FACULTY OF PUBLIC ADMINISTRATION AND POLICY STUDIES
AM110
DIPLOMA IN PUBLIC ADMINISTRATION
CURRENT AFFAIRS IN SOUTH EAST ASIA PAD 380
QUESTION 7: DISCUSS ISSUED FACED BY ASEAN IN ORDER TO ACHIEVE VISION 2020.
PREPARED BY: FATIN NUR IZZWANI BT HAMZAH 2011451052 NOR ASHQIRA BT KAMARUL 2011205216
PREPARED FOR: MADAM NOR SUHAIZA BT MD KHALID
DATE OF SUBMISSION: 14 TH MAY 2012 2
TABLE OF CONTENT
CONTENT
PAGES
1.0 Introduction
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2.0 Issued Faced By ASEAN In Order To Achieve ASEAN Vision 2020. 2.1 The Concept of New Regionalism. 2.2 Non-Traditional Securities. 2.3 Trade Liberalization. 2.4 Commitment Institution. 2.5 Globalization.
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4-5
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8-9 10-11
3.0 Conclusion
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1.0 Introduction. ASEAN Vision 2020 is the main objective of ASEAN as approach 21 st century. This vision becomes the guideline to implement activity or declaration. On 2020, ASEAN wants concert of Southeast Asian nations, outward looking, and living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. Vision 2020 is one of the declarations made during 2 nd ASEAN Summit. In Vision 2020, ASEAN wants all their member had implement fully freedom, peace and neutrality. Many declarations had been promoted by ASEAN through ASEAN summit in order to achieve ASEAN Vision 2020. After the declaration of Vision 2020, most of the activity or resolutions are related with this vision. This is crucial to ensure that all the members activity including political, economic and social lead toward achieving Vision 2020 such as The ASEAN Roadmap for the Attainment of The Millennium Development Goals, ASEAN plus Three and ASEAN Human Right. The ASEAN Vision 2020 also stipulated to use the ASEAN Foundation as one of the instruments to address issues of unequal economic development, poverty and socio-economic disparities. Its mean that ASEAN Foundation one of the mechanism to help ASEAN approach its vision. ASEAN Foundation has been stated in 6 th ASEAN Summit which is in resolution of the Hanoi Plan of Action.
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2.0 Issued Faced By ASEAN In Order To Achieve ASEAN Vision 2020. 2.1 The Concept of New Regionalism. New regionalism refers to varying approaches to addressing major urban metropolitan problems including economic competitiveness, social equity, and sustainable land use and infrastructure development (Allan D. Wallis, 2010). ASEAN had created a new regionalism to achieve some vision of ASEAN by making cooperation and collaboration with external country. By established this new region, it will help ASEANs member to enhance the administration of their country in terms of politic, economic and social. ASEAN plus Three (APT) is one of the initiatives of ASEAN to make cooperation with bigger and develop country in Asia which consist of Japan, China and South Korea. Establishment of this new region is crucial because ASEAN have two categories which are ASEAN six and ASEAN four. The cooperation with external country will helps to reduce the gap between ASEAN six and ASEAN four in terms of trade facilitation, narrowing the development gap, rural development and poverty alleviation and transnational crime. In terms of trade facilitation, ASEAN through ASEAN plus Three has established ASEAN-China Free Trade Area which covers the trade in goods by 2010 for ASEAN-6 and by 2015 for ASEAN-4. However, in 2005-2006, members of the ASEAN-6 (except for Brunei), has conquered about 93% of ASEAN trade while for among the members of ASEAN-4, only Vietnam shows the highest share of trade which is 5.5%. (Smitha Francis and Murali Kallummal, 2008).This has shown a huge gap in trade between ASEAN-6 and ASEAN-4. By having this gap, it will affect strategy of ASEAN to achieve Vision 2020 which is that there is no 5
ASEAN six and ASEAN four in year 2020 because of standardization of economic where all the ASEAN members have stability in economic. Even though there is an increase in ASEANs economic cooperation, the income gap between the developing countries, which are ASEAN six and ASEAN four is still huge. In 2010, it is said that ASEANs economic growth has increase with annual growth rate from 5-10%. However, the income gap between ASEAN six and ASEAN four shows a deep contrast which is from 17-50 times. For ASEAN six, GDP for Indonesia stands for US$546 billion and US$200 for Malaysia, Thailand and Singapore. This is contrast with ASEAN four which gains GDP of only about US$5-18 billion (Hong Hoa, 2010). This has become a great challenge for ASEAN in order to reduce this huge gap between ASEAN six and ASEAN four in order to establish South East Asia region with balance economic development.
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2.2 Non-Traditional Securities. Non-traditional securities are the new environment of securities which are non-military in nature. This security is relating with the social problem in the state like drug-trafficking, piracy, AIDS and prostitution. (Saurabh, 2011) The variety of administration of each country cause different issue of non-traditional securities. This is due to different implementation of promoting development in their respective country. Even though ASEAN has come out with several declarations in the meeting with ASEANs member to settle these problems, current situation in each ASEANs members does not allow them to implement the same policy promoted by ASEAN. Current situation here refers to the economy of ASEANs member. ASEAN four always having financial problem to implement what had been advised by ASEAN through ASEAN SUMMIT especially about social problem such as to reduce the number of patients with HIV and AIDS. The percentages of non-traditional problem of ASEAN four is higher compared to ASEAN six as they did not have enough budget to improve their non-traditional securities. To support this, it is shown that members in ASEAN-6 like Brunei, Thailand and Malaysia use about more than 50% of their expenditure on health that involve AIDS/HIV, whereas members in ASEAN-4 use only about 10-40% of their expenditure ( Dr Bob , 2012). Moreover, ASEAN only provide advice and not financial aid. The establishment of ASEAN Work Programme on HIV/AIDS for the period of 2011-2015 that helps to combat and reduce the impact of HIV and AIDS across the region only provides access of HIV-related care and treatment services (Reliefweb, 2010). However, this is limited to ASEAN-4 due to the lack of expenditure on health care. 7
Meanwhile, human trafficking is also one of main issue relating to non-traditional security. This includes prostitution, and child abuse. The fight against these human trafficking remains a big challenged for ASEAN because even though the policy to prevent human trafficking is being made, but it is optional for ASEAN members to follow them. ASEAN members have the right whether to implement this policy or not. There are countries in ASEAN which use human trafficking as the main income for their country. For example, Thailand and Philippines has use prostitution as one of their countrys main business opportunity. The Philippines, which has almost 10 million citizens working overseas, was particularly vulnerable to human trafficking with many women going abroad for legitimate jobs only to be forced into prostitution (Bangkok Post, 2013). The efforts to totally eliminate human trafficking cannot be achieved as it will affect individual regions interest.
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2.3 Trade Liberalization. Trade liberalization can be defined as the removal or reduction of restrictions or barriers on the free exchange of goods between nations. This includes the removal or reduction of both tariff (duties and surcharges) and non-tariff obstacles (like licensing rules, quotas and other requirements). The easing or eradication of these restrictions is often referred to as promoting "free trade" (Investopedia, 2013). Trade liberalization in ASEAN is done through establishment of ASEAN Free Trade Area (AFTA). Even though the Common Effective Preferential Tariff (CEPT) Scheme allows the reduction of tariff between 0-5% for product traded within region, however, the time line of implementation is different for each members of ASEAN. When ASEAN Vision was established in 1997, ASEAN face challenges to include the ASEAN-4 which consists of Vietnam, Laos, Myanmar and Cambodia. This is because they are left behind and are backwards in economic and political stability as compared with ASEAN-6 ( ASEAN, 2003). Even though AFTA has resulted in success when 98.9% of all the products traded by ASEAN 6, ASEAN-4 with product traded amounted to 71.1%, is still in the process in achieving the ASEAN-6s success. This is due to the different timeline of the implementation of CEPT Scheme for ASEAN-6 and ASEAN-4. For ASEAN-6, tariff and non-tariff barriers are to be eliminated by the year 2010 while for ASEAN-4 is by the year of 2015 (ASEAN Economic Community Blueprint, 2008). The liberation of trade is not being standardized due to different in the timeline of CEPT Scheme implementation for ASEAN-6 and ASEAN-4. This has led to early development of ASEAN-6 as compared to ASEAN-4. ASEAN-4 has to cope with the development achieved by ASEAN-6 in limited time frame. 9
In addition, ASEAN 6 is major in manufacturing industry. ASEAN-4 faces difficulty in competing with ASEAN-6 as they face shortage of capital, raw material, power supply, spare parts, and entrepreneurship (Mya Than, 2001). ASEAN-4 lacks of proper technological support and investment from foreign countries. Therefore, it makes harder for ASEAN-4 to trade their products. Meanwhile, the ASEAN-6 is advanced in economic and industrial perspectives. Members of ASEAN-6 have experience increased in trade liberalization during AFTA implemented before the ASEAN-4 join the ASEAN. This has caused a huge gap of economic development between ASEAN-6 and ASEAN-4 because the foreign investors are more attracted to ASEAN-6 for their economic and political stability rather than ASEAN-4. For example, imports from non-ASEAN constitute mainly machines and equipment (as well as industrial raw materials) essential for industrialization that the neighboring countries are unable to supply. (ASEAN One, 2005).
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2.4 Commitment Institution. Commitment institution means cooperation of all ASEANS member to implement and follow all the policy and rules that had been stated by ASEAN. In order to achieve its vision, ASEAN try to standardize the political structure of each ASEAN member because of varieties form of governments. For example, Brunei is implementing absolute monarchy, Myanmar is implementing military-government and Malaysia is implementing democracy in its political system. This differences make the vision is hard to achieve because ASEAN need to have homogeneous political structure which is fully democracy by the entire member. This is crucial aspect as regional integration cannot be form if there is no commitment by the ASEANS member. Moreover, ASEANS also did not have courage to have a strong functional ASEAN for fear of incurring diminished national policy-making autonomy. It means that ASEAN member does not believe the organization to make decision for their country and they were afraid that they will lose their own sovereignty. Member of ASEAN does not give fully commitment to established democracy even ASEAN has declare that ASEAN members should promote political development based on the principles of democracy and human right as stated in the elements of ASEAN Political-Security (APSC) Blueprint. APSC Blueprint aims to promote just, democratic and harmonious environment for people and member states of ASEAN. APSC Blueprint not only promotes democracy, but also promotes democratic institution (ASEAN Political-Security Community Blueprint, 2009). However, some of ASEAN-4 such as Myanmar does not fully give their commitment to this effort. This is because even though Myanmar has tried adopting democracy through election in 2010, the failure to adopt the new government has allowed the 11
previous military-government to rule the country again. They avoid receiving external legitimacy and political improvement. So Myanmar government did not fully apply democracy. The members of ASEAN do not want to fully apply integration because of their narrow individual interest and implementation of close the door concept in certain aspect especially in decision making. Even there is dispute among the members of ASEAN, the organization cannot do anything as they can only advice. Moreover, ASEAN have neo-functional characteristic in term of decision making. ASEAN cannot involve directly because the dispute will refer to International Court of Justice if it involve the dispute between members. Beside, most of the members decide to give partial integration rather than total integration. So it becomes obstacle of ASEAN to achieve Vision 2020 as it wants to create fully regional integration. Commitment is crucial in order to achieve integration.
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2.5 Globalization. Globalization means the worldwide movement toward economic, financial, trade, and communications integration. (Bussinessdictionary, 2013). Globalization gives challenge to the association because ASEANs member needs to adapt with the large changes such as changes in political system. All the ASEANs member has to change their current system either directly or continuously in terms of politic, economic and social so that it can be standardized. Globalization always related with integration and it can helps ASEANs member to increase strengthen in all aspect. This is the best reason why all ASEANs member needs to share the opportunity each other to help ASEAN approach globalization. In terms economic, when one of the ASEANs member success in economic, it will gain other member to have same level of economic and trust to the country to help them manage their economic. The ten ASEAN member has different ideology in terms of managing their country. This led ASEAN to establish several resolutions to standardize member of ASEAN in all aspect such as Framework Agreement on Enhancing ASEAN Economic Cooperation, statement of Food Security in the ASEAN Region and the cooperation of ASEAN with external countries through Free Trade Agreement (FTA). When ASEAN made external relation with large countries such as China, United States and Japan, it helps to increase the foreign direct investment of ASEAN members. These foreign countries also help to provide capital to ASEAN members. This capital inflow can also lead to increase in the price of local assets. The existence of foreign direct investment will lead to interference of non-ASEAN members in the economy of ASEAN countries. As this foreign direct investment hold part of the economy, technology and managerial skills can be improved. However, this will suppress the wage of local and will takes away job 13
opportunities from local people because of implementation of greater technology that will reduce cost on labor force. (Dr. Mahani, 2012). Imbalance of economic, can lead to various problem to approach globalization. ASEAN six have higher GDP compare to ASEAN four. So it prevents the ASEAN four to develop their countries. Lack of financial support makes the countries unmotivated to approach globalization that has been promoted by ASEAN. In Cambodia, it has lower level of education as the expenditure for education only costs about 14.6% of total government expenditure. Public and Private schools in Cambodia are mostly funded by families and communities. People of Cambodia are not compulsory to take education as the cost is high. There exist only several universities is Cambodia and there is a strict entrance because only student with the highest score achieved in secondary school are allowed to enter this university (Allison Runchey, 2008). This contributes to production of unskilled worker to help the country achieve globalization in all aspects. As compared to Singapore, the government gives fully attention to their education system by supporting through financial aid. Singapores government provides latest syllabus and books to the students. The framework of Singapores education system also emphasizes on effective learning of students. (SgBox.com, 2013).
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3.0 Conclusion.
In conclusion, Vision 2020 becomes one of the main purposes of the establishment of ASEAN. The purpose might different with earlier establishment of this international organization as parallel with the advance of modern life in the 21 st century. All member of ASEAN should give fully commitment to approach Vision 2020. The activities and plan of ASEAN must be present in front of ASEANs member so that they will know and understand what they need to do in order to achieve Vision 2020. Member of the ASEAN also need to cooperate and depend on each other to help ASEAN realize its Vision. Cooperation among member countries is necessary in creating balance development and prosperity of all members of ASEAN. As Vision 2020 is coming near, all members must work together in implementing all policies and programs that ASEAN has outlined.
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Bob Verbruggen, 2012, Progress, Challenges and the Way Forward in ASEAN Member States, retrieved from http://www.aidsdatahub.org/dmdocuments/AIDS_MDG_ASEAN_Final.pdf Hong Hoa, 2010, Narrowing ASEANs Development Gap, retrieved from http://www.vccinews.com/news_detail.asp?news_id=21870 Mya Than and Carolyn L. Gates, 2001, ASEAN Enlargement: Impact And Implications, retrieved from http://books.google.com.my/books?id=i1hT2xK2uGwC&pg=PA16&lpg=PA16&dq=effect+of+c ept+scheme+to+clmv&source=bl&ots=dg_fsnm2iy&sig=PynvJcjDUowSq4dMbh3ZPFghtOQ& hl=en&sa=X&ei=4lWNUcauJMunrgexyIGYCA&ved=0CDgQ6AEwAg#v=onepage&q=effect %20of%20cept%20scheme%20to%20clmv&f=false Saurabh Chaudhuri, 2011, Defining Non- Traditional Security Threats, retrieved from http://www.globalindiafoundation.org/nontradionalsecurity.htm Smitha Francis and Murali Kallummal, 2008, The New Regionalism in South East Asia Trade Policy and Issues in Market Access and Industrial Development: An Analysis of ASEAN-China Free Trade Agreement, retrieved from http://www.networkideas.org/working/aug2008/06_2008.pdf