improved
considerably since the financial crisis of 1997. Although the pace of
recovery had been uneven, depending on the reforms of each member
state, there were forecasts for economic growth. And with the aid of
the ASEAN Economic Community 2015 enhance the positive indicators
such as the return of stability in the foreign exchange markets,
rising current accounts surplus and reserves, decline in interest
rates, easing of inflationary measure, recovery in stock markets,
improvement in consumer sentiment, and leveling off in the
contradiction of industrial production.
