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ASEAN Cooperat ion:
The Way Forw ard
by:
Filomeno S. Sta. Ana III
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The Need for RegionalCooperation
• Public Goods (and Public Bads) arepresent at different levels--local,national, regional, international.
• Public Goods (and Public Bads) havepositive (and negative) externalities that
require state intervention or regulation.
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The Need for RegionalCooperation
• Regional institutions are necessary toaddress public goods (and bads) that movefrom one border to another in a specificregion.
• Regional cooperation is a way to addresscoordination or collective action problems(e.g., 1997 Asian financial crisis,environmental disasters, spread of infectiousdiseases, border disputes, piracy andsmuggling).
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The Need for RegionalCooperation
• Regional cooperation and institutions reducetransaction costs.
• Examples of transaction costs: reduction of
tariffs, harmonization of rules and standards,reduction of travel-related costs (visa fee,foreign exchange transactions).
• Regional cooperation facilitates movement ofpeople and trade; promotes spread of ideas
and cultural exchange.
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The Need for RegionalCooperation
• Regional cooperation has likewise becomean instrument of economic competition.
• Forming a regional bloc is a way to enlarge
and consolidate markets as well as protectsuch markets from the penetration ofcompetitors.
• In the case of ASEAN, its consolidation isnecessary to have a better leverage vis-à-visneighboring countries, which are economic
giants, namely Japan, Korea, and China.
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The Question is: What Kind ofRegional Cooperation?
• The most advanced form of cooperationis economic and political integration(similar to the European Union).
• ASEAN is gradually moving towardstighter integration (e.g.; ASEAN free
trade, ASEAN Charter).• It is arguably an irreversible process.
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Issues and Challenges
• Unevenness of ASEAN countries. (Oneconomic development, compare Burma toSingapore!)
• The competition within ASEAN: memberscompete with one another, including theresort to beggar thy neighbor practices.
• The weakness (or immaturity) of politicalinstitutions.
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Weak Institutions (Nationaland Supra-national)
• The lack of transparency.
• The unclear accountability of ASEANbureaucrats.
• The lack of citizens’ participation, especiallyin relation to the regional process.
• Many ASEAN states are dictatorships or one-
party states.• National parliaments and national citizens, for
example, are in the main ignorant of the
ASEAN Charter.