ASEAN ECONOMIC COMMUNITY
- The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.
- At present there are 10 members namely, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
The motto of ASEAN is “One Vision, One Identity, One Community”.
ASEAN ECONOMIC COMMUNITY:
- The Association of South-East Asian Nations (ASEAN) has taken an important step towards greater economic integration by deciding to form an ASEAN Economic Community (AEC), much like the European Economic Community
- The Kuala Lumpur declaration of the member nations envisages the community to come into being on December 31, 2015
- Setting up of an economic community is a natural progression from the success of the ASEAN
- The association, which plans to move towards a “politically cohesive, economically integrated and socially responsible” community, has also laid down a road map for the next 10 years.
- The ASEAN community will have a single market with free flow of goods, capital and skilled labour across national borders.
- Travel and business among the members will become easier and it is expected to open up new opportunities in economic activities and employment.
- Uniformity in laws and rules and coordination of policies will help members to deal better with the world outside the grouping.
- There will also be a common policy and actions on environmental, social and cultural issues and in fighting terrorism and problems like drug trafficking.
- The community can also gain from its proximity to big and growing economies like those of China and India.
- With a population of 620 million and a combined GDP of $2.4 trillion, the AEC will be a major economic power
- They also have politically diverse systems ranging from democracy to monarchy to military rule. The political and social diversity is a strength but it can also weaken the grouping if the differences are not handled well.
- The proposed union will offer both challenges and opportunities for the members. They are at different stages of growth and include economically bigger and stronger countries like Indonesia and Singapore and others like Cambodia and Myanmar which are trying to catch up.
what is Asean economic community? what are its objectives and challenges. explain?