1. Social and Equitable Economic Development in ASEAN
Conference on
Competitiveness of ASEAN Countries: Trade and Investment Issues
8-9 January 2009
National Institute of Development Administration
Bangkok, Thailand
Presented by:
Dr. Filemon A. Uriarte, Jr.
Executive Director
ASEAN Foundation

2. Association of Southeast Asian Nations (ASEAN)
30 April 1999
Association of Southeast Asian Nations (ASEAN)
Indonesia
Malaysia
Philippines
Singapore
Thailand
8 Aug 1967
Brunei Darussalam
8 Jan 1984
Vietnam
28 Jul 1995
Lao PDR
Myanmar
23 Jul 1997
Cambodia
30 Apr 1999

3. ASEAN Charter: Purpose of ASEAN
To create a single market and production base which is stable, prosperous, highly competitive and economically integrated with effective facilitation for trade and investment; facilitated movement of business persons, professionals, talents and labor; and freer flow of capital.
To alleviate poverty and narrow the development gap within ASEAN through mutual assistance and cooperation

4. Table 1: Area and Population
Country
Land
(‘000 km2)
Population (million)
2007
Brunei Darussalam
5.8
0.396
Cambodia
181
14.5
Indonesia
1,891
225
Lao PDR
237
5.61
Malaysia
330
27.2
Myanmar
677
58.6
Philippines
300
88.9
Singapore
0.7
4.59
Thailand
513
65.7
Vietnam
329
85.2
ASEAN
4,464
576

5. Table 2: Economic Performance (2007)
Country
GDP per capita
(USD)
GDP total
(billion USD)
Brunei Darussalam
31,076
12.23
Cambodia
598
8.66
Indonesia
1,920
432
Lao PDR
736
4.13
Malaysia
6,880
187
Myanmar
216
12.63
Philippines
1,653
146.9
Singapore
35,200
161.5
Thailand
3,740
246
Vietnam
837
71.3
ASEAN
2,227
1,282

6. Table 3: Trade Value (2007) Country Exports (billion USD) Imports
Total
Brunei Darussalam
7.65
2.10
9.75
Cambodia
3.91
3.67
7.58
Indonesia
114.1
74.5
188.6
Lao PDR
0.382
0.711
1.093
Malaysia
176.4
147.1
323.5
Myanmar
5.93
2.79
8.72
Philippines
50.5
55.5
106.0
Singapore
301
267
568
Thailand
153.5
138.7
292.2
Vietnam
48.3
61.7
110.0
ASEAN
862
754
1,616

7. Although the CLMV economies have on average grown faster than the ASEAN-6 countries during the past decade (5.7% compared to minus 8.8% in 1998 and 8.5% compared to 6.4% in 2007), their share in total GDP is only about $97 billion or a mere 7.5% of the nearly $1.3 trillion total ASEAN gross domestic product.

8. Table 4: School enrolment and adult (15 years and above) literacy rate (2005)
Country
Enrolment
Literacy
Brunei Darussalam 78
92.7 (2004)
Cambodia
60 (2003)
78.7
Indonesia
68 (2003)
90.9
Lao PDR 61
72.7
Malaysia
74 (2004)
91.6
Myanmar
49 (2003)
94.1
Philippines 81
92.6
Singapore 94
95.1
Thailand
71 (2003)
93.5
Vietnam 63
93.0

9. Table 5: Percentage of population with access to safe drinking water and sanitation facilities (2005)
Country
Water
Sanitation
Brunei Darussalam 99
80 (2003)
Cambodia
44 (2004) 23
Indonesia 80
Lao PDR
51 (2004)
30 (2004)
Malaysia
99 (2004)
94 (2004)
Myanmar
78 (2004) 83
Philippines 86
Singapore
100
Thailand
98 (2004)
Vietnam
85 (2004) -

10. Table 6: Life expectancy at birth and infant mortality (2005)
Country
Expectancy
(years)
Mortality
(per 1000 live births)
Brunei Darussalam
76.7
7.4
Cambodia -
73.0
Indonesia
69.0
30.8
Lao PDR
61.0
70.0
Malaysia
73.7
6.7
Myanmar
60.8
45.1
Philippines
67.1
24.0
Singapore
80.1
2.1
Thailand
69.6
7.6
Vietnam
16.0

11. ASEAN Vision 2020, adopted by ASEAN Leaders in Kuala Lumpur in 1997, aims to promote equitable economic development and reduce poverty and socio-economic disparities in the ASEAN region. This aim is reiterated in the 1998 Hanoi Plan of Action and the 2001 Hanoi Declaration on Narrowing Development Gap for Closer ASEAN Integration.

12. 2003 Declaration of ASEAN Concord II
The ASEAN Economic Community shall ensure that the deepening and broadening integration of ASEAN shall be accompanied by technical and development cooperation in order to address the development divide and accelerate the economic integration of CLMV countries through the Initiative for ASEAN Integration (IAI) and the Roadmap for the Integration of ASEAN (RIA) so that the benefits of ASEAN integration are shared.

13. 2000
ASEAN Leaders agreed to launch the Initiative for ASEAN Integration (IAI)
2002
ASEAN Leaders approved a Work Plan for the IAI

14. Vientiane Action Program (VAP): Adopted by the ASEAN Leaders in 2004
We shall address the development issues and special needs of the less developed ASEAN Member Countries and sub-regional areas of ASEAN, including the implementation of the concept of ‘Prosper Thy Neighbor’, by instituting programs to narrow the development gap, reducing socio-economic disparities and eradicating poverty within ASEAN.

15. Initiative for ASEAN Integration
A policy framework which aims to contribute to narrowing the development gap within ASEAN, involving the development of legal, institutional and regulatory frameworks and technical capabilities and capacities of CLMV countries.

16. IAI Work Plan ( ) has been developed to assist the CLMV countries to catch up with the rest of the ASEAN-6.
Supported with contributions from ASEAN-6.
Four priority areas: infrastructure development, human resource development, information and communications technology, and promoting regional economic integration.

17. Infrastructure development: coordinated by Cambodia
Aims to improve access, efficiency and quality of transport and energy infrastructure to enhance the sub-region’s ability to attract trade and investment and promote further integration.

18. Human resource development: coordinated by Laos
Aims to raise and strengthen the productive capacities of CLMV countries through higher education and skills training by supporting and developing their policy and institutional frameworks.

19. Information and communications technology: coordinated by Myanmar
Offers a means to leapfrog development of CLMV countries by supporting the development of ICT to reduce the digital divide and facilitate trade and investment in the ICT sector.

20. Regional economic integration: coordinated by Vietnam
Aims to enable CLMV countries to participate effectively in the ASEAN Free Trade Area, the ASEAN Investment Area, the liberalization of trade in services, and ultimately in the development of a single market and production base.

21. Table 7: Status of IAI Projects
Projects with full funding
Completed
On-going
Planning for implementation
158
Projects with partial funding 6
Projects being considered for funding 15
Projects with no funding 24
Total
203

22. Table 8: Program Areas Covered by Projects
Infrastructure 24
Transport 12
Energy
Human Resource Development 69
Public sector capacity building 51
Labor and employment
Higher education 6
Information and Communications Technology 31
Regional Economic Integration 53
Trade in goods and services 19
Customs 14
Standards
Investments
Tourism 8
Poverty and Quality of Life 5
General Coverage Projects 13
Total
203

23. Table 9: ASEAN-6 Contribution to IAI Projects
Country
Number of Projects
Amount (‘000 US$)
Brunei Darussalam 8
1,500
Indonesia 9
805
Malaysia 58
4,823
Philippines
558
Singapore 33
22,811
Thailand 13
481
Total
130
30,978

24. Table 10: Bilateral Contribution to CLMV Countries
Country
No. of Projects
Amount (‘000 US$)
Brunei Darussalam 4
359
Indonesia 29
1,662
Malaysia 62
5,874
Philippines 31
262
Singapore 56
53,055
Thailand 97
100,358
Total
221
160,570

25. At the 14th ASEAN Summit, the Leaders are expected to adopt the Second IAI Work Plan. While capacity building and human resource development was a key focus of the 1st IAI Work Plan, the 2nd will focus on the development of infrastructure as a means to deepen ASEAN integration and competitiveness.

26. Objectives of the ASEAN Foundation:
Promote greater awareness of ASEAN, and greater interaction among the peoples of ASEAN as well as their wider participation in ASEAN’s activities
Contribute to the evolution of a development cooperation strategy that promotes mutual assistance, equitable economic development, and the alleviation of poverty.

27. Table 11a: Completed projects related to poverty alleviation and CLMV
Title of Project
Amount (US$)
Support projects for ASEAN’s small and medium enterprises
211,055
Training course for national economic management and poverty eradication
46,727
Workshop on technical vocational education and training for women’s economic empowerment
59,797
Trainers’ training on planning and management of literacy programs for poverty alleviation
43,248
Training course for the promotion of the ASEAN National Agriculture Research System
82,750
Training project for lecturers and farmers from ASEAN countries in the area of rural development
61,255
The promotion of sustainable fisheries through south-south cooperation in the ASEAN region
175,190
Conference on sustainable fisheries: food security for the people
418,275
Human resource development program
211,710
Looking to the future for deprived children in the ASEAN region
175,547

28. Table 11b: Completed projects related to poverty alleviation and CLMV
Title of Project
Amount (US$)
Cooperative capacity building on “The ASEAN Development Experience”
392,043
Capacity building for the improvement of the fishery statistical system
200,000
Comprehensive capacity building for sustainable development in the Greater Mekong Region
353,584
Community based HIV/AIDS management course
400,736
Support program for AUN SEEDNet
317,510
Human resource development and institutional capacity building in CLMV
86,903
Energy efficiency and renewable energy for Greater Mekong Region
82,153
Capacity building for ASEAN SMEs
72,811
HRD program in participatory project cycle management for the Mekong Region
39,363
Productivity and quality management program for SMEs
72,084

29. Table 11c: Completed projects related to poverty alleviation and CLMV
Title of Project
Amount (US$)
HRD for sustainable development of fisheries
181,282
Capacity building in biomass utilization
80,635
Capacity building on supply chain management for small agribusiness in the Mekong Region
29,848
Development of productivity specialists
110,108
Women, gender and cooperatives: meeting challenges and identifying opportunities
76,688
Scholarships for the smart but poor in ASEAN
152,406
Training workshop on financial management for self-employment
91,102
Training on diversified farming using participatory approach
30,496
Training on integrated quality system for agri-food processing
94,284
Asian farmer’s exchange learning and networking
250,233

30. Table 11d: Completed projects related to poverty alleviation and CLMV
Title of Project
Amount (US$)
Capacity building for sustainable development in the Greater Mekong Sub-region
24,891
Community leadership and entrepreneurship for young agri-graduates
92,220
Regional workshop on drying technology
219,103
Agri-food processing for ASEAN SMEs
114,704
Training on sustainable farming techniques
168,312
Regional agricultural modernization
68,209
HRD program on biotechnology for CLMV
74,869
Promoting economic empowerment of women
157,953
Training people to help the poor and disadvantaged
30,168

31. Table 11e: Completed projects related to poverty alleviation and CLMV
Title of Project
Amount (US$)
Technical vocational education and training for CLMV countries
73,978
Training on risk assessment of agriculture-related GMOs
83,555
Training on ground water resource development in CLMV
68,739
Strengthening of ICT in schools
209,439
Higher education management in CLMV
32,296
Community leadership and entrepreneurship for SMEs in GMS
29,307
Strengthening ICT in schools
63,823
ICT training in developing countries
73,282
Total of Completed Projects
6,184,671

32. Table 12: On-going projects related to poverty alleviation and CLMV
Title of Project
Amount (US$)
Capacity building in poverty mapping in ASEAN
283,013
Promotion of FOVOP system to improve livelihood of fishery communities
241,246
Capacity building for gender, poverty and mobility analysis of road transportation in GMS Region
329,976
Regional conferences for AUN SEEDNet Phase 2
778,734
HRD on poverty alleviation and food security by fisheries intervention
463,837
Scholarships for postgraduate studies
734,668
Building capacities for women entrepreneur for micro-enterprise development
180,785
Linking small farmers to the market
439,725
Communication information system for the control of avian influenza in Lao PDR and Vietnam
1,051,248
Strengthening capacity of small holder aquaculture farmers
192,706
Collaborative project on nutrition surveillance
79,279
Total of On-going Projects
4,775,217