2 - Review and Assessment of Economic Co-operation

Summary

Introduction

This chapter proposes to undertake a review and assessment of economic co-operation in a number of specific areas. While there is no direct causality that can be attributed to the dynamic economic performance of the ASEAN economies to economic co-operation in the last twenty-five years, it cannot be denied that the relative peace and stability in the region, and the increasing interactions among ASEAN states (officials, businesses, citizens) greatly enhanced the process and character of growth.

There is a large body of literature that reviews and assesses ASEAN economic co-operation at various stages.1 Both official and unofficial assessments were made by, among others, external (non- ASEAN) scholars who have followed the regional co-operation. Rather than provide details of economic co-operation (for example, specific agreements, dates and topics of meetings, and so forth), this chapter presents the transitions and transformations in economic co-operation that took place over two decades. The assessments made are in terms of their totalities and broad significance. Thus, there may be differences in the manner in which some details are highlighted. As earlier described, the machineries and modalities for co-operation in the past were dramatically changed following agreements at the Fourth ASEAN Summit in Singapore in 1992.

ASEAN officials reviewed and assessed co-operation efforts in the past twenty-five years as part of the dissolution process of the five economic committees and in preparation for a transition. A careful reading of these official (but unpublished) reviews indicate several salient points. For one, significant accomplishments were made in various areas. These range from regular ministerial meetings and dialogues to specific agreements (for example, coverage of tariff concessions, ASEAN Industrial Joint Ventures (ALIV) approvals, quantities of food security reserves, creation of ad hoc committees, and so forth). Another is the completion of many collaborative studies and understandings among all ASEAN states collectively or a sub-group of them (the 6-x principle). These range from simple declarations to concrete policy directives (for example, the use of ASEAN currencies for the settlement of trade payments, brand-to-brand complementation, the Singapore-Johor-Riau agreements, and so forth). Also, ASEAN solidarity was exhibited in various external fora, ranging from the ratification of international conventions to trade negotiations.