Commodity structure of export and import of ASEAN. Indicators of development of the countries of an ASEAN and APR

Date: 2015-10-07; view: 509.

Features of forming of integration processes in the countries of South East Asia and the Pacific region. Association of South-East Asian Nations (ASEAN): purposes, tasks and creation factors

Theme 13. Trade and economic cooperation in the Asian – Pacific region

1. Features of forming of integration processes in the countries of South East Asia and the Pacific region. Association of South-East Asian Nations (ASEAN): purposes, tasks and creation factors.

2. Commodity structure of export and import of ASEAN. Indicators of development of the countries of an ASEAN and APR.

3. Association of regional cooperation of the Southern Asia (CAAPK): structure, purposes, tasks. Asia-Pacific Economic Cooperation (APEC): structure, purposes and tasks. Problems and prospects of trade and economic cooperation in APR region.

The Association of Southeast Asian Nations (ASEAN pron.: /ˈɑːsi.ɑːn/ ah-see-ahn, rarely /ˈɑːzi.ɑːn/ ah-zee-ahn) is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines,Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.

ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2011, its combined nominal GDP had grown to more than US$ 2 trillion. If ASEAN were a single entity, it would rank as the eighth largest economy in the world.

ASEAN was preceded by an organization called the Association of Southeast Asia, commonly called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961. The bloc itself, however, was established on 8 August 1967, when foreign ministers of five countries – Indonesia, Malaysia, the Philippines, Singapore, and Thailand – met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration. The five foreign ministers – Adam Malik of Indonesia, Narciso Ramos of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand – are considered the organization's Founding Fathers.

The motivations for the birth of ASEAN were so that its members' governing elite could concentrate on nation building, the common fear of communism, reduced faith in or mistrust of external powers in the 1960s, and a desire for economic development.

The bloc grew when Brunei Darussalam became the sixth member on 8 January 1984, barely a week after gaining independence on 1 January.

In 2007, ASEAN celebrated its 40th anniversary since its inception, and 30 years of diplomatic relations with the United States.^[33] On 26 August 2007, ASEAN stated that it aims to complete all its free trade agreements with China, Japan, South Korea, India, Australia and New Zealand by 2013, in line with the establishment of the ASEAN Economic Community by 2015. In November 2007 the ASEAN members signed the ASEAN Charter, a constitution governing relations among the ASEAN members and establishing ASEAN itself as an international legal entity. During the same year, the Cebu Declaration on East Asian Energy Security was signed in Cebu on 15 January 2007, by ASEAN and the other members of the EAS (Australia, People's Republic of China, India, Japan, New Zealand, South Korea), which promotes energy security by finding energy alternatives to conventional fuels.

Since the post-independence phases of Southeast Asian states, efforts were made to implement regional foreign policies, but with a unifying focus to refrain from interference in domestic affairs of member states.

There was a move to unify the region under what was called the ‘ASEAN Way' based on the ideals of non-interference, informality, minimal institutionalisation, consultation and consensus, non-use of force and non-confrontation. ASEAN members (especially Singapore) approved of the term ‘ASEAN Way' to describe a regional method of multilateralism.

Thus the signing of the Treaty of Amity and Cooperation in Southeast Asia adopted fundamental principles:

- Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations

- The right of every State to lead its national existence free from external interference, subversion or coercion

- Non-interference in internal affairs

- Settlement of differences or disputes in a peaceful manner

- Renunciation of the threat or use of force

- Effective regional cooperation

The ‘ASEAN way' is said to contribute durability and longevity within the organization, by promoting regional identity and enhancing a spirit of mutual confidence and cooperation. ASEAN agreements are negotiated in a close, interpersonal process. The process of consultations and consensus is designed to engender a democratic approach to decision making. These leaders are wary of any effort to legitimize efforts to undermine their nation or contain regional co-operation.

On 27 February 2009 a Free Trade Agreement with the ASEAN regional block of 10 countries and New Zealand and its close partner Australia was signed, it is estimated that this FTA would boost aggregate GDP across the 12 countries by more than US$48 billion over the period 2000–2020. ASEAN members together with the group's six major trading partners – Australia, China, India, Japan, New Zealand and South Korea – are slated to begin the first round of negotiations on February 26-28, 2013 in Bali, Indonesia, on establishment of the Regional Comprehensive Economic Partnership.

ASEAN has emphasised regional cooperation in the “three pillars”, which are security, sociocultural integration, and economic integration. The regional grouping has made the most progress in economic integration by creating an ASEAN Economic Community (AEC) by 2015. The average economic growths of ASEAN's member nations during 1989–2009 was Singapore with 6.73 percent, Malaysia with 6.15 percent, Indonesia with 5.16 percent, Thailand with 5.02 percent, and the Philippines with 3.79 percent. This economic growth was greater than the average Asia-Pacific Economic Cooperation (APEC) economic growth, which was 2.83 percent.

In 2007, ASEAN celebrated its 40th anniversary since its inception, and 30 years of diplomatic relations with the United States. On 26 August 2007, ASEAN stated that it aims to complete all its free trade agreements with China, Japan, South Korea, India, Australia and New Zealand by 2013, in line with the establishment of the ASEAN Economic Community by 2015. In November 2007 the ASEAN members signed the ASEAN Charter, a constitution governing relations among the ASEAN members and establishing ASEAN itself as an international legal entity. During the same year, the Cebu Declaration on East Asian Energy Security was signed in Cebu on 15 January 2007, by ASEAN and the other members of the EAS(Australia, People's Republic of China, India, Japan, New Zealand, South Korea), which promotes energy security by finding energy alternatives to conventional fuels.

On 27 February 2009 a Free Trade Agreement with the ASEAN regional block of 10 countries and New Zealand and its close partner Australia was signed, it is estimated that this FTA would boost aggregate GDP across the 12 countries by more than US$48 billion over the period 2000–2020.^[36][37] ASEAN members together with the group's six major trading partners – Australia, China, India, Japan, New Zealand and South Korea – are slated to begin the first round of negotiations on February 26–28, 2013 in Bali, Indonesia, on establishment of the Regional Comprehensive Economic Partnership.

Since the post-independence phases of Southeast Asian states, efforts were made to implement regional foreign policies, but with a unifying focus to refrain from interference in domestic affairs of member states.

There was a move to unify the region under what was called the ‘ASEAN Way' based on the ideals of non-interference, informality, minimal institutionalisation, consultation and consensus, non-use of force and non-confrontation. ASEAN members (especially Singapore) approved of the term ‘ASEAN Way' to describe a regional method of multilateralism.

Thus the signing of the Treaty of Amity and Cooperation in Southeast Asia adopted fundamental principles:

- Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations

- The right of every State to lead its national existence free from external interference, subversion or coercion

- Non-interference in internal affairs

- Settlement of differences or disputes in a peaceful manner

- Renunciation of the threat or use of force

- Effective regional cooperation

The ‘ASEAN way' is said to contribute durability and longevity within the organization, by promoting regional identity and enhancing a spirit of mutual confidence and cooperation. ASEAN agreements are negotiated in a close, interpersonal process. The process of consultations and consensus is designed to engender a democratic approach to decision making. These leaders are wary of any effort to legitimize efforts to undermine their nation or contain regional co-operation.

The ASEAN way can be seen as divergent from the contextual contemporary political reality at the formative stages of the association. A critical distinction is made by Amitav Acharya, that the ‘ASEAN Way' indicates “a process of ‘regional interactions and cooperation based on discreteness, informality, consensus building and non-confrontational bargaining styles' that contrasts with ‘the adversarial posturing, majority vote and other legalistic decision-making procedures in Western multilateral organizations'".

However, critics argue that the ASEAN Way serves as the major stumbling-block to it becoming a true diplomacy mechanism. Due to the consensus-based approach every member has a veto, so contentious issues must remain unresolved until agreements can be reached. Moreover, it is claimed that member nations are directly and indirectly advocating that ASEAN be more flexible and allow discourse on internal affairs of member countries.

Additionally, the preference for informal discussions to adversarial negotiations limits the leverage of diplomatic solutions within ASEAN.

For 1990-2002 the total volume of export is ten St of member wounds of ASEAN increased from 144,20 billion.долл. to 404,93 bln. dollars, and import – with 162,33 bln. dollars to 352,93 bln. dollars. Average annual rate of a gain cumulative export I made 4%, import of-1% during 1996-2001. Unlike many other integration groups, within Association average annual rate of a gain of mutual export is lower in comparison with dynamics of cumulative commodity turnover also it is equal 2% on the average annually for the considered period. On the contrary, average annual rate of a gain of import above, than a similar indicator of cumulative import of ASEAN - 3% for 1996-2001. According to 2002 the situation improved – signs were outlined the accelerated growth of mutually trade in comparison with growth rates of the cumulative ASEAN trade. Rate of a gain of mutual export made 8% (the cumulative export – 5%), and mutual import – 5% (cumulative import of 1%). For the considered period cost the volume of mutual export increased with 28,95 bln. dollars to 97,23 billion dollars, and mutual import – with 26,31 billion dollars. to 83,43 billion dollars. The share of mutual export of ASEAN increased from 21,1% to 24,0%, and the specific weight of mutual import - from 17,3% to 23,6% for 1993-2002. For comparison in 1980 this indicator equaled 13,5%.

As a whole, the share of mutual trade of the countries of ASEAN grows, but low rates. Moreover, it has essential value only for two countries - Malaysia (26,4%) and Singapore (36,0%), whereas for other partners its share varies within 2,6%-12,2% from cumulative commodity turnovers. The main commodity groups of mutual export - cars, the equipment and electrotechnical production (56,6%), mineral raw materials (10,76%), chemical production (5,6%), plastic products (4,3%), cumulative share which - 77%. In mutual import more than 80% are the share of cars, equipment and electrotechnical production (56,5%), mineral raw materials (13,0%), chemical goods (5,1%), plastic goods (4,2%), metals and steel products (3,8%), textiles (2,9%). In commodity structure of export Associations to the third countries prevail the equipment and electrotechnical production (53,8%), mineral raw materials (10,6%) and textiles (6,2%). Import in the third countries it is presented, mainly, the equipment and electrotechnical production (49,1%), mineral raw materials (11,1%), chemical production (7,1%). 19 Apparently, commodity structure of mutual export and export to the countries non-members it is approximately identical. The carried-out trade liberalization promotes also to attraction of capital investments. It agrees to data of the Secretariat of ASEAN, during 1990-1997 straight lines foreign investments were the main form of the capitals attracted in regional economy. 40% fell to their share on the average. Thus in Malaysia, Myanmar, Vietnam the share of PZI made more than 50% cumulative capital investments. The similar situation reflects the general structure net - capital investments in economy of developing countries that is characteristic and for the ASEAN states. The ASEAN wins first place on volume attracted PZI among other regions of the developing world. Moreover, five participating countries are in the lead among 20 main recipients. In 1993-1998. the ASEAN share on the average made 17,4% from the saved-up volume of PZI in developing countries that 233,8 bln. dollars (for comparison are totally equal in 1980 - 23,8 bln. dollars, i.e. the saved-up direct investments increased in ten times for 1980-1998). The annual volume of PZI increased from 7,8 bln. dollars. during 1986-1991 to 22 bln. dollars in 2000.

List of ASEAN countries GDP (nominal), International Monetary Fund 2011 estimates.

Rank	Country	GDP (millions of USD)	GDP (PPP) (Millions of USD)
—	World	70,160,000	78,897,426
—	European Union	17,577,000	15,821,000
—	United States	15,094,000	15,094,000
—	People's Republic of China	7,298,000	11,299,000
—	Japan	5,869,000	4,440,000
—	South Korea	1,163,000	1,554,000
—	ASEAN	2,153,919	3,326,941
	Indonesia	845,680	1,124,000
	Thailand	345,649	616,783
	Malaysia	278,680	447,279
	Singapore	259,849	314,911
	Philippines	213,129	390,408
	Vietnam	122,722	299,985
	Burma	51,925	82,679
	Brunei	15,533	20,969
	Cambodia	12,861	33,463
	Laos	7,891	17,433

List of ASEAN countries GDP (PPP), International Monetary Fund 2016 estimates.

Rank	Country	GDP (millions of USD)	Percent
—	United States	19,704.590
—	People's Republic of China	20,336.086
—	Japan	5,324,000
—	South Korea	2,148,000
—	ASEAN	3,340,023	100.0
	Indonesia	1,777,000
	Thailand	842,789
	Philippines	531,186
	Malaysia	362,398
	Singapore	318,915
	Vietnam	230,341
	Burma	63,689
	Cambodia	21,081
	Brunei	18,120
	Laos	10,491