What is Asean

Sep 27, 2024

ASEAN and its Global Economic Influence

Introduction

  • Southeast Asia known for tourism (beaches, street food, traditional architecture) has become a leader in global economic growth.
  • Major global powers, especially the US and China, show interest in the region.

Origins of ASEAN

  • ASEAN (Association of Southeast Asian Nations) celebrated its 50th anniversary last year.
  • Formed during the Cold War to promote stability and contain communism.
  • Initial founding countries: Thailand, Indonesia, the Philippines, Singapore, Malaysia.
  • Additional members post-Cold War: Brunei, Vietnam, Laos, Cambodia, Myanmar.

Economic Impact

  • ASEAN as a collective:
    • 6th largest economy globally.
    • Comparable to the UK, surpasses France and India.
    • Seen as a future growth engine due to high growth rates in countries like Vietnam and the Philippines.
  • Growth Stats:
    • ASEAN's growth rate reached 5.2% last year.
    • EU is the largest investor; China is the biggest trading partner.
    • Significant investment increases from EU (46% rise) and China (44% rise) in 2016.

Demographics and Digital Economy

  • Third largest labor force globally, over 600 million people.
  • Over half the population under 30 years old, high mobile internet usage.
  • Digital economy projected to reach $200 billion by 2025.
  • Major tech companies like Google, Facebook, Alibaba are investing.

Political Dynamics and Challenges

  • ASEAN's strategic location places it between superpower rivalries, particularly involving the South China Sea.
  • Claims in the South China Sea involve China and four ASEAN nations.
  • U.S. conducts "freedom of navigation" operations; China showcases naval power.
  • ASEAN countries risk becoming superpower pawns; tensions and divisiveness over the South China Sea.

Evolving Alliances

  • Philippine's shift under President Rodrigo Duterte towards China, affecting US relations.
  • Indonesia advocating for ASEAN to patrol its waters despite no South China Sea claim.
  • Some ASEAN countries align with superpowers, while others like Singapore maintain balanced ties.

Global Relations

  • India and ASEAN deepen relations, evident in Republic Day celebrations.
  • Australia and ASEAN hold unprecedented joint summit.
  • Singapore chairs ASEAN, hosting the ASEAN Summit and discussions with China over a South China Sea code of conduct.

Conclusion

  • ASEAN's challenge is to safeguard economic growth while navigating political tensions between major powers.