Will ASEANs Dream Be the Dream of Us (Graph)

8/11/2019 Will ASEANs Dream Be the Dream of Us (Graph)

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Will the Dream of ASEAN be

Indonesians Dream?

(or, Will It be Indonesians Nightmare?)

Akhmad Akbar Susamto


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-------- The Evolution of ASEAN Community --------


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The roots of the ASEAN groupingcan be traced back at least to theSoutheast Asia Treaty

Organization (SEATO).

The SEATO was signed in 1949,with a purpose to fightcommunism in Southeast Asia.

Members of the SEATO: UnitedStates, United Kingdom, France,Pakistan, Philippines andThailand.


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The motivation for increasingeconomic co-operation in the1990s was the threat of

competition from China.


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The AEC helps to establish a level

playing field across the region, creating

a culture of fair business competition

for among the ASEAN member states

and ultimately enhancing the regionseconomic performance.


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Recalling that the motivationbehind ASEAN integration isthe threat from China, the

future of ASEAN communitywill depend on how individualmember states China is able tobuild partnership with China.

The need for ASEAN

cooperation would become lessattractive once .

However, he said the spirit to establish

a single economy is slowly diminishing

as many Asean countries start to revive

their protectionist instincts.


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Besides, as each memberexperiences good growth, thewill and desire to unite within

the region will, paradoxically,dwindle.

However, he said the spirit to establish

a single economy is slowly diminishing

as many Asean countries start to revivetheir protectionist instincts.


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The need for ASEANcooperation would become lessattractive once . Besides, as each

member experiences goodgrowth, the will and desire tounite within the region will,paradoxically, dwindle.

However, he said the spirit to establisha single economy is slowly diminishing

as many Asean countries start to revive

their protectionist instincts.


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t will be a larger ASEAN market forall the Asean countries

It requires the hard decision of whichcountry should lead in whichindustry.

Asean is not big enough to haveseveral different car industries. It has

got to focus on one or two countries. Ifeach Asean country wants to have acar industry, then we will be killingourselves in terms of economiccompetition


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---- Future ASEAN: Opportunities for Indonesia ----

The evolution of ASEAN towards aborderless community offers newopportunities for Indonesia.

It expands the target market ofIndonesian goods and services.


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---- Future ASEAN: Opportunities for Indonesia ----

From consumers perspective, thecreation of a single ASEAN market

is also beneficial as it will create

incentives for businesses to further

develop creative and innovative

products and services as they

willhave to compete with a numberof new players in the market..


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------ Future ASEAN: Challenges for Indonesia ------

The evolution of ASEAN towards aborderless community also bringsgreater challenges for Indonesiathat need to be tackled.

.exposing local business tounfettered competition which they

fear they are ill-prepared to deal

with

Possible marginalization of unskilled

workers


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------ Future ASEAN: Challenges for Indonesia ------

Risk of over-exuberant inflows of

capital


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-----------Is Indonesia Ready for the Future?-----------

The need for Indonesian government toassist in preparing their local industries,

particularly small and medium

enterprises (SMEs), to tap into the

benefits of the AEC as well as that of asingle production base

.


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-------- Some Closing Remarks --------

The impact of AEC will only becomeapparent after 2015 and depends onfactors that are not always easy toforesee.

It is true that we need to have a longvision.

It is also true that AEC should be seenas the end of the beginning rather

than the ultimate integration itself.

But, there is no need to rush!

Lets have a short break, take a very

deep breath and see how the AECworks.


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Rank Country Value

1 United States 0.8242 Japan 0.694

3 Norway 0.643

4 Finland 0.621

5 Sweden 0.619

6 Germany 0.616

7 Korea, Republic 0.576

8 Swi tzerl and 0.539

9 Denmark 0.51610 Singapore 0.510

11 Austral ia 0.506

12 Canada 0.461

13 Austria 0.443

14 New Zea land 0.408

15 Netherl and 0.405

16 France 0.373

17 United Kingdom 0.36418 Hong Kong 0.338

19 Belgium 0.331

20 Czech Republic 0.288

21 Spain 0.204

22 Italy 0.134

23 Poland 0.095

24 Portugal -0.008

25 Chile -0.037 60.42

61.75

66.49

68.27

71.48

75.38

77.34

77.6478.83

79.26

80.74

80.86

82.48

83.31

85.38

85.5585.85

86.90

88.59

90.44

90.60

90.67

91.70

94100 (1) UNITED STATES

(2) JAPAN

(3) NORWAY

(4) FINLAND

(5) SWEDEN

(6) GERMANY

(7) KOREA, REPUBLIC OF

(8) SWITZERLAND

(9) DENMARK(10) SINGAPORE

(11) AUSTRALIA

(12) CANADA

(13) AUSTRIA

(14) NEW ZEALAND

(15) NETHERLAND

(16) FRANCE

(17) UNITED KINGDOM(18) HONG KONG

(19) BELGIUM

(20) CZECH REPUBLIC

(21) SPAIN

(22) ITALY

(23) POLAND

(24) PORTUGAL

(25) CHILE

CATCH UP INDEX 2014 (50 COUNTRIES)


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26 Saudi Arabia -0.041

27 Russian Federation -0.107

28 Romania -0.129

29 Malaysia -0.136

30 Kazakhstan -0.149

31 Ukraine -0.209

32 Thailand -0.210

33 Turkey -0.212

34 China -0.223

35 Argentina -0.31136 Egypt -0.338

37 Brazil -0.372

38 Iran -0.412

39 Mexico -0.436

40 Algeria -0.472

41 Viet Nam -0.475

42 South Africa -0.487

43 Venezuela -0.510

44 Indonesia -0.527

45 Philippines -0.548

46 Peru -0.568

47 Colombia -0.610

48 India -0.656

49 Nigeria -1.049

50 Kenya -1.350 0

13.85

31.93

34.07

36.00

36.91

37.89

38.65

39.73

40.24

40.40

42.07

43.17

45.01

46.5647.79

51.86

52.34

52.43

52.47

55.24

55.85

56.19

57.19

60.20

0 20 40 60 80 100

(26) SAUDI ARABIA

(27) RUSSIAN FEDERATION

(28) ROMANIA

(29) MALAYSIA

(30) KAZAKHSTAN

(31) UKRAINE

(32) THAILAND

(33) TURKEY

(34) CHINA

(35) ARGENTINA(36) EGYPT

(37) BRAZIL

(38) IRAN

(39) MEXICO

(40) ALGERIA

(41) VIET NAM

(42) SOUTH AFRICA

(43) VENEZUELA

(44) INDONESIA

(45) PHILIPPINES

(46) PERU

(47) COLOMBIA

(48) INDIA

(49) NIGERIA

(50) KENYA

Rank Country Value


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0

10

20

30

40

50

60

70

80

90

100

China (42) India (47) Indonesia(41)

Japan (1) Korea,Republic of

(14)

Malaysia(36)

Philippines(44)

Singapore(20)

Thailand(33)

Viet Nam(37)

Score

Country/Rank

1. Social Welfare


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2. Macroeconomics

0

10

20

30

40

50

60

70

80

90

100



(16)

Malaysia(20)

Philippines(29)

Singapore(9)

Thailand(35)

Viet Nam(38)

Score

Country/Rank


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3. Infrastructure

0

10

20

30

40

50

60

70

80

90

100



(11)

Malaysia(29)

Philippines(46)

Singapore(2)

Thailand(43)

Viet Nam(42)

Score

Country/ Rank


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4. Technological Capacity

0

10

20

30

40

50

60

70

80

90

100



(2)

Malaysia(34)

Philippines(50)

Singapore(12)

Thailand(39)

Viet Nam(48)

Score

Country/ Rank


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5.Innovation Capacity

0

10

20

30

40

50

60

70

80

90

100



(2)

Malaysia(25)

Philippines(48)

Singapore(7)

Thailand(11)

Viet Nam(49)

Score

Country/ Rank


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6. Institutional Capability

0

10

20

30

40

50

60

70

80

90

100



(34)

Malaysia(36)

Philippines(37)

Singapore(40)

Thailand(42)

Viet Nam(15)

Score

Country/ Rank


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7. Business Sector Performance

0

10

20

30

40

50

60

70

80

90

100



(7)

Malaysia(25)

Philippines(39)

Singapore(6)

Thailand(12)

Viet Nam(33)

Score

Country/ Rank


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8. Independency

0

10

20

30

40

50

60

70

80

90

100



(15)

Malaysia(38)

Philippines(24)

Singapore(44)

Thailand(25)

Viet Nam(49)

Score

Country/ Rank


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9. Sustainability

0

10

20

30

40

50

60

70

80

90

100



(35)

Malaysia(44)

Philippines(16)

Singapore(19)

Thailand(37)

Viet Nam(45)

Score

Country/ Rank

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Will ASEANs Dream Be the Dream of Us (Graph)