ChAPTER 7: REGIONAL COOPERATION

Regional Cooperation The idea of regional cooperation preceded globalization. Regional cooperation refers to cooperation between several nations for their own mutual benefit. It is based on a spirit of mutual respect and understanding and exists through military cooperation, economic cooperation, financial cooperation, legal cooperation, etc.

The History of Regional Cooperation in Asia Efforts at regional cooperation took off after WWII in 1946. The North Atlantic Treaty Organization (NATO) is a cooperative military effort amongst the 28 European countries, the United States, and Turkey. It was initiated by the US and its allies to prevent the influence of communism post-WWII.

Southeast Asia Treaty Organization (SEATO) SEATO consisted of the US, the UK, France, Australia, New Zealand, the Philippines, Thailand, and Pakistan. It was established to prevent the influence of communism from spreading further in SEA after they managed to obtain a foothold in Indochina. It also served as a warning to Russia and China, reminding them not to interfere with such matters.

Other efforts Association of Southeast Asia (ASA) -1961 The Greater Malayan Confederation (Maphilindo) – 1963 Association of Southeast Asian Nations (ASEAN) - 1967

Association of Southeast Asian Nations The Association of Southeast Asian Nations (ASEAN) was established on 8 August, 1967 at Bangkok. Its members consisted of Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Brunei joined in 1984; Vietnam joined in 1995; Laos and Myanmar in 1997; and Cambodia in 1999.

Objectives of ASEAN Expediting economic growth, and social and cultural development through cooperative efforts in order to produce a peaceful Southeast Asian community. Fostering regional stability by upholding the sanctity of the each nations’ individual laws and by adhering to the principles of the Charter of the United Nations.

Objectives of ASEAN Fostering a spirit of cooperation in education, administration as well as technical and professional fields. Promoting more effective cooperation so as to move the agricultural and industrial sectors forward Improving the standards of living for its citizens Encouraging more research in and about the region.

Areas of Cooperation Cooperative efforts amongst ASEAN member states primarily focus on the following areas: Economic matters Social matters Political matters

Political Cooperation The ratification of the Treaty of Amity and Cooperation (TAD) specified that all security and political ASEAN cooperative efforts and dialogues should work towards achieving and improving the political stability of the Asian region through self-reliance, mutual respect, and integration.

Zone of Peace, Freedom and Neutrality (ZOPFAN) All ASEAN countries abide by the ZOPFAN concept which ensured that Southeast Asia was not involved in Cold War conflicts between world powers such as the US, Russia and China.

Nuclear Weapons-Free Zone ASEAN was declared a nuclear weapons-free zone in 1987. In addition, the ASEAN Convention on Counter-Terrorism (ACCT) was ratified to fortify anti-terrorism efforts.

Economic Cooperation From 1970 to 1995, the GDP of ASEAN grew at a rate of 7% p.a. It now has a collective GDP of more than USD700billion. In commercial terms, ASEAN is the fourth largest entity in the world after the EU, the US, and Japan.

Growth Areas ASEAN supports the formation and operation of “natural growth areas” which are located at points near adjacent countries. Today, three active growth areas are in operation, namely the Indonesia-Malaysia-Singapore Growth Triangle, the Indonesia-Malaysia-Thailand Growth Triangle, and the Brunei-Indonesia-Malaysia Growth Triangle.

ASEAN Free Trade Area (AFTA) The AFTA was ratified by ASEAN and encapsulates the production of all the member state’s local products. The agreement led to the formation of a free trade area where tariffs and duty tax would be eventually abolished. E.g. the Green Lane System planned to accelerate release by customs and to abolish custom tax.

Social Cooperation Social cooperation in ASEAN encompasses the following areas: culture, information and technology, education, environment, health, the workforce, social development, poverty eradication, the protection of women and children, and the improvement of government administration.

South Asian Association for Regional Cooperation (SAARC) The SAARC is an economic and political organization consisting of seven nations in South Asia. It has the largest range of influence compared to other regional organizations with a collective population of 1.5 billion people.

South Asian Association for Regional Cooperation (SAARC) Its members upon formation in 1985 were India, Pakistan, Nepal, Bhutan, Nepal, Sri Lanka, and the Maldives. Afghanistan joined in 2007. Its initial focus was on the following five areas: agriculture, rural development, telecommunications, meteorology, and health.

SAARC Objectives Improving the welfare and quality of life of South Asians Accelerating economic growth, and social and cultural development within the region Promoting and strengthening inter-dependence between South Asian nations Promoting cooperation and assistance in between each nation Strengthening cooperation with other developing countries

Issues faced by SAARC Only 5% trade within SAARC nations The supremacy of India The India-Pakistan Kashmir dispute Lack of bilateral agreements/relations FTAs do not encourage importing and exporting activities

Gulf Cooperation Council (GCC) The GCC is a political and economic combination of Middle Eastern countries bordering the Persian Gulf. It consists of Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, and Oman. All these nations have great oil reserves.

Gulf Cooperation Council (GCC) The GCC is a political and economic combination of Middle Eastern countries bordering the Persian Gulf. It consists of Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, and Oman. All these nations have great oil reserves.

Gulf Cooperation Council (GCC) The GCC was initially established at Riyadh in 1981 as a military federation as a result of the Iraq-Iran war which had persisted for 8 years. When Kuwait was attacked by Iraq in 1991, the 6 GCC nations agreed to form a joint military including a naval, land, and air force which would be led by Saudi Arabia .

Asia-Pacific Economic Cooperation (APEC) APEC is an economic forum consisting of nations bordering the Pacific Ocean. The aim of the forum is to strengthen regional economic growth by promoting multilateral ties. It consists of 21 countries: Australia, Brunei, Canada, Chile, HK, Indonesia, South Korea, Malaysia, Mexico, Papua New Guinea, Peru, the Philippines, Singapore, Russia, Thailand, Taiwan, the US, NZ, and Vietnam.

Asia-Pacific Economic Cooperation (APEC) These nations collectively make up 60% of the world’s economy and 47% of the world’s trade. The Bogor Goals detail the primary aims of APEC, namely free trade and investment amongst developed nations by the year 2010 and free trade and investment amongst developing nations by the year 2020.

Asia-Pacific Economic Cooperation (APEC) APEC is an economic forum consisting of nations bordering the Pacific Ocean. The aim of the forum is to strengthen regional economic growth by promoting multilateral ties. It consists of 21 countries: Australia, Brunei, Canada, Chile, HK, Indonesia, South Korea, Malaysia, Mexico, Papua New Guinea, Peru, the Philippines, Singapore, Russia, Thailand, Taiwan, the US, NZ, and Vietnam.

Asia-Pacific Economic Cooperation (APEC) Economic cooperation between APEC countries differs slightly from other regional cooperation efforts (e.g. ASEAN) as it is more volunteer-based. This means that the efforts are more flexible and non-binding. Decisions are made through consensus and mutual recognition of the differing levels of economic development of each member state.

Central Asia Regional Economic Cooperation (CAREC) CAREC was established in 1997 and currently consists of 10 nations: Afghanistan, Azerbaijan, China, Kyrgyz, Mongolia, Pakistan, Tajikistan, Kazakhstan, Turkmenistan, and Uzbekistan. Its regional cooperation efforts are coordinated through the Asian Development Bank, the World Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development.

Asia Cooperation Dialogue (ACD) The ACD was formed in 2002 after the 18 Asian foreign ministers met up for the first time. The ACD is a forum that aims to increase the competitiveness of Asian nations focussing on the wealth and diversity of the Asian continent. Since its inception, the ACD ministers met annually.

Asia Cooperation Dialogue (ACD) The ACD was formed in 2002 after the 18 Asian foreign ministers met up for the first time. The ACD is a forum that aims to increase the competitiveness of Asian nations focussing on the wealth and diversity of the Asian continent. Since its inception, the ACD ministers met annually.

ACD Objectives Strengthening cooperation between member states in order to abolish poverty and increase the quality of life in Asia Widen the financial and trade market in Asia and increase Asia’s competitiveness in the world market. Creating a uniquely Asian community that is able to interact with other nations and contribute to world peace and stability.

ACD Projects Agriculture – China, Pakistan, and Kazakhstan E-Education – Malaysia Energy – Bahrain, Indonesia, the Philippines, Qatar Environmental Education – Japan Finance – Thailand IT – South Korea Natural Disasters – Russia Poverty Elimination – Bangladesh, Cambodia, Vietnam Tourism – Thailand, Pakistan, Myanmar