Lessons from ASEAN’s Economic Integration

Abstract

 Professor Kriengsak Chareonwongsak, Ph.D.

Abstract

ASEAN has been a fast growing economic region during the last decade. However, it was not founded as an economic body as such but as a means to stopping the spread of Communism within South East Asia. This article looks at those factors, which have supported this economic cooperation such as the emergence of regionalism, the emergence of Foreign Direct Investment host countries, even the Asian economic crisis that have all contributed to this economic cooperation between the member countries of ASEAN. In addition, factors that have worked against this economic cooperation are also looked at in this article. These include factors such as the early objectives of ASEAN itself, economic dependence on other external economies, ASEAN’s lack of an anchor country, the inadequacy of  institutions with member countries, as well as the differences between ASEAN member countries themselves. It concludes by suggesting lessons that can be learned for other developing countries.

Even though not founded primarily and fundamentally as an economic region, the Association of Southeast Asian Nations (ASEAN) has in fact been a fast-growing economic region during the last decade. No doubt a significant factor in this economic success has been the economic cooperation that has occurred between the countries of the region. After its founding in 1967 and for the next two decades there was slight growth only in the economies of ASEAN’s member countries. However, during the 1990’s, before the region entered into its economic crisis in 1997, this regional economic cooperation expanded considerably as demonstrated by its liberalization of trade, service, and investment, sub-regional economic cooperation, and other collaborations in terms of information technology.

This paper endeavors to study lessons derived from this economic cooperation within ASEAN. Factors that have contributed to or hindered the success and failure of regional cooperation will be discussed in the paper, which will conclude with recommendations aimed to help policymakers of regional development for other developing countries. All these recommendations aim to promote a sustainable development for each nation in the shape of new economic and political surroundings.