Ten Countries in Asia
ASEAN is an association of East Asian nations that aims to promote peace and prosperity and to strengthen economic, social and cultural cooperation. It currently consists of ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The ASEAN countries have a combined population of 662 million and a combined gross domestic product (GDP) of $3.2 trillion. The group has played an important role in Asian economic integration, having signed six free trade agreements with other regional economies and participating in the negotiation of the world’s largest free trade agreement.
The chair of ASEAN, supported by a secretariat in Jakarta, Indonesia, is elected annually by the member countries. Major decisions are generally taken by consultation and consensus, following the principles of non-interference in internal affairs and peaceful settlement of disputes.
Diversity and Economic Potential
ASEAN is made up of countries with wide disparities. Singapore has the highest GDP per capita in the group at around $60,000, according to World Bank data for 2020, while Myanmar has the lowest at around $1,400. The region is home to many different ethnic and religious groups. According to a 2014 Pew Research Center report, Singapore and Vietnam are among the most religiously diverse countries in the world, while Cambodia and Indonesia, largely Buddhist, are comparatively homogeneous. ASEAN’s geography includes islands and continental areas with low plains and mountainous regions. As diverse as the countries are, there are many challenges to economic integration.
ASEAN has made some progress in economic integration and free trade. The ASEAN Free Trade Area (AFTA) was established by members in 1992 to promote intra-ASEAN trade and investment and to attract foreign investment. The average tariff rate in the region was around 7% in 1996. By comparison, tariffs in ASEAN today are close to zero. Electronics, automobiles, rubber products, textiles and apparel, agricultural products and tourism are among the eleven sectors that the bloc has prioritised for integration.
Elevate Your Wealth Game: Empowering UHNWIs for Simplified Asset Management. Altoo Platform Preview
Less Influence?
The Regional Comprehensive Economic Partnership (RCEP), a free trade agreement in the works since 2012, was signed by ASEAN members Australia, China, Japan, New Zealand and South Korea in November 2020. The RCEP covers 30 per cent of the world’s population, more than any other trade agreement, although it does not include drastic tariff cuts. It promotes economic cooperation between Southeast Asia and the Northeast. ASEAN also has six free trade agreements with other countries, including India. ASEAN (Association of Southeast Asian Nations) currently outpaces India in Asian growth at 4.0 per cent and is converging with China’s economic growth (5.8 per cent). It could reach fourth place by 2050. At present, there is still a lack of supranational decision-making and, in this context, the problem that ASEAN’s sovereignty and non-interference policy is losing influence in the member states, which can lead to conflict situations between them.
