Question

Assess the role of ASEAN as an economic association.

Answer 1

The Association of Southeast Asian Nations (ASEAN) is much smaller than the United States, the European Union, and Japan. However, its economy sees an increased growth in these regions and beyond.

Objectives of ASEAN as an economic community:

• To create common market and production base within ASEAN states and to aid social and economic development in the region
• To improve the exiting ASEAN dispute settlement mechanism to resolve economic disputes
• To create a free-trade area (FTA) for investment, labor, and service (The US and China have already moved fast to negotiate FTAs with ASEAN.)

Answer 2

1. ASEAN was established primarily for accelerating economic growth through ‘social progress and cultural real development’. It still remains principally an economic community.
2. Though the ASEAN region as a whole is a much smaller economy compared to the US, the EU, and Japan, its economy is growing much faster than all of them. This accounts for the growth in its influence both in the region and beyond. 
3. The objectives of ASEAN are to create a common market and production base within ASEAN states. ASEAN, as an economic community, is also committed to improving its existing ASEAN.
4. ASEAN has focused on creating a Free Trade Area (FTA) for investment, labour, and services. The US and China have already negotiated an FTA with ASEAN.
5. The current economic strength of ASEAN, particularly its economic relevance as a trading and investment partner to the growing Asian economies such as India and China, makes this an attractive proposition. India signed FTAs with two ASEAN members, Singapore and Thailand, and is trying to sign an FTA with ASEAN itself. 
6. ASEAN’s strength, however, lies in its policies of interaction and consultation with member states, with dialogue partners, and with non-regional organisations.