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Association of Southeast Asian Nation's

A PROJECT in the subject of Economics of Global Trade & Finance





Roll No. (14) Specialization: Business Management UNDER THE GUIDANCE OF


YEAR - 2013 14


I, Shri Khan Mohd. Mohsin, student of M. Com. Part-I Roll Number (14), at the Department of Commerce, University of Mumbai do hereby declare that the project titled, Association of Southeast Asian Nation's submitted by me in the subject of Economics of Global Trade & Finance for Semester I during the academic year 201213, is based on actual work carried out by me under the guidance and supervision of Dr. Aarti Prasad/ Prof. K. Venkateswarlu.

I further state that this work is original and not submitted anywhere else for any other examination.

Date Mumbai

Signature of Student


This is to certify that the undersigned have assessed and evaluated the project on Association of Southeast Asian Nation's in the subject of Economics of Global Trade & Finance submitted by Kum/Smt/Shri Khan Mohd. Mohsin , student of M. Com. Part-I at the Department of Commerce, University of Mumbai for Semester I during the academic year 2013-14.

This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner

External Examiner Deolankar

Director Dr V.

University of Mumbai Department of Commerce Internal Assessment: Subject: Economics of Global Trade & Finance

Name of the Student

First name : MOHD.MOHSIN



Roll Number.

Fathers Name: MOHD.MOIN Surname :KHAN


Manage ment

Topic for the Project: Association of Southeast Asia Nation's

Marks Awarded DOCUMENTATION Internal Examiner (Out of 10 Marks) External Examiner (Out of 10 Marks) Presentation (Out of 10 Marks) Viva and Interaction (Out of 10 Marks) TOTAL MARKS (Out of 40)


Content SL.N 0. 1.1 1.2 1.3 1.4 1.5 1.6 2.1 2.2 2.3 2.4 3.1 4.1 4.2 5.1 5.2 CHAPTER 1 - INTRODUCTION Introduction of ASEAN Historical background of ASEAN The First government meeting of ASEAN Bali India and ASEAN External Relation of ASEAN ASEAN Plus Three CHAPTER 2 UNDERSTANDING THE CONCEPT Aims and Objectives Fundamental Principles Achievements ASEAN Community CHAPTER 3 --THE FUTURE The Future of ASEAN CHAPTER 4 SUMMARY OF STUDY Conclusion Summary Abbreviations Bibliography PARTICULARS PAGE NO. '1-2 '3-7 8-9' '10-15 16 16 17-18 18-19 '20-21 22 22-26 27 28 29 30


The Association of South East Asian Nations (ASEAN) was established on 8 August 1967 in Bangkok by five original member countries namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam joined 8 January 1984, Vietnam on 28 July 1995, Laos and Myanmar on 23 July 1997, and Cambodia on 30 April 1999. Thus, ASEAN is a Geo-political and economic organization of 10 countries. ASEAN encompass almost the whole of South-East Asia. As on 2010, the ASEAN has a population of about 600 million, a total area of 4.5 million square kilometers, a combined dross domestic product of US $ 1.8 Trillion and a total trade of US $ 1400 billion. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully. ASEAN contains several of the so called Asian tiger-economies, most of which have suffered in the Asian financial crisis. Its member nations lie close to the sea lanes between Europe and China and Japan. ASEAN is sometimes seen as political counter weight to china's dominance in the region. ASEAN does not function as a regional trade arrangement, but it has become an effective means for cooperation in economic matters and foreign affairs with Organization for Economic Cooperation and Development (OECD). The economics growth rate of the ASEAN has been very high. This regions in endowed with natural resources and account for larger share of the world's natural rubber, palm oil, and tin. Most of the countries of South-East Asia belong to ASEAN. The cultural characteristics of the countries of South-East Asia are not very similar. There are significant political and religious differences among the countries of ASEAN. Democracy is well established in the Philippines but more restricted in Malaysia and Indonesia. Authoritarian leaders still hold away its communist regime, to

Burma (now Myanmar), with its military dictatorship. The region`s religions are also varied,consisting of Islam, Buddhism, Christianity and Animism. Several countries have a less homogenous population. For example, Malaysia has significant Chinese and Indian minorities as well as its native Malay people. Despite their political, economic and cultural diversity, the countries of ASEAN are close neighbours. They recognise their mutual need to promote, the regions developments while generally preferring to resprct each others independence in internal politics. In 2007, ASEAN has celebrated its 40th anniversary since its inception. On 26 August 2007 ASEAN has also stated that it aims to complete all its Free Trade Agreements with China, Japan, South Korea, India, Australia and New Zealand by 2013. On 27 Feburary 2009 a Free Trade Agreement with the ASEAN regional block of 10 countries and New Zealand and Austraqlia was signed. It is estimated that this FTA would boost aggregate GDP across the 12countries by more than US $48 billion over the period 2000-2020. Besides the members the ASEAN, there are six "dialogue partner" which have have been participating in its deliberations. They are China, Japan, India, South Korea, New Zealand and Australia


The Founding of ASEAN On 8 August 1967, five leaders - the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand - sat down together in the main hall of the Department of Foreign Affairs building in Bangkok, Thailand and signed a document. By virtue of that document, the Association of Southeast Asian Nations (ASEAN) was born. The five Foreign Ministers who signed it - Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand - would subsequently be hailed as the Founding Fathers of probably the most successful inter-governmental organization in the developing world today. And the document that they signed would be known as the ASEAN Declaration. It was a short, simply-worded document containing just five articles. It declared the establishment of an Association for Regional Cooperation among the Countries of Southeast Asia to be known as the Association of Southeast Asian Nations (ASEAN) and spelled out the aims and purposes of that Association. These aims and purposes were about cooperation in the economic, social, cultural, technical, educational and other fields, and in the promotion of regional peace and stability through abiding respect for justice and the rule of law and adherence to the principles of the United Nations Charter. It stipulated that the Association would be open for participation by all States in the Southeast Asian region subscribing to its aims, principles and purposes. It proclaimed ASEAN as representing "the collective will of the nations of Southeast Asia to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity." It was while Thailand was brokering reconciliation among Indonesia, the Philippines and Malaysia over certain disputes that it dawned on the four countries that the moment for regional cooperation had come or the future of the region would remain uncertain. Recalls one of the two surviving protagonists of that historic process, Thanat Khoman of Thailand: "At the banquet marking the reconciliation between the three

disputants, I broached the idea of forming another organization for regional cooperation with Adam Malik. Malik agreed without hesitation but asked for time to talk with his government and also to normalize relations with Malaysia now that the confrontation was over. Meanwhile, the Thai Foreign Office prepared a draft charter of the new institution. Within a few months, everything was ready. I therefore invited the two former members of the Association for Southeast Asia (ASA), Malaysia and the Philippines, and Indonesia, a key member, to a meeting in Bangkok. In addition, Singapore sent S. Rajaratnam, then Foreign Minister, to see me about joining the new set-up. Although the new organization was planned to comprise only the ASA members plus Indonesia, Singapore's request was favorably considered." And so in early August 1967, the five Foreign Ministers spent four days in the relative isolation of a beach resort in Bang Saen, a coastal town less than a hundred kilometers southeast of Bangkok. There they negotiated over that document in a decidedly informal manner which they would later delight in describing as "sports-shirt diplomacy." Yet it was by no means an easy process: each man brought into the deliberations a historical and political perspective that had no resemblance to that of any of the others. But with goodwill and good humor, as often as they huddled at the negotiating table, they finessed their way through their differences as they lined up their shots on the golf course and traded wisecracks on one another's game, a style of deliberation which would eventually become the ASEAN ministerial tradition. Now, with the rigors of negotiations and the informalities of Bang Saen behind them, with their signatures neatly attached to the ASEAN Declaration, also known as the Bangkok Declaration, it was time for some formalities. The first to speak was the Philippine Secretary of Foreign Affairs, Narciso Ramos, a one-time journalist and longtime legislator who had given up a chance to be Speaker of the Philippine Congress to serve as one of his country's first diplomats. He was then 66 years old and his only son, the future President Fidel V. Ramos, was serving with the Philippine Civic Action Group in embattled Vietnam. He recalled the tediousness of the negotiations that preceded the signing of the Declaration that "truly taxed the goodwill, the imagination, the patience and understanding of the five participating Ministers.

"The fragmented economies of Southeast Asia," he said, "(with) each country pursuing its own limited objectives and dissipating its meager resources in the overlapping or even conflicting endeavors of sister states carry the seeds of weakness in their incapacity for growth and their self-perpetuating dependence on the advanced, industrial nations. ASEAN, therefore, could marshal the still untapped potentials of this rich region through more substantial united action." When it was his turn to speak, Adam Malik, Presidium Minister for Political Affairs and Minister for Foreign Affairs of Indonesia, recalled that about a year before, in Bangkok, at the conclusion of the peace talks between Indonesia and Malaysia, he had explored the idea of an organization such as ASEAN with his Malaysian and Thai counterparts. One of the "angry young men" in his country's struggle for independence two decades earlier, Adam Malik was then 50 years old and one of a Presidium of five led by then General Soeharto that was steering Indonesia from the verge of economic and political chaos. He was the Presidium's point man in Indonesia's efforts to mend fences with its neighbors in the wake of an unfortunate policy of confrontation. During the past year, he said, the Ministers had all worked together toward the realization of the ASEAN idea, "making haste slowly, in order to build a new association for regional cooperation." Adam Malik went on to describe Indonesia's vision of a Southeast Asia developing into "a region which can stand on its own feet, strong enough to defend itself against any negative influence from outside the region." Such a vision, he stressed, was not wishful thinking, if the countries of the region effectively cooperated with each other, considering their combined natural resources and manpower. He referred to differences of outlook among the member countries, but those differences, he said, would be overcome through a maximum of goodwill and understanding, faith and realism. Hard work, patience and perseverance, he added, would also be necessary. The countries of Southeast Asia should also be willing to take responsibility for whatever happens to them, according to Tun Abdul Razak, the Deputy Prime Minister of Malaysia, who spoke next. In his speech, he conjured a vision of an ASEAN that would include all the countries of Southeast Asia. Tun Abdul Razak was then concurrently his country's Minister of Defence and Minister of National Development. It was a time when

national survival was the overriding thrust of Malaysia's relations with other nations and so as Minister of Defence, he was in charge of his country's foreign affairs. He stressed that the countries of the region should recognize that unless they assumed their common responsibility to shape their own destiny and to prevent external intervention and interference, Southeast Asia would remain fraught with danger and tension. And unless they took decisive and collective action to prevent the eruption of intra-regional conflicts, the nations of Southeast Asia would remain susceptible to manipulation, one against another. For his part, S. Rajaratnam, a former Minister of Culture of multi-cultural Singapore who, at that time, served as its first Foreign Minister, noted that two decades of nationalist fervor had not fulfilled the expectations of the people of Southeast Asia for better living standards. If ASEAN would succeed, he said, then its members would have to marry national thinking with regional thinking. "We must now think at two levels," Rajaratnam said. "We must think not only of our national interests but posit them against regional interests: that is a new way of thinking about our problems. And these are two different things and sometimes they can conflict. Secondly, we must also accept the fact, if we are really serious about it, that regional existence means painful adjustments to those practices and thinking in our respective countries. We must make these painful and difficult adjustments. If we are not going to do that, then regionalism remains a utopia." The goal of ASEAN, then, is to create, not to destroy. This, the Foreign Minister of Thailand, Thanat Khoman, stressed when it was his turn to speak. At a time when the Vietnam conflict was raging and American forces seemed forever entrenched in Indochina, he had foreseen their eventual withdrawal from the area and had accordingly applied himself to adjusting Thailand's foreign policy to a reality that would only become apparent more than half a decade later. He must have had that in mind when, on that occasion, he said that the countries of Southeast Asia had no choice but to adjust to the exigencies of the time, to move toward closer cooperation and even integration. Elaborating on ASEAN objectives, he spoke of "building a new society that will

be responsive to the needs of our time and efficiently equipped to bring about, for the enjoyment and the material as well as spiritual advancement of our peoples, conditions of stability and progress. Particularly what millions of men and women in our part of the world want is to erase the old and obsolete concept of domination and subjection of the past and replace it with the new spirit of give and take, of equality and partnership. More than anything else, they want to be master of their own house and to enjoy the inherent right to decide their own destiny ..." The Foreign Minister of Thailand closed the inaugural session of the Association of Southeast Asian Nations by presenting each of his colleagues with a memento. Inscribed on the memento presented to the Foreign Minister of Indonesia, was the citation, "In recognition of services rendered by His Excellency Adam Malik to the ASEAN organization, the name of which was suggested by him." And that was how ASEAN was conceived, given a name, and born. It had been barely 14 months since Thanat Khoman brought up the ASEAN idea in his conversations with his Malaysian and Indonesian colleagues. In about three more weeks, Indonesia would fully restore diplomatic relations with Malaysia, and soon after that with Singapore. Every dispute would have its proper season but it would not be allowed to get in the way of the task at hand. And at that time, the essential task was to lay the framework of regional dialogue and cooperation. Over the years, ASEAN has progressively entered into several formal and legally-binding instruments, such as the 1976 Treaty of Amity and Cooperation in Southeast Asia and the 1995 Treaty on the Southeast Asia Nuclear Weapon-Free Zone. Against the backdrop of conflict in the then Indochina, the Founding Fathers had the foresight of building a community of and for all Southeast Asian states. Thus the Bangkok Declaration promulgated that "the Association is open for participation to all States in the Southeast Asian region subscribing to the aforementioned aims, principles and purposes." ASEAN's inclusive outlook has paved the way for community-building not only in Southeast Asia, but also in the broader Asia Pacific region where several other inter-governmental organizations now co-exist.

1.3 The First ASEAN Heads of Government Meeting Bali Summit, 2324 February 1976
The President of the Republic of Indonesia H.E. General Soeharto, the Prime Minister Malaysia, H.E. Datuk Hussein Onn, the President of the Republic of the Philippines, H.E. Ferdinand E. Marcos, the Prime Minister of the Republic Singapore, H.E. Lee Kuan Yew, the Prime Minister of the Kingdom of Thailand H.E. Kukrit Pramoj, met in Denpasar, Bali from 23 - 24 February 1976. The Meeting was held in the traditional ASEAN spirit of friendship and cordiality. They reviewed the activities of ASEAN since its inception in 1967, and expressed satisfaction with its progress, especially in fostering the spirit of cooperation and solidarity among the member states. They discussed developments affecting ASEAN region. They reaffirmed the determination of their respective Governments to continue to work for the promotion of peace, stability progress in Southeast Asia, thus contributing towards world peace and international harmony. To this end they expressed their readiness to develop fruitful relations and mutually beneficial cooperation with other countries in the region. They expressed the hope that other powers would pursue policies which would contribute to the achievement of peace, stability and progress in Southeast Asia. The Meeting discussed ways and means of strengthening cooperation among member states. They believed that it was essential for the member states to move to higher levels, of cooperation especially the political, economic, social, culture, scientific and technological fields. On the Zone of Peace, Freed Neutrality, the Heads of Government expressed their satisfaction with the progress made in the efforts to draw up initially necessary steps to secure the recognition of and respect for the Zone. They directed that these efforts should be continued in order to realise its early establishment.

The Heads of Government signed the Treaty of Amity and Cooperation in Southeast Asia.

They also signed the Declaration of ASEAN Concord. In pursuance of their determination to foster closer economic cooperation among member states, they agreed that a meeting of Economic Ministers be convened in Kuala Lumpur on March 1976 to consider measures to be taken towards implementing the decisions of the Meeting of ASEAN Heads of Government on matters of economics cooperat .


Introduction ASEAN-India dialogue relations have grown rapidly from a sectoral dialogue partnership in 1992 to a full dialogue partnership in December 1995. The relationship was further elevated with the convening of the ASEAN-India Summit in 2002 in Phnom Penh, Cambodia. Since then the ASEAN-India Summit has been held annually. All these took place in a decade, which clearly signifies the importance of the dialogue partnership to ASEAN and India and the progress made in the cooperation. At the ASEAN-India Commemorative Summit held on 20 December 2012 in New Delhi, India, the Leaders adopted the ASEAN-India Vision Statement and declared that the ASEAN-India Partnership stands elevated to a Strategic Partnership. A. Political and Security Cooperation 1. Since India became a Dialogue Partner of ASEAN, the collaboration has transcended the realm of functional cooperation to cover political and security dimensions. India participates in a series of consultative meetings with ASEAN under the ASEAN-India Dialogue Relations, which include Summit, ministerial meetings, senior officials meetings, and meetings at experts level, as well as through dialogue and cooperation frameworks initiated by ASEAN, such as the ASEAN Regional Forum (ARF), the Post Ministerial Conference (PMC) 10+1, the East Asia Summit (EAS), Mekong-Ganga Cooperation and Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC), which help contribute to enhancing regional dialogue and accelerating regional integration. 2. In demonstrating its commitment and shared interest to ensuring peace, security, stability and development in Southeast Asia, India acceded to the Treaty of Amity and Cooperation in Southeast Asia (TAC) on 8 October 2003 during the 2nd ASEAN-India Summit in Bali, Indonesia. At the same occasion, ASEAN and India also signed a Joint Declaration for Cooperation in Combating International Terrorism, symbolising concrete initiatives to step up cooperation in the fight against terrorism. 3. As a reflection of the interest of ASEAN and India to intensify their engagement, the

ASEAN-India Partnership for Peace, Progress and Shared Prosperity, which sets out the roadmap for long-term ASEAN-India engagement, was signed at the 3rd ASEAN-India Summit on 30 November 2004 in Vientiane, Lao PDR. A Plan of Action (2004-2010) was also developed to implement the Partnership. Subsequently, the new ASEAN-India Plan of Action for 2010-2015 was developed and adopted by the Leaders at the 8th ASEAN-India Summit in October 2010 in Ha Noi, Viet Nam. 4. Following the entry into force of the ASEAN Charter, and based on the strong foundation of the ASEAN-India Dialogue Relations, India has accredited its Ambassador to ASEAN based in Jakarta, particularly to work closely with the Committee of Permanent Representatives to ASEAN (CPR) and the ASEAN Secretariat. 5. ASEAN and India marked the 20th anniversary of their Dialogue Relations in 2012 with a Commemorative Summit held in India on 20 December 2012. A number of commemorative activities were carried out to signify the expanding and deepening of the Dialogue Partnership. 6. In this connection, the ASEAN-India Eminent Persons group (EPG) was established to take stock of ASEAN-India relations over the past 20 years, explore ways to widen and deepen existing cooperation between ASEAN and India, as well as recommend measures to further strengthen ASEAN-India relations in the future, taking into account existing documents signed/adopted by both sides, as well as key ASEAN documents, particularly the ASEAN Charter, Roadmap for an ASEAN Community, the three Blueprints of the ASEAN Community and other relevant documents. The Report of the AIEPG was submitted to the 10th ASEAN-India Summit in November 2012 in Phnom Penh, Cambodia. In this regard, the Leaders tasked the Ministers to consider the report thoroughly and to implement the key recommendations where appropriate. B. Economic Cooperation 1. Volume of trade and investment flows between ASEAN and India remained relatively low compared with other dialogue partners of ASEAN. Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$ 2.9 billion in 1993 to US$ 12.1 billion in 2003.

2. The total trade between ASEAN and India grew significantly by 43% in 2011 amounting to US$74.9 billion, surpassing our bilateral trade target of US$70 billion for 2012. At the 10th ASEAN-India Summit in November 2012, the Leaders set the target of US$100 billion by 2015 for ASEAN-India trade. Foreign direct investments (FDI) from India recorded a decrease from US$ 3.4 billion in 2010 to negative US$ 1.8 billion in 2011. 3. Acknowledging this trend and recognising the economic potential of closer linkages, both sides recognised the opportunities for deepening trade and investments, and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN-India Free Trade Area. 4. At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEANIndia Framework Agreement on Comprehensive Economic Cooperation. The Framework Agreement laid a sound basis for the establishment of an ASEANIndia Free Trade Area (FTA), which includes FTA in goods, services and investment. 5. ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on 13 August 2009 after six years of negotiations. The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the worlds largest free trade areas (FTA) - market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion. The ASEAN-India FTA will see tariff liberalisation of over 90% of products traded between the two dynamic regions. Tariffs on over 4,000 product lines will be eliminated by 2016, at the earliest. The ASEAN-India TIG Agreement entered into force on 1 January 2010. 6. During the 10th ASEAN-India Summit in November 2012, the ASEAN-India Leaders tasked their economic ministers to step up their efforts and flexibility to conclude the ASEAN-India Trade in Services and Investment Agreement at the earliest. Subsequently, an announcement on the conclusion of the negotiations on both Agreements on ASEAN-India Trade in Services and Investment was made at the ASEAN-India Commemorative Summit on 20 December 2012. The

concluded draft Agreement is expected to be signed soon. 7. ASEAN and India are also working on enhancing private sector engagement, including the re-activation of the ASEAN-India Business Council (AIBC), the holding of the first ASEAN-India Business Summit (AIBS) and an ASEAN-India Business Fair and Conclave (AIBFC) held in New Delhi on 2-6 March 2011. The 2nd AIBFC was held on 17-20 December 2013. The events were part of the efforts to stimulate trade and business-to-business interaction. 8. The 14th ASEAN Transport Ministers (ATM) Meeting on 6 November 2008 in Makati, Metro Manila, Philippines adopted the ASEAN-India Aviation Cooperation Framework, which will lay the foundation for closer aviation cooperation between ASEAN and India. 9. In tourism, the number of visitor arrivals from India to ASEAN in 2011 was 2.71 million, an increase from 2.47 million 2010. At the 6th ASEAN-India Summit held on 21 November 2007 in Singapore, India proposed to set a target of 1 million tourist arrivals from ASEAN to India by 2010. The 2nd Meeting of ASEAN and India Tourism Ministers (ATM+India) held on 25 January 2010 in Bandar Seri Begawan supported the establishment of the ASEAN Promotional Chapter for Tourism (APCT) in Mumbai, India as an important collaborative platform for ASEAN National Tourism Organisations (NTOs) to market Southeast Asia to the Indian consumers and, at the same time, create mutual awareness between ASEAN Member States and India. The registration of APCT and its activities commenced in 2011. 10. To further enhance tourism collaboration between ASEAN and India through concrete activities, during the 3rd ATM+India held on 12 January 2012 in Manado, Indonesia, the ASEAN and India Tourism Ministers signed the Memorandum of Understanding (MoU) between ASEAN and India on Strengthening Tourism Cooperation. Ministers also welcomed the ASEAN-India Car Rally to be organised from November - December 2012.

C. Social Cooperation 1.Over the years, ASEAN-India socio-cultural cooperation has been expanded to include human resource development, science and technology (S&T), people-topeople contacts, health and pharmaceuticals, transport and infrastructure, small and medium enterprises (SMEs), tourism, information and communication technology (ICT), agriculture, energy and Initiative for ASEAN Integration (IAI). All cooperation projects are funded by the ASEAN-India Fund (AIF). 2. Cooperation in these areas are carried out through the implementation of the Plan of Action (PoA) to Implement the ASEAN-India Partnership for Peace, Progress and Shared Prosperity, which was adopted by the Leaders at the 3rd ASEAN-India Summit in November 2004 in Vientiane. The PoA is carried out through activities under the various existing ASEAN sectoral work plans, Declarations concluded between ASEAN and India, as well as priority activities under the Roadmap for an ASEAN Community 2009-2015 that could be implemented with India. 3. The 7th ASEAN-India Summit held in October 2009 also noted with satisfaction the steady progress of implementation of the ASEANIndia Partnership for Peace, Progress and Shared Prosperity. The Summit also agreed on a new and more enhanced phase of the Plan of Action to implement the said Partnership in order to seize the opportunities and overcome the challenges arising from the global financial crisis and evolving political and economic landscape. Subsequently, the new ASEAN-India Plan of Action for 2010-2015 was developed and adopted by the Leaders at the 8th ASEAN-India Summit in October 2010 in Ha Noi. 4. India is also actively contributing to the implementation of the IAI Work Plan with the implementation of some of the IAI projects/activities, such as the Entrepreneurship Development Centres (EDC) and the Centres for the English Language Training (CELT) in Cambodia, Lao PDR, Myanmar and Viet Nam. India also positively considering the establishment of a CELT in Indonesia.


Pursuant to the announcement by the Prime Minister of India during the

6th ASEAN-India Summit held in November 2007, the ASEAN-India Green Fund with an initial contribution of US$ 5 million was set up in 2010 to support cooperative pilot projects between ASEAN and India for promotion of technologies aimed at promoting adaptation to and mitigation of climate change. 6. The ASEAN Leaders also welcomed the announcement made by Prime

Minister Manmohan Singh to allocate, during the period of ASEAN Work Plan, US$ 50 million to the ASEAN-India Cooperation Fund and the ASEAN Development Fund in support of the above initiatives, as well as IAI programme and projects in the areas of education, energy, agriculture and forestry, SMEs and implementation of the ASEAN ICT Master Plan.

1.5 EXTERNAL RELATION OF ASEAN Cooperation between the Southeast Asia and Northeast Asian countries has acclerated with the holding of an annual summit among the leaders of ASEAN, China, Japan, and the Repulic Of Korea ROK with the ASEAN plus Three Process. ASEAN Plus Three is a meeting between ASEAN, China, Japan, and South Korea, and is primarily held during each ASEAN summit.

1.6 ASEAN PLUS THREE Leaders of each country, particularly Mahathir Mohamad of Malaysia, felt the need to further integrate the region. Beginning in 1997, the bloc began creating organisations within its framework with the intention of achieving this goal. ASEAN Plus Three was the first of these and was created to improve existing ties with the People`s China, Japan, and Repulic of Korea. This was followed by the even larger East Asia Summit, which included these countries as well as India, Australia, and New Zealand. This new grouping acted as a prerequisite for the planned East Asia Community, which was supposedly patterned after the now-defunct European Community. The ASEAN Eminent Persons Group was created to study the possible successes and failures of this policy as well as the possibility of drafting an ASEAN Charter. In 2006, ASEAN was given observer status at the United Nations General Assembly. As a response, the organisation awarded the status of "dialogue partner" to the United Nations.


Economic growth and social progress : To accelerate the economic growth, social progress, and cultural development in the region through joint endeavors inthe spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations. Regional peace and stability : To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter. Collaboration and assistance : To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific, and administrative fields. Training and research : To provide assistance to each other in the form of training and research facilities in the educational, professional, technical, scientific, and administrative fields. Overall improvements : To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples. To Studies : promote Southeast Asian studies. Cooperatibon : To maintain close and benefical cooperation with existing international and regional organisations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves.

2..2 FUNDAMENTAL PRINCIPLES At the First Asian Summit in Bali in February 1976 the member countries signed the Treaty of Amity and Co-operation in Southeast Asia. It spelled out the basic principles for their relations with one another and the conduct of the association`s programme for cooperation.The fundamental principles are the following : 1. Political Meeting of the heads of government of the member states as and when necessary; Signing of the Treaty of Amity and Cooperation in Southeast Asia; Settlement of intraregional disputes by peaceful means as soon as possible; Improvement of ASEAN machinery to strengthen political cooperation; Study on how to develop judicial cooperation, including the possibility of an ASEAN extradition treaty; Strengthening of political solidartity by promoting the harmonisation of views, coordinating positions and where possible and desirable, taking common actions. B. Economic

2. Cooperation on basic commodities, particularly food and energy; a. Member states shall assist each other by according priority to the supply of individual country`s need in critical circumstances and to the acquisition of export`s from member states, particularly food and energy. b. Member states shall also intensify cooperation in the production of basic commodities particularly food and energy in the individual member states of the region. 2. Industrial cooperation a. Member states shall cooperate to establish large scale ASEAN industrial plants, particularly to meet regional requriements of essential commodities; b. Priority shall be given to projects that utilize the available materials in the member states, contribute to the increase of food prodution, increase foreign exchange earnings or save foreign exchange and create employment.

3. Cooperation in Trade
a. Member states shall promote development and growth of new production, improve the trade structures of individual states, and increase their foreign exchange earnings and reserves; b. Member states shall progress toward the establishment of preferential trading arrangements as a long-term objective on a basis deemed to be at any particular time appropriate through rounds of negotiations subject to the unanimous agreement of member states. c. The expansion of the trade among member states shall facilitated through cooperation on the basic commodities, particularly in food and energy, through cooperation in ASEAN industrial project; d. Member states shall accelerate joint efforts to improve acess to markets outside ASEAN for their raw materials and finished products by skeeing the elimination of all trade barriers in those markets, developing new usage for these products, and adopting common apporaches and actions in dealing with regional groupings and individual economics powers; e. Such efforts shall also lead to cooperation in the field of technology and production methods to increase the production and to improve the quality of export products as well as to develop new export products with a view to diversifying exports.

4. Joint Approach to international Commodity Problems and Other World Economics

Problems a. The principle of ASEAN cooperation on trade shall also be reflected on a priority basis in joint approaches to international commodity problems and other world economic problems such as the reform of international trading system, the reform of the international monetary system, and transfer of real resources, in the United Nations and other relevant multilateral fora, with a view to contributing to the establishment of the New International Economic order; b. Member states shall give priority to the stabilization and increase of export earnings of these commodities produced and exported by them through such commity agreements as bufferstock schemes.

5. Machinery for Economic Cooperation

a. Formulate recommendations for the consideration of governments of member states for the strengthening of ASEAN economic consideration; b. Review the coordination and implementation of agreed ASEAN programs and projecton economic cooperation; c. Exchange views and consult on national development plans and policies as as step towards harmonizing regional development; B. Social 3. Cooperation in the field of social development, with emphasis on the wellbeing of the low-income groups and of the rural population, through the expansion of opportunities for productive employment with fair remuneration. 4. Support for the active involvement of all sectors and levels of the ASEAN communities, particularly women and youth, in development efforts; 5. Intensification and expansion of existing cooperation in meeting the problems of population growth in the ASEAN region, and where possible, formulation of new strategies in collaboration with appropriate international agencies: 6. Intensification of cooperation aamong the member states as well as with relevant international bodies in the U.S. Initiative AUI, and the ASEAN handling of the AUI has been careful, cautions, and slow.

ASEAN is recognized by international community as one of the most successful regional grouping in the world. The important achievements are explained below. 1. Peace and Stability : The main achievement of ASEAN has been maintenance of an uninterrupted period of peace and stability during which the individual Member Countries have been able to concentrate on promoting rapid and sustained economic growth and modernizat 2. Rise in GDP : For about 25 years 1970 to 1995, ASEAN`s GDP grew at an average anual rate of 7.0 percent. Today, Southeast Asia has a total market of about 600 million people and a combined GDP of more than US $ 1400 billion in 2006. 3. Rise in Trade : Over the years, ASEAN`s overall trade grew from US $ 10 billion in 1967, US $ 14 billion in 1970, US $ 134 billion in 1980, US $302 billion in 1990 to US $ 1400 billion in 2006. 4. Political Co-operation : Since 1967 ASEAN has forged major political accords that have contributed greatly to regional peace and stability and to its relations with other countries, regions and organisation. The ASEAN security community is envisaged to bring ASEAN political and security co-operation to a higher plane to ensure that countries in the region live at peace with one another and with the world at a large in a just, democratic and harmonious environment. 5. Economic Co-operation : When ASEAN was established trade among the Member countries was insignificant. To tackle this, the Preferential Trading Agreement PTA OF 1977 accorded tariffs preferences for trade among ASEAN countries. The ASEAN Summit in Singapore in 1992 launched a scheme toward an ASEAN Free Trade Area AFTA. The strategic objective advantage as a single production unit. The elimination of tariff and non tariff barriers among the member countries is

expected to promote greater economic efficiency, productivity and competitiveness. The ASEAN summit in 1995 decided to accelerate the realisation of AFTA from the original 15-year timeframe to 10 years.In 1997, the ASEAN Leaders adopted the ASEAN vision 2020. The statement aimed at forging closer economic integration within the region. It is alsoaimed at creating a stable, prosperous and highly competitive ASEAN Economic Region, in which there is a free flow of goods, services, investments, capital, and equitable economic development and reduced poverty and socio-ecnomic disparities. 6. Reduction in Tariffs : As on 1 January 2005, tariffs on almost 99 percent of the products in the Inclusion List of the ASEAN -6 "Brunei, Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand" have been reduced to no more than 5 percent. More than 60 percent of these products have zero tariffs. The average tariffs for ASEAN-6 has been brought down from more than 12 percent when AFTA started in 1992 to 2 percent in 2005. For the new member countries, namely, cambodia, Loas, Myanmar, and Vietnam tariffs on about 81 percent of their Inclusion List have been brought down to within the 0-5 percent ranges. 7. Expanded cooperation : The ASEAN has expanded cooperation within the block to different areas, including politics, security, economy, trade, cultures, social affairs, science, technology and environment. ASEAN is also expanding its relations with external partners with a common goal of peace stability and cooperation for mutual benefits in the region.

2.4 ASEAN COMMUNITY 1. In 2003, the ASEAN leaders resolved that an ASEAN Community shall be establish by 2015 comprising three pillars, namely (1) ASEAN Security Community,(2) ASEAN Economic Community and (3) ASEAN SocioCultural Community. The general objective of the Asean Community to bulid ASEAN into stronger and more close-Knit intergovernmental organisation, but will not become a super- national and closed organisation because it opens doors for cooperation with external partners. 2. ASEAN Security Community ASC : The ASC shall aim to ensure that the countries in the region live at peace with one another with a world in a just., democratic and harmonious environment. The membre of the community pledge to rely exlusively on peaceful processes in the settlement of intre-regional difference. They regard their security as fundamentally linked to one another and bound by geographic, location, common vision and objective. 3. ASEAN Economic Community AEC : ASEAN is aiming to create AEC by 2015. The goal of AEC is to create a stable, prospercous and highly competitive ASEAN econimic region in which there is a free flows of goods, services, investment and free flow of capital, equitable economic development and reduced proverty and socio-economic disparaties in year 2020. 4. ASEAN Socio-Cultural Community : It envisages a Southeast Asia bonded together in partnership as a community of caring societies. The Community shall foster cooperation in social development aimed at raising the standard of living of disadvantage groups and rural population. It shall also seek the active involvement of all the sectors of society, especially, woman, youth, and local communities. ASEAN will intensify cooperation in the area of public health, including in diseases.


3.1 The Future of ASEAN

In the first place, it is remarkable enough that ASEAN has survived for all of three decades, considering that at the time of its birth, not a few political observers had predicted that, like its predecessors - the SEATO, the Association of Southeast Asia (ASA) and the Maphilindo - it would soon wither in the blast of the complex and unpredictable regional situation. As Indonesian Foreign Minister Ali Alatas recalls, "When ASEAN was born, there were a good number of skeptics who would not believe that, given the wide divergences of view among the ASEAN countries, the differences in the political and economic systems of its founding members, it would ever succeed in this endeavor at regional cooperation. Well, ASEAN proved all its critics wrong and it is now a vibrant reality, an Association recognized not only in its own region but also in the world at large as one of the most successful regional cooperative schemes". The recollection of the Foreign Minister of Singapore, Professor S. Jayakumar is that when ASEAN was founded, the situation in Southeast Asia was so grim the mass media kept comparing it with the European region that would eventually hand down the horrible legacy of "ethnic cleansing"-the Balkans. "The media described us as dominoes about to fall at any time," he says. "Indeed, there was no optimism on the future of the countries of Southeast Asia. But now, 30 years later, the situation is very different. The countries in Southeast Asia now constitute one of the most peaceful, stable and prosperous regions in the world. I don't think this would have been possible if it were not for ASEAN". And even today, ASEAN's political achievement tends to be cited more spiritedly than its considerable role in the economic development of its members. Says Philippine Foreign Secretary Domingo L. Siazon Jr : "ASEAN has transformed itself from a small subregional organization into a major influence in world affairs. During the last 30 years, ASEAN has been able to maintain peace and stability among its Member Countries despite the many territorial problems and other issues among them. ASEAN today is the only subregional organization in Asia that provides a political forum where Asian countries and the world Powers can discuss and consider problems related to security,

political issues and military concerns". Just how was ASEAN able to achieve its phenomenal success? Malaysian Foreign Minister Abdullah Haji Ahmad Badawi explains it convincingly. "ASEAN has been successful," he says, "because there is a very strong commitment among ASEAN members to cooperation. Cooperation for the benefit of all and cooperation for stability and peace of the region. This is a very important hallmark of ASEAN (Second), there is also a very strong commitment to pragmatism. ASEAN has been pragmatic in ways that develop cooperation among the members in undertaking various projects. And ideology has never been a problem to ASEAN. Ideological differences have never interfered in efforts to cooperate positively for the common good of all and for regional prosperity. And, third, I think the ASEAN Leaders and Ministers are never tired of seeking consensus. We work hard, we work with full commitment to seek consensus on any particular issue, on any particular program we wish to develop and when we do this, we are very very aware of one another's sensitivity." ASEAN has acknowledged that periods of rapid social and economic progress are often accompanied by fundamental shifts in power relations among States. If not managed well, such realignments can lead to conflict. At the same time, increased economic globalization, accompanied by structural adjustments of national economies, can create challenges to social order. With its rapid economic development, ASEAN also faces some issues related to resource conservation including environmental protection. Greater mobility of people, goods and capital also demands sophisticated border security measures and closer collaboration among States. All these concerns ASEAN must continue to address. It helps that the nations of the Asia-Pacific delight in their prosperity and realize that tensions and armed conflict make bad economics. It helps that ASEAN, the Asia-Pacific Economic Cooperation (APEC) and the recently established AsiaEurope Meeting (ASEM) processes are effectively promoting a more constructive and cooperative approach to international relations in this part of the world. The establishment of the ASEAN Regional Forum (ARF) also represents a breakthrough in the history of the region and, as stated in the Chairman's Statement of the ARF's inaugural meeting in 1994, "signified the opening of a new chapter of peace, stability and

cooperation for Southeast Asia". The virtual realization of the vision of the Founding Fathers of ASEAN to have an association of all Southeast Asian countries is by no means the end of ASEAN history. It is a call for a renewed commitment towards broader regional solidarity among the peoples of Southeast Asia. As Foreign Minister Prachuab Chaiyasan of Thailand stated: "As we move towards the year 2020, ASEAN will have derived its strength not only from unity among governments but unity among its diverse peoples. The ASEAN experience and the ASEAN process must reach out to all spectrum of our societies. Through ASEAN, this region will become a grassroot- supported and close-knit community bound together not only by common interests, but by shared values, identity and aspirations among our peoples." ASEAN faces the future with confidence. Its strong foundation and remarkable achievements will serve ASEAN well as it pursues higher goals at the dawn of the new millennium. The ASEAN Heads of Government have reaffirmed succinctly that Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN. Towards these goals, ASEAN shall remain a driving force in building a more predictable and constructive pattern of relationships among nations in the Asia-Pacific region to ensure lasting peace and security. Economically, ASEAN shall move towards greater economic integration with emphasis on sustainable and equitable growth. Finally, ASEAN shall nourish a caring and cohesive ASEAN community, whose strength lies in fostering a common regional identity and a shared vision for the future.

4.1 Conclusion
ASEANs experience working closely with a variety of partners and humanitarian actors will inform ASEANs future approaches to disaster management and humanitarian assistance. ASEAN to be prepared for disasters, but also that the association has the capacity and know-how to respond to them. All of the inputs, lessons learned, tools and mechanisms that resulted from ASEANs humanitarian operations should be documented. They also will inform the establishment and operation of the AHA Center, and will support the Secretary-General of ASEAN in his new role as the ASEAN Humanitarian Assistance Coordinator. The AHA Center, to be established in Jakarta, Indonesia and the ASEAN Secretariat, should also be the repository of the good practices and lessons learn t. Finally, the ASEAN community intensifies its effort to enhance regional cooperation and integration, the lessons from the advance the goal of building an ASEAN community by 2015.

SUMMARY of ASEAN The Association of South East Asian Nations (ASEAN) was established on 8 August 1967 in Bangkok by five original member countries namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam joined 8 January 1984, Vietnam on 28 July 1995, Laos and Myanmar on 23 July 1997, and Cambodia on 30 April 19 Mutual respect for the independence sovereighty equality, territorial, integrity, and national, identity of all nations. The right of every state to lead its national existence free from external interference , subvision or coercion. Settelement of differences or dispute by peaceful manner. Effective cooperation among themselves. The imporetant of ASEAN New political commitment at the top level. New and enhanced commitments. New ASEAN bodies. More ASEAN meetings.

The Association of South East Asian Nations ASEAN-India Business Council ASEAN-IndiaBusiness Fair and Conclave Association for Southeast Asia (ASEAN) (AIBC) (AIBFC) (ASA)

Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) Entrepreneurship Development Centres East Asia Summit Eminent Persons group Free Trade Agreement Foreign direct investments Free Trade Area Organization forEconomic Cooperation and Development Post Ministerial Conference Repulic Of Korea Treaty of Amity andCooperation in Southeast Asia Trade in Goods (EDC) (EAS) (EPG) (FTA) (FDI) (FTA) (OECD) (PMC) (ROK) (TAC) (TIG)

5.1 Bibliography
Book and references journal Buliding ASEAN (Published by The Centre strategic and international studies washington D.C.) Palmer Ronald .D. Reckford Thomas J F irst eddition 1987 India and ASEAN (Published by Gyan Publishing House in 1996) Prof.Shri Prakash, Dr. Ray Vanita Dr. Ambatkar Sanjay Economics of Global Trade and Finance (Published in Manan Prakashan in July 2013 )Johnson P.A., Mascarenhas A.D.

Webilography Official website of ASEAN Official Google in Asean