The Association of Southeast Asian Nations (ASEAN) Economic Community was created in 2003 with the goal of connecting Asian economies. But full integration may be impossible. Denis Hew, a senior research fellow at the Center on Asia and Globalization at the Lee Kuan Yew School of Public Policy at the National University of Singapore, shares his concerns about the ASEAN coalition’s lofty goals and sometimes shifting goalposts [Transcript | Video].
4 takeaways:
➀ Labor shortages plague ASEAN community.
The process of recognizing professional qualifications across ASEAN countries is often slowed by political barriers, Hew said. While one study found that the private sector has been influential in moving skilled workers between ASEAN countries, the coalition nations have stricter borders than European Union countries. Hew described travel between Austria to the Czech Republic and being “shocked” at the lack of border restrictions. EU citizens can work in other EU states without a work permit. In ASEAN countries, “There’s a lot of restrictions and also what qualifications you have…There’s a lot of work to be done in terms of some level of harmonization of different kinds of standards,” Hew said.
➁ ASEAN is not the EU.
“An EU-style common market really is not realistic by 2025,” Hew said. “To be honest, I think if you talk to some of the ASEAN officials, it was never in their mind that they’re going to create something like a European-style common market.” Even a customs union—which would create common trade between ASEAN and the rest of the world—is not being discussed. “Economic cooperation is a more recent phenomenon,” Hew said, adding that comprehensive free trade agreements are much more likely.
➂ Be wary of shifting goalposts.
Hew advocated for annual reviews of the ASEAN Economic Community. As it becomes clearer that a functioning community may not be achievable by 2025, Hew said officials may attach less significance to the timetable and describe it more as a journey. “I think it’s a very convenient way to change the goalpost,” Hew said.
For instance, the Initiative for ASEAN Integration, which assists newer members to assimilate, has been in place for 20 years but has been ineffective. Hew said many of its initiatives are irrelevant, like English language programs. “I don’t think they’re taking it too seriously or they don’t have the resources. I don’t know what it is, but the actual initiative is not working,” Hew said.
➃ Economics and politics are inextricably linked.
“If you don’t have peace and stability, then your economies can’t grow,” Hew said. “Your global supply chains will not flourish here.” ASEAN countries have a better standing in global trade than Latin America and African countries because they are largely viewed as peaceful and stable.
*This fellowship is part of an ongoing program of journalism training and awards for trade coverage sponsored by the Hinrich Foundation. The National Press Foundation is solely responsible for the content. All programs are on the record and resources and transcripts from this and previous fellowships are published.
