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Paper Abstract: Provides a brief historical overview of the Association of Southeast Asian Nations (ASEAN); analyzes the present organization, details the major security, economic, social & organizational concerns within the organization; & discusses future directions. Paper Introduction: THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS Introduction In 1997, the Association of Southeast Asian Nations (ASEAN) celebrated its thirtieth year of existence. Normally, when a government organization reaches a 30-year point, it is the cause for reflection -- both internally as the group evaluates its original goals and sets plans for the next decades, and externally, when the press and other governments analyze the group's shortcomings. This paper will perform much of that same function. Part 1 will provide a brief historical overview of ASEAN. Part 2 will analyze the present organization. Part 3 will detail the major security, economic, social and organizational concerns and conflicts apparent in the organization. Part 4 will look Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. 22). A 1997 White Paper published by the Bangkok Bank notes that the ASEANfree capital movement began in 1989 when the Bank of Thailand tried toloosen capital accounts restrictions to attract more foreign funds "Ithoped that it would still have an independent monetary policy.Liberalizing the financial services and capital accounts must also beaccompanied by prudent supervision of the banking and financial system"(Limthammahisorn, 1997, Online). (1998, Feb. In a carefully worded document entitled "Joint Press Statement ofPrivate Sector Roundtable on the Impact of and Response to the FinancialCrisis in ASEAN" and dated March 26 and 27,1998, ASEAN finally made anofficial statement concerning the Asian financial crisis that had been thesubject of editorials in the world press for two years. Reappraising the eclectic paradigm inan age of alliance capitalism. In the early199 s, the Thai government, the Indonesian Government, the KoreanGovernment, and their banking systems all decided to link their currenciesto the United States dollar, joining the other world currencies linked tothe dollar (Shari & Corben, 1997, 22). But nobody could agree exactly what those criteria should be (Limits to politeness..., 1998, 31). S. Shortly after Vietnam's welcome, however, a major leak developed inthe ASEAN member states' economies. Part 3: Current Major Concerns for ASEAN There are some 2 items listed on the "ASEAN Master Summit Concernsand Projects Listing of the 1997 Master Summit," and, surprisingly, none ofthose dealt with the economic crisis in Southeast Asia. Harvard Business Review, 62 Ciminero, G.L. (1995, March 22). One official atthe opening ceremonies stated the importance of creating networks betweenAsia and Europe: "These young managers will one day be part of the elitein their countries. Part 4 will look toward the future, trying to estimateASEAN's future impact on world politics and a global economy. Conflicting policies blamed forcrisis. The only countries that still had not been admitted to ASEAN by May of1997 were Cambodia, Burma, and Laos. All ASEAN Summits since the Declaration of ASEANConcord of 1976 have addressed the issue. Na Thalang, J. The New Year's day message to "all ASEAN Friends" wasactually intended more for Western eyes, since New Years' celebrations (assuch) fall on nine separate dates. The ASEAN nations hadalways pledged non-interference in each others' internal affairs but thisincident put even more of a strain on the delicate negotiations (Casseres-Gomez, 1994, 62). Business Week International. Group versus group. When ASEAN was formed the United States was sending troops toVietnam, and because of that fact the ASEAN nations refused admission toNorth Vietnam because of its ties to Russia and its invasion of Cambodia in1978. The speech on behalf of the Southeast Asian managers participating inthe JEM Program was given by Ms Tracey Chooi. They cannot stay quiet forever (Corben, 1997, Online). The Week offered various events in trade, investment and tourism in Japan organized by the ASEAN Centre. According to the original charter papers, theAssociation had several goals: (a) to promote social and culturalunderstanding between and among all 1 nations that comprise the area knownas Southeast Asia, (b) to form a defense bloc that would ensure noencroachment of individual members' territories, (c) to create a body thatcould solve problems of mutual concern, and (d) to establish satisfactorytrade and tariff regulations that would make the ASEAN nations a viableeconomic force (Dunning, 1995, 464). On March 23, 1998, Philippine president Ferdinand Ramos took hisfellow "Master Summit" brothers by surprise when he spoke out publicly onthe situation. While theJunior Managers are learning European business ways, the ASEAN seniormanagers will be at home trying to stabilize the ASEAN economy. References Casseres-Gomez, B. That's because China's growing economic andpolitical influence is emerging as the major force to be contended with inthat area (Hunsberger, 1996, 29). I am pleased to note that, last year from September 11 to 17, the Centre held "ASEAN Week" as a special event to join in the celebration of the 3 th Anniversary of ASEAN. Available online at: http://www.aseansec.org Mydans. However, short-term grants by the United Nations, Japan, the United States, and severalEuropean nations have enabled continuation of these following projects.War on Transnational Crime ASEAN countries have worked together in the fight against cross-bordercrime since 1976, focusing initially on the trade in and abuse of narcoticsand illegal drugs, prostitution and the sale of women and children to otherparts of the world. Mush of this is blamed on the destructionof the rain forest by slash and burn techniques in Indonesia and Malaysia.In 1996, Indonesian exports of Palm Oil topped $1 billion, and thegovernment backs that industry, calling for more plantations. In 1995, theFifth ASEAN Summit in Bangkok decided to hold annual Informal Summits inbetween the formal ASEAN Summits that take place every three years. The ASEAN economic model theorizes that it is possible for a smalleconomy to maintain three desirable and contradictory national goals. Na Thalang and others point out the Thaicentral bank failed to adequately and properly regulate the banking andfinancial system, "which set the stage for the ASEAN bubble economy and therise in problem loans that would become unsustainable when exports or theeconomy are to slow down" (Na Thalang, 1997, 14). They pointed out that the volatility of exchange rates and the tight liquidity situation in ASEAN had posed serious difficulties in conducting trade, sourcing of production raw materials and business operations. The hope was that more nations would join, giving what would appear tobe a united front against what was perceived as a Communist threat in theregion. However, the idea of a UnitedSoutheast Asia was still a goal as the organization entered its 3 th year.A willingness to "bend the rules" somewhat was expressed to deal with, whatwas at the time, considered the primary diplomatic barrier to unity -- thedictatorship in Burma (called Myanmar after a 1988 coup led by a militaryjunta). (1997, Nov. The onlything standing in the way of these plantations is the rain forest. The problem has become so bad that Malaysianofficials now wear pollution face masks several days a week, and officiallyurge all citizens to do the same (Cohen & Hiebert, 1997, 29). Worried Asian leaders swallow theirpride, New York Times, B1. On the other hand, the ASEAN nations are actively pursuing a futurefor their young. Thus it is interesting to note that "ifthe members can't even agree what date New Years should fall on, you seehow difficult other decisions more important can be" (Sihouk, 1998). These, we canonly do by working closely with one other, both at work and at home, and byrespecting each others views. ASEAN policies havebeen expanded to coordinate the efforts of several existing ASEAN groups:the ASEAN Chiefs of National Police; ASEANAPOL; the ASEAN Senior Officialson Drugs; the ASEAN Finance Ministers, and the more recently established,ASEAN Ministers on Transnational Crime (Ramos calls for..., 1998, Online).Environmental Concerns Coinciding with the increased growth in ASEAN economies has been anincreased growth in pollution. On the ASEAN Web Site (which is attractive but hardly functional and is ascomplex to navigate as the ASEAN organization chart is to understand) Mr.Onda publishes daily and weekly "greetings." This excerpt from his NewYear's Day message 1998 is typically upbeat: Greetings to all ASEAN friends for the New Year. Amronk NY M.E. Everyday is a new learning experience for us,and also for our hosts, too. (1993, Summer). As the ASEAN nations concentrate moreon monetary policies, their individual economies, and the economic power ofthe association as a whole entity will increase, thereby making it a viableeconomic power. Strategy review takes on urgency. & Corben, R. Thai borrowers were spoiled by the belief that the ever-lasting fixed currency regime would protect them from foreign exchange risks. If one of their ministers is criticized for proposing an ideathat the actual head of state wants done, then the minister is easily firedand the head of state is still seen as polite and agreeable" (Sihouk,1998). Economics principles, problems andpolicies, 11th Ed. 28). (1996, Nov. The money issues cause member nations to lose face, so the moneydiscussions are done by the heads of state's financial ministers" (Sihouk,1998). (1997, Dec. JEM exposes execs to global market. Part 1: Brief Historical Overview In 1967 the Association of Southeast Asian Nations (ASEAN) was formedwith just six nations: Brunei, Indonesia, Malaysia, the Philippines,Singapore, and Thailand. 2). According to thatdocument, the organizations involved were the ASEAN Bankers Association,ASEAN Chamber of Commerce and Industry, ASEAN Business Forum, ASEANFederation of Accountants and the ASEAN Forum of Credit Rating Agencies.The Roundtable also included Dr. Suthad Setboonsarng, Deputy Secretary-General of ASEAN, Dr. Yilmaz Akyuz, Chief, Macroeconomic and DevelopmentPolicies, UNCTAD, and Dr. Manuel F. In 1992, atthe Fourth ASEAN Summit in Singapore these nine men decided that they wouldmeet formally every three years and informally at least once in between tolay down directions and initiatives for ASEAN activities. Although it is never admitted publicly, there isgeneral consensus that Suharto is the "most equal of equals." A recentarticle in the Far Eastern Economic Review praised Suharto for his"apology" for the smog from his fires: "President Suharto's unprecedentedapology for the forest fires that are spewing smoke over neighbouringMalaysia and Singapore has drawn praise as a sign of Indonesia's readinessto tackle the annual 'haze.'" (Cohen & Hiebert, 1997, 28). An article in The Economist in March. Just what is a monetary policy? California Management Review. Sharpe, Inc. (1997, April 3 ). The strongest statement about the Asiancrisis was carefully phrased. However, advances incommunications technology such as the development of the Internet have made"borders more porous and communities, therefore, more vulnerable to crimessuch as drug trafficking and paedophilia...no single country could dealwith the problem in a comprehensive and efficient manner by itself" (Ramoscalls for..., 1998, Online). This message was available in six languages on the site, and wasmirrored to sites of the nine member nations. . 1). Comparative Capitalism: The Japanesedifference. The first official ASEAN meeting to deal with the issue was held inDecember 1997. Howalliance networks compete. New York: McGraw-Hill Publishing Co. A primer on the Southeast Asianfinancial crisis. Part 2: ASEAN's Current Organization The primary purpose of the agreement was, and still is, to create aneconomic block that is known as the ASEAN Free Trade Area, similar inconcept and structure to the European Common Market. The Nation. 26) ManagementTimes, 17: 4 Johnson, C. The Economist, 346: Limsamarnphun, N. Montes, Senior Fellow, ISEAS,Singapore, as resource persons. (1997, March 11). (Ed.) (1996). Instead, there wasa listing of task forces to deal with the environment, crime, health,education, population, cultural outreach. 11 Limthammahisorn, W. Their problems have gotten serious. Sections include Organized Crime, Money Laundering, EnvironmentalCrime, Illegal Migration, Drugs, Human Organ Theft and Resale, Traffickingin Women and Children, Pedophilia, and some 2 others. They are never seen to disagree. 35:4 51(14). They forgot that eventually the external debts must be repaid by net export earnings (Na Thalang, 1997, 16). . (1995, Aug. A source at the Malaysian Trade Council offices in San Franciscoexplained: "At the Master Summit level, the nine heads of state must appearpolite and honorable. Joint press Statement of private sector roundtable on the impact ofand response to the financial crisis in ASEAN. The 14 managers from Indonesia,Malaysia, the Philippines, Thailand, and Vietnam received cultural andlanguage training as well as professional training in academic andmanagement theory all instructed by the Maastricht School of Management inthe Netherlands. (1997, Oct. and so on. Message from the Secretary General on the Occasion of the New year.(1998, Jan. at http://www.bbl.co.th/research/Aug97topic7.htm McConnell, C.R.; Brue, S.L. The companiesparticipating in the pilot project in the "Fast Moving Consumer Goods inFood Sector" are Royal Ahold, Heineken and Sara Lee / D.E. 3534: 22(2) Sihouk, M. We discover new things about each other, andat the same time, correct our misperceptions of each other. 17). (1997, July 31). Normally, when a government organizationreaches a 3 -year point, it is the cause for reflection -- both internallyas the group evaluates its original goals and sets plans for the nextdecades, and externally, when the press and other governments analyze thegroup's shortcomings. 34 Limsamarnphun, N. Policy alternatives for reform of theFree Trade Agreement of the Americas. Part 3 will detail the major security,economic, social and organizational concerns and conflicts apparent in theorganization. Independent Economic Advisory Alert. It is a universal and natural tendency to prefer doing business withpeople you know instead of with strangers. As the Bangkok Bank White Paper points out, what basically happenedwas that the ASEAN governments, seeking political advantage, createdindependent monetary policies that were based on excessive officialspending in which the governments encouraged the ASEAN member countriesbanks to lend generously for private real estate and other spending,following patterns of Japan, Korea, and Malaysia: The result has been a building boom. In 1995, the nation of Cambodia obtained "observer status" andCommunist Vietnam was admitted to ASEAN in an initiation ceremony in KualaLampur. One of the most aggressive programs is the JEM program,standing for the Junior Eurasian Managers, a group of young and dynamicexecutive trainees from the ASEAN nations who are spending a year ininternational business internship with countries in the common market. (McConnell, Brue, 199 , 321).Usually its an agreement between a government, and the government-supportedbanks to determine: (1) How much money at any one time can be incirculation; (2) How much that money will cost in interest; (3) How muchdirect foreign investment will be allowed; and (4) How much will it cost toimport products, goods and services. On their 3 th anniversary they have to deal with the issues of Cambodia, the haze and the currency. Given internal migration toward population centers where jobs are plentiful, the pressure to build infrastructure added to other, bank-financed speculative building programs that boosted the domestic economy. [were] in such a hurry towelcome them?" (Never mind the quality..., 1997, 4 ). . 14(2). "A tougher stance all round" and an "urgent need forstrengthened cooperation among countries and regions" was necessary andtimely the President said. But the problems the region has faced this year have pushedthe bloc toward a more active and aggressive style: The new Asean way is what they call constructive engagement, which is just a euphemism for intervention. Southeast Asia: New Doubts About Path toASEAN expansion, Inter Press Service English News Wire, online athttp://www.aseansec.org Dunning, J.H.(1995, Dec. The ASEANMinisters had pollution placed as the number one priority on their actionlists, until it was knocked off the primary concern lists by the Asianfinancial crisis.China Concerns The ASEAN members banded together in 1967 partly out of fear of thethreat from Chinese Communism, which greatly funded the North Vietnamese.Now it's possible that the fear of Chinese Capitalism may be the force thatbinds them even more closely. Telephone interview with Matari Sihouk,Deputy Under Secretary Trade Relations, Royal Consulate of MalaysiaInterlink Trade Group, San Francisco. A rough chart of the ASEAN Structure would look like the followingexample. Part 1 will provide a brief historical overview of ASEAN. This paper will perform much of that same function. Buried inthe policy statement are sections detailing the scope of the ASEAN crimescene. Curiously, this messageappeared, however, on a wide variety of dates from January 1 to February14. (1997, July 28). Law and Policy in InternationalBusiness 3:26 735. The Nation. 1). Keep in mind, however, that it would be duplicated nine times. In other words, we are already experiencing the very heart andsoul of the JEM programme. Most standard definitions call it asystem of altering an economy's money supply for the purpose of stabilizingaggregate output, employment and the price level. Cambodia was due to join on July 23rd, along with Myanmar and Laos, thereby realising the founders' vision of a group including all ten countries of SouthEast Asia. At the top--and sharingequal decision power--are the heads of state (presidents, premiers, primeministers) of the nine nations which are collectively known as the "ASEANMaster Summit" (ASEAN Organisation..., 1998, Online). Burningthese forests cleared land for the palm oil plantations but also paved theway for incredible pollution. Chinese president Jiang Zemin has beenquoted as saying "Friendly relations and cooperation between China andASEAN is not only in the interests of our two sides, but also benefits theAsia-Pacific region" (Mydans, 1997, B1). Ramos calls for joint effort against transnational crime. THE ASSOCIATION OF SOUTHEAST ASIAN NATIONSIntroduction In 1997, the Association of Southeast Asian Nations (ASEAN) celebratedits thirtieth year of existence. Son, J. As Limsamarnphun analyzes, the crisis is due to theabsence of a 'powerful brake' on the free-wheeling economy of the pastdecade, "without which a lot of foreign money was used for speculativepurposes, especially for real estate and stocks" (Limsamarnphun, 1997, 21). The Nation. Thequestion was raised, that since this was already "a successful club. The Search for international role,recognition, and respect. Confidence calls for fullacceptance of IMF plan. Hunsberger, W.S. . 24). Asia Pulse, 128: 14. Na Thalang concurs in this analysis: The currency peg system opened the floodgates to foreign capital. The JEM Programmewill enable them to set up joint ventures and business deals with Europebecause they will know the people, the companies and the way business isdone. TheTwo Informal Summits have been held in Jakarta in December 1996 and inKuala Lumpur in December 1997. This resulted in astoundingeconomic growth. Part 5: ASEAN's Role In the World ASEAN's policy of noninterference along with a political stylestressing consensus rather than confrontation have been keys to its successas a grouping of nations with sharp political, economic and religiousdifferences. (1994, July/August). Where there's smoke..., FarEastern Economic Review, 28 (2) Corben, R. (1997, July 7). Less than four months after that article was printed, a brutal couptook place in Cambodia, in which the country's second-in-command, Hun Sen,got rid of the ruler, Prince Norodom Ranariddh. Last year in 1997 we witnessed several remarkable events starting with Prime Minister Hashimoto's visit to ASEAN countries in January, the accession of Laos and Myanmar to ASEAN, the 3 th anniversary of the foundation of ASEAN in August and the Informal Summit of ASEAN plus China, Japan and Korea in December. Online at http://www.aseansec.org/news/ascrime988.html Shari, M. Bangkok Bank Public CompanyLtd. How could the process move easily forward once, Mr. Hun Sen blew two holes in ASEAN's cosy style of business. China has promised over and overnot to devalue its currency and has a policy of investing in ASEANcountries. (1998, March23). So they have to cooperate much more closely on things like their macro- economic policies and on the environment. But the organisation had little choice but to defer Cambodia's accession. And they will know Europe well. A phone call to the Malaysian Trade Center in San Francisco cleared upthat discrepancy. Thailand: Meltdown inprogress? Accordingly, there emerged a runaway trade deficit that grows faster the longer the currency is pegged to a rapidly rising $US (Limthammahisorn, 1997, Online). The Economist, 4 . .[it was not] clear why the present members. Instead of using the foreign savings to finance export-oriented industries, the borrowers recklessly spent the money to speculate in the property and stock markets. Japan, Korea, andTaiwan were busy building their own economies and preferred to develop itsown presence in the area. The internship period consisting of practical workplacement in Dutch companies began in January, 1996. This is what this programme isabout: creating networks" (JEM exposes execs..., 1996, 4). Called the "First ASEAN Conference on Crime," the groupcame up with the "ASEAN Declaration on Transnational Crime and AttendantPlan of Action." This policy statement was designed to strengthen theinstitutions and mechanisms for law enforcement in the region. Instead, alleconomic items and concerns were relegated to the ASEAN Economic MinistersSummit which is held at the same time and the same place: "This istypical. ASEAN: Inching forward to a United SoutheastAsia. Although constantlyreferred to as a "gathering of crown Eagles and equals" only one of thecurrent leaders -- Suharto of Indonesia -- has been with the organizationsince its founding. Part 2 willanalyze the present organization. 1997, wondered why theseven member nations were in such a rush to admit the three holdouts. Since ASEAN is funded primarily by member nations with grants from theUnited Nations and the G-7 countries, it follows that many researchprograms funded by the organization might be in jeopardy. Journal of International Business Studies26:4 461. (1997, Sept. Monetary policy entailsone or more of the following: (a) increasing the money supply during a recession to stimulate spending, and conversely, (b) restricting the money supply during inflation to constrain spending. This (is where) we believe, lies the truespirit of the JEM Programme" (JEM exposes execs..., 1996, 4). Thanks to the strong support and cooperation from associated governments and local public organizations, the ASEAN Week concluded in a great success (Message from the..., 1998, Online). The article stated that "Privately, ASEANofficials say that barring disasters, such as a massacre in Myanmar or anoutbreak of civil war in Cambodia, their timetable is set" (Never mind thequality..., 1997, 41). Laos and Myanmar were accepted in July, 1997, and Japan (serving as adiplomat at large) is working with Thailand to bring Cambodia into thefold. The article thenanalyzed the coup in Myanmar and announced that the three nations were setto join in July, 1997. stimulated imports beyond what export terms of trade could sustain. Thethree paths that ASEAN is pursuing are a fixed foreign exchange regime,free capital movement and an independent monetary policy. (Joint Press Statement, 1998). On line at:http://www.dismal.com/thoughts/asian_crisis.stm Cohen, M.; Hiebert, M. A second tier of meetings called the ASEAN Ministerial Meetings (AMM)are held for the ASEAN Foreign Ministers who meet annually to formulatepolicy guidelines and coordination of ASEAN activities. (1997, Aug.) Financial crisis in Japan, SouthKorea and Thailand: A comparison White Paper. at Wells Fargo Bank. However, as opposedto the European model, which has both strong countries (Germany, France,United Kingdom) and weak countries (Greece, Spain and Italy) ASEAN had nomajor economy connected with it (Gastle, 1995, 741-743). It had to admit that there were, after all, some limits to "non-interference," and some basic criteria for the domestic behaviour of members. The Malaysian Foreign Minister at the time, Abdullah Badawiconducted the ceremonies and said in a speech "With Vietnam's entry, a veryimportant step has now been built towards reaching the target of makingASEAN truly the association of all Southeast Asian nations" (Son, 1995,2.2). Never mind the quality. She summarised theexperiences of the first JEM group of Asian managers in Europe by saying:"We have know started our internship with the three host companies, RoyalAhold, Sara Lee/D-E and Heineken, and we are also staying with our hostfamilies. . Gastle, C.M. It is interestingto note that at these sessions, the airs and attitudes of politenessdisappear, and politics as usual takes place (ASEAN Organisation..., 1998,Online). (1998, March 3 ). Head of State = Member of Master Summit 9 Foreign Minister of State = ASEAN Ministerial Meetings 9 Minister of Finance = Assembly of Economic Ministers The organization is headquartered in Jakarta, Indonesia, and TakashiOnda is currently serving as the Secretary General (or official spokesman). The ministers agreed, that the present crisis had severely affected their businesses and commerce in the region. The goal of AFTA is to implement a gradualtariff reduction plan from 1996 to 2 3, when the tariff will be at zeroand free trade will be enacted among ASEAN members.ASEAN Heads of Government The ASEAN organizational chart is complex. (1998, March 25 and 27).Online at http://www.aseansec.org The limits of politeness. The Sixth ASEAN Master Summit is scheduledto be convened in Hanoi in December 1998 (ASEAN Organisation..., 1998,Online). The first group of ASEAN managers arrived in Europe in late November,1995, for the training and internship periods offered by the Junior EUR-ASEAN Managers Exchange Programme (JEM). 2). The heavynegotiations and the backstabbing occur beneath them, philosophically andmorally. In this regard, the ASEAN private sector stressed the importance of stable exchange rates for businesses to operate with less uncertainty. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.