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PAD 380

VISION 2020.



MAY 2012




1.0 Introduction


2.0 Issued Faced By ASEAN In Order To Achieve
ASEAN Vision 2020.
2.1 The Concept of New Regionalism.
2.2 Non-Traditional Securities.
2.3 Trade Liberalization.
2.4 Commitment Institution.
2.5 Globalization.





3.0 Conclusion


1.0 Introduction.
ASEAN Vision 2020 is the main objective of ASEAN as approach 21
century. This vision
becomes the guideline to implement activity or declaration. On 2020, ASEAN wants concert of
Southeast Asian nations, outward looking, and living in peace, stability and prosperity, bonded
together in partnership in dynamic development and in a community of caring societies. Vision
2020 is one of the declarations made during 2
ASEAN Summit.
In Vision 2020, ASEAN wants all their member had implement fully freedom, peace and
neutrality. Many declarations had been promoted by ASEAN through ASEAN summit in order
to achieve ASEAN Vision 2020. After the declaration of Vision 2020, most of the activity or
resolutions are related with this vision. This is crucial to ensure that all the members activity
including political, economic and social lead toward achieving Vision 2020 such as The ASEAN
Roadmap for the Attainment of The Millennium Development Goals, ASEAN plus Three and
ASEAN Human Right.
The ASEAN Vision 2020 also stipulated to use the ASEAN Foundation as one of the
instruments to address issues of unequal economic development, poverty and socio-economic
disparities. Its mean that ASEAN Foundation one of the mechanism to help ASEAN approach
its vision. ASEAN Foundation has been stated in 6
ASEAN Summit which is in resolution of
the Hanoi Plan of Action.


2.0 Issued Faced By ASEAN In Order To Achieve ASEAN Vision 2020.
2.1 The Concept of New Regionalism.
New regionalism refers to varying approaches to addressing major urban metropolitan
problems including economic competitiveness, social equity, and sustainable land use and
infrastructure development (Allan D. Wallis, 2010). ASEAN had created a new regionalism to
achieve some vision of ASEAN by making cooperation and collaboration with external country.
By established this new region, it will help ASEANs member to enhance the administration of
their country in terms of politic, economic and social. ASEAN plus Three (APT) is one of the
initiatives of ASEAN to make cooperation with bigger and develop country in Asia which
consist of Japan, China and South Korea. Establishment of this new region is crucial because
ASEAN have two categories which are ASEAN six and ASEAN four. The cooperation with
external country will helps to reduce the gap between ASEAN six and ASEAN four in terms of
trade facilitation, narrowing the development gap, rural development and poverty alleviation and
transnational crime.
In terms of trade facilitation, ASEAN through ASEAN plus Three has established
ASEAN-China Free Trade Area which covers the trade in goods by 2010 for ASEAN-6 and by
2015 for ASEAN-4. However, in 2005-2006, members of the ASEAN-6 (except for Brunei), has
conquered about 93% of ASEAN trade while for among the members of ASEAN-4, only
Vietnam shows the highest share of trade which is 5.5%. (Smitha Francis and Murali
Kallummal, 2008).This has shown a huge gap in trade between ASEAN-6 and ASEAN-4. By
having this gap, it will affect strategy of ASEAN to achieve Vision 2020 which is that there is no

ASEAN six and ASEAN four in year 2020 because of standardization of economic where all the
ASEAN members have stability in economic.
Even though there is an increase in ASEANs economic cooperation, the income gap
between the developing countries, which are ASEAN six and ASEAN four is still huge. In 2010,
it is said that ASEANs economic growth has increase with annual growth rate from 5-10%.
However, the income gap between ASEAN six and ASEAN four shows a deep contrast which is
from 17-50 times. For ASEAN six, GDP for Indonesia stands for US$546 billion and US$200
for Malaysia, Thailand and Singapore. This is contrast with ASEAN four which gains GDP of
only about US$5-18 billion (Hong Hoa, 2010). This has become a great challenge for ASEAN
in order to reduce this huge gap between ASEAN six and ASEAN four in order to establish
South East Asia region with balance economic development.


2.2 Non-Traditional Securities.
Non-traditional securities are the new environment of securities which are non-military in
nature. This security is relating with the social problem in the state like drug-trafficking, piracy,
AIDS and prostitution. (Saurabh, 2011) The variety of administration of each country cause
different issue of non-traditional securities. This is due to different implementation of promoting
development in their respective country. Even though ASEAN has come out with several
declarations in the meeting with ASEANs member to settle these problems, current situation in
each ASEANs members does not allow them to implement the same policy promoted by
Current situation here refers to the economy of ASEANs member. ASEAN four always
having financial problem to implement what had been advised by ASEAN through ASEAN
SUMMIT especially about social problem such as to reduce the number of patients with HIV and
AIDS. The percentages of non-traditional problem of ASEAN four is higher compared to
ASEAN six as they did not have enough budget to improve their non-traditional securities. To
support this, it is shown that members in ASEAN-6 like Brunei, Thailand and Malaysia use
about more than 50% of their expenditure on health that involve AIDS/HIV, whereas members
in ASEAN-4 use only about 10-40% of their expenditure ( Dr Bob , 2012). Moreover, ASEAN
only provide advice and not financial aid. The establishment of ASEAN Work Programme on
HIV/AIDS for the period of 2011-2015 that helps to combat and reduce the impact of HIV and
AIDS across the region only provides access of HIV-related care and treatment services
(Reliefweb, 2010). However, this is limited to ASEAN-4 due to the lack of expenditure on
health care.

Meanwhile, human trafficking is also one of main issue relating to non-traditional
security. This includes prostitution, and child abuse. The fight against these human trafficking
remains a big challenged for ASEAN because even though the policy to prevent human
trafficking is being made, but it is optional for ASEAN members to follow them. ASEAN
members have the right whether to implement this policy or not. There are countries in ASEAN
which use human trafficking as the main income for their country. For example, Thailand and
Philippines has use prostitution as one of their countrys main business opportunity. The
Philippines, which has almost 10 million citizens working overseas, was particularly vulnerable
to human trafficking with many women going abroad for legitimate jobs only to be forced into
prostitution (Bangkok Post, 2013). The efforts to totally eliminate human trafficking cannot be
achieved as it will affect individual regions interest.


2.3 Trade Liberalization.
Trade liberalization can be defined as the removal or reduction of restrictions or barriers
on the free exchange of goods between nations. This includes the removal or reduction of both
tariff (duties and surcharges) and non-tariff obstacles (like licensing rules, quotas and other
requirements). The easing or eradication of these restrictions is often referred to as promoting
"free trade" (Investopedia, 2013). Trade liberalization in ASEAN is done through establishment
of ASEAN Free Trade Area (AFTA). Even though the Common Effective Preferential Tariff
(CEPT) Scheme allows the reduction of tariff between 0-5% for product traded within region,
however, the time line of implementation is different for each members of ASEAN. When
ASEAN Vision was established in 1997, ASEAN face challenges to include the ASEAN-4
which consists of Vietnam, Laos, Myanmar and Cambodia. This is because they are left behind
and are backwards in economic and political stability as compared with ASEAN-6 ( ASEAN,
Even though AFTA has resulted in success when 98.9% of all the products traded by
ASEAN 6, ASEAN-4 with product traded amounted to 71.1%, is still in the process in achieving
the ASEAN-6s success. This is due to the different timeline of the implementation of CEPT
Scheme for ASEAN-6 and ASEAN-4. For ASEAN-6, tariff and non-tariff barriers are to be
eliminated by the year 2010 while for ASEAN-4 is by the year of 2015 (ASEAN Economic
Community Blueprint, 2008). The liberation of trade is not being standardized due to different
in the timeline of CEPT Scheme implementation for ASEAN-6 and ASEAN-4. This has led to
early development of ASEAN-6 as compared to ASEAN-4. ASEAN-4 has to cope with the
development achieved by ASEAN-6 in limited time frame.

In addition, ASEAN 6 is major in manufacturing industry. ASEAN-4 faces difficulty in
competing with ASEAN-6 as they face shortage of capital, raw material, power supply, spare
parts, and entrepreneurship (Mya Than, 2001). ASEAN-4 lacks of proper technological support
and investment from foreign countries. Therefore, it makes harder for ASEAN-4 to trade their
products. Meanwhile, the ASEAN-6 is advanced in economic and industrial perspectives.
Members of ASEAN-6 have experience increased in trade liberalization during AFTA
implemented before the ASEAN-4 join the ASEAN. This has caused a huge gap of economic
development between ASEAN-6 and ASEAN-4 because the foreign investors are more attracted
to ASEAN-6 for their economic and political stability rather than ASEAN-4. For example,
imports from non-ASEAN constitute mainly machines and equipment (as well as industrial raw
materials) essential for industrialization that the neighboring countries are unable to supply.
(ASEAN One, 2005).


2.4 Commitment Institution.
Commitment institution means cooperation of all ASEANS member to implement and
follow all the policy and rules that had been stated by ASEAN. In order to achieve its vision,
ASEAN try to standardize the political structure of each ASEAN member because of varieties
form of governments. For example, Brunei is implementing absolute monarchy, Myanmar is
implementing military-government and Malaysia is implementing democracy in its political
system. This differences make the vision is hard to achieve because ASEAN need to have
homogeneous political structure which is fully democracy by the entire member. This is crucial
aspect as regional integration cannot be form if there is no commitment by the ASEANS
Moreover, ASEANS also did not have courage to have a strong functional ASEAN for
fear of incurring diminished national policy-making autonomy. It means that ASEAN member
does not believe the organization to make decision for their country and they were afraid that
they will lose their own sovereignty. Member of ASEAN does not give fully commitment to
established democracy even ASEAN has declare that ASEAN members should promote political
development based on the principles of democracy and human right as stated in the elements of
ASEAN Political-Security (APSC) Blueprint. APSC Blueprint aims to promote just, democratic
and harmonious environment for people and member states of ASEAN. APSC Blueprint not only
promotes democracy, but also promotes democratic institution (ASEAN Political-Security
Community Blueprint, 2009). However, some of ASEAN-4 such as Myanmar does not fully give
their commitment to this effort. This is because even though Myanmar has tried adopting
democracy through election in 2010, the failure to adopt the new government has allowed the

previous military-government to rule the country again. They avoid receiving external
legitimacy and political improvement. So Myanmar government did not fully apply democracy.
The members of ASEAN do not want to fully apply integration because of their narrow
individual interest and implementation of close the door concept in certain aspect especially in
decision making. Even there is dispute among the members of ASEAN, the organization cannot
do anything as they can only advice. Moreover, ASEAN have neo-functional characteristic in
term of decision making. ASEAN cannot involve directly because the dispute will refer to
International Court of Justice if it involve the dispute between members. Beside, most of the
members decide to give partial integration rather than total integration. So it becomes obstacle of
ASEAN to achieve Vision 2020 as it wants to create fully regional integration. Commitment is
crucial in order to achieve integration.


2.5 Globalization.
Globalization means the worldwide movement toward economic, financial, trade,
and communications integration. (Bussinessdictionary, 2013). Globalization gives challenge to
the association because ASEANs member needs to adapt with the large changes such as changes
in political system. All the ASEANs member has to change their current system either directly
or continuously in terms of politic, economic and social so that it can be standardized.
Globalization always related with integration and it can helps ASEANs member to increase
strengthen in all aspect. This is the best reason why all ASEANs member needs to share the
opportunity each other to help ASEAN approach globalization. In terms economic, when one of
the ASEANs member success in economic, it will gain other member to have same level of
economic and trust to the country to help them manage their economic.
The ten ASEAN member has different ideology in terms of managing their country. This
led ASEAN to establish several resolutions to standardize member of ASEAN in all aspect such
as Framework Agreement on Enhancing ASEAN Economic Cooperation, statement of Food
Security in the ASEAN Region and the cooperation of ASEAN with external countries through
Free Trade Agreement (FTA). When ASEAN made external relation with large countries such as
China, United States and Japan, it helps to increase the foreign direct investment of ASEAN
members. These foreign countries also help to provide capital to ASEAN members. This capital
inflow can also lead to increase in the price of local assets. The existence of foreign direct
investment will lead to interference of non-ASEAN members in the economy of ASEAN
countries. As this foreign direct investment hold part of the economy, technology and managerial
skills can be improved. However, this will suppress the wage of local and will takes away job

opportunities from local people because of implementation of greater technology that will reduce
cost on labor force. (Dr. Mahani, 2012).
Imbalance of economic, can lead to various problem to approach globalization. ASEAN
six have higher GDP compare to ASEAN four. So it prevents the ASEAN four to develop their
countries. Lack of financial support makes the countries unmotivated to approach globalization
that has been promoted by ASEAN. In Cambodia, it has lower level of education as the
expenditure for education only costs about 14.6% of total government expenditure. Public and
Private schools in Cambodia are mostly funded by families and communities. People of
Cambodia are not compulsory to take education as the cost is high. There exist only several
universities is Cambodia and there is a strict entrance because only student with the highest score
achieved in secondary school are allowed to enter this university (Allison Runchey, 2008). This
contributes to production of unskilled worker to help the country achieve globalization in all
aspects. As compared to Singapore, the government gives fully attention to their education
system by supporting through financial aid. Singapores government provides latest syllabus and
books to the students. The framework of Singapores education system also emphasizes on
effective learning of students. (, 2013).


3.0 Conclusion.

In conclusion, Vision 2020 becomes one of the main purposes of the establishment of
ASEAN. The purpose might different with earlier establishment of this international
organization as parallel with the advance of modern life in the 21
century. All member of
ASEAN should give fully commitment to approach Vision 2020. The activities and plan of
ASEAN must be present in front of ASEANs member so that they will know and understand
what they need to do in order to achieve Vision 2020. Member of the ASEAN also need to
cooperate and depend on each other to help ASEAN realize its Vision. Cooperation among
member countries is necessary in creating balance development and prosperity of all
members of ASEAN. As Vision 2020 is coming near, all members must work together in
implementing all policies and programs that ASEAN has outlined.


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