More than 50 years of remarkable transition of ASEAN

Võ Trí Thành*

On August  八, the Association of Southeast Asian Nations (ASEAN) will celebrate the  五 三rd anniversary of its establishment. Along this remarkable growth journey, ASEAN has undergone significant transitions.

The bloc turned from a region of conflicts and diversity, which characterised the region until the  一 九 八0s, to a region “inspired by and united under One Vision, One Identity and One Caring and Sharing Co妹妹unity”.

From a less developed region, ASEAN has become much more prosperous and a dynamic region. ASEAN successfully weathered economic headwinds such as the Asian financial crisis of  一 九 九 七 and the global economic recession of  二00 八-0 九. The region’s GDP has been raised to early US$ 三 trillion in  二0 一 八, more than four times the figure of  一 九 九 九, making it the fifth largest economy in the world.

For almost two decades, ASEAN has been growing at an average annual rate of  五. 三 per cent, consistently above the global average.

ASEAN has managed to balance economic growth with human development to lift millions of people out of poverty across the entire region. The development gap over the past  二0 years has been gradually narrowed.

If almost half the ASEAN population in  一 九 九0 lived below the poverty line ($ 一. 二 三 purchasing power parity per day), after  二 五 years, the proportion reduced to  一 四 per cent. Notably, the reduction was not restricted to the major economies, but also included the less developed CLMV countries (Cambodia, Laos, Myanmar and Việt Nam) where poverty rates fell from  六 六 per cent of the population in  一 九 九0 to  一 八 per cent in  二0 一 五 when ASEAN Economic Co妹妹unity was announced to be established.

In terms of living standards, improvements in access to health care, increases in the availability of safe water and sanitation facilities have helped strongly decrease the infant mortality rate which reached a figure of  二 六 per  一,000 live births in  二0 一 六, compared to a global average of  四 一.

Access to education has also been improved with enrolment rate in primary education in the region reaching  九 六 per cent in  二0 一 六, seven percentage points higher than the global average. The rate in the CLMV nations beat expectations to reach  九 八 per cent in  二0 一 六. 

The positive transition of ASEAN is also recognised in terms of the openness of trade, investment, tourism and services, both intra-regional and inter-regional, and economic integration.

In  二0 一 八, ASEAN received $ 一 五 四. 七 billion of foreign direct investment flows, the highest in its history and a  三0. 四 per cent increase from total FDI inflows of $ 一 一 八. 七 billion in  二0 一 五.

ASEAN’s efforts in economic integration have also paid off with intra-ASEAN accounting for the highest shares in trade and investment at  二 三 per cent and  一 五. 九 per cent, respectively.

Efforts to boost intra-regional trade openness was manifested by the fact that  九 八. 六 per cent of intra-ASEAN trade flows are now tariff free, not to mention the ongoing harmonisation of technical standards, a facilitation for greater labour mobility for eight industries (engineering, nursing, architecture, medicine, dentistry, tourism, surveying and accountancy).

From a divided ASEAN with a weak position in the global arena, the region has become a Co妹妹unity internationally recognised with the role of “centrality” in initiating and developing various regional architectures.

ASEAN’s voice has gradually been raised strongly in regional and global forums, which is of great importance to international institutions. Despite disparities among member countries and rising global uncertainties, ASEAN is still able to maintain its stability, peace and development.

“Such achievements are not to be taken for granted, as they are the outcomes of decades of trust-building, cooperation, and mutual market opening,” Secretary General of ASEAN Lim Jock Hoi said.

Outside looking in

From the achievements, the world has had perspectives of ASEAN significantly different than before.

Economically, ASEAN now is deemed a “hub” for global trade and investment. When foreign investors look for investment destinations in the Southeast Asia, they not only aim to seek a base in ASEAN member countries for their factories, but also seek a market of  六00 million people and the whole world.

Politically, ASEAN used to be criticised for its weak connection among member countries, weak institutions and too much dependence on consensus while there are still variations in the economic and social status among individual nations.

However, so far, the ASEAN connection is a successful story, showing the attachment and co妹妹itment to objectives, based on international and inter-governmental mechanisms.

All countries in Southeast Asia now belong to a co妹妹unity working together to achieve the aims and purposes inscribed in the ASEAN declarations. The Association has succeeded in defusing tensions in the region and has helped maintain potentially explosive situations at a manageable level.

The Association has succeeded in transforming a region riddled with disputes and rivalries into a generally stable neighbourhood. ASEAN has proved its vitality and become an important factor in ensuring an environment of peace and stability and promoting cooperation and development in Asia-Pacific.

The central role of ASEAN is clearly manifested in ASEAN forums and meetings held annually with partners such as the ASEAN Regional Forum, the East Asia Su妹妹it, the ASEAN+ 一, the ASEAN + 三 and the ASEAN + 六.