FACULTY OF PUBLIC ADMINISTRATION AND POLICY STUDIES

AM110

DIPLOMA IN PUBLIC ADMINISTRATION

CURRENT AFFAIRS IN SOUTH EAST ASIA

PAD 380

QUESTION 7: DISCUSS ISSUED FACED BY ASEAN IN ORDER TO ACHIEVE VISION 2020.

PREPARED BY:

FATIN NUR IZZWANI BT HAMZAH 2011451052

NOR ASHQIRA BT KAMARUL 2011205216

PREPARED FOR:

MADAM NOR SUHAIZA BT MD KHALID

DATE OF SUBMISSION:

14TH MAY 2012

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TABLE OF CONTENT

1.0

Introduction.

ASEAN Vision 2020 is the main objective of ASEAN as approach 21 st century. This vision

becomes the guideline to implement activity or declaration. On 2020, ASEAN wants concert of

Southeast Asian nations, outward looking, and living in peace, stability and prosperity, bonded

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CONTENT PAGES

1.0 Introduction1

2.0 Issued Faced By ASEAN In Order To Achieve

ASEAN Vision 2020.

2.1 The Concept of New Regionalism.

2.2 Non-Traditional Securities.

2.3 Trade Liberalization.

2.4 Commitment Institution.

2.5 Globalization.

2-3

4-5

6-7

8-910-11

3.0 Conclusion 12

together in partnership in dynamic development and in a community of caring societies. Vision

2020 is one of the declarations made during 2nd ASEAN Summit.

In Vision 2020, ASEAN wants all their member had implement fully freedom, peace and

neutrality. Many declarations had been promoted by ASEAN through ASEAN summit in order

to achieve ASEAN Vision 2020. After the declaration of Vision 2020, most of the activity or

resolutions are related with this vision. This is crucial to ensure that all the member’s activity

including political, economic and social lead toward achieving Vision 2020 such as The ASEAN

Roadmap for the Attainment of The Millennium Development Goals, ASEAN plus Three and

ASEAN Human Right.

The ASEAN Vision 2020 also stipulated to “use the ASEAN Foundation as one of the

instruments to address issues of unequal economic development, poverty and socio-economic

disparities”. Its mean that ASEAN Foundation one of the mechanism to help ASEAN approach

its vision. ASEAN Foundation has been stated in 6th ASEAN Summit which is in resolution of

the Hanoi Plan of Action.

2.0 Issued Faced By ASEAN In Order To Achieve ASEAN Vision 2020.

2.1 The Concept of New Regionalism.

New regionalism refers to varying approaches to addressing major urban metropolitan

problems including economic competitiveness, social equity, and sustainable land use and

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infrastructure development (Allan D. Wallis, 2010). ASEAN had created a new regionalism to

achieve some vision of ASEAN by making cooperation and collaboration with external country.

By established this new region, it will help ASEAN’s member to enhance the administration of

their country in terms of politic, economic and social. ASEAN plus Three (APT) is one of the

initiatives of ASEAN to make cooperation with bigger and develop country in Asia which

consist of Japan, China and South Korea. Establishment of this new region is crucial because

ASEAN have two categories which are ASEAN six and ASEAN four. The cooperation with

external country will helps to reduce the gap between ASEAN six and ASEAN four in terms of

trade facilitation, narrowing the development gap, rural development and poverty alleviation and

transnational crime.

In terms of trade facilitation, ASEAN through ASEAN plus Three has established

ASEAN-China Free Trade Area which covers the trade in goods by 2010 for ASEAN-6 and by

2015 for ASEAN-4. However, in 2005-2006, members of the ASEAN-6 (except for Brunei), has

conquered about 93% of ASEAN trade while for among the members of ASEAN-4, only

Vietnam shows the highest share of trade which is 5.5%. (Smitha Francis and Murali

Kallummal, 2008).This has shown a huge gap in trade between ASEAN-6 and ASEAN-4. By

having this gap, it will affect strategy of ASEAN to achieve Vision 2020 which is that there is no

ASEAN six and ASEAN four in year 2020 because of standardization of economic where all the

ASEAN members have stability in economic.

Even though there is an increase in ASEAN’s economic cooperation, the income gap

between the developing countries, which are ASEAN six and ASEAN four is still huge. In 2010,

it is said that ASEAN’s economic growth has increase with annual growth rate from 5-10%.

However, the income gap between ASEAN six and ASEAN four shows a deep contrast which is

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from 17-50 times. For ASEAN six, GDP for Indonesia stands for US$546 billion and US$200

for Malaysia, Thailand and Singapore. This is contrast with ASEAN four which gains GDP of

only about US$5-18 billion (Hong Hoa, 2010). This has become a great challenge for ASEAN

in order to reduce this huge gap between ASEAN six and ASEAN four in order to establish

South East Asia region with balance economic development.

2.2 Non-Traditional Securities.

Non-traditional securities are the new environment of securities which are non-military in

nature. This security is relating with the social problem in the state like drug-trafficking, piracy,

AIDS and prostitution. (Saurabh, 2011) The variety of administration of each country cause

different issue of non-traditional securities. This is due to different implementation of promoting

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development in their respective country. Even though ASEAN has come out with several

declarations in the meeting with ASEAN’s member to settle these problems, current situation in

each ASEAN’s members does not allow them to implement the same policy promoted by

ASEAN.

Current situation here refers to the economy of ASEAN’s member. ASEAN four always

having financial problem to implement what had been advised by ASEAN through ASEAN

SUMMIT especially about social problem such as to reduce the number of patients with HIV and

AIDS. The percentages of non-traditional problem of ASEAN four is higher compared to

ASEAN six as they did not have enough budget to improve their non-traditional securities. To

support this, it is shown that members in ASEAN-6 like Brunei, Thailand and Malaysia use

about more than 50% of their expenditure on health that involve AIDS/HIV, whereas members

in ASEAN-4 use only about 10-40% of their expenditure ( Dr Bob , 2012). Moreover, ASEAN

only provide advice and not financial aid. The establishment of ASEAN Work Programme on

HIV/AIDS for the period of 2011-2015 that helps to combat and reduce the impact of HIV and

AIDS across the region only provides access of HIV-related care and treatment services

(Reliefweb, 2010). However, this is limited to ASEAN-4 due to the lack of expenditure on

health care.

Meanwhile, human trafficking is also one of main issue relating to non-traditional

security. This includes prostitution, and child abuse. The fight against these human trafficking

remains a big challenged for ASEAN because even though the policy to prevent human

trafficking is being made, but it is optional for ASEAN members to follow them. ASEAN

members have the right whether to implement this policy or not. There are countries in ASEAN

which use human trafficking as the main income for their country. For example, Thailand and

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Philippines has use prostitution as one of their country’s main business opportunity. The

Philippines, which has almost 10 million citizens working overseas, was particularly vulnerable

to human trafficking with many women going abroad for legitimate jobs only to be forced into

prostitution (Bangkok Post, 2013). The efforts to totally eliminate human trafficking cannot be

achieved as it will affect individual region’s interest.

2.3 Trade Liberalization.

Trade liberalization can be defined as the removal or reduction of restrictions or barriers

on the free exchange of goods between nations. This includes the removal or reduction of both

tariff (duties and surcharges) and non-tariff obstacles (like licensing rules, quotas and other

requirements). The easing or eradication of these restrictions is often referred to as promoting

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"free trade" (Investopedia, 2013). Trade liberalization in ASEAN is done through establishment

of ASEAN Free Trade Area (AFTA). Even though the Common Effective Preferential Tariff

(CEPT) Scheme allows the reduction of tariff between 0-5% for product traded within region,

however, the time line of implementation is different for each members of ASEAN. When

ASEAN Vision was established in 1997, ASEAN face challenges to include the ASEAN-4

which consists of Vietnam, Laos, Myanmar and Cambodia. This is because they are left behind

and are backwards in economic and political stability as compared with ASEAN-6 ( ASEAN,

2003).

Even though AFTA has resulted in success when 98.9% of all the products traded by

ASEAN 6, ASEAN-4 with product traded amounted to 71.1%, is still in the process in achieving

the ASEAN-6’s success. This is due to the different timeline of the implementation of CEPT

Scheme for ASEAN-6 and ASEAN-4. For ASEAN-6, tariff and non-tariff barriers are to be

eliminated by the year 2010 while for ASEAN-4 is by the year of 2015 (ASEAN Economic

Community Blueprint, 2008). The liberation of trade is not being standardized due to different

in the timeline of CEPT Scheme implementation for ASEAN-6 and ASEAN-4. This has led to

early development of ASEAN-6 as compared to ASEAN-4. ASEAN-4 has to cope with the

development achieved by ASEAN-6 in limited time frame.

In addition, ASEAN 6 is major in manufacturing industry. ASEAN-4 faces difficulty in

competing with ASEAN-6 as they face shortage of capital, raw material, power supply, spare

parts, and entrepreneurship (Mya Than, 2001). ASEAN-4 lacks of proper technological support

and investment from foreign countries. Therefore, it makes harder for ASEAN-4 to trade their

products. Meanwhile, the ASEAN-6 is advanced in economic and industrial perspectives.

Members of ASEAN-6 have experience increased in trade liberalization during AFTA

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implemented before the ASEAN-4 join the ASEAN. This has caused a huge gap of economic

development between ASEAN-6 and ASEAN-4 because the foreign investors are more attracted

to ASEAN-6 for their economic and political stability rather than ASEAN-4. For example,

imports from non-ASEAN constitute mainly machines and equipment (as well as industrial raw

materials) essential for industrialization that the neighboring countries are unable to supply.

(ASEAN One, 2005).

2.4 Commitment Institution.

Commitment institution means cooperation of all ASEAN’S member to implement and

follow all the policy and rules that had been stated by ASEAN. In order to achieve its vision,

ASEAN try to standardize the political structure of each ASEAN member because of varieties

form of governments. For example, Brunei is implementing absolute monarchy, Myanmar is

implementing military-government and Malaysia is implementing democracy in its political

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system. This differences make the vision is hard to achieve because ASEAN need to have

homogeneous political structure which is fully democracy by the entire member. This is crucial

aspect as regional integration cannot be form if there is no commitment by the ASEAN’S

member.

Moreover, ASEAN’S also did not have courage to have a strong functional ASEAN for

fear of incurring diminished national policy-making autonomy. It means that ASEAN member

does not believe the organization to make decision for their country and they were afraid that

they will lose their own sovereignty. Member of ASEAN does not give fully commitment to

established democracy even ASEAN has declare that ASEAN members should promote political

development based on the principles of democracy and human right as stated in the elements of

ASEAN Political-Security (APSC) Blueprint. APSC Blueprint aims to promote just, democratic

and harmonious environment for people and member states of ASEAN. APSC Blueprint not only

promotes democracy, but also promotes democratic institution (ASEAN Political-Security

Community Blueprint, 2009). However, some of ASEAN-4 such as Myanmar does not fully give

their commitment to this effort. This is because even though Myanmar has tried adopting

democracy through election in 2010, the failure to adopt the new government has allowed the

previous military-government to rule the country again. They avoid receiving external

legitimacy and political improvement. So Myanmar government did not fully apply democracy.

The members of ASEAN do not want to fully apply integration because of their narrow

individual interest and implementation of “close the door” concept in certain aspect especially in

decision making. Even there is dispute among the members of ASEAN, the organization cannot

do anything as they can only advice. Moreover, ASEAN have neo-functional characteristic in

term of decision making. ASEAN cannot involve directly because the dispute will refer to

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International Court of Justice if it involve the dispute between members. Beside, most of the

members decide to give partial integration rather than total integration. So it becomes obstacle of

ASEAN to achieve Vision 2020 as it wants to create fully regional integration. Commitment is

crucial in order to achieve integration.

2.5 Globalization.

Globalization means the worldwide movement toward economic, financial, trade,

and communications integration. (Bussinessdictionary, 2013). Globalization gives challenge to

the association because ASEAN’s member needs to adapt with the large changes such as changes

in political system. All the ASEAN’s member has to change their current system either directly

or continuously in terms of politic, economic and social so that it can be standardized.

Globalization always related with integration and it can helps ASEAN’s member to increase

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strengthen in all aspect. This is the best reason why all ASEAN’s member needs to share the

opportunity each other to help ASEAN approach globalization. In terms economic, when one of

the ASEAN’s member success in economic, it will gain other member to have same level of

economic and trust to the country to help them manage their economic.

The ten ASEAN member has different ideology in terms of managing their country. This

led ASEAN to establish several resolutions to standardize member of ASEAN in all aspect such

as Framework Agreement on Enhancing ASEAN Economic Cooperation, statement of Food

Security in the ASEAN Region and the cooperation of ASEAN with external countries through

Free Trade Agreement (FTA). When ASEAN made external relation with large countries such as

China, United States and Japan, it helps to increase the foreign direct investment of ASEAN

members. These foreign countries also help to provide capital to ASEAN members. This capital

inflow can also lead to increase in the price of local assets. The existence of foreign direct

investment will lead to interference of non-ASEAN members in the economy of ASEAN

countries. As this foreign direct investment hold part of the economy, technology and managerial

skills can be improved. However, this will suppress the wage of local and will takes away job

opportunities from local people because of implementation of greater technology that will reduce

cost on labor force. (Dr. Mahani, 2012).

Imbalance of economic, can lead to various problem to approach globalization. ASEAN

six have higher GDP compare to ASEAN four. So it prevents the ASEAN four to develop their

countries. Lack of financial support makes the countries unmotivated to approach globalization

that has been promoted by ASEAN. In Cambodia, it has lower level of education as the

expenditure for education only costs about 14.6% of total government expenditure. Public and

Private schools in Cambodia are mostly funded by families and communities. People of

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Cambodia are not compulsory to take education as the cost is high. There exist only several

universities is Cambodia and there is a strict entrance because only student with the highest score

achieved in secondary school are allowed to enter this university (Allison Runchey, 2008). This

contributes to production of unskilled worker to help the country achieve globalization in all

aspects. As compared to Singapore, the government gives fully attention to their education

system by supporting through financial aid. Singapore’s government provides latest syllabus and

books to the students. The framework of Singapore’s education system also emphasizes on

effective learning of students. (SgBox.com, 2013).

3.0 Conclusion.

In conclusion, Vision 2020 becomes one of the main purposes of the establishment of

ASEAN. The purpose might different with earlier establishment of this international

organization as parallel with the advance of modern life in the 21st century. All member of

ASEAN should give fully commitment to approach Vision 2020. The activities and plan of

ASEAN must be present in front of ASEAN’s member so that they will know and understand

what they need to do in order to achieve Vision 2020. Member of the ASEAN also need to

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cooperate and depend on each other to help ASEAN realize its Vision. Cooperation among

member countries is necessary in creating balance development and prosperity of all

members of ASEAN. As Vision 2020 is coming near, all members must work together in

implementing all policies and programs that ASEAN has outlined.

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