A SILVER LINING OF INTER-ASEAN RELATIONS:

BUILDING IDENTITY THROUGH ASEAN ECCONOMIC COMMUNITY

Devi Nugraha1

Introduction

According to the Article I of the ASEAN Charter, one of the purposes

of the ASEAN is to promote an ASEAN identity through fostering of greater
awareness of diverse cultures and heritage of the region (ASEAN
Secretariat 2011, 5).

In the ASEAN Vision 2020 issued in December 1997 during groups

annual meeting in Kuala Lumpur, Malaysia, one of the directives was
defined thus: We envision the entire Southeast Asia to be, by 2020, an
ASEAN Community conscious of its ties history, aware of its cultural
heritage, and bound by a common regional identity. The Vision also
emphasized that the region will be one in which all people enjoy equitable
access to opportunities for total human development under the heading A
Community of Caring Societies. (Pham Quang Minh 2010, 171).

From the statements it appears that the organization is not only about
political will, but also ask the people how they think of themselves as
citizens, and whether they see themselves sharing one identity consisting of
diverse cultures and heritage, tied together by history. (Ibid)

However, In the era of globalization ASEAN has showing integrity

towards the formal establishment of the ASEAN Community, and for
particularly ASEAN Economic Community by the end of 2015. Which is
obviously will have great impact on the way people in ASEAN live, work and
do business in the ASEAN region. The outcome could have been otherwise,

1 Writer is a student of International Relations; Diplomacy major. In Jenderal Achmad

Yani University. Also as writer in East Asia Study Centre, Indonesia. This paper wrote
as a part of participation in International Conference UNEOS, Malaysia

DEVI NUGRAHA 1
means that lot of expertise argued AEC is soon to be held in this region due
to the first planning AEC will be held on 2020. Due to several aspects, but
the most important is the vision of a shared ASEAN identity remains a work
in progress. Obviously the exist of identity in a regionalism such as ASEAN
has a great impact on how its determine a relation among the others, or
within a members of ASEAN itself.

The question remains if ASEAN still assert AEC, but also still need an
improvement of identity itself. How can ASEAN maintain its distinct
diversity, and what about the idea of ASEAN as one vision, one community,
one identity could live long in this region. The vision of a shared ASEAN
identity, however, remains a work in progress and Leader Researcher at the
ASEAN Studies Centre Moe Thuzar said an ASEAN sense of belonging may
never be fully realized. Nonetheless, efforts are underway to bridge the gap,
she added (www.channel newsasia.com/news/Singapore/could-asean-form-a-
common/2514460.html).

Somehow, if we take non-pragmatism look on this situation we will find

a Silver Lining behind this issues. Which lead to concern about this
research is to discover something that could possibly an ASEAN identity,
and also how did ASEAN construct this during its development in AEC?

Rather than focus on social interaction between societies or to explain

state behavior by inter-subjective factors, this research will concern to
neoliberalist institutional approach which focus more on material forces in
the international system. Because the urgency of AEC will lead us to show a
material aspect rather than immaterial as a constructivism argued. So, the
first part of the analysis is based on theoretical paradigm of the neo-liberal
institutionalism to discover a distinct identity of ASEAN itself in the era of
AEC. The second part to fostering ASEAN identity, also as a part of final
answer of this analysis

DEVI NUGRAHA 2
THEORY
Neo-liberal Institutionalism has been the most influential theoretical
approach to the recent study of international co-operation: it represents a
highly plausible and generalizable theory that allows better understanding
of the resurgence of regionalism (Robert Keohane 1989, 27)

According to Keohane and Nye, the world today is more complex and
interdependent with each other. Keohane and Nye said that highly complex
interdependence has four characteristics, namely: (1) improving the
relationship between state and non-state; (2) The international agenda no
longer be distinguished sharply between high and low politics; (3)
recognition of the various channels for interaction between countries across
national boundaries; and (4) declining military power as a tool of state
leaders expertise (Steven L. Lamy 2001, 2013).

To discover an identity of ASEAN itself neo-liberalist do belief in form

common rules, norms and customs for cooperation, create the agreed
agendas for regional issue management. Regional agenda usually depends
on actors, regional order as well as on regional identity. Institution
legitimate the region, but on the other hand, regional identity legitimates
institutions. (Mindaugas 2014, 98)

From the Southeast Asia perspective, identity must be understood via

conscious attempts by the leaders of the region, to overcome the regions
diversity and countervailing forces that might otherwise hinder the building
of a peaceful, cooperative, and prosperous region for its member states.
These attempts at cooperation have played a key role in constructing the
modern Southeast Asia identity.

DISCOVER ASEAN IDENTITY

DEVI NUGRAHA 3
 If we take a look to ASEAN establishment 49 years ago, the form of
ASEAN wasnt having a charter to bound its member and giving a function
of its constitution. ASEAN establish by declaration, which is Bangkok
Declaration. On its development ASEAN recognize to require a charter as
an ASEAN constitution and ensure its formal identity. Finally, on the 13th
ASEAN Summit at Singapore, 2007 ASEAN has determined to signed a
charter, ratified by its representative of ASEAN member leaders.

ASEAN was created as a reaction upon a current cold war situation,

spread of bipolarity into all region in the world. A frightened was
increasingly fell by Southeast Asia countries which newly liberated towards
two rivalries state, which could harm a stability of the region.

Further progress towards regional integration was made in 2003 with

the decision to form the ASEAN Community 2. More recently, ASEAN leaders
promoted policies aimed at narrowing development gaps and strengthening
the groups centrality in the regional architecture for cooperation. Today
ASEAN represents a major economic bloc, home to about 620 million people
with a gross domestic product more than $2.3 trillion- 3.3% of the world
total. Importantly, ASEAN economies are also among the worlds most open,
with merchandise exports over $1.2 trillion-nearly 7% of the global total.
(Asian Development Bank Institute 2014, xxiii)

This moment ASEAN has made extraordinary progress as one of

region in the world, which has giving an influence to constellation of
international relations. It has been transformed into an increasingly well-
regulated, dynamic and creative platform. The obvious development
showing that when the ASEAN was built only on security reason. But, until
today the reason and factors why ASEAN still relevant is not because of
security issue, is cause by economic need and cooperation among ASEAN

2 The ASEAN Community was initially scheduled to be introduced in 2020. However,

in 2007, its launch was advanced to 2015

DEVI NUGRAHA 4
members, such as trade and commerce across what many regard as the
worlds fastest-developing economic region.

On

behalf of Southeast Asia security principle, the most successful political

form that Southeast Asia has thus far achieved is ASEAN Way, which not
pretend has also become ASEAN noninterference identity. But, in case of
discover a modern identity, neo-liberalist belief cooperation has played a
key role in constructing the modern Southeast Asia identity. ASEAN
Economic Community is the realistic attempts to gain a distinct identity
indeed, the year 2015 is a key milestone in the ASEAN integration and
cooperation agenda. with a combined GDP of over US$2.5 trillion, while
average GDP per capita grew by almost 80% to over US$4,000. (The ASEAN
Secretariat 2015, 2).

Over the same period, ASEAN has also become more influential, with
widening markets regionally and globally. By 2014, it is Asias 3rd largest,
the worlds 7th largest, and among the most advanced integrated markets.
DEVI NUGRAHA 5
With a combined population of over 622 million, ASEAN has a vast
consumer base, behind only China and India globally. Over 50% of ASEANs
population is under the age of 30, making up a large portion of both the
current and future workforce (Ibid).

According to Keohane and Nye said that highly complex

interdependence has four characteristics, namely: (1) improving the
relationship between state and non-state; (2) The international agenda no
longer be distinguished sharply between high and low politics; (3)
recognition of the various channels for interaction between countries across
national boundaries; and (4) declining military power as a tool of state
leaders expertise (Steven L. Lamy Op. Cit), to ensure a cooperation and
interdependence among ASEAN members in regards to discover an ASEAN
identity, which build by cooperation. ASEAN have to characterized by 4
elements.

(1) Improving the relationship between state and non-state;

ASEAN has made a tremendous relation between the others, whether
its a state or non-state. As a strategic partner ASEAN bring 3 major
state in Pacific Asia to make a relation, such as China, Japan and
South Korea known as ASEAN+3 to collaborate in trade and
commerce, also investment. On the other hand, ASEAN has gain a
relation among non-state parties, such as OECD, UN and European
Union.
(2) The International Agenda no longer be distinguished
sharply between high and low politics
After a cold war era, ASEAN made a transition issue, from high
politics (power and security) to low politics (environment, culture
etc.). But, today the issue across Southeast Asia country not separate
by distinct aspect such as high and low. The idea of it, came by
establishment of ASEAN Community, which can gather all issue in
three pillars; AEC (ASEAN Economic Community) ASCC (ASEAN

DEVI NUGRAHA 6
 Socio Cultural Community), APSC (ASEAN Political Security
Community).
(3) Recognition of the various channels for interaction
between countries across national boundaries
Geographically Southeast Asia region is not as far as Europe or
America continental. So, it will be easier to ASEAN people doing
traveling across ASEAN countries. Besides, there are a lot of
connection to reach communication between ASEAN members, for
instance in ASEAN Summit, various intra-organization among ASEAN
nations or even informal meeting among ASEAN member.
(4) Declining military power as a tool of state leaders
expertise
As we know, after ASEAN members has ratified Treaty of Amity
Cooperation in Southeast Asia (TAC), Bali, February 1976. ASEAN has
to fulfill its obligation to not interference with each other, regarding a
national problem. Furthermore, involving army forces will not be
allowed in this region. So, after a confrontation between Malaysia-
Indonesia in Soekarno era, there are a minimum number a conflict
among ASEAN members using its military power.

With 4 aspect appears showing that ASEAN has a complex

interdependence, ensure that ASEAN has to define its modern identity
which came by its legitimation as an institution. Due to ASEAN Economic
Community, ASEAN has made an extraordinary cooperation, particularly on
investment relation.

DEVI NUGRAHA 7
 Particularly noteworthy, and
standing out in the figures, has been
the cumulative effect of intra-regional
trade and investment. Collectively,
the intra-ASEAN market is the largest
for ASEAN trade at 24.1% in 2014.
Likewise, the region has become one
of the worlds fastest growing
investment destinations, accounting
for 11% of total global foreign direct
investment (FDI) inflows in 2014 as
compared with just 5% in 2007. At
17.9%, ASEANs intra-regional FDI
inflows is second largest by partner,
lagging behind only the EU-28. (The ASEAN Secretariat 2015, Op. Cit.)

So, it might be ASEAN as a land of investment would become a

collective identity during AEC. After showing a distinct interdependence
among ASEAN members and the other parties. ASEAN FDI has made an
extraordinary number across the globe. It would be no doubt to declare that
investment is the Silver Lining among ASEAN relations, around a sceptic
perspective regarding the form of ASEAN identity itself.

ASEAN as A World Class Investment Destination

The next question remains, how can ASEAN constructing an

investment as identity? As ASEAN works toward building a collective
identity as a single investment destination, gone are the days where
investors see ASEAN as 10 stand-alone economies. The development of an
ASEAN investment strategy is increasingly common for existing and would-
be investors, facilitated among other factors by the regions framework
for enticing investors and helping businesses operate in the region.

DEVI NUGRAHA 8
 The AEC also provides a business-supportive environment through
regulatory frameworks that promote fair competition and freer flow of
capital. To date, almost all Member States have in place consumer
protection laws as well as competition laws. Work towards building an
innovation-supportive environment is also enhanced through co-operation
and capacity building in the area of intellectual property (IP) rights.

The relatively stable macroeconomic fundamentals of the ASEAN

economies, amidst global uncertainties, have induced foreign investors to
shift their preferences to the region. Similarly, ASEANs re-affirmation of its
commitment to deepen regional economic integration through the
implementation of the AEC Blueprint provides clarity about the regions
policy agenda, reducing policy uncertainties and enhancing foreign
investors confidence. (The ASEAN Secretariat 2015, Op. Cit. 13-14).

Conclusion

It was not easy to ASEAN fostering its Identity as a World Class Investment
Destination, but indeed, ASEAN has made a progress in discover the lack
of identity in social sector, by promoting a new look as a land of kind
investment. Binding by complex interdependence, according to Keohane
and Nye theory, ASEAN will stand survive as a region with good economic-
growth. So, meanwhile there are various perspective said, that ASEAN still
remain a progress on discover identity. For to me, ASEAN has own identity
in the era of ASEAN Economic Community. Is our job to maintain and
promote this modern identity to the world.

Reference

ASEAN Secretariat 2011. The ASEAN Charter. Jakarta.

Asian Development Bank Institute 2014. ASEAN 2030: Toward a
Borderless Economic. Tokyo: ADBI Institute
Keohane O.R. 1989. International Institutions and State Power.
Boulderm Colorado: Westview

DEVI NUGRAHA 9
 Lamy Steven L. 2001. Contemporary Mainstream Approaches:
Neorealism and Neoliberalism. Dalam John Baylis & Steve Smith
(eds), The Globalization of World Politics: An Introduction to
International Relations. Third Edition. Oxford University Press.
Norkevicius Mindaugas. 2014. Regional Institutionalism in Southeast
Asia. Poland: Vyautas Magnus University, Faculty of Political Sciences
and Diplomacy
Pham Quang Minh. 2010. In Search of an ASEAN Identity: The work
of the 2010/2011 API Fellows
The ASEAN Secretariat. 2014. A Blueprint for Growth: ASEAN
Economic Community 2015: Progress and Key Achievements. Jakarta.

1
DEVI NUGRAHA
0