Compare the level of integration between EU and ASEAN

“It has been said that arguing against globalisation is like arguing against the laws of
gravity.”1

Kofi Annan

INTRODUCTION

Over the past half century the world has undergone many transformations. In

international relations the world has seen the emergence of cooperation and integration of

states and actors on a scale never before witnessed by man. This phenomenon is sometimes

termed ‘regionalism’ and refers to an increase in cooperation between states that are located

in a geographical region2. This term is most often used when referring to trade issues and is

important when considering that nearly 85% of world trade is concentrated on the regions

of North America, Asia and the Western Europe3. But regionalism extends beyond mere

economic issues and can include political, social and security dimensions as well.

International Governmental Organisations (IGO) are at the heart of regionalism. The prime

IGOs for Asia and Western Europe are ASEAN and the European Union respectively.

The object of this essay is to compare the level of internal integration within the EU

and ASEAN. To do so, this essay will first describe each organisation, before comparing

their respective levels of integration against the political, social, economic and security

dimensions.

1
Kofi Annan, accessed from http://thinkexist.com/quotation/it_has_been_said_that_arguing_against/
151768.html, on 2 May 2011
2
Graham Evans and J Newnham, Dictionary of International Relations, London: Penguin Books, 1998, p472
3
World Trade Organisation, World Trade Report 2010, Geneva: WTO Publications, 2010, p28-29
 EUROPEAN UNION

The European Union (EU) is an International Governmental Organisation (IGO)

made up of 27 members that have common political, social, economic and security

purposes based on regional unity4. The EU came into being on 1 November 1993 by the

signing of the Maastricht Treaty, however its origins can be traced back to the 1950s when

the European Coal and Steel Committee (ECSC), European Atomic Energy Community

(EURATOM) and the European Economic Community (EEC) were formed with the

purpose of helping the European economy and reducing the likelihood of war through

economic integration. Since then, the EEC changed to become the EU and membership

grew steadily from the original six members to the current 27.

The EU has become a significant political and economic member of the global

system. It is a hybrid of supranational independent European institutions and member states

that collectively negotiate its decision making processes. The supranational status of the EU

is demonstrated by the existence of an EU executive, legislature and judiciary. The EU is a

single economic market that has its own currency, bank, foreign policy and security force,

amongst other things. Goods, people, services and capital are free to move around with the

EU.

ASSOCIATION OF SOUTH EAST ASIAN NATIONS

The Association of South East Asian Nations (ASEAN) was formed on 8 August

1967 by the signing of the Bangkok Declaration by Malaysia, Thailand, Indonesia,

Singapore and the Philippines5. ASEAN is an economic and geo-political organisation that

4
European Union Website, accessed from www.europa.eu, on 1 May 2011
5
Institute of South East Asian Studies, Know Your ASEAN, Singapore: ISEAS Publishing, 2007, p2

2
has since grown to ten member states from within South East Asia. ASEAN has no

centralised government, nor military response force or single monetary currency for its

members. Like the original idea for the EU, ASEAN, broadly, has been formed to enhance

economic development for the region; to promote peace and stability through integration of

economies; and increase dialogue between states via collaboration, consensus and

cooperation6.

POLITICAL INTEGRATION

There are significant differences in the level of political integration in the EU and in

ASEAN. The EU acts politically as a single state via the supranational European

Parliament, yet at the same time the individual state members retain their own governments

and rights for the areas of policy not controlled by the EU. The European Union has seven

institutions within it. These are the European Parliament; the Council of the European

Union; the European Commission; the European Council; the European Central Bank; the

Court of Justice of the European Union; and the European Court of Auditors.

The European Commission (EC) acts as the executive branch of the EU. The EC is

responsible for initiating legislation and the day-to-day running of the EU. The EC is also

seen as the prime driver of European integration. The EC operates as a cabinet government,

with 27 Commissioners for the different areas of policy, made up of one member from each

state. The European Parliament (EP) forms half of the EU's legislature with the other half

being the Council of the European Union. This parliament is headed by the EU President

who rotates six monthly. The EU is based on a series of power-giving treaties that set broad

policy goals and establish institutions which have necessary legal powers to fulfil those

6
ibid, p4

3
goals. The judicial branch of the EU is the Court of Justice of The European Union. This

court primarily deals with cases taken by member states, institutions, and referrals from the

courts of member states.

ASEAN in contrast has no formal mechanism or treaty within its founding

documents to enable integration at the political level. ASEAN has existed since inception

without the need for a supranational body and relies largely on informal agreements,

implicit understandings and personal relationships to ensure its political solidarity7. Despite

the lack of formal political institutionalisation, ASEAN has achieved a certain degree of

political cohesion on numerous regional and international issues. It has greatly assisted in

keeping the peace among its members through dialogue and has adopted norms for inter-

state relations and managed to get others to accede to those norms. Examples being the

Zone Of Peace, Freedom And Neutrality (ZOPFAN), the ASEAN Concord, the South East

Asian Nuclear Weapon Free Zone, and the Treaty of Amity and Cooperation.

In comparing the EU and ASEAN we see that the former is based on a supranational

government of formal institutions, whereas the latter is based in informal relations and

dialogue between member states. The EU was initiated by a core of extremely mature

democratic states in comparison to the relatively young democracies that make up ASEAN.

In this respect ASEAN is in the emergent stage of political integration in comparison.

SOCIAL INTEGRATION

7
ISEAS, Know Your ASEAN, p48

4
 The EU and ASEAN are similar in terms of the social situation of their member

states. Both IGOs are made up of a large number of different states that speak a wide

variety of languages; are distributed across large distances; and encompass a vast range of

cultures, ethnicities and religions. The member states of both IGOs also have populations

that range widely in income levels and living conditions.

During the infancy of the precursors to the EU, more importance was given to the

creation of a common market than welfare and social issues. Fortunately, the EU has

progressed and since the signing of the Maastricht Treaty and the formation of the current

EU, much more importance has been placed on cultural and social co-operation between

member states; creating community competency; and creating equality and equity in its

population8. Despite a significant rise in living standards since the formation of the EU,

social integration and inequality remains a concern in the member states. The gap between

rich and poor is widening, and the number unemployed is a major concern, as is gender

inequality and the situation of migrants and minorities in particular. Through various

agreements, policies, legislation and dialogue these areas and many more social issues are

addressed in the EU constitution and lower level documents. Due to what has become

known as the ‘European social model’9, the population of the EU are not left to the whims

and mercy of market forces. On the contrary, they now have access to one of the strongest

social systems in the world that spans many areas: from training and education to

employment; from social protection and welfare to dialogue between trade unions and

employers; from health and safety at work to the fight against discrimination and racism.

8
European Union Website, accessed from http://ec.europa.eu/publications/booklets/move/24/index_en.htm,
on 2 May 2011
9
European Union Website, accessed from http://www.eurofound.europa.eu/areas/industrialrelations/
dictionary/definitions/EUROPEANSOCIALMODEL.htm, on 2 May 2011

5
The overall aim of these policies is to create a cohesive and inclusive society with a high

standard of living and working conditions.

The ASEAN Declaration included aims and purposes such as social progress and

cultural development; social and cultural collaboration; and collaboration on the

improvement of living standards. These aims and purposes are aligned and reiterated in the

ASEAN Vision 2020 of 1997. Additionally, the ASEAN Charter signed in 2008 ‘seeks to

forge a common identity and build a caring and sharing society which is inclusive and

where the well-being, livelihood, and welfare of the peoples are enhanced’10. Each of these

statements entails massive and highly complex undertakings, but much like pre-EU Europe,

ASEAN is currently focusing on economic development. Progress to date in the social

dimension is in the very early stages of development and is currently detached from

economic integration initiatives, thus ASEAN has a long way to go before it will be able to

obtain its Vision 2020 target.

ECONOMIC INTEGRATION

The most obvious sign of the EU progress in economic integration is its single

currency, the Euro. The first plan for a monetary union was proposed in 1970; however it

took another 29 year before becoming a reality and even then hard currency was not in

circulation until 2002. Of the current 27 EU member states, 17 have adopted this currency,

and while many of the newer EU members have not yet reached the requirements for

joining, Britain, Denmark and Sweden have chosen not to join yet11. Monetary policy for

the EU and the Euro is made by the European Central Bank, which is responsible for

10
ASEAN Website, accessed from www.aseansec.org/18770.htm, on 30 APR 2011
11
Paul D’Anieri, International Politics: Power and Purpose in Global Affairs, Belmont: Wadsworth, 2010,
p348

6
setting interest rates and controlling the availability of capital12. As well as a monetary

union, called the Eurozone, the EU has created a single market across all member states13.

When measured as one economy, the EU is the largest economy in the world and is

responsible for over 40% of global trade14. In addition to monetary and economic union, the

EU has common policy in areas such as health and safety regulation; environmental

controls; competition watchdogs; and common external tariffs.

Of the dimensions of regionalism, ASEAN has made the most progress when it

comes to economic and financial integration. One of the original goals of the initiating

members of ASEAN is to promote economic growth. Added to this is the prime goal of

ASEAN to establish an ASEAN Economic Community (AEC) by 201515. A key aspect of

the AEC is the formation of the ASEAN Free Trade Area (AFTA) in 1992 by the six

member states of ASEAN at that time. The AFTA is a trade bloc that has the goal of

increasing ASEAN member’s global competitiveness through the removal of tariffs and

non-tariff barriers within ASEAN as well as attracting more foreign direct investment. The

creation of AFTA has in turn allowed the ASEAN to create FTA agreements with external

states such as Australia, New Zealand, China, India and Korea. There is no doubt that

economic integration within ASEAN has created significant economic development16

within member states, as demonstrated by the sustained high growth for decades17. In some

12
John Baylis and Steve Smith, The Globalisation of World Politics- An Introduction to International
Relations – 3rd Edition, New York: Oxford University Press, 2005, p585
13
European Union Website, accessed from http://europa.eu/abc/12lessons/lesson_6/index_en.htm, on 30
APR 2011
14
WTO, World Trade Report 2010, p28-29
15
ASEAN Website, accessed from www.aseansec.org, on 2 May 2011
16
Sharon Siddique and Sree Kumar, The 2nd ASEAN Reader, Singapore: ISEAS Publishing, 2003, p78
17
The notable exceptions are the Asian financial crisis during 1997-98 and the Global Financial Crisis that is
currently subsiding.

7
respects ASEAN has fallen short of the objectives that it has set for itself, particularly in

terms of ensuring all its late coming members comply with the AFTA obligations.

In comparing the integration of the EU and ASEAN we see that EU economic and

financial union is based upon its supranational institutions backed by treaties and legislation

formed through the EU parliament, whereas ASEAN relies on the AFTA agreement,

cooperation and group consensus with no formal supranational body. A major cause for

this is the fact that economic integration and political cohesion are pursued independently

of each other. In this respect, the EU is significantly more economically developed and

financially integrated than ASEAN.

SECURITYAND FOREIGN POLICY INTEGRATION

Cooperation between European nations started with trade policy in the 1950s when

the Paris and Rome Treaties were signed. Trade policy areas were expanded with the Single

European Act in 1985 and the Maastricht Treaty in 1992, thus creating the Common

Foreign and Security Policy (CFSP) that is responsible for forming and acting as a single

entity when it comes to security and foreign policy18. The CFSPs aim is to promote both

the EU's own interests and those of the international community as a whole. In doing so EU

participates in numerous international forums as a single entity, such as the World Trade

Organisation, International Monetary Fund and Middle East Peace Talks, thus giving the

EU more voice and influence than if individual states acted separately.

While the EU has a common position on foreign policy and security it does not have

a unified military force. The original members of the EU did not design the EU as a

18
European Union Website, accessed from http://europa.eu/abc/12lessons/lesson_6/index_en.htm, on 30 APR
2011

8
military pact due to the existence of NATO19, which was seen largely as sufficient for self-

defence purposes20. The Kosovo war in 1999 stimulated the European Council into action

via the creation of the Helsinki Headline Goal21 so the EU would not be beholden to NATO

and to create for the EU the ability to take unified action autonomously. Each member state

is still responsible for their individual self-defence; however the EU has formed an EU

rapid reaction force that consists of 60,000 troops that are able to be used for peacekeeping

and other related missions22.

In contrast to EU, ASEAN does not have a regional defence force of any kind, no

integrated foreign policy apparatus nor any defence integration. Defence agreements within

the ASEAN members are at bi-lateral levels only rather than across the organisation as a

whole, thus ASEAN is not a military alliance23. Holistically, ASEAN regional security is

assured via the ASEAN fundamental principles of mutual respect; renunciation of the use

of force; peaceful settlement of disputes; non-interference; and effect cooperation between

members. Despite the lack of defence and security policy integration, the ASEAN Defence

Ministers do keep in close contact, via the ASEAN Defence Minister’s forum, and defence

personnel do take part in the ASEAN Regional Forum. Until moves beyond the “ASEAN

Way” of dialogue and consensus, the ability to progress further on defence and security

integration is limited.

When comparing to the two regional organisations a vast contrast can be seen. The

EU has a fully formed single policy framework for defence and security of the region in

19
North Atlantic Treaty Organisation
20
Paul Wilkins, International Relations, New York: Sterling Publishing, 2007, p100
21
European Union Website, accessed from http://www.consilium.europa.eu/showPage.aspx?
id=1349&lang=EN, on 2 May 2011
22
D’Anieri, International Politics, p348
23
ISEAS, Know Your ASEAN, p17

9
comparison to the limited ASEAN cooperation of dialogue, consensus decision making and

the ASEAN Way. Regardless of the differences, both regions have stable intra-organisation

relations.

CONCLUSION

This essay has described the concept of regionalism in the process of comparing the

EU and ASEAN regional organisations and their respective levels of integration across the

political, societal, economic and security dimensions. The review of the EU’s integration

details a mature organisation that has a developed collection of supranational institutions

that oversee the alignment of the member states in accordance with the treaties they all

signed. The EU was initially formed to increase the economic performance of the member

states and to reduce the likelihood of war. Gradually, the powers of the controlling

institutions were extended and wider areas of economic, social, security and political

responsibility were included.

In comparison, ASEAN is a less integrated organisation that has no regional

government body, but uses more informal discussions and consensus decision making to

progress unified views. ASEAN currently concentrates on economic cooperation and

maintenance of regional stability through dialogue and consensus. In hindsight, this style of

cooperation has served the ASEAN members well by not forcing the extremely diverse and

mutually suspicious members into legally binding agreements. ASEAN has done well to

move its members from animosity to the closer cooperative relationships that exist today,
24
which is a relationship in which violent conflict is all but unthinkable.

24
ASEAN Website, accessed from http://www.aseansec.org/2849.htm, on 2 May 2011

10
 Both regions have been greatly assisted by their regional organisation. Each has

progressed in slow marked steps to the current, albeit different, levels of today. The EU’s

higher level of integration should be seen as an example to ASEAN of what can be

achieved through a regional organisation, but until member states agree to a more formal

supranational governing body, ASEAN will most likely be limited to the success it can

attain. For now, ASEAN progress will continue to develop in the ASEAN Way into the

future to ensure South East Asia prosperity and security.

11
 BIBLIOGRAPHY

Secondary Sources

A. Books

Baylis J and Smith S, The Globalisation of World Politics- An Introduction to International

Relations – 3rd Edition, New York: Oxford University Press, 2005

D’Anieri P, International Politics: Power and Purpose in Global Affairs, Belmont:

Wadsworth, 2010

Evans G and Newnham, Jeffery, Dictionary of International Relations, London: Penguin

Books, 1998

Institute of South East Asian Studies, Know Your ASEAN, Singapore: ISEAS Publishing,
2007

Siddique S and Kumar S, The 2nd ASEAN Reader, Singapore: ISEAS Publishing, 2003

Wilkins P, International Relations, New York: Sterling Publishing, 2007

B. Articles

World Trade Organisation, World Trade Report 2010, Geneva: WTO Publications, 2010

C. Internet Sources

ASEAN Website, www.aseansec.org

European Union Website, www.europa.eu

Annan Kofi, http://thinkexist.com /it_has_been_said_that_arguing_against/151768.html,

accessed 1945 hrs, 2 May 2011

12