Moving Towards an ASEAN Economic Community

Why are the ASEAN economies increasingly becoming anxious about regional integration? To stay competitive is an obvious answer. Greater cohesion is also imperative for ASEAN to sustain its credibility of being able to provide the platform for interactions in East Asia and the rest of the world. Yet what is offered by the ASEAN Free Trade Area, the ASEAN Framework Agreement on Services, and the ASEAN Investment Area may not be adequate or comprehensive enough for the Association to amass the economic clout commensurate with its position as a pivotal player in East Asia. The ASEAN Economic Community is thus the logical, but not automatic, extension of these regional efforts. Can it come to fruition? This paper discusses how the ASEAN economies may address key issues that have hampered deeper economic integration in the region.