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Jakarta Post

Can ASEAN achieve economic community?

  • Kiki Verico

Canberra   /   Mon, December 24 2012   /  09:27 am

The history of regional economic integration in Europe tells us that an economic community is an essential stage prior to achieving a common market (CM).

Economic community begins with the free flow of goods (trade integration) to the free flow of capital (investment integration), then service sector liberalization and the free flow of people.

These are all necessary conditions for a common market. ASEAN is attempting to achieve comprehensive regional economic integration through its economic community scheme, ASEAN Economic Community (AEC) 2015.

ASEAN is in the early stages of regional economic integration, which is in intra regional trade with the role of AFTA (ASEAN Free Trade Area). Although ASEAN intra-regional trade increased from 17.5 percent in 1990 (before the implementation of AFTA) to 24.5 percent in 2009 (after the implementation of AFTA), average ASEA...