what is asean? - matthieu crozet · what is asean? • a regional grouping that promotes economic,...

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ASEAN

Presented by:

Tionardy Giovanni

WEN, Chan-Chun

Tu, Chang-Chieh

Instructor:

Professor

Matthieu CROZET

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.

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FOUNDING FATHERS

Narciso R. Ramos Thanat Khoman

S. Rajaratnam

Tun Abdul RazakAdam Malik

ABOUT •  Motto:

“One Vision, One Identity, One Community”

•  ASEAN Day is the 8th of August

•  ASEAN Anthem:

“The ASEAN Way”

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MEMBER STATES

INDONESIACapital: JakartaPopulation: 249.9 millionLanguage: IndonesianMember since: 8 August 1967

MALAYSIACapital: Kuala LumpurPopulation: 29.72 millionLanguage: MalaysianMember since: 8 August 1967

MEMBER STATES

PHILIPPINESCapital: ManilaPopulation: 98.39 millionLanguage: FilipinoMember since: 8 August 1967

SINGAPORECapital: SingaporePopulation: 5.399 millionLanguage: English, Tamil, Malay,

MandarinMember since: 8 August 1967

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MEMBER STATES

THAILANDCapital: BangkokPopulation: 67.01 millionLanguage: ThaiMember since: 8 August 1967

BRUNEI DARUSSALAMCapital: Bandar Seri BegawanPopulation: 417,784Language: MalayMember since: 7 January 1984

MEMBER STATES

VIETNAMCapital: Ho Chi MinhPopulation: 89.71 millionLanguage: VietnameseMember since: 28 July 1995

LAOSCapital: VientianePopulation: 6.77 millionLanguage: ThaiMember since: 23 July 1997

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MEMBER STATES

MYANMARCapital: Nay Pyi TawPopulation: 53.26 millionLanguage: BurmeseMember since: 23 July 1997

CAMBODIACapital: Phnom PenhPopulation: 15.14 millionLanguage: KhmerMember since: 30 April 1999

EMBLEM •  Emblem represents, stable, peaceful,

united and dynamic ASEAN.

Prosperity

Courage & Dynamism

Peace & Stability

Unity of ASEAN

Comprising all countries in Southeast Asia, bound together in friendship and solidarity

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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

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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 2016.

•  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, non-interference 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

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WHY IS ASEAN SO IMPORTANT

•  The second largest economy in Asia and the sixth largest in the world

•  Rank as the 4th largest economy by 2050

•  The 3rd largest labour force and important consumer demand

•  The 4th largest export region

THREE PILLARS OF ASEAN

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ASEAN ECONOMY COMMUNITY(AEC)

•  Established in 2015

•  Realization of the region’s end goal of economic integration

ASEAN Economy Community Goal

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ASEAN ECONOMY COMMUNITY OUTCOME

•  Single market

•  Education and job

•  Culture diversity

•  Intense competition

AEC BLUEPRINT 2025

1.  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

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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

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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

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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

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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 http://databank.worldbank.org/data/download/GDP.pdf

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OVERVIEW

ASEAN outperformed world output by 1.2% in 2014

world GDP: 3.4% in 2014 Advanced economies: 1.8% EM: 4.7%

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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).

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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?

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TOTAL TRADE

•  Total trade has been slowing down in the past few years

(Total trade / GDP) has decreased

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•  The current account(CA) surplus ratio has been narrowing.

Current Account Surplus

TRADE OPENNESS

Trade openness has not changed much:

ASEAN-6: WORSEN

CLMV: IMPROVED

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CONCLUSION

•  Services sector are playing more important role

•  Disproportionate performances among AMS

•  Trade openness

THANK YOU