ASEAN and Its Geopolitical and Economic Landscape

Introduction

• Southeast Asia known for beaches, street food, traditional architecture.
• Region has become an economic leader, attracting attention from global superpowers, especially US and China.

Formation of ASEAN

• Association of Southeast Asian Nations (ASEAN) marked 50th anniversary last year.
• Established during the Vietnam War by Thailand, Indonesia, the Philippines, Singapore, and Malaysia.
• Aimed to promote stability and contain communism during the Cold War.
• Expanded post-Cold War with Brunei, Vietnam, Laos, Cambodia, and Myanmar joining.

ASEAN's Economic Impact

• ASEAN likened to Indonesian gamelan orchestra — diverse members with different economic roles.
• Indonesia contributes nearly 40% of ASEAN's economic output.
• Singapore's GDP per capita is 24 times higher than Cambodia's.
• ASEAN ranks as the world’s sixth largest economy, ahead of UK, France, and India.
• ASEAN's growth engine status: Vietnam and Philippines showing high growth rates.
• 5.2% growth recorded last year.

Investment and Trade

• EU is the biggest investor and China the biggest trading partner.
• Despite a fall in foreign direct investment in 2016, EU investment rose 46% to $30.5 billion and Chinese investment rose 44% to $9.2 billion.

Population and Digital Economy

• ASEAN has the third-largest labor force globally, over 600 million people.
• More than half of the population is below 30 years old.
• High mobile internet usage; tech companies like Google, Facebook, and Alibaba are investing.
• Digital economy projected to grow to $200 billion by 2025.

Geopolitical Challenges

• Founded amidst superpower rivalry, still caught between US and China.
• South China Sea dispute: China claims majority; ASEAN countries have competing claims.
• Tensions: US freedom of navigation operations, naval presence from China and US.

Internal Divisions and Diplomatic Maneuvers

• 2012, ASEAN failed to issue a joint statement due to South China Sea disagreements.
• Philippines previously challenged China legally; under President Duterte, developing stronger China ties.

ASEAN's Diplomatic Position

• Indonesia, without claims, advocates for ASEAN patrols.
• Some ASEAN countries align with superpowers, others like Singapore maintain ties with both.
• Efforts to avoid choosing sides.

International Relations and Future Prospects

• India hosted ASEAN leaders for Republic Day.
• Australia and ASEAN held an unprecedented joint summit.
• Singapore, as ASEAN chairman, faces challenges including South China Sea code of conduct talks.

Conclusion

• ASEAN continues to balance economic growth and political tensions amidst superpower dynamics.