Abstract

A profound change is taking place in the political and economic scene in South east Asia. Despite the outward calm, unrest and uncertainty exist as to whether the countries in this region will be used as pawns or as co-partners in the international political system. In the economic scene many are concerned about what will happen to international business in Southeast Asia in the post-Vietnam era. Some are also perplexed about the effect on foreign investments of a diminished U.S. military role. The present world trade recession has also amply manifested the heterogeneity of the world community and the preservation by the rich nations of their privileged positions. These shifts in political and economic relations have given a severe jolt to the complacency that prevailed among the leaders of ASEAN and have now driven them to take a closer look at regional co-operation to see what could be done to work closer together politically and to stimulate the existing low level of intra ASEAN trade and investment. ASEAN, comprising Indonesia, the Philippines, Singapore, Malaysia and Thailand, was formed in 1967. Its formation was a significant step towards regional co-operation in Southeast Asia?a development which began as early as the 1950s. Although regionalism has become one of the most distinguishable characteristics of international political and economic relations in the present century, its emergence has been very slow in Asia for reasons some of which will be discussed later. Viewed against this background ASEAN appears interesting. The ASEAN Declaration signed in Bangkok on 8 August, 1967, sought inter alia, to collaborate more effectively for the greater utilization 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 communication facilities and the raising of the living standards of their people. The institutional mechanism established to implement the ASEAN Declaration has however several weaknesses but the main one is the placing of wrong people in key places and the absence of a political will. Another major weakness is the absence of involvement of the private sector and its existing institutions such as banks and chambers of commerce in the various committees formed to achieve some of the objectives laid down in the Declaration. Consequently, ASEAN to this very day has operated as a loose group of nations functioning on a very low key. Even the permanent central secretariat which was decided upon in 1973, at the Sixth Meeting of the ASEAN Foreign Ministers in Pattaya, as the hub of activity has not yet been formally established though there is now some indication that this secretariat may commence operations in Jakarta in 1976.

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