Asean (ASSIGNMENT 2)

ITB-301 (International Business) Assignment 2 on ASEAN

Subm Submit itte ted d to: to:

Mr. Md. Md. Gazi Gazi Sala Salah h Udd Uddiin Senior Lecturer & Assistant Proctor  EastWest University

Subm Submit itte ted d by: by:

Mohamm Moha mmad ad Sha Shani niaz az Isla Islam m (2009-1-10-102) (SEC-5) MD. Towhidur Rahman (2009-1-10-152) (SEC-5) Sushanta Kumar Roy (2009-1-10-093) (SEC-5) MD. Rezaul Hassan (2009-1-10-059) (SEC-5) MD.Hasibur Rahman (2008-2-10-114) (SEC-5)

Date: March 13, 2011

ASEAN Fact Sheet

ASEAN

: Association of Southeast Asian nations

Head office

: Jakarta from 1976

Working language : English Demonym

: Southeast Asian

Member states

: 10

Government

: Regional organization

Existing President

: Avijeet Vejjavija (Thailand)

Founding Founding S. genera generall : Hartono Dharsono Secretary General

: Surin Pitsuwan

Formation

: Bangkok Declaration 8 August 1967

Charter 

: 16 December 2008

Type

: Geo-political and economic organization

Initial members

: 5 (Indonesia, Indonesia, Malaysia, Malaysia, the Philippines, Philippines, Singapore and Thailand) Thailand)

Current members

: 10 (Indonesia, Indonesia, Malaysia, Malaysia, the Philippines, Philippines, Singapore and Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia)

Obse Observ rvin ing g count country ry : Papu Papuaa Neug Neugin inii Very last convention: 25 February- 1 March, 2009 in Thailand

Introduction:

ASEAN is renowned for its miracle economic growth, outstanding political consensus among member states, more pacific multi lateral relations, extraordinary intellectual exchange and finally anti-communist stand point. In this  paper we attempted to examine the contributing factors towards the success of  ASEAN. We included economic, social, political, security and some other factors contributing to the success of ASEAN.

However, after its foundation on 8 th August 1967, many incidents had made cooperation harder in international arena. ASEAN overcome those with patience without sacrificing its core values. It maintained a constant code of conduct with the super power USA in the time of Cold War. ASEAN’s security relationship relationship with the West is unlikely to change as long as the organization is made up of  fundamentally pro-Western governments, hostile toward communism (Buszynski 1987). And of the other hand it got comparatively more congenial policy setting in favor. ASEAN was indeed a special arena of US policy: a grouping of Third world states which through its generally pro Western development policy could distinguish from unstable, radical areas of the Third World where nationalism is often anti-American in character (Buszynski 1987).

This is one side story. the another side is emerging influence of China in global economy and poor public orientation in ASEAN regional forum may characterized as a criticism of its achievements through last four decades. With the changes of  the world politics and economy through several shocking incidents like Afghan and Iraq war and global economic recession in early 21 st century, ASEAN is also concerned for their position on future. Though the former Secretary General of  ASEAN Ong Keng Young stated, If you are wondering about the future of  ASEAN, worrying about how ASEAN will be hurt by the ongoing war on Iraq , let me assure you that the future of ASEAN is still bright (Young: 2003).

Beside the factors of war or economic crisis ASEAN is facing many challenges from different sides. ASEAN is criticized for its poor record of democracy, human rights and fundamental freedom, economic reservation, poor human security status and maintenance of environmental well-being. These are the factors what will play the key role in determining the future of ASEAN with inevitable action and reaction of international politics.

Establishment and Development of ASEAN:

One of the most significant events in the history of the Southeast Asia was the formation formation of Asian. Asian. The Association Association of Southeast Southeast Asian Nations (ASEAN) (ASEAN) was formed in 1967 with the signing of the Bangkok Declaration by the five original memb member er coun countr trie iess - Indo Indone nesi sia, a, Mala Malays ysia ia,, Th Thee Phil Philip ippi pine nes, s, Sing Singap apor ore, e, and and Thailand. The objective of the formation was twofold. 1. First one is, to promote peace and stability in the region. At that time,

Southeast Asia was divided by ideological conflict and war. Territorial disputes and racial tensions between neighbors, there was a possibility that the differences could degenerate into a full blown armed conflict, leading to a lengthen fragmentation of Southeast Asia. 2. And the second one is, to contain the spread of communism to Southeast

Asian countries. At this time china was openly adopted some policies towards the Southeast Asia to export communism with the association of  some some loca locall rebe rebell grou groups ps of Sout Southe heas astt Asia Asia.. Th Thes esee were were led led by the the communist parties in Indonesia, Singapore, Malaysia and Thailand. In this respect, the origins of ASEAN were similar to those of the European Union (EU), in that the founding countries initially came together for political and security reasons, rather than a desire to benefit from economic integration.

The stages of development or brief history:

Through different period ASEAN developed in its way. ASEAN was not first regional group created to act as a forum for dialogue between leaders of the vari variou ouss coun countr trie ies. s. Th Thee asso associ ciat atio ion n of sout southe heas astt Asia Asia ASA, ASA, comp compri risi sing ng the the federation of Malay, the Philippines and Thailand, was formed in 1961. However, the organization became obsolete one year later, after the Sabah dispute between the federation of Malay and the Philippines. Diplomatic ties between Kualampur  and and mani manila la were were seve severe red d du duri ring ng 19 1962 62-6 -66. 6. Th Thee conf confro ront ntat atio ion n laun launch ched ed by Indonesia’s late president Sukarno also led to the demise of Malphilonido, which included Indonesia, the federation of Malay and the Philippines. The concept of  Malphilndo was mooted by former Philippines president Macapagal.

The political stability of Malay was then threatened by the militancy of the communist. In the federation Malay, the communist carried out insurgent activities  purportedly to free the countries from the British rule. Singapore was also in danger of being taken over by a communist backed faction of the ruling party. A series of leftist inspired strikes and a wave of student demonstrations rocked the Singapore economy in the late 1950s and early 1960s. The fear instilled by a communist control Singapore contributed to the proposition of forming an alliance compri comprisin sing g Brunei Brunei,, the federa federatio tion n of Malay, Malay, Sabah, Sabah, Saraw Sarawak ak and Singa Singapor pore. e. Howe Howeve ver, r, an impo import rtan antt mino minori rity ty of peop people le was was agai agains nstt the the alli allian ance ce.. Some Some minorities were uneasy over the political dominance of the Malays in the new federation. In 1962, referendums conducted by the commission of Sabah, Sarawak  and Singapore showed that a majority of people were in favors of joining the new federation of Malaysia. Brunei, on the other hand, had rejected the idea of joining the federation, as the country would lose control of its vast oil reserves after    joining the new federation. Thus, in 1963, the federation of Malaysia, which consisted of only Singapore, Sabah, Sarawak and the federation of Malaya, was formed.

The formation of the federation of Malaysia was not viewed positively by some surr surrou ound ndin ing g coun countr trie ies. s. In 19 1963 63,, Pres Presid iden entt Suka Sukarn rno o orde ordere red d the the Indo Indone nesi sian an  paratroops to instigate a military attack on Malaysia and to initiate acts of sabotage in Singapore. His intention was to direct attention away from the severe internal disc discou ount nt aros arosee du duee to Suka Sukarn rno’ o’ss mism misman anag agem emen entt of the the econ econom omy y and and the the implementation of guided democracy. However, Sukarno’s pretext was that the new federation of Malaysia was a neo colonial plot to surround the republic of  Indonesia. The confrontation ceased in 1965, after an abortive coup the subsequent reac reachi hing ng of an agre agreem emen entt betw betwee een n Mala Malays ysia ia and and Indo Indone nesi siaa un unde derr the the new new Indo Indone nesi sian anss pres presid iden ent. t. Th Thee Phil Philip ippi pine ness also also refu refuse sed d to reco recogn gniz izee the the new new federation, because of its dispute with Malaysia over the claim of Sabah. Shortly after forming the federation of Malaysia, the ruling party in Singapore   beg began an to expa expand nd its its acti activi viti ties es into into peni penins nsul ular ar Mala Malays ysia ia.. Th Thee lead leader erss were were aggres aggressiv sively ely pushin pushing g for the concep conceptt of a Malay Malaysia sian n Malays Malaysia, ia,.. Under Under this this concep concept, t, nation national al intere interests sts would would preced precedee commun communal al intere interests sts.. This This greatl greatly y alarmed the Malay dominated ruling party in Malaysia (united Malay national organization, UMNO) and it retaliated with similar activities amongst the Malays in Singapore. Atmosphere in the two countries was tense and explosion of massive racial riots seemed imminent. It was under these circumstances that Singapore was asked to leave the federation of Malaysia in 1965.

All these development led to the formation of ASEAN. Although all the countries in Southeast Asia were invited to join the organization, Brunei, Cambodia, Laos, Myanmar and Vietnam declined. In 1984, Brunei joined ASEAN as its sixth member. This was followed by Vietnam in 1995, and Myanmar and Laos in 1997. Cambodia was not admitted until 1999 because of unresolved internal political issues issues.. There There are ten ten curren currentt member memberss of ASEAN ASEAN.. ( Indonesia, Indonesia, Malaysia, Malaysia , the

Philippines, Philippines, Singapore and

Thailand, Thailand, Brunei, Vietnam, Laos, Myanmar, and

Cambodia) Observing status: •

In 1976, the Melanesian state of Papua New Guinea was accorded observer  status. status. Throughout Throughout the 1970s, the organizat organization ion embarked on a program program of  economic cooperation, following the Bali Summit of 1976. This floundered in the mid-1980s and was only revived around 1991 due to a Thai proposal for a regional free trade area. The bloc then grew when Brunei Darussalam  became the sixth member after it joined on 8 January 1984, barely a week  after the country became independent on 1 January.(www.wikipedia.com)

Main impetus:

Although, the main impetus for the formation of ASEAN was political in nature, economic cooperation was also high on the agenda of the organization. The fall of  the Berlin wall in 1980 marked the end of the cold war. This dramatic change in  political environment rendered one of the two major reasons for forming ASEAN insi insign gnif ific ican ant. t. ASEA ASEAN N has has sinc sincee evol evolve ved d into into a more more econ econom omic ic orie orient nted ed organization. When ASEAN was established in 1967, intra regional trade was a mere 12% to 15%. In 1997, the amount of intra regional trade increased to 21%. Example of earlier economic co operation included the ASEAN industrial project (AIP) scheme and ASEAN industrial complementation (AIC) scheme. Under the AIP scheme, each member country was allocated an industrial project. Indonesia and Malaysia were each to have urea plant; phosphate fertilizer was to go to the Philippines, soda ash to Thailand and diesel engine to Singapore. The ACI scheme was launch in 1981. The first project under the scheme was the production of the ASEAN car. However, this earlier project disappointment, prospect for the more recent projects looks more promising.

ASEAN Formation:

•

1967 196 7 ASEAN ASEAN was was founde founded. d. Foundi Founding ng member members: s: Indone Indonesia sia,, Malays Malaysia ia,, Philippines, Thailand, and Singapore. Important document: Bangkok Declaration. Declaration.

•

1976 ASEAN Secretariat was established. Spelled program of action to include political, economic, social, cultural, information, security. Treaty of  Amity and Cooperation (TAC) was signed.

•

1984 Brunei Darussalam joined ASEAN

•

1995 Vietnam joined

•

1997 Laos and Myanmar joined

•

1999 Cambodia. All Southeast Asian countries are now ASEAN members

ASEAN Free Trade Area: •

1992 19 92

ASEA ASEAN N

endo endors rsed ed

AFTA AFTA..

Impo Import rtan antt

docu do cume ment nt::

Fram Framew ewor ork  k 

Agreement on “Enhancing ASEAN Economic Cooperation”. •

1994 Agreement to accelerate realization of AFTA from 15 years to 10 years by

•

2003. First ASEAN Regional Forum

•

1995 Accelerated tariff reduction to 2002. Abolition of tariff by 2010 for  first 6

•

Members, by 2015 for newer members.

East Asian FTA: •

1997 19 97 Firs Firstt ASEA ASEAN N +3 Summ Summit it in Mala Malays ysia ia,, foll follow owed ed by succ succes essi sive ve ASEAN+1 Summit. Common theme of summits: cooperation between ASEAN Japan,

•

ASEAN-Korea, ASEAN-Korea, and ASEAN-China, to become building blocks for regional cooperation in East Asia

•

1998 Hanoi Summit. Agreement to form East Asia Vision Group (EAVG)

•

1998-20 199 8-2001 01 EAVG EAVG worked worked to discu discuss ss future future cooper cooperati ation on in East East Asia. Asia. Submitted recommendation in 2001

•

1999 East Asia Study Group (EASG) was formed to study practical ways and means to deepen and expand existing cooperation, Assess EAVG

•

Recommendation. Prepare Action Plans

Economic Aspect of ASEAN

Representatives of Indonesia, Malaysia, the Philippines, Singapore and Thailand met in the capital Bangkok of Thailand in August in 1967 with a view to establish a regional body named “Association of South East Asian Nations” to address the regional problems and challenges. The main purposes of this organization are as following; 

To accelerate economic growth, social progress and cultural development in the region



To promote collaboration and mutual assistance……….. In the economic, social, cultural, scientific and administrative fields.



To promote ultimately regional peace and security.

Like other regional arrangement, ASEAN is viewed as a new economic grouping in Southeast Asia. We can discuss the economic aspect of ASEAN on the basis of; 

Trade



Industry



Agriculture and Forestry



Finance, Banking and Investment



Mineral and Energy



Transport and Communications



Social Development

Trade: ASEA ASEAN N has has been been slow slow to make make prog progre ress ss in the the area areass of econ econom omic ic,,

technical, and social cooperation. High level official dialogue has helped foster a sense of common economic purpose and mutual interest in the so-called ‘ASEAN spirit spirit’. ’. The import important ant initia initiativ tives es and polici policies es taken taken by the SouthSouth-Eas Eastt Asian Asian  Nations to promote trade are as followings; •

Among other ultimate goals of ASEAN, the idea of a limited FTA and Custom union was firstly mooted during the ASEAN ministers meeting (AMM) in Manila in1971. But the lack of direct involvement of ASEAN ministers restrained the impact of efforts for closer economic cooperation.

•

In 1975, the first meeting of ASEAN economic ministers was held in Jakarta. Singapore initiated a campaign to create an ASEAN FTA (Free Trade Agreement).

•

In 1991, the idea of AFTA (ASEAN Free Trade Agreement) was revived   by by Th Thai aila land nd’s ’s then then PM Anan Anand d Pany Panyar arac achu hun. n. Th This is prop propos osal al gain gained ed enthus enthusias iastic tic suppo support rt at the ASEAN ASEAN foreig foreign n minist ministers ers meeti meeting ng Kuala Kuala Lumpur in 1991.

•

In January, 1992, heads of governments met in Singapore and concluded an agreement with the aim of creating an AFTA.

•

In January, 1993, a common effective preferential tariff (CEPT) scheme came into effect in accordance with the agreement. The CEPT covered all manufactured products including capital, goods and processed agricultural  products. Tariffs were to be reduced to a maximum of 20% within 5-8 years.

•

In October, 1991, ASEAN trade ministers agreed to modify the CEPT. The new AFTA programs scheduled to begin tariff reduction from January 1, 1994.

•

In September, ASEAN economic ministers made consent on accelerating the implementation of AFTA. Tariffs were to be reduced to 0%-5% within 7-10 years.

•

In December, 1 995, heads of governments convened in Bangkok and agreed to maintain the objective of achieving AFTA by 2003.

•

In October, 1998, ASEAN ministers of economic affairs reiterated their  commitment to reduce restrictions to intra-ASEAN trade.

•

Thee Hano Th Hanoii Plan Plan of Acti Action on (199 (1998) 8) was adop adopte ted d at the the meet meetin ing g as a framework for the development of the organization over the period of 19942004. The Plan incorporated a series of measures `aiming at strengthening macroeconomic and financial cooperation and enhancing greater economic integration.

•

In June June,, 19 1996 96,, ASEA ASEAN’ N’ss Work Workin ing g Grou Group p on Cust Custom omss Proc Proced edur urees completed a draft legal framework for regional cooperation in order to simpli simplify fy and harmon harmonize ize custom customss proced procedure ures, s, legisl legislati ation, on, and produc productt classification.

•

In March March,, 199 1997, 7, a custo custom m agreem agreement ent was was conclu concluded ded at the inaugu inaugural ral meeting of ASEAN finance ministers.

•

In November, 1999, the informal meeting of heads of state of ASEAN countries, China, the Japan and the Republic of Korea was held and all   parties agreed to strengthen regional unity and discussed the long-term  possibility of establishing an East Asian common market and currency.

Meanwhile, ASEAN has taken many initiatives to promote trade in the region. Ther Th eref efor ore, e, it has has to be reco recogn gniz ized ed that that AFTA AFTA has has made made some some prog progre ress ss.. ASEAN countries have reduced the disparities of tariff structure, facilitating furthe furtherr region regional al integr integrati ation on effort efforts. s. It is expect expected ed that that AFTA AFTA will will enable enable ASEAN ASEAN countr countries ies to develo develop p trade trade patter patterns ns on the basis basis of intraintra-ind indust ustry ry specialization specialization and to make ASEAN more attractive for foreign investment. It is argued that ASEAN can proceed in two possible directions on the future. 1. To establi establish sh a common common market market to be known known as the ASEAN ASEAN Econo Economic mic Community (AEC) 2. To establis establish h an East East Asian Asian bloc bloc on severa severall grounds. grounds.

Industry: the South East Asian nations have little to export in a subsistence

economy. The industries of the region are meager. Most of them have been established by the West during colonialism which is basically located close to the coasts, markets and transportation. Many different plans and programs to increase industrial production have been taken in different times by the governments of the region. But progress in the field of industrial sector has been slow because of some reasons; 

Shortage of capital



Lack of industrial experience



Destruction caused by the war.

The initiatives adopted in various times by the member state of ASEAN to  promote industrial development and economic progresses are as followings;

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The ASEAN Industrial Complementation Program (1981) encourages state  party to produce complementary products for preferential exchange among themselves in specific industrial sectors.

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The ASEAN Chambers of Commerce and Industry (ASEAN CCI) aims to enha enhanc ncee econ econom omic ic and and indu indust stri rial al coop cooper erat atio ion n and and agre agreed ed to set set up a  permanent ASEANCCI secretariat at the ASEAN secretariat.

•

The ASEAN industrial joint venture (1983) initiates projects with at least 40% participation by private companies from two or more ASEAN member  states.

•

The format formation ion of ASEA ASEAN N Consul Consultat tative ive Commit Committee tee on Standa Standards rds and Quality (ACCSQ) is another important initiative which ultimate goal is to  promote the understanding and implementing of quality and concepts and to eliminate trade barriers.

•

An ad hoc Workin Working g Group Group on Intell Intellect ectual ual Proper Property ty Cooper Cooperati ation on was was established in September, 1994, to formulate a framework agreement on intellectual property protection in the region.

•

The ASEAN fund was established in 1988 to provide finance for portfolio investments in ASEAN countries, especially for small and medium-sized enterprises (SMEs).

Agriculture and Forestry: A significant proportion of Southeast Asia’s energies

is concentrated to the development of food supply for its population. The region has introduced more double-cropping, irrigation, and improved strains of rice seed which have contributed to substantial progress in agriculture. Some of region’s country can use only a small part of their land for agricultural purpose. As the examples we can cite that Burma can cultivate only 10 percents of its land because of mountainous areas and Laos only 30 percents of its land.

Since the establishment of ASEAN, many initiatives have been taken by the nations of Southeast Asia. Among of them, some are as followings;

a)

Agreem Agreement ent on Fishe Fisherie riess Corpor Corporati ation on: This This agreem agreement ent was was conclu concluded ded in October, 1983. The main features of this agreement are-

b)



Joint management of fish resources



Sharing of technology



Cooperation in marketing etc.

Bang Bangko kok k

Conf Confer eren ence ce::

A

conf confer eren ence ce

on

Fish Fisher erie iess

Mana Manage geme ment nt

and and

Development strategies in the ASEAN region was held in Bangkok in 1994. The main purposes of the conference were

Enha En hanc ncin ing g fish fish prod produc ucti tion on thro throug ugh h the the intr introd oduc ucti tion on of new new technologies

c)



Aquaculture development



Improvements of product quality



Greater involvement of private sectors.

Cooperation Cooperation in Forestry Forestry: There is cooperati cooperation on in the field of forestry. forestry. Many  joint projects were run funded by ASEAN’s dialogue partners. A number of  organizations have been established such as- Forest Tree Seed Centre, Institute of Forest Management, the ASEAN Timber Technology Centre etc. Besides, there is an established ASEAN program of training, and study exchange for  farm workers, agricultural experts and members of agricultural cooperatives.

d)

Strategic Plan of Action : Ministers of agriculture and forestry met in Hanoi, Vietnam in September in 1998 and endorsed a Strategic Plan of Action on ASEAN Cooperation in Food, Agriculture, and Forestry for the period of19942004. The purposes st forth in the Plan were

Enhancing food security



Intern Internati ationa onall compet competiti itiven veness ess of ASEAN ASEAN food, food, agricu agricultu lture re and forestry products



Promoting the sustainable use



Conservation of natural resources

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Enco En cour urag agin ing g grea greate terr invo involv lvem emen entt in the the food food and and agri agricu cult ltur ural al industry



Strengthening joint approaches on international and regional issues etc.

ASEAN Task Force: The ASEAN Task Force was set up to harmonize regulations on agricultural products derived from biotechnology by 2000. Fina Financ nce, e, Bank Bankin ing g and and Inve Investm stmen ent: t: The init initiiativ ativees taken aken by heads eads of 

governments in this field to support intra-ASEAN trade and investment are as followings; a) ASEAN ASEAN Reinsuranc Reinsurancee Corporation: Corporation: The ASEAN ASEAN Reinsurance Reinsurance Corporat Corporation ion came into manifestation as an initiative in the year of1988 with initial authorized capital of US $ 10 million.   b) b) ASEA ASEAN N Inve Invest stme ment nt Area Area (AIA (AIA): ): Th Thee esta establ blis ishm hmen entt of an ASEA ASEAN N Investment Area was proposed at the summit meeting of December, 1995.

c) ASEA ASEAN N Plan Plan of Acti Action on:: Many Many measu measure ress have have been taken taken by head headss of  governments to attract greater financial resource flow in the region. From the view view of promot promoting ing foreig foreign n direct direct invest investmen ment, t, the ASEAN ASEAN Plan Plan of  Action was adopted. d)

ASEAN funding facility: ASEAN ministers of finance met in Malaysia in December in 1997 and endorsed a proposal for the establishment of an ASEAN funding facility with a view to provide emergency assistance in support of international credit and structural reform programs.

e) Fram Framew ewor ork k Agre Agreem emen entt on the the AIA: AIA: In Octo Octobe ber, r, 1998 1998,, mini minist ster erss of  economic affairs met in Manila and concluded a framework agreement on the AIA. f) Summit Summit meeting: meeting: The summi summitt meeting meeting concentra concentrated ted to accelera accelerate te reforms, reforms, especially in the field of banking and finance with the aim of strengthening the region region’s ’s econom economies ies and promot promoting ing the libera liberali lizat zation ion of financ financial ial services sectors.

Minerals and Energy: Minerals and energy is another area of economic aspect

of ASEAN. It is recognized widely that the significance of energy and power  deve develo lopm pmen entt can can susta ustain in the the over overal alll grow growth th of the the regi region on’s ’s econ econom omie ies. s. Recognizing the importance of minerals and energy, the heads of governments have taken many initiatives provided below in different times. 

ASEAN electricity grid

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ASEAN Energy Management, Training and Research Centre

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A framework of Cooperation in Minerals

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ASEAN Regional Development Centre for Mineral Resources.

In additi addition on to, ASEA ASEAN N has an object object to promot promotee greate greaterr cooper cooperati ation on in the the transport and communication sector. Another area of cooperation is to accelerate social development. For this purpose, many initiatives have been taken. Among of  them

Plan of Action for Children



An ASEAN Taskforce on AIDS

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Joint Declaration for a Drug-Free ASEAN

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ASEAN Rural Development and Poverty Eradication and Social Safety  Nets.

Social and cultural factors:

The success of the ASEAN is recognized not only by the factors to increasing economic integration and political and security cooperation among the member  states but also to the factors that make ASEAN as a unique association. There is lots of diversity among the member countries in cultural, social, political, language, religion, geographical and economic sectors. However by the pleasant combination of national priorities and the Association’s Association’s interests, and a dynamic, wise and flexible approach that enables ASEAN to optimize its geo-political regional strength.

Culture plays an important role in building the image of ASEAN. It is impossible to build an ASEAN community without preserving and further enriching cultural identities of ASEAN and its peoples. Culture helps build the ASEAN spirit on which national citizens will think and act more regionally. The concept of 

homeland is born and nurtured by a deeply imbued cultural environment since the early childhood. ASEAN’s youth, through frequent cultural interactions between distinctive cultures, has the opportunity not only to broaden their knowledge but also develop a sense of rationality.

Political factors: 1. Stable Stable Politi Political cal condit condition ion::

One of the most important factors is that ASEAN has a safe and sound regional environment. Since its founding in 1967, there has been no major armed conflict or confrontation between any ASEAN members. Indeed, one of ASEAN's most important achievements is that it changed Southeast Asia from a region of conflict or violence and poverty to a region of development, peace and security. Once it was the fearful region of conflict and violence now after the establishment of  ASEAN Through political dialogue and confidence building, no tension has escalated into armed confrontation among ASEAN member countries. Second factor is that to deal with the collective security concept for the region it creates ASEAN Regional Forum (ARF) in 1994. It deals with an uncertain security situation in the post-Cold War era by creating a setting or framework  within which confidence building between countries of the region can begin. Third one is that the member states of the ASEAN are somehow politically stable. stable. There people enjoy more democracy than the other part of Asia and Africa. That helps the leaders of this region to achieve the goal and success of ASEAN.

2. Stro Strong ng lead leader ershi ship: p:

The second most important factor is that ASEAN leadership. IT has contributed to ASEAN's success is that the leaders of Southeast Asia focused their energies sharply on economic growth and development not for their own interest. Though

there is a variety of political systems in Southeast Asia but all the ASEAN countries are united by their common emphasis on economic growth and cooperation, not confrontation and conflict. ASEAN leaders realize that ASEAN is not only good for the region but also for the development of their own national economies, which lead ASEAN as a successful organization. 3. Relati Relationsh onship ip with with extern external al power powers: s:

A) ASEAN ASEAN and and its its neighb neighbors ors relationsh relationship: ip: The increase of an economically leading and politically powerful China is one of  the most important strategic challenges facing ASEAN and the Asia-Pacific as a whole Second challenge come from Japan which is economically powerful state among the world community. However factor is that the political strategy of  ASEAN leads a cooperative relation with China, Japan and other neighboring countries. (http://app.mfa.gov.sg)

B) ASEAN ASEAN –US relations relationship: hip: To mitigate the threat Of China and Japan or from other neighbor state it is needed to integrate with the USA. Here interesting factor is that each of the member states of ASEAN has individual relation with USA, which helps for  further integration. USA has its own interest that’s why US must remain engaged in the region to protect not only its economic but also its vital strategic interests in Asia. C) ASEAN ASEAN and other other powers powers relat relation: ion: Another factor is that accounted for ASEAN's success is its efforts in engaging and networking with the major powers who have traditionally played an important role in Southeast Asia. It did so by a series of innovative forums such as ARF, APEC and ASEM and the ASEAN dialogue processes. The ASEAN Foreign Ministers Meeting Meeting may confer on an external party the formal

status of Dialogue Partner, Scrotal Dialogue Partner, Development Partner, Special Observer, Guest, or other status. ASEAN's dialogue relationships with other countries started in the 1970s and have now expanded to include the US, Russia, China, Japan, the EU, Canada, Australia, New Zealand and others. (www.aseansec.org)

Peace, Security and ASEAN:

“ASEAN shall have by the year 2020, established a peaceful and stable Southeast Asia where each nation is at peace with itself and where the causes for conflict have been the rule of law and through the strengthening of national and regional resilience”

-ASEAN VISION 2020

In 1971 ASEAN members endorsed a declaration envisaging the establishment of  a zone of peace, freedom and neutrality in the south-east Asian region. This objective was incorporated in the declaration of ASEAN concord, which was adopted in the first summit meeting of the organization. Held in Bali, Indonesia in February 1976, ASEAN’s aspirations to achieve peace, stability, democracy and  prosperity in the region where ASEAN member countries live at peace with one anot anothe herr and and with with the the worl world d at larg largee in a just just demo democr crat atic ic and and harm harmon onio ious us environment. ASEAN’s activities to realize the ASC are guided by the five strategic thrusts in the ASC plan of actions, namely-

1. Poli Politi tica call deve develo lopm pmen entt 2. Shapin Shaping g and and shar sharing ing of norms norms 3. Conf Confli lict ct pre preve vent ntio ion n 4. Conf Confli lict ct res resol olut utio ion n

5. post-c post-conf onflic lictt peac peacee buildi building ng 1. Political development:

One of the main objective of the ASEAN security as envisaged in the Bali, Conference is to bring ASEAN’s political and security co operation to a higher    plan. In working working towards towards these these objective objectives, s, ASEAN ASEAN member’s member’s countries countries shall  promote political development in support of ASEAN leaders’ shared vision. This is the highest political commitment that would serve as the basis for ASEAN   polit politica icall cooper cooperati ation. on. They They also also commit committed ted to establ establish ish a conduc conducive ive politi political cal enviro environme nment nt which which will will ensure ensure contin continued ued peace, peace, secur security ity and stabil stability ity in the region here member’s countries intra-regional difference and disputes.

2. Shaping and sharing of norms:

Shaping and sharing of norms aim at achieving a standard of common adherence to norms of good conduct among members of the ASEAN community; consolidating and strengthening ASEAN’s solidarity, cohesiveness and harmony; and contri contribut buting ing to the buildi building ng of a democr democrati atic, c, tolera tolerant, nt, partic participa ipator tory y and transparent community in Southeast Asia. These norms setting activities shall adhere to the following principles;  Non-alignment 

Fostering of peace-oriented attitudes of ASEAN members countries.

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Conflict resolution through non-violent means

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Renunciation of nuclear weapons and other weapons of mass destruction and avoidance arms race in southeast Asia; and

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Renunciation of the threat or the use of force.

3. Conflict prevention:

Based on the principles contained in the TAC, which is the key code of  conduc conductt gov govern erning ing relati relations ons betwe between en state statess and diplom diplomati aticc instru instrumen mentt fir the  promotion of peace, security and stability in the region, the objective of conflict  prevention shall be: 

To strengthen confidence and trust within the the community

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To mitigate tensions and prevent disputes from arising between or among member countries as well as between member countries and non-ASEAN countries; and

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To prevent the escalation of existing disputes.

4. Conflict resolution:

It is essential that any disputes and conflicts involving ASEAN member  countries be resolved in a peaceful way and in the spirit of promoting peace, security and stability in the region. While continuing to use national, bilateral, and international mechanisms, ASEAN member countries shall endeavour to use the existing regional dispute settlement mechanisms, and processes in the political and security areas and work towards innovative modalities.

5. Post-conflict Peace Building:

Post-conflict peace building seeks to create the conditions necessary for a sustainable peace in conflict-torn areas and to prevent the resurgence of conflict. It is a process process involving involving broad-bas broad-based ed inter-agen inter-agency cy cooperation cooperation and coordinat coordination ion across a wide range of issues. ASEAN activities related to post-conflict peace   bui build ldin ing g shall hall incl includ udee the the esta establ blis ishm hmen entt of appr approp opri riat atee mech mechan anis ism m and and mobilization of resources. As an ASEAN family members should assist each other  in post-conflict peace building effort to, such as humanitarian relief assistance, reconstruction and rehabilitation.

Development and Achievements: Achievements:

1. Defens Defensee and secur security ity poli policy cy dialog dialogue: ue:

Defense dialogue and cooperation in the ASEAN Regional Forum (ARF) was elevated with the convening of the 1 st ARF security policy conference (ASPC) in  November 2004 in Beijing. The ASPC recommended exploring and developing ways and means of bilateral and multilateral cooperation on various areas. These included:  Intelligence and information sharing  Capacity building 

Training programmers

 The

sharing of experiences on the legal aspects of the role of the armed

forces in dealing with non-traditional security threats. 2. Non-traditional security issues:

At the ARF seminar on Enhancing Cooperation in the field of nontraditional security issues shared their best practices and experiences in coping with non-traditional security threats, such as

Terrorism

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Illicit drugs

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Piracy

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People smuggling and human trafficking

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HIV /AIDS, and

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Cyber crime.

3. Maritime security:

The ARF workshop on Maritime security in September 2004 in Kualalampur was important in forging a general consensus among ARF  participants on the reality of threats to maritime security. ARF participants also agreed on the need to take collective efforts to address maritime threats and agreed to share their efforts in such sections: 

Fostering information sharing

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Establishing maritime domains awareness

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Initiating joint maritime security exercise

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Co operating on consequence management and

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Sustaining capacity building initiatives

4. Intelligence exchange and Document integrity and security:

The 3rd ARF ISM on country-terrorism and transactional crime , cochaired by Thailand on information sharing and intelligence exchange , the the ISM ISM agre agreed ed on the the need need to bala balanc ncee the the time timely ly,, effe effect ctiv ive, e, and and systematic sharing of information and exchange of intelligence with the approp appropria riate te protec protectio tion n for the source sourcess of inform informati ation, on, privac privacy y and and human rights. 5. Treaty of amity and cooperation in Southeast Asia:

The 1976 treaty treaty of amity amity and cooper cooperati ation on in Southe Southeast ast Asia is legally –binding instrument to promote perpetual peace, everlasting amity and cooperation in the region. This treaty has been accepted

  by a growin growing g number number of countr countries ies outsid outsidee Southe Southeast ast Asia. Asia. This This treaty is the sign of

Peaceful coexistence

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Friendly consultation

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Resolution of conflict through peaceful way.

6. Treaty on the Southeast Asia Nuclear Weapon-free Zone:

ASEAN started activity exploring the control of Southeast Asia as a nuclear  weapon weapons-f s-free ree zone zone in the mid-19 mid-1980s 80s.. The 1995 treaty treaty in the Southe Southeast ast Asia Asia nuclear weapon-free zone is crucial to both confidence building in Southeast Asia and to worldwide nuclear disarmament. China a nuclear weapons state supported them. 7. Counter-terrorism:

The Vientiane Action Program (VAP) adopted at the 10 th ASEAN summit contained several measures to guide ASEANS efforts in countering terrorism from 2005-2010. These measures form the preparatory steps towards the conclusion of  an ASEAN ASEAN convention convention on counterter counterterroris rorism m and the establish establishment ment of an ASEAN ASEAN extradition treaty as envisaged by the ASC plan of action. Environmental security and ASEAN:

A ministerial meeting on the environment, held in April 1994, approved an ASEAN strategic plan of Action on the environmental quality and standards for  the ASEAN region and aimed to enhance joint action to address environmental concer concerns ns to achiev achievee durabl durablee peace peace.. At the same same time time the minist ministers ers adopte adopted d standards for air quality and river water which were to be achieved by all ASEAN member countries by 2010. In June 1995 ministers also agreed to co-operate in order to counter the problems of trans-boundary pollutions.

ASEAN: Realities and Future Challenges:

ASEAN: some realities

 None can deny the extreme reality of present international political and economic recession. ASEAN is called “Unity of Diversity” (Yong: 2003). ASEAN as an organization of 10 states with multi ethnic and religion background have potentials for conflict but fortunately or with charismatic leadership this did not happen. But the storm came from other sides.

In the mid 1997 a financial crisis swept the region. Crisis affected the economies of each member state and the other Asian countries. This crisis made people understand that “miracle age” is over (Tay: 2001). This led the leaders of each country particularly Mahathir Mohammad of Malaysia to further integration of the region. ASEAN Plus Three was the first step. But the USA and Japan opposes that  plan. Now the question is how far this will be able to go in such a situation of   balancing and counter balancing in world trade between the USA and China?

Beside this devastating Indonesian forest fire in 1997 and 1998 blanketed the region with haze pollution. Since the haze pollution is an important environmental issue. At the turn of the 21st cent centur ury, y, issu issues es shif shifte ted d to invo involv lvee a more more environmental perspective. Member states states signed signed a treaty ASEAN Agreement on Trans-boundary Haze Pollution in 2002 to deal with haze pollution. But due to outb ou tbre reak ak of the the 20 2005 05 Mala Malays ysia ian n haze haze and and 20 2006 06 Sout Southe heas astt Asia Asian n haze haze this this agreement and organization could not fulfill its agenda (www.wikipedia.com).

ASEAN region is a comparatively peaceful region (Young: 2003). Governments of member states of ASEAN are known to adopt reserved attitude to the idea of  Pacific Economic Co-operation (PEC) (Soesastro: 1983). In recent time peace and security of ASEAN region is obscure where there is a country with WMD. Though

on 15 December 1995, the Southeast Asian Nuclear Free Zone Treaty was signed, situation between North Korea and South Korea might affect in this region.

Another thing is ASEAN countries often been leveled ‘soft authoritarian states’ (Tay: 2001). A long Mahathir Regime in Malaysia about 4 decades, 32 years of   power of President Suharto in Indonesia, Mayanmar Janta rule and recent Thailand  political crisis emerged as new challenges foe further development and success of  ASEAN.

Beside economic and environmental issues, state of human security, protection of  human rights and fundamental freedom of expression more space for media and   pub publi licc

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democratization , cope up with militancy and radical religious campaigns all are the determining factors of the future of ASEAN as I stated before.

Future of ASEAN: Challenges and Recommendations As world world entere entered d into into a new century, century, ASEAN ASEAN phased phased new chall challeng enges es from from diff differ eren entt side sides. s. It has has made made a sign signif ific ican antt effo effort rt to indi indica cate te regi region onal al and and international willingness to deal with the grouping seriously. However, there are so many remaining challenges faced by ASEAN. There are at least five challenges faced by the ASEAN: democracy, the development gap in ASEAN, economic liberalization, human security and domestic and regional security ( Shedden paper: 2003). One of the major challenges for the ASEAN to fulfill mandates stated in its charter  signed in November 2007. This charter should be implemented carefully so that ASEAN can be more people oriented and more away from being state centric as is largely the case at this moment (Wanandi 2006).

Here I’ll describe the future challenges of ASEAN.

1. Democratization: Democracy will not necessarily be a factor that all

states will welcome nor will it solve every states every problem (Tay: 2001). Furthermore, it is a fact that no universal values of democracy shou should ld be appl applic icab able le to all all coun countr trie iess (She (Shedd dden en Pape Paper: r: 20 2003 03). ). Our  Our  experience about ASEAN is a well democratic environment in member  states particularly in the case of Indonesia aggravated the organization to come out from financial crisis. In future the more democratic the  block will be the better opportunity will be ensured. 2. Maintainin Maintaining g external external economic economic linkages linkages: Separa Separate tely ly each each state state of 

ASEAN is too small in economic terms. So that highest priority is given to maintain foreign relation. Collectively ASEAN is the fourth biggest trader of the world (Young: 2003). So future expansion of economic opportunity of ASEAN is largely depends on the cooperation with other  actors like, China, EU, USA and so on. 3. Economic liberalization: One of the major challenges for the ASEAN

member states to liberalize their internal economic system so that more foreign investment can be drawn. During 1997 crisis these states shared views. By subjecting the information to peer review, countries hoped discourage policies that might lead to another devaluation and crisis. For  example, Malaysia a very open economy, experimented with controls over capital flows and currency rate ( Tay: 2001). Once the economic recession has passed some countries tried seek to greater control over it their economy like, Malaysia, Vietnam, Laos and Myanmar. On the other hand Thailand and Singapore are following the IMF prescription. In such such a situat situation ion,, it potent potential ially ly become becomess harder harder for the group to achieve greater co-operation, trade and financial policies. 4. Mitigating development gap: Development gap between the six old

members and four new members in widening. Bridging development

gap gap in ASEA ASEAN N memb member erss to catc catch h up with with rest rest and and join join them them in advancing the association into a more meaningful and more prosperous economic community. 5. Human security: Human security situation in member countries are

diversified. Due to economic recession many people lost their job and fell below the poverty line. In such situation tension may arise among  people. On the other hand it can give rise to many criminal activities such such as viol violen ence ce,, riot riots, s, robb robber ery y or even even terr terror oris ism. m. Th This is will will be a challenge for ASEAN countries, which hare generally failed to provide social safety nets, especially for countries with large population, huge disputes between urban and rural areas and also small elite group that have tended to monopolies wealth. 6. Maintenance of security: One of the major challenges for the V is how

efficiently will it be able to maintain its security by combating against supranational and intrastate security threats. The emergence of ARF membership has showed as that the world community needs ASEAN. The war on terrorism has compelled ASEAN to be much more proactive in dealing with regional security. 7. Peace and stability: Maintaining peace and stability in this region is

dependent on effective mechanism to settle interstate boarder disputes, strengthening implementation of ASEAN Charter and so on. It has been stated that. The charter should strengthen ASEAN identity among the  people in the region as well as contribute to international and regional affa affair irs. s. In this this way, way, ASEA ASEAN N will will stre streng ngth then en peac peacee and and secu securi rity ty (Wanandi: 2006).

Combating with extremism and radical practice:

One of the major security threats of each country of the world is to combat with intra or supra non state violet groups. In response to this challenges the Secretary

General of ASEAN states “intensifying the presence and voice of the moderate force, especially those with religion influence , so that radical elements do not turn the the mult multii-ra raci cial al and and mult multii-re reli ligi giou ouss char charac acte teri rist stic icss of ASEA ASEAN N into into anti anti-establishment advantages( Young:2003). Highest co-operation should be ensured in the arena. ASEAN threats posed by international terrorism can answer this challenge adequately only when regional  powers like China and India co-operate warmly (Wanandi: 2006). Recommendations to cope with these challenges I find it important to recommend something that may or may not be helpful to overcome these multi-dimensional challenges. I.

Reso Resolv lvin ing g all all by late latera rall and and mult multil ilat ater eral al disp disput utes es thre threat aten en regi region onal al and and global security through diplomacy, under existing framework of the UN and ASEAN Charter.

II.

Effectiveness of ASEAN plans in economic, political and environmental areas should be analyzed and reviewed from peoples perspective.

III. III.

Intr Introd oduc ucin ing g track track III diplo diploma macy cy besi beside de rack rack I and and track track II diplom diplomac acy y to ensure consensus.

IV. V.

Ensuri Ensuring ng sust sustain ainabl ablee natur natural al and and human human enviro environme nment ntal al devel developm opment ent ASEAN should pressurize Myanmar and Thailand to restore democracy within a given time.

VI.

ASEAN member states have to take immediate steps to develop human rights situation in Myanmar.

VII. VII.

This Th is regio regiona nall forum forum shall shall come come forwar forward d to stop stop politi politica call exclus exclusio ion n and marginalization in member countries.

VIII.

Countries can ensure freedom of media so that they can criticize ASEAN , this will help it to modify its role

Conclusion:

Regional forum like ASEAN, SAARC etc. are facing enormous challenges due to emergence of regional superpowers and inevitable clash between or among big   pow power ers. s. Howe Howeve ver, r, ASEA ASEAN, N, memb member erss main mainta tain ined ed thei theirr resp respon onse se for for no nonninterference and territorial status quo for a long period. But it hardly can deter  clash of exclusive national interest of small or big powers.