Tue, 14 Dec 2004

ASEAN community and people of Southeast Asia

Alexander C. Chandra, Jakarta

The Association of Southeast Asian Nations (ASEAN) has gradually deepened its integration schemes over the 37 years of its existence. During the early phase of its integration schemes, during the 1970s, ASEAN introduced the ASEAN Preferential Trade Agreements (ASEAN-PTA), ASEAN Industrial Joint Ventures (AIJV), the ASEAN Industrial Projects (AIPs), and ASEAN Industrial Complementation (AIC).

It was only during the early 1990s that ASEAN leaders began to realize the importance of establishing the ASEAN Free Trade Area (AFTA), with the objective of increasing the competitiveness of ASEAN industries at the international level and to make ASEAN an investment location. The Association's integration scheme was once again strengthened with the introduction of the Bali Concord of 2003, which called for the establishment of the ASEAN Community (AC) by 2020. Despite aggressive attempts to promote integration within the region, these initiatives are still characterised by exclusivity, and do not necessarily represent the actual needs of the Southeast Asian people.

However, the creation of the AC also signifies the exclusivity of foreign economic policy-makers in the Southeast Asian region. It remains questionable if this initiative truly reflects the needs and interests of the Southeast Asian people.

To date, it is probably an exaggeration to suggest that there is widespread support in the region for the creation of this Community. The association and its activities remain quite distant for most Southeast Asian people. ASEAN's integration projects have so far been the initiatives of regional state actors, and have never consulted with the people of Southeast Asia.

Overall, ASEAN's initiative to more deeply integrate the various communities of the Southeast Asian region is a positive project that has to be supported. Unfortunately, the people of Southeast Asia have never been consulted during the decision- making processes of the ASEAN Community. Governments in the region tend to listen only to the concerns made by certain sections of their society, particularly economic actors. What is worse, there is a tendency for regional governments to only consult with the larger economic players.

As a result, most economic integration initiatives have been reflections of the needs and interests of large economic actors, such as transnational corporations (TNCs). This is also one of the reasons why many of ASEAN's well-defined initiatives for deeper integration in the region are becoming increasingly irrelevant for the people of Southeast Asia.

Take the example of the current regional economic integration initiative, the ASEAN Free Trade Area (AFTA). It is still highly questionable to what extent Southeast Asian people actually know and understand this integration concept, or the supposed benefits of regional economic integration. Even for those involved in economic activity, AFTA is still a very abstract concept.

In Indonesia, for example, many small and medium sized businesses are still confronted with difficulties in getting involved in this trade arrangement. The overall benefits of AFTA are still hardly felt by these economic actors, much less the wider community.

No doubt, the strengthening of ASEAN regionalism through the establishment of AC is a good concept that could help political and economic stability in the region. It is also possible that the creation of the ASEAN Community will produce a stronger regional institution.

But it is also very important that this new, and stronger, regional institution have more specific objectives in order to promote positive regionalism. This means a regional project that supports openness and transparency, democracy, and is not solely based on the issue of trade liberalization. Most importantly, this regional grouping must be fully supported by its own people.

Throughout its existence, ASEAN has made much progress in terms of its integration projects. The development of ASEAN co- operation, however, should be accompanied by much wiser policy- making processes. The policies pursued by ASEAN should reflect the needs and interests of its people, not merely the interests of politicians and larger economic actors. Although the AC is generally a very positive concept that must be pursued, it is imperative that the regional institution and member governments concerned consult their people prior to pursuing this ambitious regional project.

The writer is a researcher of the Institute for Global Justice (IGJ). He can be reached at alex@globaljust.org.