In two years, the Association of Southeast Asian Nations (ASEAN)
will reach a milestone—perhaps the most significant since the establishment of
ASEAN itself nearly half a century ago. The 10-member regional group will
become an “ASEAN Community” by 2015, standing on three pillars: the ASEAN
Political and Security Community, the ASEAN Economic Community or AEC, and the
ASEAN Socio-Cultural Community.
As it is, ASEAN is already an economic powerhouse, with a combined economic output of $2.2 trillion and a population in excess of 600 million people. Together with neighbors China, Japan, and South Korea, regional trade accounts for a quarter of world trade.
As it is, ASEAN is already an economic powerhouse, with a combined economic output of $2.2 trillion and a population in excess of 600 million people. Together with neighbors China, Japan, and South Korea, regional trade accounts for a quarter of world trade.
AEC will be the culmination of years of efforts to integrate the regional economy. The goal is to transform ASEAN into a single market and production base. ASEAN is envisioned as a regional economy with efficient production networks and high quality cross-border services such as air travel and healthcare run by a mobile and skilled workforce. Under the AEC vision, goods, investments, and capital flow freely, but growth is inclusive, with small and medium enterprises thriving despite competition.
