This chapter explores and analyses the evolution of regional cooperation or integration and the establishment of ASEAN. Political and economic cooperation among ASEAN members as well as ASEAN's cooperation with other regional groupings and third countries will also be discussed.

EVOLUTION OF REGIONAL COOPERATION AND THE FORMATION OF ASEAN

The Association of South-East Asian Nations (ASEAN) is a regional cooperative organization established by the Bangkok Declaration on 8 August 1967 (Appendix I). The founding members of ASEAN are Indonesia, Malaysia, Philippines, Singapore and Thailand. Actually, attempts for regional cooperation among the Southeast Asian countries started much earlier. According to Lyon (1992, pp. 277–80), regional cooperation among ASEAN countries went through three tumultuous stages since 1945.

The first phase, which lasted from the end of World War II till the mid-1950s, was mainly dominated by the (anti-communist) ideology prevailing in both the United States and Britain on the nature and type of regional association for Southeast Asia (ASEAN Secretariat 1997). During this period, there were three groups of countries in the region. One group included Malaya, the Borneo territories, and Singapore (which belonged to the British), and Laos, Cambodia and part of Vietnam, which were under French influence. Meanwhile, Burma and Indonesia, which belonged to the second group, were founding members of the Non-Aligned Movement. The third group comprising Thailand and the Philippines leaned toward the United States.

Thailand and the Philippines were the only Southeast Asian signatories of the Manila Treaty when the Southeast Asia Treaty Organization (SEATO) was established in 1954 under the influence of the United States. The other participating countries of SEATO were Britain, Australia, New Zealand and Pakistan. The main objective of the Manila Treaty was to form an anti-communist bloc in Southeast Asia and to call for collective action in the event of an armed attack on any Southeast Asian country. At the same time, the Economic Commission for Asia and the Far East (ECAFE), the predecessor of the United Nations Economic and Social Commission for Asia and the Pacific (UN/ESCAP), and the so-called Colombo Plan, were formed in 1947 and 1950 respectively, with the aims of providing technical assistance and economic cooperation. Both these organizations depended largely upon the postwar non-communist superpowers, United States and Britain.

We the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and the Special Envoy of the National Executive Council of Thailand:

FIRMLY believing in the merits of regional cooperation which has drawn our countries to cooperate together in the economic, social and cultural fields in the Association of South-East Asian Nations;

DESIROUS of bringing about a relaxation of international tension and of achieving a lasting peace in South East Asia;

INSPIRED by the worthy aims and objectives of the United Nations, in particular by the principles of respect for the sovereignty and territorial integrity of all states, absent on from threat or use of force, peaceful settlements of international disputes, equal rights and self-determination and non-interference in the affairs of States;

BELIEVING in the continuing validity of the “Declaration of the Promotion of World Peace and Cooperation” of the Bandung Conference of 1955 which, among others, enunciates the principles by which States may coexist peacefully;

RECOGNIZING the right of every state, large or small, to lead its national existence free from outside interference in its internal affairs as this interference will adversely affect its freedom, independence and integrity;

DEDICATED to the maintenance of peace, freedom and independence unimpaired;

BELIEVING in the need to meet present challenges and new developments by cooperation with all peace and freedom loving nations, both within and outside the region, in the furtherance of world peace, stability and harmony;

COGNIZANT of the significant trend toward establishing nuclear-free zones, as in the “Treaty for Prohibition of Nuclear Weapons in Latin America” and the Lusaka Declaration proclaiming Africa a nuclear-free zone, for the purpose of promoting world peace and security by reducing the areas of international conflicts and tensions;

REITERATING our commitment to the principle in the Bangkok Declaration which established ASEAN in 1967, “that the countries of South-East Asia share a primary responsibility for strengthening the economic and social stability of the region and ensuring their peaceful and progressive national development, and that they are determined to ensure their stability and security from external interference in amy form or manifestation in order to preserve their national identities in accordance with the ideals and aspirations of their peoples”;

AGREEING that the neutralisation of Southeast Asia is a desirable objective and that we should explore ways and means of bringing about its realisation;

The States Parties to this Treaty:

DESIRING to contribute to the realization of the purposes and principles of the Charter of the United Nations;

DETERMINED to take concrete action which will contribute to the progress towards general and complete disarmament of nuclear weapons, and to the promotion of international peace and security;

REAFFIRMING the desire of the Southeast Asian States to maintain peace and stability in the region in the spirit of peaceful coexistence and mutual understanding and cooperation as enunciated in various communiques, declarations and other legal instruments;

RECALLING the Declaration on the Zone of Peace, Freedom and Neutrality (ZOPFAN) signed in Kuala Lumpur on 27 November 1971 and the Programme of Action on ZOPFAN adopted at the 26th ASEAN Ministerial Meeting in Singapore in July 1993;

CONVINCED that the establishment of a Southeast Asia Nuclear Weapon-Free Zone, as an essential component of the ZOPPAN, will contribute towards strengthening the security of States within the Zone and towards enhancing international peace and security as a whole;

REAFFIRMING the importance of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) in preventing the proliferation of nuclear weapons and in contributing towards international peace and security;

RECALLING Article VII of the NPT which recognizes the right of any group of States to conclude regional treaties in order to assume the total absence of nuclear weapons in their respective territories;

RECALLING the Final Document of the Tenth Special Session of the United Nations General Assembly which encourages the establishment of nuclear weaponfree zones;

RECALLING the Principles and Objectives for Nuclear Non-Proliferation and Disarmament, adopted at the 1995 Review and Extension Conference of the Parties to the NPT, that the cooperation of all the nuclear-weapon States and their respect and support for the relevant protocols is important for the maximum effectiveness of this nuclear weapon-free zone treaty and its relevant protocols.

DETERMINED to protect the region from environmental pollution and the hazards posed by radioactive wastes and other radioactive material;

Two significant events related to Myanmar's accession to ASEAN occurred in late 2003 and early 2004. In June 2003, unexpectedly, the 36th ASEAN Ministerial Meeting issued a joint statement in Phnom Penh, demanding the release of the opposition leader of Myanmar. Many ASEAN watchers consider this unprecedented for the regional organization which, for the first time in more than three and a half decades, was talking about other than non-interference in the domestic affairs of a member country. On the other hand, some analysts do not consider this as interference since the Myanmar government had given consent to the statement.

However, three months later, the ASEAN Summit at Bali changed the earlier joint statement of the ASEAN foreign ministers by hailing Myanmar's “Road Map to Democracy” on 7 October 2003 (The Nation, 8 October 2003). This was also unprecedented for ASEAN.

Almost three-quarters of a year later, another significant event occurred. As mentioned earlier in this book (p. 42), Myanmar has again become a bone of contention for the ASEAN-Europe Meeting (ASEM) and the EU refused to attend the biennial summit in October 2004, in Hanoi, if Myanmar participated as a member of the Asian team (which would allow Myanmar to attain membership of ASEM). The EU stated that it would not attend because there had been no political reform in Myanmar. The EU even cancelled two earlier ministerial meetings, which were supposed to prepare the economic and commercial substance of the summit in Hanoi. In response to the EU's statement regarding Myanmar's participation, the ten Asian nations which belong to the eight-year-old ASEM insisted that Myanmar, Cambodia and Laos should be allowed to join the club since they were new members of ASEAN, if the EU brought its own ten new members to the meeting. The Asian team criticized the EU's double standards. According to Reuters (19 July 2004), in April 2004 the EU demanded the release of the opposition leader and the participation of the largest opposition party in the ongoing National Convention (where principles for drafting the new constitution are under discussion) as conditions for allowing Myanmar to participate in the 2004 ASEAN Summit. The Asian members of ASEM took offence at the EU's attempts to set conditions for Myanmar's participation in ASEM.

The High Contracting Parties:

CONSCIOUS of the existing ties of history, geography and culture, which have bound their peoples together;

ANXIOUS to promote regional peace and stability through abiding respect for justice and the rule or law and enhancing regional resilience in their relations;

DESIRING to enhance peace, friendship and mutual cooperation on matters affecting Southeast Asia consistent with the spirit and principles of the Charter of the United Nations, the Ten Principles adopted by the Asian-African Conference in Bandung on 25 April 1955, the Declaration of the Association of Southeast Asian Nations signed in Bangkok on 8 August 1967, and the Declaration signed in Kuala Lumpur on 27 November 1971;

CONVINCED that the settlement of differences or disputes between their countries should be regulated by rational, effective and sufficiently flexible procedures, avoiding negative attitudes which might endanger or hinder cooperation;

BELIEVING in the need for cooperation with all peace-loving nations, both within and outside Southeast Asia, in the furtherance of world peace, stability and harmony;

SOLEMNLY AGREE to enter into a Treaty of Amity and Cooperation as follows:

CHAPTER I: PURPOSE AND PRINCIPLES

Article 1

The purpose of this Treaty is to promote perpetual peace, everlasting amity and cooperation among their peoples which would contribute to their strength, solidarity and closer relationship,

Article 2

In their relations with one another, the High Contracting Parties shall be guided by the following fundamental principles:

1. a. Mutual respect for the independence, sovereignty, equality, territorial integrity and national identity of all nations;

2. b. The right of every State to lead its national existence free from external interference, subversion or coercion;

3. c. Non-interference in the internal affairs of one another;

4. d. Settlement of differences or disputes by peaceful means;

5. e. Renunciation of the threat or use of force;

6. f. Effective cooperation among themselves.

CHAPTER II: AMITY

Article 3

In pursuance of the purpose of this Treaty the High Contracting Parties shall endeavour to develop and strengthen the traditional, cultural and historical ties of friendship, good neighbourliness and cooperation which bind them together and shall fulfil in good faith the obligations assumed under this Treaty. In order to promote closer understanding among them, the High Contracting Parties shall encourage and facilitate contact and intercourse among their peoples.

Introduction

The Second ASEAN Informal Summit, held in Kuala Lumpur on 15 December 1997, adopted the ASEAN Vision 2020 which sets out a broad vision for ASEAN in the year 2020: an ASEAN as a concert of Southeast Asian Nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies.

In order to implement the long-term vision, action plans are being drawn up to realise this Vision. The Hanoi Plan of Action (HPA) is the first in a series of plans of action building up to the realisation of the goals of the Vision.

The HPA has a six-year timeframe covering the period from 1999 to 2004. The progress of its implementation shall be reviewed every three years to coincide with the ASEAN Summit Meetings.

In recognition of the need to address the current economic situation in the region, ASEAN shall implement initiatives to hasten economic recovery and address the social impact of the global economic and financial crisis. These measures reaffirm ASEAN commitments to closer regional integration and are directed at consolidating and strengthening the economic fundamentals of the Member Countries.

STRENGTHEN MACROECONOMIC AND FINANCIAL COOPERATION

To restore confidence, regenerate economic growth and promote regional financial stability through maintaining sound macroeconomic and financial policies as well as strengthening financial system and capital markets enhanced by closer consultations, so as to avoid future disturbances.

1.1 Maintain regional macroeconomic and financial stability.

1. 1.1.1 Strengthen the ASEAN Surveillance Process; and

2. 1.1.2 Structure orderly capital account liberalisation.

1.2 Strengthen financial systems.

1. 1.2.1 Adopt and implement sound international financial practices and standards, where appropriate by 2003;

2. 1.2.2 Coordinate supervision and efforts to strengthen financial systems;

3. 1.2.3 Develop deep and liquid financial markets to enable governments and private firms to raise long-term financing in local currency, thereby reducing the over dependence on bank finance and limiting the risks of financial crisis;

4. 1.2.4 Adopt and implement existing standards of disclosure and dissemination of economic and financial information; and

5. 1.2.5 Adopt prudential measures to mitigate the effects of sudden shifts in short-term capital flows.

1.3 Promote liberalisation of the financial services sector.

1. 1.3.1 Intensify deregulation of the financial services sector; and

2. 1.3.2 Intensify negotiations of financial sector liberalisation under the ASEAN Framework Agreement on Services (AFAS).

The objective of this book is to help tertiary students of economics, history, international studies and economic geography in Myanmar to widen their knowledge of ASEAN and its integration process in general and ASEAN-Myanmar cooperation and Myanmar's accession to ASEAN in particular. Textbooks and reference books in English for university students in Myanmar in all academic disciplines have become rare as a result of the country's isolation since 1962, when the military took over.

Soon after the military takeover, nationalization was introduced in economic and service sectors such as foreign trade, domestic wholesale trade, foreign and domestic banks, industries, fisheries, and mining, under the “Burmese Way to Socialism”. Even private hospitals and schools were nationalized as required by the new self-reliance policy.

Consequently, in 1964, the medium of instruction in all academic institutions of primary, secondary and tertiary levels was changed — from English to Burmese. University staff were asked to prepare textbooks in Burmese; many of them were translated from old English textbooks. A number of compulsory textbooks in Burmese were published in the late 1960s and early 1970s but most of these have never been updated.

Then in 1981, English was reintroduced as a medium of instruction at schools and universities but at a very slow pace. The English language was again taught at primary schools despite many obstacles such as the lack of qualified teachers and teaching aids.

After a military coup in 1988, the ruling State Law and Order Council (SLORC) opened up the economy. Part and parcel of the economic reforms included liberalization of foreign and domestic trade, introduction of foreign and domestic investment laws, and private sector development. Thus English has once again become an important medium of communication and is being revived at the universities. The private sector has also been active in opening up English language schools, business schools and computer schools.

Moreover, SLORC (which changed its name to the State Peace and Development Council [SPDC] in 1997), unlike previous military regimes, has a proactive foreign policy by involvement in international forums, including securing ASEAN membership. Thus interest in the English language has also rapidly grown in the country as the role of English as a language of learning, business, technology, international relations and diplomacy is being recognized.

WHAT IS SOUTHEAST ASIA?

Before the Second World War, historians and geographers, especially Western academics, divided Asia into two — the Near East and the Far East. Present-day Southeast Asia was included in the Far East. However, the term “Southeast Asia” was occasionally used by European, especially German writers, in the late 19th century. According to McCloud (1992), “it was first brought to general prominence with the establishment of a Southeast Asia military command by the British during World War II — one of the first attempts to bring together the previously fragmented colonial perspectives of the British, Dutch, French and Americans” (p. 12). Actually, the Southeast Asia Command (SEAC) was created by President Franklin D. Roosevelt and Prime Minister Winston S. Churchill at the First Quebec Conference in August, 1943 (Fifield 1992). Ironically, the SEAC was located in Ceylon (Sri Lanka), which is a part of South Asia. In other words, Southeast Asia as a regional political unit was first recognized during the Second World War.

Milton Osborne, a noted historian of Southeast Asia, agrees:

Generally, Burma (now Myanmar), Thailand, Laos, Cambodia, Vietnam, Malaysia (including present-day Brunei and Singapore) and Indonesia, were considered as some kind of geographical unit. However, the Philippines was not included. Osborne noted that while the omission of the Philippines was deliberate at the time of the Second World War, the question of whether the Philippines formed part of Southeast Asia was to remain a matter of scholarly uncertainty as late as the 1960s. Presently, Southeast Asia denotes ten nation–states: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand, Singapore and Vietnam.

One unique characteristic of the region is the historical influence of India and China upon its cultures, especially in religion, art and politics. However, each country has its individual style. For example, Islam predominates in Brunei, Indonesia, Malaysia, and in southern Philippines.

1. The Heads of State/Government of Brunei Darussalam, Kingdom of Cambodia, People's Republic of China, Republic of Indonesia, Japan, Republic of Korea, Lao People's Democratic Republic, Union of Myanmar, Republic of the Philippines, Republic of Singapore, Kingdom of Thailand, and Socialist Republic of Vietnam, and the Special Representative of the Prime Minister of Malaysia at the ASEAN+3 Summit in Manila, expressed satisfaction with the rapidly developing relations among their countries.

2. They noted the bright prospects for enhanced interaction and closer linkages in East Asia and recognized the fact that this growing interaction has helped increase opportunities for cooperation and collaboration with each other, thereby strengthening the elements essential, for the promotion of peace, stability and prosperity in the region.

3. Mindful of the challenges and opportunities in the new millennium, as well as the growing regional interdependence in the age of globalization and information, they agreed to promote dialogue and to deepen and consolidate collective efforts with a view to advancing mutual understanding, trust, good neighborliness and friendly relations, peace, stability and prosperity in East Asia and the world.

4. In this context, they underscored their commitment to handling their mutual relations in accordance with the purposes and principles of the UN Charter, the Five Principles of Peaceful Co-existence, the Treaty of Amity and Cooperation in Southeast Asia, and the universally recognized principles of international law.

5. Recalling the decision of the Leaders of ASEAN, China, Japan and the Republic of Korea at the 6th ASEAN Summit in Hanoi in December 1998, on the importance of holding a regular meeting among them and recognizing the ongoing efforts of the East Asia Vision Group, they agreed to enhance this dialogue process and strengthen cooperation with a view to advancing East Asian collaboration in priority areas of shared interest and concern even as they look to future challenges.

6. In this context, they underscored their commitment to build upon existing consultative and cooperative processes, as well as joint efforts, in various levels and in various areas, in particular:

The Governments of Brunei Darussalam, the Republic of Indonesia, Malaysia, the Republic of the Philippines, the Republic of Singapore and the Kingdom of Thailand, Member States of the Association of South East Asian Nations (ASEAN);

NOTING the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA) (“the Agreement”) signed in Singapore on 28 January 1992;

RECALLING the Protocol to Amend the Framework Agreement on Enhancing ASEAN Economic Cooperation (1992) signed on 15 December 1995 in Bangkok by the Heads of Government reflecting the acceleration of the CEPT Scheme for AFTA from the year 2008 to the year 2003;

RECOGNISING the need to amend the Agreement to reflect the latest developments in ASEAN;

HAVE AGREED AS FOLLOWS:

ARTICLE 1

Article 2, paragraphs 3,5 and 6 of the Agreement be amended to read as follows:

The Governments of Brunei Darussalam, the Republic of Indonesia, Malaysia, the Republic of the Philippines, the Republic of Singapore and the Kingdom of Thailand, Member States of the Association of South, East Asian Nations (ASEAN):

MINDFUL of the Declaration of ASEAN Concord signed in Bali, Indonesia on 24 February 1976 which provides that Member States shall cooperate in the field of trade in order to promote development and growth of new production and trade;

RECALLING that the ASEAN Heads of Government, at their Third Summit Meeting held in Manila on 13–15 December 1987, declared that Member States shall strengthen intra-ASEAN economic cooperation to maximise the realisation of the region's potential in trade and development;

NOTING that the Agreement on ASEAN Preferential Trading Arrangements (PTA) signed in Manila on 24 February 1977 provides for-the adoption of various instruments on trade liberalisation on a preferential basis;

ADHERING to the principles, concepts and ideals of the Framework Agreement on Enhancing ASEAN Economic Cooperation signed in Singapore on 28 January 1992;

CONVINCED that preferential trading arrangements among ASEAN Member States will act as a stimulus to the strengthening of national and ASEAN Economic resilience, and the development of the national economies of Member States by expanding investment and production opportunities, trade, and foreign exchange earnings;

DETERMINED to further cooperate in the economic growth of the region by accelerating the liberalisation of intra-ASEAN trade and investment with the objective of creating the ASEAN Free Trade Area using the Common Effective Preferential Tariff (CEPT) Scheme;

DESIRING to effect improvements on the ASEAN PTA in consonance with ASEAN's international commitments;

HAVE AGREED AS FOLLOWS:

ARTICLE 1: DEFINITIONS

For the purposes of this Agreement:

1. “CEPT” means the Common Effective Preferential Tariff, and it is an agreed effective tariff, preferential to ASEAN, to be applied to goods originating from ASEAN Member States, and which have been identified for inclusion in the CEPT Scheme in accordance with Articles 2 (5) and 3.

2. “Non-Tariff Barriers” mean measures other than tariffs which effectively prohibit or restrict import or export of products within Member States.

3. “Quantitative restrictions” mean prohibitions or restrictions on trade with other Member States, whether made effective through quotas, licenses or other measures with equivalent effect, including administrative measures and requirements which restrict trade.

The Presidium Minister for Political Affairs/Minister for Foreign Affairs of Indonesia, the Deputy Prime Minister of Malaysia, the Secretary of Foreign Affairs of the Philippines, the Minister for Foreign Affairs of Singapore and the Minister of Foreign Affairs of Thailand.

MINDFUL of the Existence of mutual interests and common problems among countries of South-east Asia and convinced of the need to strengthen further the existing bonds of regional solidarity and cooperation;

DESIRING to establish a firm foundation for common action to promote regional cooperation in South-east Asia in the spirit of equality and partnership and thereby contribute towards peace, progress and prosperity in the region;

CONSCIOUS that in an increasingly interdependent world, the cherished ideals of peace, freedom, social justice and economic well-being are best attained by fostering good understanding, good neighbourliness and meaningful cooperation among the countries of the region already bound together by ties of history and culture;

CONSIDERING that the countries of South-East Asia share a primary responsibility for strengthening the economic and social stability of the region and ensuring their peaceful and progressive national development, and that they are determined to ensure their stability and security from external interference in any form or manifestation in order to preserve their national identities in accordance with the ideals and aspirations of their peoples;

AFFIRMING that all foreign bases are temporary and remain only with the expressed concurrence of the countries concerned and are not intended to be used directly or indirectly to subvert the national independence and freedom of States in the area or prejudice the orderly processes of their national development;

DO HEREBY DECLARE:

FIRST, the establishment of an Association for Regional Cooperation among the countries of Southeast Asia to be known as the Association of South-East Asian Nations (ASEAN).

SECOND, that the aims and purposes of the Association shall be:

1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations;

2. 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;