CHAPTER 7

Preparatory Activity

1. Human Relations
- Human relations refers to the ability to interact in a healthy manner with others and build strong
relationships. From the perspective of managers in a company, it involves the process of creating
systems and communication channels to enable group employee relationships as well as strong
one-on-one relationships. Human relations is critical for developing and maintaining a positive
work environment, retaining employees and encouraging productivity. By making human relations
the focus of your management approach, you can effectively create a workplace culture in which
your employees can thrive. Developing your human relations skills can help you modify your
management style so it's human relations centric.
2. International Relations
- International relations attempts to explain the interactions of states in the global interstate
system, and it also attempts to explain the interactions of others whose behavior originates within
one country and is targeted toward members of other countries. In short, the study of international
relations is an attempt to explain behavior that occurs across the boundaries of states, the broader
relationships of which such behavior is a part, and the institutions (private, state,
nongovernmental, and intergovernmental) that oversee those interactions. Explanations of that
behavior may be sought at any level of human aggregation.
3. Economic Integration
- Economic integration is an arrangement among nations that typically includes the reduction or
elimination of trade barriers and the coordination of monetary and fiscal policies. Economic
integration aims to reduce costs for both consumers and producers and to increase trade
between the countries involved in the agreement. Specialists in this area define seven stages
of economic integration: a preferential trading area, a free trade area, a customs union, a
common market, an economic union, an economic and monetary union, and complete economic
integration. The final stage represents a total harmonization of fiscal policy and a
complete monetary union.

4. Free-trade Agreement
- A free trade agreement is a pact between two or more nations to reduce barriers to imports and
exports among them. Under a free trade policy, goods and services can be bought and sold
across international borders with little or no government tariffs, quotas, subsidies, or prohibitions
to inhibit their exchange. Governments with free-trade policies or agreements in place do not
necessarily abandon all control of imports and exports or eliminate all protectionist policies. In
modern international trade, few free trade agreements (FTAs) result in completely free trade.
5. Regional Consciousness
- Regional consciousness is that part of people's social consciousness which refers to. their
perception of the distinctiveness of their own region or their own regional group. The latter is
identified based on a specific regional heritage and cultural dis.

Outcome-Based Assessments
1. Trace the historical background of the organization and establishment of ASEAN by providing
basic information on the significant event that happened on the dates given in the following
items. Write your answer on the space provided.
a. July 13, 1961
- ASEAN was preceded by an organization formed on 31 July 1961 called the Association of
Southeast Asia (ASA), a group consisting of Thailand, the Philippines, and the Federation of
Malaya.
b. August 8, 1967
- ASEAN itself was created on 8 August 1967, when the foreign ministers of five countries:
Indonesia, Malaysia, the Philippines, Singapore, and Thailand, signed the ASEAN Declaration.
As set out in the Declaration, the aims and purposes of ASEAN are to accelerate economic
growth, social progress, and cultural development in the region, to promote regional peace,
collaboration and mutual assistance on matters of common interest, to provide assistance to each
other in the form of training and research facilities, to collaborate for better utilization of agriculture
and industry to raise the living standards of the people, to promote Southeast Asian studies and
to maintain close, beneficial co-operation with existing international organizations with similar
aims and purposes.
c. January 28, 1992
- In 1992, the Common Effective Preferential Tariff (CEPT) scheme was adopted as a schedule
for phasing out tariffs to increase the "region's competitive advantage as a production base geared
for the world market". This law would act as the framework for the ASEAN Free Trade Area
(AFTA), which is an agreement by member states concerning local manufacturing in ASEAN.
d. December 15, 1995
- The bloc also focused on peace and stability in the region. On 15 December 1995, the Southeast
Asian Nuclear-Weapon-Free Zone Treaty was signed to turn Southeast Asia into a nuclear-
weapon-free zone.
e. March 28, 1997
- The treaty took effect on 28 March 1997 after all but one of the member states had ratified it. It
became fully effective on 21 June 2001 after the Philippines ratified it, effectively banning all
nuclear weapons in the region. A similar treaty was signed in 2017; however, Singapore abstained
from the vote.
2. State the status and connection to the ASEAN of the given state members given by the
following items. Write your answer on the pace provided.
a. Indonesia
- As the largest economy and most populous country in ASEAN, it is not surprising that Indonesia
has greatly impacted the pace of the ASEAN economic integration project. Nonetheless, the
ASEAN integration initiatives have also helped shapes Indonesia’s domestic policies. This
interplay of the design and implementation of ASEAN initiatives and the domestic policy
environments in the AMSs can be considered as at the heart of the essential characteristic of the
ASEAN integration agenda. This is a much more measured (although criticized as slow)
liberalization and integration process against which there is no significant backlash.
b. Cambodia
- ASEAN’s newest member, Cambodia, is also one of ASEAN’s most remarkable transformations.
Chap Sotharith, in his essay in the volume, puts it well: once a failed state with civil war, genocide,
and political turmoil Cambodia has been transformed from a centrally planned economy into a
free-market economy and from a battlefield on the verge of destruction into a country of emerging
development that is increasingly becoming integrated into the regional and global community.
c. Laos
- ASEAN has also been important in the transition of the Lao PDR from a relatively closed and
planned economy to an open market economy. Before it became a member of ASEAN in 1997,
the Lao PDR had a centrally planned economy under the ambit of the former Soviet Union in
1975–1986, followed by a transition towards a market economy in 1986–1997. ASEAN’s
admission of the Lao PDR accelerated the process of warming relations with its ASEAN neighbors
and the process of economic liberalization under AFTA and eventually the AEC. As a small and
landlocked country surrounded by four AMSs and China, the Lao PDR’s economic fortune is
necessarily affected by the stability and economic fortunes of its four ASEAN neighbors and
China. As Leebuoapao and Sayasenh in their essay, the volume points out, ASEAN is the ‘golden
opportunity’, the nearest and biggest market for the Lao PDR both for export and import, in
particular Thailand and Viet Nam. Thus, not surprisingly, the Lao PDR sees ASEAN membership
as a safeguard to ensure peace, security, and economic opportunities for its development.
d. Myanmar
- Myanmar is a recent significant diplomatic success for ASEAN. Instead of sanctions against
Myanmar that many Western countries resorted to, ASEAN engaged and quietly encouraged the
former military rulers of Myanmar over the years to democratize the country. The ascension of
the neo-civilian government under President U the in Sein led to major and wide-ranging reforms
in the country complemented by the lifting of the sanctions against investments in and trade with
Myanmar. The successor civilian government, led by State Counselor Daw Aung San Suu Kyi
and President U Hin Kyaw, is continuing the reform process. The wide-ranging reforms were
shaped partly in the context of ASEAN, especially the AEC Blueprint 2015, but have been strongly
facilitated and supported by major international multilateral institutions such as the World Bank,
the International Monetary Fund (IMF), and the Organization for Economic Co-operation and
Development (OECD) as well as by major bilateral donors like Japan. The successful hosting by
Myanmar of the ASEAN Summit in 2014 is an affirmation of the dramatic political, diplomatic, and
economic reforms in the country consistent with the overall regional thrusts of the ASEAN
integration and community building efforts.
e. Malaysia
- ASEAN has always held a special place in Malaysia’s foreign and trade policy. Malaysia’s
Minister of International Trade and Industry pointed out that the fact that the ASEAN division is
the largest division in the Ministry of International Trade and Industry is testimony to the
importance that the ministry accords to ASEAN. ASEAN has been evolving and Malaysia has
been an active partner in this process. However, the conceptualization of the AEC has happened
at a critical juncture in Malaysia’s own development path because the country’s goals and
aspirations find strong resonance with those articulated by the AEC. Malaysia is an active trading
nation that is among the largest importers and exporters of goods and among the top 30 trading
nations of commercial services. The country’s total trade to gross domestic product ratio is about
200%. Malaysia’s growth, development, and employment have gained, in no small measure, from
trade and foreign direct investment (FDI). Since trade and investment is the cornerstone of
Malaysia’s economic development, it has adopted a market-oriented foreign trade policy. It is
strongly committed to the liberalization of the economy and has been a strong supporter of the
multilateral trading system.
f. Singapore
- The quintessential globalist, Singapore nonetheless shows us an example where ASEAN’s
goals are in line with an AMS’s national interests; and the country can eventually gain from what
it contributes to regional integration. As a small country lacking natural resources, Singapore
needs ASEAN to foster regional political and security stability. Different from the CLMV countries,
it is concerned more with vulnerability from an unfavorable external political and security
environment.
g. Philippines
- The Philippines underwent wrenching domestic macroeconomic, trade, and industrial policy
reforms and adjustments under a series of IMF and World Bank programmers for about 2 decades
in the aftermath of the economic crisis in the country in the early to mid-1980s. No other AMS
experienced such wrenching adjustments for so long. The structural adjustments of the transition
economies of Cambodia, the Lao PDR, and Viet Nam in the latter 1980s and 1990s were largely
efficiency enhancing and foreign investment attracting. In contrast, opening up the Philippine
economy with comparatively high wage costs from long decades of industrial protection and in a
fragile macroeconomic environment proved far more disruptive to the Philippine manufacturing
sector and the overall economy during most of the latter 1980s until the early 2000s. Only in the
last decade or so has the Philippines righted itself macro economically, and its underlying
comparative advantage has shown and become potent. As a result, the mediocre economic
performance of the 1980s through the early 2000s changed to sustained robust growth with
markedly rising foreign investments in recent years. And the contentious debates in the latter
1980s between protectionism and openness have now been transformed into a nationally agreed
industrial strategy (‘Manufacturing Resurgence Program’): an open manufacturing sector is a
given to compete better in an integrated ASEAN and more open East Asia.
h. Vietnam
- Viet Nam has the enviable achievement of having the highest average growth rate in ASEAN
since the mid-1990s. Indeed, the country has one of the highest averages growth rates in the
world during 1996–2015. This meant a remarkable economic transformation into a major global
exporter of agricultural products such as rice, coffee, and fish as well as an emerging
manufacturing hub in East Asia. The country experienced one of the sharpest declines in poverty
rate in the world, arguably only second to China. Underpinning this remarkable success story is
the positive interplay of aggressive domestic reform and proactive international economic
integration efforts backed by solid human capital and infrastructure investments. Like the other
new members of ASEAN, and indeed much more so, the sharp rise in foreign trade (with Viet
Nam now having the second-highest trade-to-GDP ratio in ASEAN) and FDI has been central to
Viet Nam’s economic dynamism.
i. Thailand
- Saowaruj Rattanakhamfu shows the impact of ASEAN on Thailand through the increased trade,
investment, and labor flows. Thailand increased its import sourcing from ASEAN; the region is
now the second-largest import source after China. Thailand also expanded tremendously its
exports to ASEAN; indeed, ASEAN has been Thailand’s largest export market, replacing the
United States, since 2003. Thailand now has a large merchandise trade surplus vis-à-vis ASEAN.
The reduction and eventual elimination of intra-ASEAN tariffs and ASEAN’s rules of origin
facilitated the marked rise in Thailand’s trade with its ASEAN neighbors.
j. Brunei Darussalam
- As the smallest AMS of about 400,000 people, Brunei Darussalam has embraced ASEAN fully
– from its long-serving Sultan Bolkiah (ASEAN’s longest serving leader) to its citizens – as the
results of the survey on what ASEAN means to ASEAN peoples indicate. In the essay written by
Joyce Teoon Brunei Darussalam, the volume shows that Bruneian small and medium-sized
enterprises (SMEs) have benefited from their access to a much larger regional market. She also
indicated the domestic and policy reforms undertaken with regional initiatives, such as on
competition policy and consumer protection. She further pointed out that ASEAN’s emphasis on
SME development initiatives also benefited Brunei’s SMEs.

3. Articulate the aims of ASEAN as a regional organization after acknowledging the Blueprints of
Community Pillars and functions of the different levels of the organizational structure of ASEAN
by completing the two sets of tables below.

a. Community Pillars
Community Pillars Blueprints/Characteristic
In an increasingly
integrated and
interdependent world,
the APSC aspires to lead
ASEAN towards a rules-
based Community of
ASEAN shared values and norms;
Political-Security a cohesive, peaceful,
Community (APSC) stable, and resilient
region with shared
responsibility for
comprehensive security,
as well as a dynamic and
outward-looking region.
Community Despite the absence of a
ASEAN Economic direct mention to human
(AEC) rights issues in the ASEAN
Economic Community
(AEC) Blueprint, there are
indirect human rights
consequences. "A region
of equitable economic
development," as
indicated before, is one
of the four important
qualities defined in the
AEC Blueprint.
The ASCC is being
implemented to create a
people-centered, socially
The Aims of ASEAN realized
The complete implementation of
this Blueprint is projected to
provide prosperity to the region
while also safeguarding ASEAN
citizens' interests and well-being.
Human rights are likely to be
present in the APSC Blueprint
since it aims to improve political
stability, democracy, and good
governance by fostering a just,
democratic, and harmonious
environment. One of the primary
aspects in boosting political
growth is respect for the
promotion and preservation of
human rights and fundamental
freedoms, according to this
Blueprint.
Human resource development,
information and communication
technology, capacity building,
poverty reduction, and improved
quality of life are among the
initiatives under the Initiative for
ASEAN Integration (IAI), which
recognizes the necessity of
equitable economic development
for all peoples. Furthermore, the
health of the people is not
forgotten in the enhancement of
food, agriculture, and forestry
trade, and consumer protection is
strengthened through the
establishment of the ASEAN
Coordinating Committee on
Consumer Protection and a
network of consumer protection
agencies to facilitate information
sharing and exchange in the
promotion of a competitive
culture.
As regard to social welfare and
protection, the ASCC Blueprint
envisions to address fully
 responsible ASEAN
community, with the goal
of attaining solidarity,
unity, and a common
identity, as well as a
sharing and caring
ASEAN society. Human
Socio-Cultural development, social
Community (ASCC) welfare and protection,
social justice and rights,
environmental
sustainability, ASEAN
identity building, and
closing the development
gap are all qualities
envisioned in the ASCC
Blueprint. Except for the
ASEAN identity, all these
concerns are directly
related to human rights.
socioeconomic disparities and
poverty by alleviating poverty and
eradicating extreme poverty and
hunger. This Blueprint also calls
for access to primary healthcare
of the vulnerable groups/ people
at risk. The promotion and
preservation of the rights and
welfare of disadvantaged,
vulnerable, and marginalized
groups such as women, children,
the elderly, people with
disabilities, and migrant workers
are all highlighted in this
Blueprint. To accomplish this
purpose, the ASCC Blueprint lists
the implementation of the ASEAN
Declaration on the Protection and
Promotion of the Rights of
Migrant Workers as a strategic
priority.

b. Structure of ASEAN

Levels of the Functions The Aims of

Structure of ASEAN ASEAN realized
1. Comprise the ASEAN Leaders Asean
(Head of Member States) Summit is ‘the
2. Supreme policy-maker in the supreme policy-
ASEAN legal Framework making body of
3. Deliberate, provide policy Southeast Asian
guidance and decide on nations’. The
strategies issues pertaining to Asean Summit's
the implementation or key purposes
ASEAN Summit achievement of ASEAN’s include
objectives "deliberation,
4. Instruct the relevant ministers policy direction,
in each of the councils and decision-
concerned to tell ad hoc inter- making on major
ministerial meetings, discussing matters relevant
important concerning ASEAN to the Asean's
and cross sectoral issues. objectives."
 5. Address crucial and emergency
condition affecting ASEAN
Member States
6. Appoint SGASEAN

1. Comprise the Foreign Ministers ASEAN

of ASEAN Member States Coordinating
2. A forum held to prepare Council (ACC)
meetings of the ASEAN Summit comprises the
3. Coordinator for ASEAN Foreign
implementation of agreement Ministers and
and decisions of ASEAN Summit meets at least
4. Coordinate with ASEAN twice a year to
ASEAN Community Councils to prepare for the
Coordinating Council enhance policy synergy and ASEAN Summit.
harmony, efficiency and The ACC
cooperation among three coordinates the
community councils. implementation
5. Coordinate Community of the mandate of
Council’s report to be discussed ASEAN Leaders
in ASEAN Summit. and all cross-pillar
6. Consider the annual report on initiatives of
ASEAN progress delivered by ASEAN.
Secretary-General of ASEAN.
7. Taking decision for
appointment and termination
of Deputy- Secretaries General
of ASEAN upon the
recommendation of the
Secretary-General
1. Comprise the ASEAN Political- The ASEAN
Security, economic, and Socio- Charter provides
Cultural Community Council. for the
2. Each Community Council shall establishment of
have under its purview the ASEAN
relevant ASEAN Sectoral Community
ASEAN Ministerial Bodies. Councils which
Community Councils 3. Each member States shall shall comprise the
designate its national focal ASEAN Political
point of each Community Security
Council. Community
(APSC) Council,
ASEAN Economic
Community (AEC)
 Council, and
ASEAN Socio-
Cultural
Community
(ASCC) Council.
1. Shall function in conformity ASEAN Ministerial
with their respective establish Meeting on
mandates. Environment
ASEAN Sectoral 2. Implement the agreements and (AMME) is a
Ministerial Bodies decisions of the ASEAN Summit sectoral
under their respective purview. ministerial body
3. Strengthen cooperation in their listed under
respective fields in supports of Annex 1 of the
ASEAN integration and ASEAN Charter.
community building. Established in
4. Submit reports and 1981, AMME now
recommendation to their meets once every
respective Community Council. two years to
5. Such as Senior Official Meeting provide policy
(SOM), Senior Official Meeting and strategic
on Social Welfare and guidance related
development (SOMSWD), to ASEAN
ASEAN Committee on Women. cooperation on
environment.
1. Shall function in conformity The CPR
with their respective establish conducts its
mandates. regular internal
2. Implement the agreements and meetings at least
decisions of the ASEAN Summit once a month to
under their respective purview. discuss a number
3. Strengthen cooperation in their of administrative
Committee on respective fields in supports of and substantive
Permanent ASEAN integration and issues. The
Representative community building. Committee is
4. Submit reports and assisted by a
recommendation to their Working Group
respective Community Council. that comprises
5. Such as Senior Official Meeting the Deputy
(SOM), Senior Official Meeting Permanent
on Social Welfare and Representatives
development (SOMSWD), and other
ASEAN Committee on Women. officials from the
10 Permanent
Missions of
 Member States
to ASEAN.
1. Supports the day-to-day to initiate,
workings of ASEAN. facilitate and
2. Drawing up plans of action in coordinate
collaboration with ASEAN ASEAN
National Senior Officials to implement stakeholder
Secretariats decisions made at ASEAN’s collaboration in
high-level meetings. realizing the
3. Find more information on how purposes and
non-government organizations principles of
can engage with ASEAN. ASEAN as
reflected in the
ASEAN Charter.
Promote
These committees comprise ASEAN ASEAN’s interests
Committees Abroad COMMITTEES IN HIRD COUNTRIES AND and identity in
INTERNATIONAL ORGANISATIONS the concerned
(ACTC). host countries
and/or
international
organizations.

4. Analyze how ASEAN fosters political, economic, and cultural cooperation within Southeast
Asia as a region by giving your general impression on the five major sources of ASEAN Identity.
Write your answer on the space provided.

a. Nationalism
- Southeast Asian nationalisms arose from anti-colonial conflicts and were thus aimed at a
common external danger. Except for Thailand, which lost territory to them and was subjected to
considerable restrictions on its external action, all Southeast Asian countries were previously part
of Western colonial empires. Anti-colonial feelings were also a vital foundation for Southeast
Asian nationalism and regionalism.
b. Religion
- Southeast Asia is home to several major religions. Although religion plays an important role in
national identities, it has rarely been a source of substantial inter-state conflict. Domestic
separatist movements, ethnic strife, and extreme violence have all been fueled by it. Islamic
extremism is frequently viewed as a threat to regional stability, particularly in and out of
Indonesia, Malaysia, and the southern Philippines. However, Islam in Southeast Asia is often
more moderate and tolerant than in the Arabian Peninsula. In Southeast Asia, there is minimal
evidence of a "clash of civilizations."
c. Cultural norms and modes of interaction
- Cultural norms, to the extent that they can be distinguished from political norms, such as
communitarianism and patron–client mentalities, are significant in that they tend to modify more
universalistic 'Western' ideas about economic development and governance, resulting in a trend
toward state-led capitalism and dominant-party political systems (in Malaysia and Singapore),
military rule (in Thailand), and other forms of 'illiberal democracy.' Some of these characteristics
can also be found in Northeast Asia. The concept of 'Asian values,' which originated in Southeast
Asia, emphasizes' society above the self, "respect for authority,' educational importance, and a
proclivity for large savings.' However, these norms are not universally present in all governments,
and the notion of 'Asian values,' as a generally homogeneous and pan-regional phenomena, is a
fallacy, given the region's diversity of religious, political, and economic orientations.
d. Modernist developmental state orientation and approach
The developmental state orientation, which emphasizes economic growth over ideology and
identity politics and calls for a strong role of the state in anchoring development, originated in
Japan, Korea, Hong Kong, Taiwan, and Singapore and now prevails, albeit to varying degrees,
throughout Southeast Asia. It serves as a vital foundation for ASEAN, bridging cultural, political,
and security issues among Southeast Asian countries.
e. Regionalism
- Despite these differences, Southeast Asia has acquired a stronger sense of regional identity than
either South Asia or Northeast Asia. National and regional identities co-exist and to some extent
complement each other. ASEAN today is building three regional communities, covering political-
security, economic, and socio-cultural affairs. Despite some internal divisions and constraints
imposed by great power presence and influence seeking, ASEAN remains amongst the most
cohesive and dynamic regional groups in Asia and the world today. It is a key factor mediating
the flow of ideas into and out of Southeast Asia and in reshaping the national identities of
Southeast Asian states, making these national identities less exclusionary and conflictual.