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Discuss how you can approach for assessing the effect of ‘collective’ ASEAN on economic growth/development of each of the ten ‘individual’ member-states? How about the effect of APEC on 21 individual member-states? Finally, compare between the two regional intergovernmental organizations (RIGOs) based on the approach.

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Week 6: Regionalism in East Asia Readings: • • • Wan 2 , 5, and 11 Lim 2 Lecture notes _____________________________________ Key Terms: • • The Association of Southeast Asian Nations[5] (ASEAN) The ASEAN Free Trade Area (AFTA): is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries. The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises the ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement to join ASEAN, but were given longer time frames in which to meet AFTA's tariff reduction obligations. The primary goals of AFTA seek to: • • • Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and Attract more foreign direct investment to ASEAN. The primary mechanism for achieving such goals is the Common Effective Preferential Tariff scheme, which established a phased schedule in 1992 with the goal to increase the region’s competitive advantage as a production base geared for the world market. ASEAN Plus Three (APT) : ASEAN and the three Northeast Asian states—China, Japan, and South Korea (Map: APT) • • • The Asia-Pacific Economic Cooperation (APEC) Asia–Europe Meeting Chiang Mai Initiative (CMI): a multilateral currency swap arrangement among the ten members of the Association of Southeast Asian Nations (ASEAN), the People's Republic of China (including Hong Kong), Japan, and South Korea. It draws from a foreign exchange reserves pool worth US$120 billion and was launched on 24 March 2010. That pool has been expanded to $240 billion in 2012. The initiative began as a series of bilateral swap arrangements after the ASEAN Plus Three countries met on 6 May 2000 in Chiang Mai, Thailand, at an annual meeting of the Asian Development Bank. After 1997 Asian Financial Crisis, member countries started this initiative to manage regional shortterm liquidity problems and to facilitate the work of other international financial arrangements and organizations like International Monetary Fund. _______________________________ ADB vs. AIIB Asian Development Bank (ADB):// • Asian Development Bank (ADB) aims at improving the welfare of the people in Asia and the Pacific, particularly the 1.9 billion who live on less than $2 a day. Asia and the Pacific still remains home to two thirds of the world poor. • The ADB was modeled closely on the World Bank (WB), and has a similar weighted voting system where votes are distributed in proportion with members' capital subscriptions. As of 31 December 2016, Japan and United States hold the largest proportion of shares at 15.607%. China holds 6.444%, India holds 6.331%, and Australia holds 5.786%. The Asian Infrastructure Investment Bank (AIIB) • The Asian Infrastructure Investment Bank (AIIB) is a • • • • multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region. The bank currently (2018) has 87 (as of June 30/2018) member states from around the world. The bank started operation after the agreement entered into force on 25 December 2015, after ratifications were received from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock. Major economies that are not members include Japan, Mexico, Nigeria, and the United States. The United Nations has addressed the launch of AIIB as having potential for "scaling up financing for sustainable development" for the concern of global economic governance. The capital of the bank is $100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank. The bank was proposed by China in 2013 and the initiative was launched at a ceremony in Beijing in October 2014. It received the highest credit ratings from the three biggest rating agencies in the world, and is seen as a potential rival to World Bank and IMF. As of 30 June 2018, total approved membership of AIIB is 87 (Regional Members: 42, Non-Regional Members: 24, Prospective Members: 21). • The bank was proposed by China in 2013and the initiative launched at a ceremony in Beijing in October 2014. The Articles of Agreement (AOA) were signed by 50 PFMs on 29 June 2015, which become a party to the agreement through ratification. As of July 2015, 1 state (Myanmar) has ratified the agreement, formally becoming a founding member. • AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank (ADB), which are regarded as dominated by developed countries like the United States. The United Nations has addressed the launch of AIIB as "scaling up financing for sustainable development” for the concern of Global Economic Governance. _________________________________________________________ 'Open' Regionalism in Asia: A. Silk Road Economic "BELT " & Maritime Silk "ROAD " : China (2014) • The "one belt and one road" initiative (一带一路”正 改) [Silk Road/ The Silk Road (Silk Route) ] • China' s initiatives on the Silk Road Economic Belt and Maritime Silk Road in the 21st Century. By promoting the development of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, China has injected a strong impetus to the common development in Eurasia: The great Silk Road revival • There are several areas as well that suggest a more active Chinese role in the region: the New Silk Road initiative, the Infrastructure Bank (Asian Infrastructure Investment Bank) and the BRICS Bank. • The ancient Silk Road was opened by China. This economic corridor, which covers both the Asia-Pacific region and Europe, will realize a multi-dimensional connection between nearly 60 countries and regions in the area. B. The Free Trade Area of the Asia Pacific (FTAAP) • China, leaders at the APEC Summit in Beijing (2014) have agreed to start the process of the Free Trade Area of the Asia Pacific (FTAAP) a mega deal worth over US$2 trillion for 17 economies. C. Trans-Pacific Partnership (TPP) • The Trans-Pacific Partnership (TPP) is a proposed regional regulatory and investment treaty. As of 2015 twelve countries throughout the Asia-Pacific region have participated in negotiations on the TPP: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. • The TPP intended to enhance trade and investment among the TPP partner countries, to promote innovation, economic growth and development. • The Trans-Pacific Partnership (TPP) is a defunct proposed trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and United States signed on 4 February 2016, which was not ratified as required and did not take effect. After the United States withdrew its signature, the agreement could not enter into force. The remaining nations negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which incorporates most of the provisions of the TPP. • In January 2017, the United States withdrew from the agreement. The other 11 TPP countries agreed in May 2017 to revive it and reached agreement in January 2018. In March 2018, the 11 countries signed the revised version of the agreement, called Comprehensive and Progressive Agreement for Trans-Pacific Partnership. • For Japan, promoting the benefits of multilateral free trade arrangements such as the Trans-Pacific Partnership agreement is a priority. Tokyo hopes the United States, which has withdrawn from the TPP framework, will eventually return to it. Japan also welcomes Britain's willingness to join TPP. Aside from Britain, Thailand, Indonesia, Colombia, South Korea and Taiwan have also indicated interest in joining the framework. • Japan, now the leading economy in the framework, and the other existing members are seeking to open its doors to new comers amid the rise of protectionist moves under U.S. President Donald Trump's "America First" policy. D. Asia-Pacific Economic Cooperation (APEC) APEC economies (Map) • A forum for 21 Pacific Rim member economies that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region. • It was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world. • Asia-Pacific Economic Cooperation (APEC): to defuse fears that highly industrialized Japan (a member of G7) would come to dominate economic activity in the Asia-Pacific region; and to establish new markets for agricultural products and raw materials beyond Europe. Taiwan Republic of China is represented by a ministerial-level official under the name Chinese Taipei as economic leader • APEC members committed to taking a concrete step towards greater regional economic integration by endorsing a roadmap for the Free Trade Area of the AsiaPacific (FTAAP) to translate this vision into a reality. E. ASEAN • ASEAN Free Trade Area: (AFTA) *The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries. *The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members ( Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand), Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises the ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement to join ASEAN, but were given longer time frames in which to meet AFTA's tariff reduction obligations. *The goals of AFTA: (a) Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and (2) Attract more foreign direct investment to ASEAN. Treaty of Amity and Cooperation (TAC) in Southeast Asia (2003)  ASEAN's Treaty of Amity and Cooperation (TAC)/2003: ASEAN signed the Treaty of Amity and Cooperation in Southeast Asia, which is an agreement ASEAN 10+3 (ASEAN Plus -Three): ASEAN 10 Plus China, Japan, and South Korea • ASEAN's Treaty of Amity and Cooperation (TAC)/2003: ASEAN signed the Treaty of Amity and Cooperation in Southeast Asia. The Treaty of Amity and Cooperation in Southeast Asia is a peace treaty among Southeast Asian countries established by the founding members of the Association of Southeast Asian Nations (ASEAN). In1976, the treaty was signed into force by the then-leaders of the original members of ASEAN. The Treaty was amended in 1987 by a protocol to open the document for accession by states outside Southeast Asia. *The Treaty of Amity and Cooperation (TAC) in Southeast Asia is a peace treaty among Southeast Asian countries established by the founding members of the Association of Southeast Asian Nations (ASEAN), a geopolitical and economic organization of 10 countries located in Southeast Asia. *India and China were first, outside ASEAN to sign the treaty in 2003/ As of July 2009, sixteen countries outside the bloc have acceded to the treaty. On 22 July 2009, Secretary of State Hillary Clinton signed the TAC on behalf of the United States. *The European Union announced in 2009 its intention to accede as soon as the treaty is amended to allow for the accession of non-states. The treaty has been endorsed by the General Assembly stating that: "The purposes and principles of the Treaty of Amity and Cooperation in Southeast Asia and its provisions for the pacific settlement of regional disputes and for regional co-operation to achieve peace, amity and friendship among the peoples of Southeast Asia [are] in accordance with the Charter of the United Nations." Principles: *The purpose of the Treaty is to promote perpetual peace, everlasting amity and co-operation among the people of Southeast Asia which would contribute to their strength, solidarity, and closer relationship. In their relations with one another, the High Contracting Parties shall be guided by the following fundamental principles; a. mutual respect for the independence, sovereignty, equality, territorial integrity and national identity of all nations, b. the right of every State to lead its national existence free from external interference, subversion or coercion, c. non-interference in the internal affairs of one another, d. settlement of differences or disputes by peaceful means, e. renunciation of the threat or use of force, and f. effective co-operation among themselves. (Map of TAC) The following table lists the parties (TAC) in the order of the dates on which they entered into the treaty: Country Date Indonesia 24 February 1976 Malaysia 24 February 1976 Philippines 24 February 1976 Singapore 24 February 1976 Thailand 24 February 1976 Brunei 7 January 1984 Papua New Guinea 5 July 1989 Laos 29 June 1992 Vietnam 22 July 1992 Cambodia 23 January 1995 Burma (Myanmar) 27 July 1995 People's Republic of China 8 October 2003 India 8 October 2003 Japan 2 July 2004 Pakistan 2 July 2004 South Korea 27 November 2004 Russia 29 November 2004 New Zealand 25 July 2005 Mongolia 28 July 2005 Australia 10 December 2005 France 20 July 2006 East Timor 13 January 2007 Bangladesh 1 August 2007 Sri Lanka 1 August 2007 North Korea 24 July 2008 United States 23 July 2009 Canada 23 July 2010 Turkey 23 July 2010 European Union 12 July 2012 United Kingdom 12 July 2012 Brazil 17 November 2012 Norway 1 July 2013 Chile 6 September 2016[39] Egypt 6 September 2016[39] Morocco 6 September 2016[39] ____________________________________________ ASEAN Regional Forum (ARF)  ASEAN Regional Forum (ARF): The inaugural meeting of the ARF was held in Bangkok on 25 July 1994. The objectives of the ASEAN Regional Forum: (1) To foster constructive dialogue and consultation on political and security issues of common interest and concern; and (2) To make significant contributions to efforts towards confidence-building and preventive diplomacy in the AsiaPacific region. • ASEAN 10+3 (ASEAN Plus -Three): ASEAN 10 Plus China, Japan, and South Korea. Created in1997. • The ASEAN–China Free Trade Area (ACFTA) (also known as China–ASEAN Free Trade Area) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China. It was signed on 28 January 1992 in Singapore. • Chiang Mai Initiative: After the 1997 Asian financial crisis, a revival of the Malaysian proposal, known as the Chiang Mai Initiative was put forward in Chiang Mai Initiative. It called for better integration of the economies of ASEAN as well as the ASEAN Plus Three H. Mekong Subregion (GMS) Economic Cooperation 1. (map: Greater Mekong Subregion) • The Greater Mekong Subregion/GMS: designates a development project formed by the Asian Development Bank (ADB) in 1992 that brought together the six states of the Mekong River basin: Cambodia, Laos, Myanmar (Burma), Thailand, Vietnam, and China. • The GMS Program, with the support of ADB and other development partners, helps identify and implement high-priority subregional projects in a wide range of sectors. • To realize its vision of a prosperous, integrated, and harmonious subregion, the GMS Program has adopted a three-pronged strategy: *increasing connectivity through sustainable development of physical infrastructure and the transformation of transport corridors into transnational economic corridors; *improving competitiveness through efficient facilitation of cross-border movement of people and goods and the integration of markets, production processes, and value chains; and *building a greater sense of community through projects and programs that address shared social and environmental concerns _______________________________________________________________ QUIZ: Week 6 How can you approach for assessing the effect of regionalism via regional intergovernmental organizations (RIGOs) in East Asia on economic development? You may choose one or two RIGOs. Send the answer (Attachment) with less than one page in length TO: eunhaen@troy.edu ___________________________________________________________________________________
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Regionalism in East Asia
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REGIONALISM IN EAST ASIA
Regionalization in East Asia
The approach I can use to assess the effect of the ‘collective’ ASEAN on th...


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