Comments on: Economic integration: Will Asia go regional? http://www.eastasiaforum.org/2009/11/03/economic-integration-will-asia-go-regional/ Economics, Politics and Public Policy in East Asia and the Pacific Fri, 19 Mar 2010 22:12:37 +1100 http://wordpress.org/?v=2.9.2 hourly 1 By: Thanawat Pimoljinda http://www.eastasiaforum.org/2009/11/03/economic-integration-will-asia-go-regional/comment-page-1/#comment-80321 Thanawat Pimoljinda Fri, 27 Nov 2009 14:55:44 +0000 http://www.eastasiaforum.org/?p=7681#comment-80321 Regional cooperation is a good idea for developing countries in amplifying economic leverage in the international system. However, in the case of ASEAN, it is pluralistic. It has no single dominant authoritative institution asserting its primacy within the region, or has no outstanding attractive advantage to make them strive for integration. For example, when considering the overall volume of Foreign Direct Investment (FDI) inflows from both intra- and extra-ASEAN’s member states from 2006 to 2008, it reflected a good sign for the future of ASEAN regional economic cooperation and development. It increased from US $54,967.2 million in 2006 to US $60,174.7 million in 2008. However, the increasing volume of FDI inflows is greater stemming from extra-ASEAN economic powers rather than intra-ASEAN member states. The total FDI among ASEAN member states increased only from US $7,602.3 million in 2006 to US $11,069.7 million in 2008, while the amount of FDI inflows from extra-ASEAN member states in the same period increased from US $47,364.9 million to US $49,105.0 million. This is especially the case with the FDI inflows from the EU, China, and Australia, which has gone from US $10,672.2, 1,016.2 and 303.0 million to US $12,378.4, 1,437.8 and 972.8 million, respectively.
 Along the lines of the above discussion, Southeast Asian states’ loosely cooperative framework and excessive linkage with outside powers are determining the significance of intra-regional institution-building, and are affecting the possibility in creating ASEAN’s solidarity as a single entity. In addition, while economic regionalism in the Southeast Asia region is generally considered to be market-driven and hence relatively unconstrained by state’s actions, the fact is that national interests and preferences remain a major determinant of the possibilities for economic cooperation within ASEAN. Regional cooperation is a good idea for developing countries in amplifying economic leverage in the international system. However, in the case of ASEAN, it is pluralistic. It has no single dominant authoritative institution asserting its primacy within the region, or has no outstanding attractive advantage to make them strive for integration. For example, when considering the overall volume of Foreign Direct Investment (FDI) inflows from both intra- and extra-ASEAN’s member states from 2006 to 2008, it reflected a good sign for the future of ASEAN regional economic cooperation and development. It increased from US $54,967.2 million in 2006 to US $60,174.7 million in 2008. However, the increasing volume of FDI inflows is greater stemming from extra-ASEAN economic powers rather than intra-ASEAN member states. The total FDI among ASEAN member states increased only from US $7,602.3 million in 2006 to US $11,069.7 million in 2008, while the amount of FDI inflows from extra-ASEAN member states in the same period increased from US $47,364.9 million to US $49,105.0 million. This is especially the case with the FDI inflows from the EU, China, and Australia, which has gone from US $10,672.2, 1,016.2 and 303.0 million to US $12,378.4, 1,437.8 and 972.8 million, respectively.


Along the lines of the above discussion, Southeast Asian states’ loosely cooperative framework and excessive linkage with outside powers are determining the significance of intra-regional institution-building, and are affecting the possibility in creating ASEAN’s solidarity as a single entity. In addition, while economic regionalism in the Southeast Asia region is generally considered to be market-driven and hence relatively unconstrained by state’s actions, the fact is that national interests and preferences remain a major determinant of the possibilities for economic cooperation within ASEAN.

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