ASEAN WHAT IS ASEAN? A regional grouping that promotes economic, political and security cooperation among its member states.

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1 ASEAN Instructor: Professor Matthieu CROZET Presented by: Tionardy Giovanni WEN, Chan-Chun Tu, Chang-Chieh WHAT IS ASEAN? A regional grouping that promotes economic, political and security cooperation among its member states. Established on 8 August 1967 in the main hall of Department of Foreign affairs in Thailand, Bangkok. Founded by the foreign ministers of Indonesia, Malaysia, Philippines, Singapore and Thailand. 1

2 FOUNDING FATHERS Narciso R. Ramos Thanat Khoman S. Rajaratnam Adam Malik Tun Abdul Razak Motto: ABOUT One Vision, One Identity, One Community ASEAN Day is the 8 th of August ASEAN Anthem: The ASEAN Way 2

3 MEMBER STATES INDONESIA Capital: Jakarta Population: million Language: Indonesian Member since: 8 August 1967 MALAYSIA Capital: Kuala Lumpur Population: million Language: Malaysian Member since: 8 August 1967 MEMBER STATES PHILIPPINES Capital: Manila Population: million Language: Filipino Member since: 8 August 1967 SINGAPORE Capital: Singapore Population: million Language: English, Tamil, Malay, Mandarin Member since: 8 August

4 MEMBER STATES THAILAND Capital: Bangkok Population: million Language: Thai Member since: 8 August 1967 BRUNEI DARUSSALAM Capital: Bandar Seri Begawan Population: 417,784 Language: Malay Member since: 7 January 1984 MEMBER STATES VIETNAM Capital: Ho Chi Minh Population: million Language: Vietnamese Member since: 28 July 1995 LAOS Capital: Vientiane Population: 6.77 million Language: Thai Member since: 23 July

5 MEMBER STATES MYANMAR Capital: Nay Pyi Taw Population: million Language: Burmese Member since: 23 July 1997 CAMBODIA Capital: Phnom Penh Population: million Language: Khmer Member since: 30 April 1999 EMBLEM Emblem represents, stable, peaceful, united and dynamic ASEAN. Unity of ASEAN Prosperity Comprising all countries in Southeast Asia, bound together in friendship and solidarity Courage & Dynamism Peace & Stability 5

6 AIMS AND PURPOSE 1. To accelerate economic growth, social progress and cultural development 2. To promote regional peace and stability through abiding respect for justice 3. To promote active collaboration and mutual assistance on matters of common interest 4. To provide assistance to each other AIMS AND PURPOSE 5. To collaborate more effectively for the greater utilization of their agriculture & industries, expansion of trade, including the study of the problems of international commodity trade 6. To promote Southeast Asian Studies 7. To maintain close and beneficial cooperation with existing international organizations with similar aims and purposes 6

7 ASEAN CHAIR Chairmanship of ASEAN rotates annually by the alphabetical order English name of each country Malaysia is the chair of ASEAN for 2015, so Laos will be the chair of ASEAN for Chairmanship shall chair: ASEAN Summit ASEAN Coordinating Council 3 ASEAN Community Councils Relevant ASEAN Sectoral Ministerial Bodies Committee of Permanent Representatives ASEAN CHARTER Signed in November 2007 and launched on 15 December 2008 To transform itself into a community (like the EU) ASEAN charter includes: Respect for the principles of territorial integrity, sovereignty, noninterference and national identities of ASEAN members Promotes regional peace and identity, peaceful settlements of dispute through dialogue and consultation Upholds international law of human rights, social justice and multilateral trade Encourages regional integration of trade 7

8 WHY IS ASEAN SO IMPORTANT The second largest economy in Asia and the sixth largest in the world Rank as the 4 th largest economy by 2050 The 3 rd largest labour force and important consumer demand The 4 th largest export region THREE PILLARS OF ASEAN 8

9 ASEAN ECONOMY COMMUNITY(AEC) Established in 2015 Realization of the region s end goal of economic integration ASEAN Economy Community Goal 9

10 ASEAN ECONOMY COMMUNITY OUTCOME Single market Education and job Culture diversity Intense competition AEC BLUEPRINT A Highly Integrated and Cohesive Economy 2. A Competitive, Innovative, and Dynamic ASEAN 3. Enhanced Connectivity and Sectoral Cooperation 4. A Resilient, Inclusive, People-Oriented, and People- Centred ASEAN 5. A Global ASEAN 10

11 ASEAN FREE TRADE AREA(AFTA) A trade bloc agreement supporting local manufacturing in all ASEAN countries. Signed by all ten member countries The Common Effective Preferential Tariff scheme instead of the common external tariff scheme ASEAN FREE TRADE AREA(AFTA) Goal Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers Attract more foreign direct investment to ASEAN 11

12 ASEAN PLUS THREE(APT) ASEAN + China + Japan + South Korea The first leaders meetings were held in 1996 and 1997 Strengthened due to the Asian Financial Crisis Credited as forming the basis for financial stability in Asia ASIAN CURRENCY UNIT (ACU) Proposed weighted index of currencies for ASEAN+3 Inspired by the now defunct European Currency Unit, replaced by the Euro Help stabilize the region's financial markets A currency basket and not a real currency 12

13 ASEAN PLUS SIX Also named Regional Comprehensive Economic Partnership (RCEP) ASEAN + China + Japan + South Korea + Australia + India + New Zealand Formally launched in 2012 Covers 45% of the world's population A third of the world's total GDP Accounts for 40 percent of world trade HOW BIG IS ASEAN GDP 13

14 GDP (MILLIONS OF USD) Indonesia(861,934)+Thailand(395,282)+ Malaysia(296,218)+Singapore(292,739)+ Philippines(291,965)+Vietnam(193,599)+ Myanmar (64,866)+Cambodia(18,050)+ Brunei Darussalam (15,492)+Lao PDR (12,327) ASEAN GDP: 2,442,472 million USD Source: World bank If ASEAN were a single country, it would already be the sixth-largest economy in the world, with a combined GDP of $2.44 trillion in 2015 Source: World Bank GDP.pdf 14

15 OVERVIEW world GDP: 3.4% in 2014 Advanced economies: 1.8% EM: 4.7% ASEAN outperformed world output by 1.2% in

16 AMS GDP has remained relatively high ASEAN ECONOMIC SECTOR S AVERAGE SHARE IN REAL GDP (%) In the past decade, services sector has gradually played an more important role. A good sign for economic transition Source: ASEANstats GDP data (September 2015). 16

17 ASEAN SERVICES SECTOR: FDI AND OUTPUT SHARE (%) Positive correlation between FDI and output share of service sector. Service sector has benefited from increasing FDI Is everything going so well? 17

18 TOTAL TRADE Total trade has been slowing down in the past few years (Total trade / GDP) has decreased 18

19 Current Account Surplus The current account(ca) surplus ratio has been narrowing. TRADE OPENNESS Trade openness has not changed much: ASEAN-6: WORSEN CLMV: IMPROVED 19

20 CONCLUSION Services sector are playing more important role Disproportionate performances among AMS Trade openness THANK YOU 20

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