INDEX:

SR.NO TOPIC
1
HISTORY
2
INTRODUCTION
3
ASEAN WAY
4
ECONOMIC COMMUNITY
5
PECULIARITIES OF ASEAN
6
OBJECTIVES
7
PRINCIPLES
8
ACHIEVEMENTS
9
PROBLEMS & CHALLENGES
10
RECENT DEVELOPMENTS
11
CHARTER
12
PROBLEMS & PROSPECTS
13
CONCLUSION
14
BIBLIOGRAPHY
THE ASSOCIATION OF SOUTH EAST ASIAN NATIONA
(ASEAN) : PROBLEMS & PROSPECTS.

HISTORY:

ASEAN was preceded by an Organization called the Association of Southeast Asia, commonly
called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in
1961. The bloc itself, however, was established on 8 August 1967, when foreign ministers of
five countries Indonesia, Malaysia, the Philippines, Singapore, and Thailand met at the
Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration,
more commonly known as the Bangkok Declaration. The five foreign ministers Adam-Malik
of Indonesia, Narisco Ramos of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of
Singapore, and Thanat Khoman of Thailand are considered the organisation's Founding
Fathers.
The motivations for the birth of ASEAN were so that its members governing elite could
concentrate on nation building, the common fear of communism, reduced faith in or mistrust of
external powers in the 1960s, and a desire for economic development.
The bloc grew when Brunei Darussalam became the sixth member on 8 January 1984, barely a
week after gaining independence on 1 January

On 28 July 1995, Vietnam became the seventh member. Laos and Myanmar (Burma) joined two
years later on 23 July 1997
.
Cambodia was to have joined together with Laos and Burma, but was
deferred due to the country's internal political struggle. The country later joined on 30 April
1999, following the stabilisation of its government.
During the 1990s, the bloc experienced an increase in both membership and drive for further
integration. In 1990, Malaysia proposed the creation of an East Asia Economic Caucus

comprising the then members of ASEAN as well as the People's Republic of China, Japan, and
South Korea, with the intention of counterbalancing the growing influence of the United States
in the Asia-Pacific Economic Cooperation (APEC) and in the Asian region as a whole. This
proposal failed, however, because of heavy opposition from the United States and Japan. Despite
this failure, member states continued to work for further integration and ASEAN plus Three was
created in 1997.
In 1992, the Common Effective Preferential Tariff (CEPT) scheme was signed as a schedule for
phasing tariffs and as a goal to increase the regions competitive advantage as a production base
geared for the world market. This law would act as the framework for the ASEAN Free Trade
Area. After the East Asian Financial Crisis of 1997, a revival of the Malaysian proposal was
established in Chiang Mai, known as the Chiang Mai Initiative, which calls for better integration
between the economies of ASEAN as well as the ASEAN Plus Three countries (China, Japan,
and South Korea).


INTRODUCTION:
The Association of Southeast Asian Nations (ASEAssssN /si.n/ AH-see-ahn,/zi.n/ AH-
zee-ahn)is a geo-political and economic ssssorganisation of ten countries located in Southeast
Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore
and Thailand.
[9]
Since then, membership has expanded to include Brunei, Burma (Myanmar),
Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress,
cultural development among its members, protection of regional peace and stability, and
opportunities for member countries to discuss differences peacefully.
ASEAN covers a land area of 4.46 million km, which is 3% of the total land area of Earth, and
has a population of approximately 600 million people, which is 8.8% of the world's population.
The sea area of ASEAN is about three times larger than its land counterpart. In 2011, its
combined nominal GDP had grown to more than US$ 2 trillion.

If ASEAN were a single entity,
it would rank as the eighth largest economy in the world.


The ASEAN WAY:
Since the post-independence phases of Southeast Asian states, efforts were made to implement
regional foreign policies, but with a unifying focus to refrain from interference in domestic
affairs of member states.
There was a move to unify the region under what was called the ASEAN Way based on the
ideals of non-interference, informality, minimal institutionalisation, consultation and consensus,
non-use of force and non-confrontation. ASEAN members (especially Singapore) approved of
the term ASEAN Way to describe a regional method of multilateralism.
Thus the signing of the Treaty of Amity and Cooperation in Southeast Asia adopted fundamental
principles:
Mutual respect for the independence, sovereignty, equality, territorial integrity, and
national identity of all nations
The right of every State to lead its national existence free from external interference,
subversion or coercion
Non-interference in internal affairs
Settlement of differences or disputes in a peaceful manner
Renunciation of the threat or use of force
Effective regional cooperation


The ASEAN way is said to contribute durability and longevity within the organisation, by
promoting regional identity and enhancing a spirit of mutual confidence and cooperation.
ASEAN agreements are negotiated in a close, interpersonal process. The process of consultations
and consensus is designed to engender a democratic approach to decision making. These leaders
are wary of any effort to legitimise efforts to undermine their nation or contain regional co-
operation.
The ASEAN way can be seen as divergent from the contextual contemporary political reality at
the formative stages of the association. A critical distinction is made by Amitav Acharya, that
the ASEAN Way indicates a process of regional interactions and cooperation based on
discreteness, informality, consensus building and non-confrontational bargaining styles that
contrasts with the adversarial posturing, majority vote and other legalistic decision-making
procedures in Western multilateral organizations".
ASEAN Way serves as the major stumbling-block to it becoming a true diplomacy mechanism.
Due to the consensus-based approach every member has a veto, so contentious issues must
remain unresolved until agreements can be reached. Moreover, it is claimed that member nations
are directly and indirectly advocating that ASEAN be more flexible and allow discourse on
internal affairs of member countries.
The ASEAN Regional Forum (ARF) is a formal, official, multilateral dialogue in Asia Pacific
region. As of July 2007, it is consisted of 27 participants. ARF objectives are to foster dialogue
and consultation, and promote confidence-building and preventive diplomacy in the region.

ECONOMIC COMMUNITY:
ASEAN has emphasized regional cooperation in the three pillars, which are security,
sociocultural integration, and economic integration. The regional grouping has made the most
progress in economic integration by creating an ASEAN Economic Community (AEC) by
2015.The average economic growths of ASEAN's member nations during 19892009 was
Singapore with 6.73 percent, Malaysia with 6.15 percent, Indonesia with 5.16 percent, Thailand
with 5.02 percent, and the Philippines with 3.79 percent. This economic growth was greater than
the average Asia-Pacific Economic Cooperation (APEC) economic growth, which was 2.83
percent.
The next step is ASEAN Economic Community (AEC) with main objectives is to create a:
single market and production base
highly competitive economic region
region of equitable economic development
region fully integrated into the global economy
A Common Effective Preferential Tariff (CEPT) scheme to promote the free flow of goods
within ASEAN lead to the ASEAN Free Trade Area (AFTA). The AFTA is an agreement by the
member nations of ASEAN concerning local manufacturing in all ASEAN countries. The AFTA
agreement was signed on 28 January 1992 in Singapore.
Since 2007, the ASEAN countries gradually lower their import duties among them and targeted
will be zero for most of the import duties at 2015.

COMPREHENSIVE INVESTEMNT AREA:
The ASEAN Comprehensive Investment Area (ACIA) will encourage the free flow of
investment within ASEAN. The main principles of the ACIA are as follows
.

All industries are to be opened up for investment, with exclusions to be phased out
according to schedules
National treatment is granted immediately to ASEAN investors with few exclusions
Elimination of investment impediments
Streamlining of investment process and procedures
Enhancing transparency
Undertaking investment facilitation measures
Full realisation of the ACIA with the removal of temporary exclusion lists in manufacturing
agriculture, fisheries, forestry and mining is scheduled by 2010 for most ASEAN members and
by 2015 for the CLMV (Cambodia, Lao PDR, Burma, and Vietnam) countries.
An ASEAN Framework Agreement on Trade in Services was adopted at the ASEAN Summit in
Bangkok in December 1995. Under AFAS, ASEAN Member States enter into successive rounds
of negotiations to liberalize trade in services with the aim of submitting increasingly higher
levels of commitments. The negotiations result in commitments that are set forth in schedules of
specific commitments annexed to the Framework Agreement. These schedules are often referred
to as packages of services commitments. At present, ASEAN has concluded seven packages of
commitments under AFAS.

PECULIARITIES OF ASEAN:
ASEAN does not function as a regional trade arrangement, but it has become an effective means
for Cooperation in economic matters and foreign affairs with Organization for Economic
Cooperation and development (OECD).
There are significant political and religious differences among the countries for example
Democracy is well established in the Philippines, Burma (now Myanmar) still continues with its
military dictatorship. The regions are also varied, consisting of Islam, Buddhism, Christianity
and animism. In addition, several countries have a less homogenous population.
Despite their political, economic and cultural diversity the countries are recognize their mutual
needs to promote the regions development and thus respect each others independence in
internal politics.

Diverse cultures: Muslim, Buddhist, Christian, Confucian
Divergent colonial history:
British (Malaysia, Singapore, Myanmar)
Dutch (Indonesia)
French (Vietnam, Cambodia, Laos)
Spanish/American (Philippines)
Portuguese (East Timor)
Different Political systems:
Military Myanmar), communist (Vietnam< Laos), soft-authoritarian (Malaysia
and Singapore), stable democracy (Indonesia), unstable democracy (Thailand and
Philippines
Parliamentary democracy, president democracy.
OBJECTIVES OF ASEAN:
The ASEAN declaration in Bangkok on 8 August 1967 stated the following aims
and Objectives of ASEAN.
1} To accelerate economic growth, social progress and cultural development in the region in
order to strengthen the foundation for a prosperous and peaceful community in Asia.
2} To promote regional peace and stability in the region.
FUNDAMENTAL PRINCIPLES:
At the first Asian Summit in Bali in February 1976, the member countries signed the Treaty of
Amity and spelled following fundamental principles of ASEAN.
1) Mutual respect for the independence, sovereignty, equality, territorial integrity and
national identify of all nations,
2) The right of every state to lead its national existence free from from external interference,
subversion or coercion.
3) Non interference in the internal affairs of one another.
4) Settlement of differences or disputes by peaceful means.
5) Renunciation of the threat or use of force.
6) Effective co-operation among themselves.
STRUCTURE AND ORGANISATION:
The highest decision-making organ of ASEAN is the meeting of the ASEAN Heads of State
and governments. The ASEAN summit takes place every year. Ministerial meetings on
several sectors such as economy energy environment etc, are also held. To support these
ministerial bodies there are 29 committees of senior officials and 122 technical working
groups. The secretary, General of ASEAN is appointed on merit and accorded ministerial
status for five years. ASEAN also consists of other specialized bodies such as ASEAN
University Network, ASEAN centre for Energy etc.

ACHIEVEMENTS ASEAN:
Political co-operation: The ASEAN security community is formed to bring ASEANS
political and security co-operation to a higher plane to ensure that countries in the region
live at peace. At the 1992 Singapore summit, the SEAN leaders declared that ASEAN will
move towards a higher plan of political co-operation to secure regional peace and
prosperity.
ECONOMIC CO-OPERATION: When ASEAN was established, trade among the
member countries was insignificant. To tackle this, the preferential Trading Agreement
(PTA) was established in 1977 and further, ASEAN Free Trade Area (AFTA) was launched
in 1992. The elimination of tariffs and non-tariff barriers among the member countries
promoted greater economic efficiency productivity and competitiveness. In 14997 the
ASEAN Leaders adopted the ASEAN vision 2020, which aimed at creating a stable,
prosperous and highly competitive ASEAN Economic Region in which there is free of
goods, service, investments, capital etc.
OTHER ACHIEVEMNTS:
1} No major conflict among members since founding.
2} Inclusive membership: Vietnam joining in 1995 key development
3} Key role in the resolution of Cambodia conflict
4} Engaging all the major powers of the world- China, Us, Japan, India, Russia, EU)
through dialogue and cooperation.
PROBLEMS:
Economic Cooperation: intra-ASEAN trade still around 25% of total trade,
mechanisms for financial crisis untested.
Persisting Intra-ASEAN conflicts: Thailand-Cambodia, Singapore-Malaysia, Marine
disputes
South China Sea Dispute: China, Vietnam, Philippines, Malaysia, Brunei, and
Taiwan
Transnational Threats: Environmental degradation, Deforestation and haze problem,
Piracy, Terrorism, Drug trafficking, People smuggling, Natural disasters.
CHALLENGES:
Rise of China and India, a multipolar world
Increasing burden: scope of issues, and membership, and partnerships
Sovereignty and non-Interference in an age of globalization and transnational
challenges
Compliance with new rules and the Charter: National interest version regional
interest
ASEANS unity and cohesion.




Intra-ASEAN travel:
With free visa among ASEAN countries, a huge intra-ASEAN travel occurred and on the right
track to establish an ASEAN Community in the years to come. In 2010, 47 percent or 34 million
from 73 million tourists were intra-ASEAN travel.
Intra-ASEAN trade:
Until end of 2010, Intra-Asian trade were still low which mainly of them were mostly exporting
to countries outside the region, except Laos and Myanmar were ASEAN-oriented in foreign
trade with 80 percent and 50 percent respectively of their exports went to other ASEAN
countries.

RECENT DEVELOPMENTS:
Community-Building (Bali Concord II-2003)
ASEAN Economic Community (Free Trade and customs Union, investment area)
ASEAN Political-Security Community (Conflict resolution, cooperation against
common challenges such as terrorism, piracy, disaster management, etc)
ASEAN charter (2008)- legal personality, consolidation of treaties and agreements,
compliance enforcement
East Asian summit (2005). New regional architecture; Now includes us and Russia
ASEAN Media Cooperation:
The ASEAN Media Cooperation (AMC) set digital television standards, policies and create in
preparation for broadcasters to transition from analogue to digital broadcasting, better promote
media collaboration and information exchange to enhance voice, understanding, and perspective
between ASEAN peoples on the international stage.
The ASEAN member countries aim media sector towards digitalisation and further regional
media coaction. AMC establishes partnerships between ASEAN news media, and cooperate on
information sharing, photo swapping, technical cooperation, exchange programmes, and
facilitating joint news coverage and exchange of news footage.



CHARTER:
On 15 December 2008, the members of ASEAN met in the Indonesian capital of Jakarta to
launch a charter, signed in November 2007, with the aim of moving closer to "an EU-style
community". The charter turns ASEAN into a legal entity and aims to create a single free-trade
area for the region encompassing 500 million people. President of Indonesia Susilo Bambang
Yudhoyono stated that "This is a momentous development when ASEAN is consolidating,
integrating and transforming itself into a community. It is achieved while ASEAN seeks a more
vigorous role in Asian and global affairs at a time when the international system is experiencing
a seismic shift", he added, referring to climate change and economic upheaval, and concluded
"Southeast Asia is no longer the bitterly divided, war-torn region it was in the 1960s and 1970s".
The fundamental principles include:
a) Respect for the independence, sovereignty, equality, territorial integrity and national identity
of all ASEAN Member States.
b) Shared commitment and collective responsibility in enhancing regional peace, security and
prosperity.
c) Renunciation of aggression and of the threat or use of force or other actions in any manner
inconsistent with international law.
d) Reliance on peaceful settlement of disputes.
e) Non-interference in the internal affairs of ASEAN Member States.
f) Respect for the right of every Member State to lead its national existence free from external
interference, subversion and coercion.
g) Enhanced consultations on matters seriously affecting the common interest of ASEAN.
h) Adherence to the rule of law, good governance, the principles of democracy and constitutional
government.
i) Respect for fundamental freedoms, the promotion and protection of human rights, and the
promotion of social justice.
j) Upholding the United Nations Charter and international law, including international
humanitarian law, subscribed to by ASEAN Member States.
k) Abstention from participation in any policy or activity, including the use of its territory,
pursued by an ASEAN Member State or non-ASEAN State or any non-State actor, which
threatens the sovereignty, territorial integrity or political and economic stability of ASEAN
Member States.
l) Respect for the different cultures, languages and religions of the peoples of ASEAN, while
emphasizing their common values in the spirit of unity in diversity.
m) The centrality of ASEAN in external political, economic, social and cultural relations while
remaining actively engaged, outward-looking, inclusive and non-discriminatory.


ASEAN Media Cooperation:
The ASEAN Media Cooperation (AMC) set digital television standards, policies and create in
preparation for broadcasters to transition from analogue to digital broadcasting, better promote
media collaboration and information exchange to enhance voice, understanding, and perspective
between ASEAN peoples on the international stage.
The ASEAN member countries aim media sector towards digitalization and further regional
media coaction. AMC establishes partnerships between ASEAN news media, and cooperate on
information sharing, photo swapping, technical cooperation, exchange programmes, and
facilitating joint news coverage and exchange of news footage.
The concept was stressed during the 11th AMRI Conference
.
Adopting the theme: Media
Connecting Peoples and Bridging Cultures towards One ASEAN Nation. ASEAN Ministers
believed that the new and traditional media are important mediums to connect ASEAN people
and bridging the cultural gap.
Accessing information towards the goal of creating a One ASEAN nation requires participation
among the nation members and its citizens. During the 18th ASEAN Summi. In May 2011, the
Chair stated the important role of a participatory approach among people and stakeholders of
ASEAN towards a people-oriented, people centred and rule-based ASEAN.




Several key initiatives that were initiated under the AMC:
ASEAN Media Portal, The new ASEAN Media PortaL was launched 16 November 2007
by the ASEAN Secretary-General, Mr Ong Keng Yong, and witnessed by Singapores
Minister for Information, Communications and the Arts, Dr Lee Boon Yang. The said
portal aims to provide a one-stop site that contains documentaries, games, music videos,
and multimedia clips on the culture, arts and heritage of the ASEAN countries to
showcase the rich ASEAN culture and the capabilities of its media industry.
ASEAN NewsMaker Project, an initiative launched in 2009 that trains students and
teachers to produce informational video clips about the lifestyle in their country. The
project was initiated by Singapore to work closely with 500 primary and secondary
students, aging from 9 to 16 years old, along with their mentors from the 10 ASEAN
countries to produce informative videos promoting their respective countrys culture.
Students underwent training for the NewsMaker software use, video production and
responsible internet use and hope to develop the language skills and story narration
among the said students. Engaging the youth using new media is an approach to create a
One Asean Community as stressed by Dr Soeung Rathchavy, Deputy Secretary-General
of ASEAN for ASEAN Socio-Cultural Community: Raising ASEAN awareness
amongst the youth is part and parcel of our efforts to build the ASEAN Community by
2015. Using ICT and the media, our youths in the region will get to know ASEAN better,
deepening their understanding and appreciation of the cultures, social traditions and
values in ASEAN.
ASEAN Digital Broadcasting Meeting, an annual forum for ASEAN members to set
digital television standards and policies, and to discuss progress in the implementation of
the blueprint to switchover from analogue to digital TV broadcasting by 2020. During the
11th ASEAN Digital Broadcasting Meeting, members updated the status on DTV
implementation and agreed to inform ASEAN members on the Guidelines for ASEAN
Digital Switchover.
]
An issue was raised on the availability and affordability of Set Top
Boxes (STB), thus ASEAN members were asked to make policies to determine funding
for the STB, methods of allocation, subsidies and rebates and other methods for the
allocation of STB. It was also agreed in the meeting to form a task force to develop STB
specifications for DVB-T2 to ensure efficiency.
ASEANs Next Top Chef and the Legend of the Golden Talisman, two interactive games
developed to raise awareness about ASEAN, and its people, places and cultures.


Politics and Security in Southeast Asia: Prospects for
India-ASEAN Cooperation:

India needs to reformulate its regional cooperation policies in order to strengthen its
engagement with the Association of Southeast Asian Nations (ASEAN) and the general
region. This International Studies paper examines political and security issues in
Southeast Asia and possible policy approaches India might adopt to improve its
regional ties. With enhanced interaction at both security and economic levels, India and
ASEAN can provide a strong anchor for a region witnessing rapid and fundamental
change.
The concept of security in Southeast Asian differs from the traditional western view
that security is essentially state-centric and relies on military capacity to protect the
nation from external threat. The Southeast Asian approach has historically been more
inclusive and holistic.
From its inception, ASEAN has emphasized the concept of comprehensive security. Its
member nations generally agree on the need to address domestic security challenges,
ethnic tensions and economic and social disparities within the larger security
imperative. This comprehensive approach has been further enhanced by the view that
inclusive regionalism and multilateralism are complementary approaches to managing
security.

However, the following key issues challenge the entire security approach of the
region and have a strong impact on Indias relations with ASEAN and its
members:
Two divergent views on globalization have emerged within ASEAN. One argues
that globalization would lead to greater integration with the west. The other argues
that uneven globalization benefits can lead to more disparities among nations.
Despite ASEAN concerns about Indias recent military build-up, India signed the
Treaty of Amity and Cooperation (TAC) and endorsed the Southeast Asia Nuclear
Weapons Free Zone concept.
Expansion of TAC to include countries such as India indicates the regions
willingness to enlarge the institutional framework for security. ASEAN would like
to use India as a counterweight in its relations with China.
Southeast Asian democratization processes have not resulted in institutionalization
of democratic structures. The war against terror emphasizes regime consolidation;
groups hoping for political freedom have come into conflict with the ruling
establishment.
Post-September 11 concerns about increased regional militancy has resulted in major
security agreements. Malaysia, Indonesia and the Philippines agreed to cooperate
to counter cross-border terrorism and militant networks. ASEAN and India have
agreed to intensify cooperation in combating transnational crimes.




The following recommendations would strengthen the India-ASEAN relationship:
ASEAN countries and India need to find common ground in approaches to
globalization issues.
ASEAN countries could benefit from Indias institutional support and joint
research projects in existing and future economic cooperation partnerships.
The ASEAN-India Framework Agreement can lead to further increases in trade
between the regions.
India should not subject development of economic relations to political changes. It
should try to minimize bureaucratic hurdles that challenge multi-lateral
arrangements.
With the proposed establishment of the India-ASEAN Free Trade Area, there is a
need to develop adequate infrastructures that connect both regions.


PROBLEMS AND PROSPECTS:
Southeast Asia has always been one of the foremost concerns of China's successive ruling
regimes. Keeping in mind their 'Middle Kingdom' view of the world their control over these
neighbouring countries and oceans was always considered integral to China's great power profile
since ancient times and even today the Chinese take pride in the fact that Admiral Chang He's
300-boats strong navy had once dominated the entire Asia-Pacific. It was only during communist
China's first 25 years that Mao had virtually closed the doors to much of the outside world and
Beijing sought to deal with Southeast Asian countries through the Communist Party outfits that
operated directly against the national interest of the host countries. Most of these Southeast
Asian countries had as well drifted in favour of China's ousted Guomintang regime in Taiwan
and gradually they evolv Southeast Asia has always been one of the foremost concerns of
China's successive ruling regimes. Keeping in mind their 'Middle Kingdom' view of the world
their control over these neighbouring countries and oceans was always considered integral to
China's great power profile since ancient times and even today the Chinese take pride in the fact
that Admiral Chang He's 300-boats strong navy had once dominated the entire Asia-Pacific. It
was only during communist China's first 25 years that Mao had virtually closed the doors to
much of the outside world and Beijing sought to deal with Southeast Asian countries through the
Communist Party outfits that operated directly against the national interest of the host countries.
Most of these Southeast Asian countries had as well drifted in favors of China's ousted
Guomintang regime in Taiwan and gradually they evolved into front-runners of the United
States' policy of Containment. It was not until the Sino-American dtente of the early 1970s that
communist China evolved state to state relations with Southeast Asian countries.
The Association of South East Asian Nations (ASEAN) since then has not only expanded to
cover all the ten Southeast Asian countries but to obtain larger power profile it also shares larger
borders with mainland China and has also moved away from its original mandate of being an
anti-communist alliance. According to the official statistics by China's Ministry of Foreign Trade
and Economic Cooperation (Moftec) until June 1997, China had established 529 joint ventures in
Southeast Asian countries involving a total investment of $850 million. For the same period, the
Southeast Asian countries had established over 12,938 projects in China with a total contracted
investment of $37.25 billion of which they had already invested $10.64 billion.1 Similarly;
China's bilateral trade with these Southeast Asian countries has gone up from $3.35 billion for
1986 to $45.56 billion for 1998. In fact, in 1996, Thailand became the first ASEAN country to
receive military aid worth $3 million from China that marks a virtual U-turn in its policies.2 It is
in this changed new context of the emerging power centers of both China and ASEAN as also
their increasing acceptance of each other that this paper tries to examine and highlight various
problems and prospects for the future of Sino-Southeast Asian ties.
Genesis and Growth of Sino-Southeast Asian Ties:
To begin by examining some of the basic determinants in the evolution of Sino-Southeast Asian
ties during the last 50 years, the Cold war has been one most visible framework in which most
scholars have analyzed their mutual policies and perceptions. Considering that East Asia has
always been China's single most important concern during this period, its perceived pre-
eminence as a military power in this region has made it excessively concerned with the role of
other great powers in the Asia-Pacific region. This perhaps explains why China had intervened in
Korea during the 1950s and why it assisted North Vietnam with men and material during the
1960s and the 1970s.
Later, the increasing Soviet indulgence was one of the reasons why the Chinese decided to
"teach Vietnam a lesson" during 1979. Similarly, ASEAN was denounced during the 1960s as
"Asian Lackeys" of the Americans yet, following its entente with Washington in 1971, Beijing
had begun supporting Malaysia and Indonesia in their claims to administer the Straits of Malacca
and opened diplomatic ties with them from the mid-1970s. This posture on the Straits of Malacca
issue was partly goaded by China's unhappy equations with Moscow that had begun pressing for
the internationalization of these Straits. In the same way, in 1973, Beijing officially endorsed
Malaysia's proposal for the establishment of Southeast Asian zone of Peace, Freedom and
Neutrality.
In the same manner, of course, if Sino-American entente of the early 1970s had also caused a
wedge between Sino-Vietnam ties, the Sino-Russian and Sino-American strategic partnership of
the 1990s has similarly facilitated Sino-ASEAN rapprochement that has shown results during
recent years.
Secondly, China's policy towards Southeast Asia has also been analyzed in the framework of
China's 'Middle Kingdom' mindset behind its policies. China's policies towards Southeast Asia
had always been characterized less by the urge to acquire control of adjacent countries, for
example, by the imposition of client buffer states, than by the concern to deny control of the area
by its major superpower adversaries.3 This was so because China's superpower fixation did not
flow simply from its Cold War equations with major powers but had its roots in the historical
legacies. Before the advent of European colonial powers most of these Southeast Asian
kingdoms had often been China's tributaries. Some of them like Vietnam and Burma had actually
once been part of the Chinese empire and directly ruled by China's emperors.
In case of others, the Chinese imperial court was often invited to settle claims between rivals for
a local throne. Some of these equations had survived until as late as the 1930s and Mao had
repeatedly talked of retrieving China's Southeast Asian territories until as late as 1960s.4 some of
this was also reflected in China's contemporary thinking and actions. As late as May 1997, for
example, China published an Atlas of Shame, charting out graphic details of its humiliation at
the hands of colonial powers of the past century.5 This clearly shows the centrality of these
historical legacies in China's contemporary thinking and policies.
Thirdly, the overseas Chinese in Southeast Asia have been another critical factor determining
their mutual perceptions and policies. More than their absolute numbers, these ethnic Chinese
have played a vital economic and commercial role in Southeast Asian countries though it has
varied from state of state and from time to time. Also, it is the way China's leaders have
continued to interact with these overseas Chinese that has turned into a major influence on the
Sino-Southeast Asian ties. In addition to allowing them to retain their dual citizenship, Beijing
has extended them other incentives encouraging them to maintain ties with their families inside
mainland China and to continue to send remittances and investments. Chinese leaders have often
talked of them in terms of "great Chinese family" and continued extending support of these
"compatriots" by expressing strong concern about their welfare. Throughout the last 50 years,
there have been allegations of China sponsoring local Communist Parties as also involving them
in various surveillance tasks that go against the fundamental interests of their host countries.
Considering that their dual citizenship allows them to avoid assimilating into local socio-political
cultures, their prosperity and the rise of China's prowess has often made overseas Chinese the
target of the local populations ire, thereby causing tension between China and its Southeast
Asian neighbours.
Fourthly, it is their changing state to state bilateral equations that have often played a decisive
role in determining their mutual policies. This had major limitations as no formal ties with
Southeast Asia had existed during the first 25 years of communist China's existence. Malaysia,
with 25 per cent population being ethnic Chinese, was the first to open diplomatic ties with
Beijing in 1974. Thailand (with 12 per cent ethnic Chinese) and the Philippines followed suit in
1975. The Prime Minister of Singapore city-state (where ethnic Chinese constitute 97 per cent of
the population) has visited China as early as 1976 and reached an understanding on its special
status and that it would delay its official recognition until Indonesia had resumed ties with China.
Indonesia had been one of the first Southeast Asian countries to befriend China during the 1960s,
but it had "suspended" its diplomatic ties with China in October 1967 which made it one of the
last countries to come to terms with ASEAN's growing acceptance of Beijing.6 Conversely,
these improved bilateral ties were to greatly facilitate Southeast Asian countries in managing
their ethnic Chinese minorities. Especially, in the case of a country like Vietnam, despite
overseas Chinese minority being only 1.56 per cent they have posed a major problem in
successive years and this is partly because Vietnam has been the most vocal anti-China voice
amongst the Southeast Asian countries.
And finally, misinformation and a distorted view of each other's ideology and political culture
had also played a dominant role during these formative years until the mid-1970s. During the
first 25 years, in the face of a relative lack of first hand knowledge about each other, the first
three aforesaid factors played the most important part in laying the foundation of what has
followed during these last 25 years. To a certain extent, their bilateral equations with Beijing also
determined the intra-regional equations amongst these Southeast Asian countries.
And here, opposite policies by countries like Thailand and Malaysia towards Vietnam presents
an ideal reference point. Similarly, each of these countries have displayed an entirely different
attitude towards their maritime disputes with China's claims in the South China Sea which
perhaps presents the most live facet of their collective confrontation with Beijing. But thanks to
the mixed influence of aforementioned factors, South China Sea also represents the most vivid
example of how ASEAN has not been able to evolve a common approach in dealing with this
single most critical issue determining Sino-Southeast equations.
Sino-Southeast Asian Rapprochement:
The earliest sinews of China's formal interactions with ASEAN forum (which today
encompasses the whole of Southeast Asia) can be traced to as early as July 19 1991 when the
(then) Chinese foreign minister, Qian Qichen, had been invited to the opening session of the 24th
AMM in Kuala Lumpur as a guest of the Malaysian Government. It is here that he had, for the
first time, formally expressed China's interest in strengthening cooperation with ASEAN.
Nothing concrete happened for the next two years though China continued to attend these
meetings as a consultation partner of ASEAN. It was only during September 11-18, 1993, that
ASEAN reciprocated in the form of a visit by its Secretary-General Dato' Ajit Singh, who signed
two agreements in Beijing setting up two Joint Committees, one for economic and trade
cooperation and the other for cooperation in science and technology.27 Later, with an exchange
of letters on July 23, 1994 the two sides also agreed to engage in consultations on political and
security issues of common concern at the Senior Officials level. China was also admitted as a
member from the very launching session of the ASEAN Regional Forum (ARF) July 25, 1994 in
Bangkok.
And finally, in July 1996, China was accorded full Dialogue Partner status that today makes
Beijing party to a series of annual ASEAN discussions at forums like the AMM, ARF, PMC,
APEC and so on.28.
China has also since set up various other bilateral forums that overlook their mutual cooperation
under various categories. In February 1997, for example, China and ASEAN announced setting
up five parallel mechanisms that today define the framework for Sino-ASEAN interactions and
activities. First and foremost among these is the ASEAN-China Joint Cooperation Committee
(ACJCC) which also operates as the nodal agency to review, approve and facilitate projects of
various other agencies. These include the ASEAN-China Senior Officials Consultations,
ASEAN-China Joint Committee on Economic and Trade Cooperation, ASEAN-China Joint
Committee on Science and Technology and the ASEAN Committee in Beijing. The two sides
also launched an ASEAN-China Cooperation Fund and established a Joint Management
Committee to manage this fund.29 These bilateral forums make their interactions fairly
autonomous from any external influences and their joint working experience has already resulted
in their increased coordination in various international forums. Their mutual understanding on
sensitive issues like human rights has in fact brought them closer together against the same
countries that had once sought to dictate their policies to these countries and to divide them
against each other.



ISSUES AND PROSPECTS:

1. The initial take-off of the Early Harvest Program shows complementary trade between the
tropical Product exports of ASEAN and temperate product exports of China. Rice and corn,
which are sensitive Commodities to most ASEAN countries and China, are not covered in the
Early Harvest Program. Other tariff lines in the EHP like poultry, livestock and vegetables,
which maybe sensitive products to some ASEAN countries (as articulated for instance by the
Philippines), can be exempted from EHP coverage as allowed by the agreements provision for
an exclusion list and sensitive track products. These are elements in the FTA that make it a
potential candidate for an alternative South-South trading system.
2. If Chinas intention behind the FTA is indeed more geo-political than economic and part of its
leverage against the bigger trading blocs of developed countries like the US and EU, the
ASEAN-China FTA may once more be seen as a positive development, insofar as consolidating
itself as a bloc in the WTO multilateral trading system is concerned. However, it may not always
be the case since the US, EU and Japan exercise considerable political and economic influence
on many ASEAN countries. The fact that the US chose to forge bilateral FTAs with individual
ASEAN countries instead of a regional FTA (which is actually the design of its Enterprise for the
ASEAN Initiative) gives it flexibility in optimizing its degree of influence on individual ASEAN
countries. In this sense, the ASEAN-China alliance is very fragile.
3. The role of TNCs and national conglomerates in both ASEAN and Chinese agriculture is
something that must be examined if we were to assess whether or not the gains from trade are
accruing to small farmers.
As shown in previous studies, it has not been the case in many developing countries. Structural
inequalities persist that prevent small farmers and direct producers from actually participating in
trade, much less benefiting from it. South-South alternative trading systems can only be judged
Ultimately successful if seen from the perspective of small farmers who comprise the majority of
direct producers in the region.
4. Chinas promotion of hybrid corn in the FTAs program for technical cooperation may pose
another problematic area. Studies show that the long-term environmental and economic costs of
hybrid varieties outweigh the immediate gains from increased productivity. Since Cargill and
Monsanto have significant presence in the region for their biotechnology enterprise, it is
worthwhile to study whether they have anything to do with Chinas hybridization program.
5. ASEANs objective in the FTA of attracting back or redirecting FDI flows from China into the
region represents a fixated and misplaced priority. There is evidence to show that net value-
added from FDI flows has been minimal given the fact that these are largely investments and
trade flows arising from international intra-firm production networks in the region.
6. Chinas free market reforms have already sown adverse impact on farmers livelihood and
labor rights. Its commitments for accession to the WTO are expected to worsen the problem,
bringing to the fore the fundamental contradictions of a free market economy. Some economists
assert that it may not take ten years before a similar crisis that hit the emerging markets of East
Asia and Latin America occurs in China. These more fundamental issues may overrun whatever
potential advantages there may be in the ASEAN-China FTA.



The Prospects and Challenges of Southeast Asian Financial Integration:


Through the Association of Southeast Asian Nations (ASEAN), many countries in the region are
working to liberalize their financial markets and integrate with one another, with the goal of
gaining efficiencies for their individual markets and better positioning themselves to compete for
international capital. While they are making progress, many challenges still lie ahead. To achieve
their objectives, ASEANs member countries will need to work hard over the next few years to
reach and implement agreements, develop investment opportunities for the global community,
and leverage integration initiatives in other regional organizations. This paper highlights the
opportunities that ASEAN presents, outlines the most recent financial initiatives in the region
and presents some of the challenges that lie ahead for that integration to succeed. Ultimately,
despite these challenges, the opportunities that an integrated ASEAN presents are too great to be
overlooked. Created in 1967, ASEAN currently comprises 10 diverse Southeast Asian nations
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand
and Vietnam and encompasses nearly 600 million people. East Timor may soon join as the
eleventh member. Although all part of the same region, ASEANs members differ greatly,
particularly in their levels of development. For example, the GDP per capita of Singapore, the
richest country, is more than 60 times that of Myanmar, the poorest, as shown in Figure 1.
Political systems also vary greatly, ranging from democratic Indonesia to socialist Vietnam.
Similarly, tax rates and capital controls diverge from country to country.




Despite their differences, there are compelling arguments for the ASEAN countries to work
together to create a more integrated market. Together, the ASEAN economies are large,
representing approximately $2 trillion, the equivalent of the fifth largest market in the world in
terms of purchasing power parity. The cumulative trade volume of the ASEAN-5 economies
(Indonesia, Malaysia, Thailand, the Philippines and Singapore) is more than triple that of India
and about 60 percent that of China.1 Economic growth in the region and changes in government
policy have also led to the rapid development of assets. Pension schemes in Southeast Asias
Five largest economies totaled $377 billion in mid-2010, a 70 percent increase from just five
years earlier. Collectives-related assets in those countries totaled $185.7 billion at the end of
2010 and are forecasted to surpass $320 billion by 2014.2 Overall, institutional investable assets
in the ASEAN-5 market are projected to grow substantially, approaching $2.5 trillion by 2014,
as illustrated in Figure 2.3 Regional assets will likely continue to show good growth as
economies benefit from the resource boom and increased trade linkages with major economies
such as China and India. The integration and liberalization of regional financial markets will also
contribute to further economic growth as a result of the increased efficiencies that will
accompany these changes.
Integration Initiatives Progress:

ASEAN is in the process of creating an ASEAN Economic Community (AEC) to facilitate the
free movement of goods, services, investment and skilled labor and [the] freer flow of capital.4
The intention is to create a network of mutual recognition agreements and harmonized
regulations, rather than a European Union-like structure of political and economic unity.

An Implementation Plan seeks to achieve meaningful capital market integration by 2015, and is
broadly structured around three themes:
(1) Regional integration through harmonization,
(2) Development of market infrastructure and regionally focused products and intermediaries,
(3) Strengthening of the implementation process through a greater role for the ASEAN
Secretariat.
ASEAN is making progress toward these goals. At the fifteenth ASEAN Finance Ministers
Meeting in Indonesia in April 2011, summit participants announced several new initiatives
relating to equity exchanges, monitoring and surveillance, and mutual recognition of market
professionals, that build on those announced over the last few years, relating to bonds, currency
swaps and cross-border offerings of equity and debt securities.

CONCLUSION:
To conclude, therefore, despite all their problems both ASEAN members and China seem all set
to emerge as major regional actors and this fact seems to be now so recognized and endorsed by
most other powers that matter. Especially, these Southeast Asian countries no longer remain
divided on the basis of ideologies nor do they any longer remain poor and backward and
therefore vulnerable to great power pressure tactics. ASEAN has expanded to include all the ten
Southeast Asian countries most of which have been the models of dynamic economic growth
during the 1980s. And, despite their financial difficulties during the late 1990s, how they view
themselves will determine their future role in the coming years. And, it is this self-perception on
both sides that, in turn, will determine their policies and perceptions about each other as also
other important actors in their periphery. However, neither China nor ASEAN states can afford
today to either ignore or even annoy the other party if it has to ensure continued peace on its
border which has come to be an imperative for their development dynamics which bear a direct
correlation to their domestic peace and stability and to the political career graphs of their
important political personalities. And here, while the ultimate aim of China's leaders remains to
grasp the political and economic leadership in the entire Asia-Pacific and establish their position
as the next global superpower in-the-making, the emerging bloc of Southeast Asian countries
may be temporarily down but is not yet out and, therefore, it is China's equations with these
Southeast Asian countries that will play a major role in determining as to whether and when
Beijing's dream will turn into reality.


BIBLIOGRAPHY:

OKITA SABARU- The Lessons of economic Development in East and south East Asia
RULAND JORGAN- The Asia-Europe meetings.
TAN JOSEPH- Atta in changing International Economy.
UNGER DANNY- Problems & prospects in South-East Asian Nation.
WONG JOHN-The East Asian Phenomenon, and its implications for Economic
Development.