Specificity and problems of economic integration within ACEAH

Abstract

The paper analyses the specificity of economic integration in Southeast Asia at the example of ASEAN. It singles out the main stages for the development of integration «in depth», such as Preferential Trade area (PTA), Free Trade area (FTA), Economic Community of ASEAN and other regional initiatives which focus on increase competitiveness of Association. A significant role in the study is assigned to the effectiveness of integration processes. Despite the progress achieved, it is difficult to talk about the effective functioning of the ASEAN Economic Community. In particular, the paper focuses on problematic issues of cooperation: political regimes, interstate conflicts, territorial disputes and attitude towards non-traditional security threats, institutional constraints, including a decision-making model, a high level of socio-economic inequality in member countries. It is concluded that ASEAN is not a classic integration union following the example of the EU, EAEU or NAFTA. In addition to economic cooperation, the Association prioritizes security issues. Considering that the unresolved number of problems distracts the attention of the Association’s leaders and a significant part of the resources to resolve security issues, the dynamics of economic integration in Southeast Asia are deliberately limited in their development. Nevertheless, thanks to economic growth in ASEAN, positive demographic changes, an increase in foreign direct investment inflows, there is reason to argue that over the next 5-10 years it will be a gradual deepening of economic cooperation within ASEAN.