INTERNATIONAL ECONOMICS ASSIGNMENT SUBMITTED BY:-RAJAN KUMAR SINGH ROLL-9139

GUIDED BY:-Dr. AJIT GAIKWAD

Table of content

INTRODUCTION ORGANISATION STRUTURE ROLE OF ASEAN NATIONAL SECRETARIAT IMPORTANT TREATY SIGNED BY ASEAN AIMS AND OBJECTIVE INDIA AND ASEAN TRADE RELATION BETWEEN INDIA AND ASEAN TRADE AND INVESTMENT OPPORTUNITY CHALLENGES And Barrier For Business

STRATEGIC APPROACH OF ASEAN

GLOBAL NEWS-1 GLOBAL NEWS-2 GLOBAL NEWS-3

ASEAN COUNTRIES

ASEAN- ASSOCIATION OF SOUTH ASIAN COUNTRIES

INTRODUCTION This is an organization founded on 8th August 1967 by five countries which included Indonesia, Malaysia, Philippines, Singapore and Thailand. Member Countries- Today total no. of members of ASEAN is ten .They ares Burma, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam. Headquarter- Jakarta, Indonesia (home of permanent secretariat) Total population -580 million GDP-3,431.2 billion ASEAN countries organize summit for dialogue on their problem and for common welfare. until 13 submit has been held after formation of this organization. The first ASEAN summit held in Bali island of Indonesia in 1974.
Second ASEAN Summit, Kuala Lumpur, 4-5 August 1977 Third ASEAN Summit, Manila, 14-15 December 1987 Fourth ASEAN Summit, Singapore, 27-29 January 1992 Fifth ASEAN Summit, Bangkok, 14-15 December 1995 First Informal Summit, Jakarta, 30 November 1996 Second Informal Summit, Kuala Lumpur, 14-16 December 1997 Sixth ASEAN Summit, Ha Noi, 15-16 December 1998 Third Informal Summit, Manila, 27-28 November 1999 Fourth Informal Summit, Singapore, 22-25 November 2000 Seventh ASEAN Summit, Bandar Seri Begawan, 5-6 November 2001 3

Eighth ASEAN Summit, Phnom Penh, 4-5 November 2002 Ninth ASEAN Summit, Bali, 7-8 October 2003 Tenth ASEAN Summit, Vientiane, 29-30 November 2004 Eleventh ASEAN Summit, Kuala Lumpur, 12-14 December 2005 Twelfth ASEAN Summit, Cebu, Phillipines, 9-15 January 2007 Thirteenth ASEAN Summit, Singapore, 18-22 November 2007 Fourteenth ASEAN Summit, Cha-am, Thailand, 26 February - 1 March 2009 Fifteenth ASEAN Summit, Cha-Am Hua Hin, Thailand, 23-25 October 2009 Sixteenth ASEAN Summit, Ha Noi, 8-9 April 2010

Organizational structure-

The goal of the ASEAN member countries has been acquiring an "Asian identity" and achieving regional economic cooperation with each other.

ROLE OF ASEAN NATIONAL SECRETARIAT :-

Serve as the national focal point Be the repository of information on all ASEAN matters at the national level Coordinate the implementation of ASEAN decisions at the national level Coordinate and support the national preparations of ASEAN meetings Promote ASEAN identity and awareness at the national level Contribute to ASEAN community building

Important treaty Signed by ASEAN In 1976 summit they signed a Treaty of Amity and Cooperation (TAC) according to which no one interferer in their domestic affairs .This treaty is also signed by non members like India and China. In 1994 ASEAN set out its vision for long-term security with the creation of the ASEAN Regional Forum (ARF).INDIA and US is also member of this treaty. They also signed a treaty which comprises Nuclear weapon free zone in South Asia.

Aims and Objective To accelerate economic growth of South Asian countries social progress and cultural development in the region To work for the Social progress and improvement of standard of living of people and work for greater utilization of their agriculture and industries, the expansion of their trade and improvement of their transportation and communications facilities and to raise the standard of living of the people To maintain regional peace and stability through the rule of law To adhere the principle of United nations charter To provide help to each other in the form of training and research facilities in the educational, professional, technical and administrative field.

The ASEAN Charter, which entered into force on 15 December 2008, provides a legal and institutional framework to support the realization of ASEANs objectives, including regional integration.

India and ASEAN India relation with ASEAN started a decade ago when INDIA became sctoral dialogue partner in 1992. In 1995 India became a full dialogue partner in fifth ASEAN summit which held in Bangkok India became a member of ASEAN regional forum(ARF) in1996 In 2009 India signed a free trade agreement (FTA) in Thailand. Under the ASEAN-India FTA, ASEAN member countries and India will lift import tariffson more than 80 per cent of traded products between 2013 and 2016.

TRADE RELATION BETWEEN INDIA AND ASEAN ASEAN is Indias 4th largest trading partner after the EU, US and China. Indo-ASEAN trade relation is growing with annual growth rate of 27% since 2000. By 2010 India and ASEAN plan to achieve an ambitious target of US$ 50 billion. Indian trade relation with various ASEAN countries Singapore India and Singapore enjoy good trade relations. Besides, the country is considered to be a gateway to ASEAN and china. The signing of the Comprehensive Economic Cooperation Agreement in 2005 has provided a fresh impetus to trade relations between the two nations. The Singapore companies to a greater extent have started engaging themselves in infrastructure and real estate projects in India and even have been looking forward to associate with logistics and communication sector, education, healthcare and training, retail and the automotive sectors. They are also embarking onto developmental and planning projects like roads, ports, airports, power and telecom sector.

Indias major exports to Singapore Crudes, Parts & Accessories Of Automatic Data Processing Machines, Automatic Data Processing Input And Output Units, Motor Spirit Refined Premium Leaded, Styrene, Automatic Data Processing Storage Units, Other Monolithic Integrated Circuits, P-Xylene, Monolithic Digital Integrated Circuits, Radio Transmission Apparatus with Reception Apparatus. Indias major imports from Singapore Non-Industrial Diamonds Worked, Topped Crudes, Motor Spirit Refined Premium Leaded, Aluminum Unwrought, Benzene, Articles Of Jewellery Of Other Precious Metal Whether Or not Plated Or Clad With Precious Metal, Other Medicaments Packed For Retail Sale, Parts Of Boring Or Sinking Machinery, Static Converters, Other Medical Surgical Dental Or Veterinary Instruments & Appliances Malaysia India-Malaysia trade relations have witnessed exponential growth since 1991. Malaysias largest trading partner is India, while Malaysia is Indias second largest trading partner in the Association of South East Asian Nations (ASEAN). Indias major exports to Malaysia : Meat and meat preparations, sugar, rice (other than basmati), wheat, fresh vegetables and fruits, cotton yarn, RMG cotton and accessories, primary and semi-finished iron, made-ups, fabrics, machinery and instruments, electronic goods and metal manufactures. Indias major Imports from Malaysia : Crude Petroleum, Palm Oil, Electronic & Electrical products, Chemicals & Chemical products and Petroleum products. Myanmar The bilateral trade between India and Myanmar is likely to clock $1 billion in 2009-10, up from $951 million in 2008-09. Indias imports from Myanmar: While teak, timber, maize and pulses Indias major exports to Myanmar: Steel, cement, fertilizer and pharmaceuticals
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Indonesia India and Indonesia are considered as Asias largest democracies. However, it is only after a gap of five years both the countries came together for trade relations. The last time both the countries entered into a trade relationship was in 1950s. Right through 2009, both countries got engaged in putting up numerous seminars, exhibitions, festivals and top visits to build bilateral relations. In 2008-09 India exported goods worth US$ 1.82 billion to Indonesia. Indias major exports to Indonesia - organic chemicals, mineral fuels and ships and boats. India and Indonesia have entered into a memorandum of understanding (MoU) for collaboration in the field of agriculture and allied sectors. Thailand Mutual trade between the two countries clocked US$4.11 billion in 2007-08 as opposed to US$ 3.18 billion in 2006-07. In between April-December 2008-09 India exported goods worth US$ 1.44 billion to Thailand. The sectors in India that have seen Thai investment in the areas of hotel & tourism, food processing, trading and chemicals. India- Thailand is targeting US$ 10 billion bilateral trade in 2010. Vietnam The bilateral trade between the two countries remains modest, with the trade balance being in Indias favor. Bilateral trade clocked US$ 1.77 billion in 2007-08 from US$ 1.14 billion in 200607. From April-December 2008-09, Indias exports to Vietnam was worth almost US$ 1.13 billion. Indias major imports from Vietnam: Pepper, rubber, computer hardware and electronic products, cinnamon bark and spices, and garments and textile products. The key areas where Indian exports could make an impact in the Vietnamese market include information technology (IT) and IT training, agro and food processing, railways, energy and alternate energy, veterinary manufacturing plant, tea processing machinery, textile machinery, and power transmission and generation. Philippines The trade between India and Philippines was worth US$ 823.69 million in 2007-08. During the period between April-December 2008-09, India exported goods worth US$574.22 million to Philippines. India major exports to Philippines: Frozen buffalo meat; rubber and articles
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thereof; oil seeds and olea etc.; vehicles; iron and steel; residues and waste from food industries; tobacco; pharmaceutical products. Indias major imports from Philippines: Electrical and electronic machinery and equipment; iron and steel; machinery; vehicles; auto components, newsprint paper and paperboard; animal or vegetable fats and oils; organic chemicals. Cambodia In 2007-08, the trade between the two countries stood at US$56.32 billion in 2007-08. IN April-December 2008-09, India exported goods worth US$ 35.94 million. Indias major exports to Cambodia - pharmaceuticals, coffee, tea, spices and cotton Trade and investment opportunity India can invest in number of areas including teaching, nursing, architecture, chartered accountancy and medicine as it has a large number of English speaking professionals in these areas who can gain from job opportunities in the ASEAN region. India can also expanding its telecom, IT, tourism and banking network in ASEAN countries. indias trade with ASEAN countries has increased from US$ 30.7 billion in 2006-07 to US$ 39.08 billion in 2007-08 and to US$ 45.34 billion in 2008-09. According to data released by the Ministry of Commerce and Industry during April September 2009-10, Indias trade with ASEAN was US$ 20.19 billion and India exported goods worth US$ 12.8 billion to ASEAN India's exports to ASEAN totalled US$ 19.14 billion of which imported goods worth US$ 26.3 billion in 2008-09 from ASEAN.

Challenges and barrier for business 1. Economic growth since 1990 The first half of the 1990s was a period of strong growth in the ASEAN region, during which the economies of Indonesia, Malaysia, Singapore, Thailand and Viet Nam grew, on average, 6 per cent or more annually. The region as a whole was hit hard, however, by the Asian financial crisis of 1997-98. The economies of Indonesia and Thailand contracted during the second half of the
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decade, while those of Malaysia and Singapore in particular, but also Viet Nam, grew at a much slower pace. The early years of the millennium have seen steady economic growth in the aforementioned countries, but at a slower pace than the early 1990s, with the exception of Viet Nam.

The growth paths of the remaining ASEAN members have been rather different. Although benefiting from high oil prices in recent years, the economy of Brunei Darussalam is smaller in 2006 than it was in 1990. Alone among the ASEAN founding members, the Philippines did not benefit from the boom of the early 1990s; the countrys economy actually declined during that period. Although its growth rates have picked up somewhat since the mid-1990s, the average annual growth rate in the Philippines during the last decade and a half has been an anemic 1.5 per cent, the second lowest in the ASEAN region after Brunei Darussalam.

Economic growth rates in ASEAN countries, 1990-2006 1990-95 Brunei Darussalam -1.1 (BRN) Cambodia (KHM) 3.1 Indonesia (IDN) 6.2 Lao PDR (LAO) 3.5 Malaysia (MYS) 6.7 Myanmar (MMR) 4.3 Philippines (PHL) -0.1 Singapore (SGP) 5.9 Thailand THA) 7.4 Viet Nam (VNM) 6.0 1995-2000 0.1 4.8 -0.7 3.9 2.3 7.1 1.5 3.4 - 0.6 5.3 2000-05 - 0.2 7.2 3.3 4.6 2.5 1 1.8 2.5 2.5 4.3 6.0 2 006 1.5 5.4 4.3 5.5 4.0 6.1 3.3 6.5 4.3 6.3 1990-2006 -0.3 5.0 3.0 4.1 3.8 7.6 1.4 4.1 3.7 5.8

The member countries that joined ASEAN after 1996, Cambodia, the Lao Peoples Democratic Republic and Myanmar, were for various reasons rather insulated from the globalizing world at the beginning of the 1990s. Following the peace settlement and elections in 1993, the economy of Cambodia has grown at average annual rates higher during each successive half-decade. The growth experience of the Lao Peoples Democratic Republic and Myanmar has been similar. Myanmar is the only country in the ASEAN region with an average annual economic growth rate of over 7 per cent since 1990.
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It should be noted, however, that the large discrepancy between official and unofficial foreign exchange rates and the weakness of the countrys statistical system makes a true assessment of Myanmar s growth performance difficult. This is reflected in the wide variation in estimates of the countrys GDP growth rate in recent years. The 2005 estimate, for example, of IMF was 13.2 per cent, of ADB 12.2 per cent and of the Economist Intelligence Unit 5.2 per cent. Despite good economic growth in the ASEAN region on average since 1990, and although most poorer members have grown at least as rapidly as the richer ones, there are still large disparities in development outcomes between countries. The largest disparities are found for some environmental indicators (such as CFC consumption, CO2 emissions, water withdrawal, per capita energy consumption) and health indicators (as under-5 mortality, HI9 prevalence, maternal mortality). Very high inequalities also exist in infrastructure endowments (Internet users, road density), even if in some cases they derive from the physical characteristics of the country (size, topography). Most of the economic development indicators (labor productivity, GDP per capita, share of agricultural value added, ratio of exports to GDP, export concentration index) and poverty indicators ($1/ day poverty, underweight children) show intermediate levels of inequality. Lastly, disparities across ASEAN members are relatively low for some dimensions of environmental sustainability (forest cover, sanitation and water access), and negligible for indicators of employment, primary education and gender parity in education.

Trade and investment The development gaps in trade and investment between ASEAN members are also potential obstacles to the further development of regional integration. Exports from ASEAN countries totaled US$719 billion in 2006, placing the export value of the region behind China but ahead of Japan. The exports of Singapore amount to almost two and a half times its GDP; in Malaysia, also, the value of exports exceeds GDP. The dependency of Indonesia and the Lao Peoples Democratic Republic on trade, on the other hand, is much smaller, with a ratio of exports to GDP of just over and well below, respectively, one third. The exports of the Lao Peoples Democratic Republic are, with an export concentration index of 0.4, also rather homogenous, a phenomenon the country shares with Cambodia, the Philippines and, especially, Brunei Darussalam (0.6). The export structures of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Viet Nam (0.1-02.), on the other hand, are much more diversified.
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The liberalization efforts under the ASEAN Free Trade Area (AFTA) have not resulted in a significant increase in intraregional trade, which remains at the level of one quarter of total ASEAN trade, despite its relatively sound growth since the early 1990s. The contribution of intraregional trade to GDP at the ASEAN level is still four times smaller than the contribution of ASEANs total trade, which in 2005 surpassed 130 per cent Obviously, ASEAN as a whole did not build a fortress type of integration, but remained outward-oriented. There are sharp disparities, however, between the openness of countries in terms of both merchandise and service exports. Singapore and Malaysia are consistently more dependent on exports than ASEAN as a group and some other lesser developed members. Furthermore, in terms of regional orientation of exports and imports, some members trade predominantly with other ASEAN countries (for example the Lao Peoples Democratic Republic and Myanmar), while others almost exclusively with the rest of the world (for example Cambodia, the Philippines, or Viet Nam). Singapore also shows an intraregional share of exports and imports well above the average. Intra-ASEAN investment is promoted through the ASEAN Investment Area (AIA), which aims at gradually liberalizing rules and policies on investment among ASEAN members. On average, there has been a strong reliance on FDI from outside the region and ratios of intra-ASEAN to total FDI ranged from 6 per cent to 26 per cent during the period 1995-2001. However, the dependence of CLMV (Cambodia, the Lao Peoples Democratic Republic, Myanmar, Viet Nam) countries on ASEAN for FDI is much higher, particularly in some of the priority sectors (e.g. agro-based, rubber-based and wood-based products).

Strategies approach of ASEAN There are three types of strategies 1. Types of Activities 2. Project Administration 3. Time Frame and Scheduling 1. Types of Activities The ASEAN Foundation concentrates on the following types of activities:

Information dissemination campaigns. These campaigns will have to make extensive use of high information technology and mass media but will also make use of various
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other ways of reaching target audiences, including speakers' bureaus and cultural events. Network-building . These activities are designed to bring together ASEAN institutions, groups and eminent individuals in various fields covered by Functional Cooperation such as science and technology, management of development, culture and information, ssenvironment, etc. Human resources development projects. These activities are designed to enhance the knowledge and skills of ASEAN's manpower (including the youth and women, small entrepreneurs, professionals, social workers, rural extension workers, health care workers and development managers). Such activities may be in the form of education, training, seminars, workshops, fellowships and exchanges.

2. Project Administration The project activities of the ASEAN Foundation will be administered in three basic ways: Projects and activities that will be supervised and monitored and regularly evaluated by the ASEAN Foundation but carried out by proponents. In these instances, the Foundation will serve as the main source of funding and will have complete responsibility and authority over the project. The proponents may be NGOs and public institutions. Projects carried out in collaboration with other ASEAN bodies or NGOs and other private entities. Projects of this type involve a sharing of resources, responsibility and authority. It is expected that over time, most of the Foundation's projects will be of this type.

Projects and activities that will be carried out by the ASEAN Foundation itself. Some research and information dissemination efforts as well as the holding of public events are entirely within the capability of the Foundation to undertake, although eventually even these will preferably be carried out in cooperation with the private sector.

Time Frame and Scheduling The actions in the Foundation's Plan of Action are to be implemented over a three-year period starting from the date of approval of this Plan. These actions and activities constitute the Foundation's first comprehensive effort to fulfill its mandate and contribute to the mission of ASEAN in the sphere of Functional Cooperation.

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ASSIGNMENT-2 GLOBAL NEWS-1

GlOBAL FUTURE VECHILE PROGRAMME DATA OUT TO 2020
This news has been hot issue from last one month on global chart.This is all about capturing international auto industry in which china,US,India and many more countries companies are showing their effort to capture more market share. Globally, 2010 presented the auto industry with a lot of challenges, especially how to move metal as government incentives offered over the preceding two years ended. Sales results have been mixed but not all bad; the US ended better than expected and Australia passed a million for only the third time. China surged again. We've gathered our reports - including the odd brave forecast for infinity and beyond.

LDB (Product Life Database) from just-auto covers all regions, so tracking both existing vehicles and models in development by American, Chinese, European, Japanese, Indian or Russian OEMs is easy. As well as being searchable by architecture/platform, plant location and country of build, PLDB also lists vehicle lifecycle, codename, expected next update/facelift or model replacement date. All entries are constantly audited, and, as the latest developments come to light, updated. PLDB lists 1524 current and future global models from 127 OEM groups, spread across 195 brands, with data for 463 vehicles having been checked or revised in the last month. Simply click on the link below to take a tour and see pricing.

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GLOBAL NEWS ANALYSIS -2

ASEAN URGED TO FACILITATE INTRAREGIONAL TRADE

ASEAN countries apply very low import tariffs and boast fairly open domestic markets, while benefiting from very low tariffs in most export markets. The recent liberalization efforts have strengthened the efficiency of transport services, contributing to lower logistics costs, and the regulatory environment is by and large conducive to trade, says the report. On the other hand, the study finds that inefficient border administration and inadequate infrastructure represent major barriers to trade in the region and affect the competitiveness of ASEANs exports by increasing costs and shipping times. Among the weaknesses, corruption in most ASEAN countries seriously undermines the transparency and predictability of border clearance, and the quality of the general business environment. "This study is a timely reminder of how the facilitation of trade now drives economic integration; how a countrys ability to connect to the global economy increasingly defines its competitiveness; and why progress on trade facilitation in the current Doha Round is so critical to Asia and the developing world as a whole," explained Pascal Lamy, Director-General of the Geneva-based World Trade Organization (WTO).

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GLOBAL NEWS ANALYSIS-3

SUN CO-FOUNDER KHOSLA PROMOTES MICRO FINANCE TO END INDIAN POVERTY

Vinod Khosla, the billionaire venture capitalist and co-founder of Sun Microsystems, was already among the worlds richest men when he invested a few years ago in SKS Microfinance, a lender to poor women in India. But the roaring success of SKSs initial public stock offering has made him richer by about $117 million money he says he plans to plow back into other ventures that aim to fight poverty, while also trying to turn a profit. And he says he wants to challenge other rich Indians to do more to help their countrys poor. An Indian transplant to Silicon Valley, Mr. Khosla plans to start a venture capital fund to invest in companies that focus on the poor in India, Africa and elsewhere by providing services like health, energy and education. Well the main poin of discussion is will it be succesfull in our country.To serve such a vast population is a tough task.Poverty in indi will not be change by only distributing solar panel or making houses for poor people.We have to litterate them first and then Mr. Khosla have to generate permanent solutions for their employment.It is not a cake walk to remove poverty of India so easily.

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Biblography

www.aseansec.org www.wikipedia.com www.ibef.org/india/indiaasean.aspx www.aseanfoundation.org www.powerhomebiz.com/News

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