ASEAN launches economic bloc but analysts sceptical

1 January 2016 06:30 pm - 0 - {{hitsCtrl.values.hits}}

A A A

AFP - Southeast Asian nations officially launched an EU-inspired economic bloc this week aimed at boosting the region’s trading clout and attracting more investment, but analysts said a true single market was still a long way off.
The ten-member Association of Southeast Asian Nations (ASEAN) hailed the project as a “milestone” in combining the economic force of a resource-rich and growing market of more than 600 million people.

The vision for the ASEAN Economic Community (AEC) is a single market with a free flow of goods, capital and skilled labour, which should help the region compete with the likes of China for foreign investment.
The new bloc “will contribute significantly to the region’s growth and create developmental opportunities for all,” said Vivian Balakrishnan, the foreign minister of ASEAN member Singapore.

But experts say such an idea is difficult, if not impossible, to achieve in a region marked by extremes in development levels, democratisation, and institutional capability.
The official launch of the AEC has no practical effect, and diplomats have said ASEAN -- regularly criticised for a lack of concrete achievements -- was keen not to miss its own deadline of 2015, set several years ago.

Research group Capital Economics said in a note the establishment of the AEC was “no game changer”, and it was likely to fall short in tackling major challenges such as reducing non-tariff barriers and improving infrastructure.
“ASEAN, with its tradition of non-interference into the affairs of member countries, an absence of penalties for non-compliance, and a lack of a powerful central bureaucracy, is ill-equipped to tackle these obstacles,” it said.

John Pang, a senior fellow at Singapore’s S. Rajaratnam School of International Studies, said there would be only “slow and incremental progress” in integrating the economies of Southeast Asia.
“The AEC will not be raising the curtain on any radical change,” he wrote in a commentary. Diplomats have conceded the single market vision is many years away, but insist the project will help change mindsets and provide momentum.
ASEAN leaders signed a declaration to establish the AEC at the group’s annual summit in November but there was no official ceremony on Thursday to mark the new bloc’s establishment.

Southeast Asia has already made progress on lower-hanging fruit like cutting tariffs and removing other hurdles such as clashing customs systems but significant non-tariff and other barriers remain.
ASEAN includes wealthy Singapore, one of the world’s most developed countries, oil-rich Brunei, developing states such as Malaysia, Indonesia, Thailand, the Philippines and Vietnam, and poorer nations like Cambodia, Laos and Myanmar.

Its members range from free-wheeling to controlled democracies, communist-ruled states and an absolute Islamic monarchy.
Although ASEAN’s plans were inspired by the developed single market of the 28-member European Union, officials insist they want to pursue integration in a way suitable to the region’s circumstances, and have ruled out a common currency.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

ASEAN launches economic bloc but analysts sceptical

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

Confusion remains if April 15 is a bank holiday

New Visa procedure implemented

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

April 15 declared a government holiday

Street food vendor arrested for verbally harassing foreigner

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

MIRROR CRICKET

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

TODAY'S HEADLINES

Wild elephants pull down 16 telephone poles

Middleman arrested for price gouging at Kalutara eatery

Bondholders’ agreement delay won’t hinder IMF third tranche payout: Dr. Coomaraswamy

Party leaders to shoot down MPs request for concessionary duty free vehicle permits

Hardik fined Rs 12 lakh for violating IPL code of conduct after win over Punjab Kings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings