2 - ASEAN's Readiness in Achieving the AEC 2015: Prospects and Challenges

Summary

ASEAN in Today's Context

In today's rapidly evolving economic and financial landscape spurred by globalization, ASEAN lies in the midst of the strategic and dynamic region of East Asia. To maintain its centrality in the region and as an increasingly important player on the global stage, ASEAN needs to be more integrated as a grouping; more engaged with the global economy; and more proactive and nimble to respond to changing circumstances in a rapidly shifting, but increasingly interdependent world. New issues and challenges are confronting ASEAN and therefore pushing ahead with integration and strengthening ASEAN institutions, mechanisms, and processes will be crucial for the region to address these developments.

As a region, ASEAN member states have worked together to ensure peace, stability, prosperity, and development for all of them and the region as a whole. The regional resilience that ASEAN has brought about has contributed to national resilience and vice versa. ASEAN has Prospects and Challenges of Achieving AEC 2015 11 enjoyed rapid growth and development in the last four decades. The development has helped ASEAN to be a pillar of strength and a catalyst for regionalism in Asia. The regional role of ASEAN has been further enhanced by its community building efforts, particularly the ASEAN Economic Community (AEC).

ASEAN Charter and ASEAN's Readiness for Community Building

The readiness of ASEAN for community building was clearly reflected by the signing of the ASEAN Charter in 2007 and its later ratification in 2008. After four decades, ASEAN has a constitution to base its work on and to pursue with determination the establishment of an ASEAN Community with three interlocking pillars, of which the AEC is one. The other two are the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community.

The Charter also puts in place the institutions and mechanisms that will support the building of the ASEAN Community. For the economic pillar, an AEC Council was established and given the mandate to oversee the implementation of the AEC. The Committee of Permanent Representatives to ASEAN was also set up to handle the day-to-day work of ASEAN covering all three pillars. This body coordinates closely with the ASEAN Secretariat in moving the agenda of the ASEAN Community forward.