Evaluating ASEAN Economic Community Blueprint 2025: Will it Bridge or Widen Development Gap

The Association of Southeast Asian Nations (ASEAN) is a regional organization comprising countries in Southeast Asia. ASEAN was officially established on August 8, 1967, amidst an unstable regional and international situation, by five founding countries: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Brunei Darussalam joined ASEAN in 1984, followed by Cambodia, Laos, Myanmar, and Vietnam, which joined between 1995 and 1999. Most recently, Timor-Leste became a member in 2022. 

Initially, the primary objective of ASEAN's formation was to maintain peace and security in Southeast Asia in the aftermath of World War II, as well as to curb communism, which at the time was growing rapidly and clashing with liberalism. These two ideologies were actively competing to expand their influence globally, ultimately disrupting political stability, security, and peace in Southeast Asian nations. 

ASEAN itself stands out as a unique organization because it comprises countries with diverse backgrounds in terms of religion, geography, language, ethnicity, culture, and colonial experiences, all of which differ from one another. With such varied backgrounds, it is evident that they require norms intended to govern relations among member states. These norms did not emerge spontaneously but were the result of various processes and decisions that ultimately culminated in the Kuala Lumpur Declaration. The Kuala Lumpur Declaration contains agreements to oppose the use of violence, resolve conflicts arising among member states, and prevent conflicts through peaceful means. 

In addition to focusing on security and peace issues, ASEAN also engages in economic activities. These economic activities may include economic cooperation among ASEAN member states or collaboration between ASEAN and other regions. Although economic activities are not ASEAN's primary objective, the economic needs of each member state and the rapid phenomenon of globalization have driven the critical importance of economic cooperation within ASEAN. 

In the 1980s, ASEAN initiated several economic collaborations through agreements that did not always proceed smoothly. One such initiative was the ASEAN Industrial Project, which aimed to create specific industries to be traded within the ASEAN market. Under this project, Indonesia and Malaysia agreed to establish industries focused on fertilizer production, while Singapore was set to develop a diesel industry. However, in practice, Indonesia was unwilling to reduce its diesel production, which negatively impacted Singapore’s diesel industry. In this case, the countries prioritized their respective national interests, ultimately rendering the ASEAN Industrial Project unsuccessful. Nevertheless, the efforts made by ASEAN during the 1980s laid the foundation for fostering shared perspectives on the importance of economic cooperation in the years to come. 

In 1992, ASEAN established an economic cooperation framework known as the ASEAN Free Trade Area (AFTA). This initiative aimed to promote free trade relationships among ASEAN member states. Several factors drove the establishment of AFTA, including the motivation of ASEAN members to maintain the organization's relevance as a regional entity following the resolution of the Cambodian conflict. At the time, political and military challenges within the ASEAN region had been addressed, although not entirely resolved. Economic issues increasingly came to the forefront, demanding ASEAN to play a more active role in the economic sphere. Additionally, Singapore, lacking sufficient natural resources and heavily reliant on trade as its primary source of revenue, strongly advocated for liberalization and an open economy to maximize its gains. The desire of ASEAN member states to attract as many investors as possible also contributed to the creation of AFTA. Finally, the presence of large economic blocs in America, Europe, and other parts of Asia further motivated ASEAN to ensure it would not lag behind in the global economic landscape.

In addition to this, there is the ASEAN Economic Community (AEC), which was declared in 2003 in Bali. ASEAN hoped that the AEC would be achieved by 2020. The AEC itself is one of the three main pillars of ASEAN, alongside the ASEAN Security Community, ASEAN Economic Community, and ASEAN Socio-Cultural Community. The AEC plays its role in the trade of goods and services, technology, investment, and human resources among ASEAN member states. The AEC was established in response to the growing competitiveness between China and India, both of which were able to attract investors effectively and directly. As countries with populations exceeding one and a half billion, China and India were certainly more appealing to Western investors compared to ASEAN. Therefore, the AEC was expected to attract back investors who had begun to shift toward these two economic giants.

In practice, the AEC of 2015 has successfully expanded market access for member states. Member states are now able to export their domestic products with regulations that are less complicated compared to engaging in economic cooperation with countries outside the region. However, challenges and obstacles still remain that have not been fully addressed within the AEC. 

The ASEAN Economic Community (AEC) is one of the three pillars of ASEAN, focusing on the economic sector. The AEC was established to deepen economic integration, enhance regional competitiveness, and position ASEAN as a single market and production base. The creation of AEC itself involved a long journey. In 2003, the concept of AEC was formalized at the 9th ASEAN Summit, where ASEAN leaders adopted the Bali Concord II Declaration. Through this declaration, ASEAN leaders agreed to build a major community pillar, with the AEC serving as the key to regional economic integration, with a target for achievement set for 2020. 

In 2007, ASEAN held its 13th Summit in Singapore. At this summit, ASEAN successfully established the ASEAN Charter, which serves as the constitution for ASEAN. The ASEAN Charter strengthens the structure and institutions of ASEAN and provides the legal foundation for ASEAN to realize its vision and mission, including economic integration through the AEC. At this summit, ASEAN also decided to accelerate the goals and targets of the AEC, moving the original deadline from 2020 to 2015.