The Declaration of ASEAN Concord II, also known as Bali Concord II, which was
endorsed at the just-ended Ninth ASEAN Summit in Bali, is a historic step toward
regional integration.
The Bali Concord II, named after the Declaration of ASEAN Concord, or The
Bali Concord, which was produced at the First ASEAN Summit in Bali in 1976,
consists of three pillars, namely an ASEAN Security Community (ASC), an ASEAN
Economic Community (AEC) and an ASEAN Socio-cultural Community (ASCC) among
ASEAN member countries.
As Indonesian Foreign Minister Hassan Wirajuda put it in his opening address
at the Association of Southeast Asian Nations' (ASEAN) Ministerial Meeting on
Sunday, the three envisioned communities are "equally important, and thereby
should be mutually reinforcing in our efforts to materialize an ideal form of
the ASEAN Community."
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam.
Of the three pillars of the Bali Concord II, AEC is much more advanced in its
end-goal, that is, to establish both a single market and a single production
base by 2020, so as to enhance ASEAN's credibility and economic weight.
For example, 10 years ago, the six older ASEAN members had agreed to bring
tariffs down to 5 percent or less within 15 years. Thanks to the concerted
efforts of all the member countries, the goal was achieved this year, five years
ahead of the schedule.
ASEAN's strategy in achieving an economic community comprises two fundamental
approaches"The ASEAN Security Community is essentially a community that relies
exclusively on peaceful processes in the settlement of intra-regional
differences. Its theme is comprehensive security, comprising national and
regional resilience.
The security community involves maritime cooperation and fight against
terrorism, but excludes military cooperation, alliances and defense pacts,
although some analysts deem that options for common defense and foreign policies
should be kept open.
According to a press statement of Indonesian President Megawati
Soekarnoputri, the summit's chairperson, on Tuesday, the High Council of the
Treaty of Amity and Cooperation (TAC) would be a principal instrument of the
ASC, as it reflects ASEAN's commitment to resolving all differences, disputes
and conflicts peacefully.
Under the concept of ASEAN Socio-Cultural Community, ASEAN countries would
carry out joint measures to improve human resources development, reduce
unemployment, cope with environment destruction and tackle dangerous diseases
such as HIV/AIDS and SARS.
The Bali Concord II with the three envisioned communities as its pillars was
necessitated by the challenges posed by globalization and by the economic and
security situations after the 1997 financial crisis and the terrorist attacks
with their severe impact on the region and worldwide.
At the ASEAN Business and Investment Summit which was held in conjunction
with the Ninth ASEAN summit, leaders of ASEAN member states and its partners
voiced their anxiety and concerns over the much slower pace with which the Asian
nations move toward economic integration, compared with Americas and Europe.
As Singapore Prime Minister Goh Chok Tong noted, the North American Free
Trade Agreement (NAFTA) which came into effect in 1994 linked the world's
largest economy with its northern and southern neighbors, and when the Free
Trade Area (FTAA) on Americas will be formed as agreed by the heads of state of
the two continents in 2001, the FTAA will link 34 economies, stretching from
Alaska to Antarctica.
Meanwhile in Europe, Goh said, after its last round of enlargement in 1995
involving Austria, Finland and Sweden, the European Union (EU) will admit 10
more Central and Eastern European countries in 2004.
In this regard, the prime minister gave a telling example. While in EU 50
percent of personal care products and 25 percent of food are sourced regionally,
the corresponding figures in ASEAN are only 18 percent and 5 percent,
respectively. The striking difference shows the Asian grouping is far from an
integrated market and an integrated production base.
As for the ASEAN Security Community, the concept has become more relevant
after the Bali bombings exactly a year ago and the terrorist attacks in other
parts of the region since the Sept. 11 incident.
In such circumstances, it's only logical that the countries in the region
need much closer cooperation to deal with the aftermath of such tragedies and
prevent their reoccurrence, not to mention the various bilateral and
multi-lateral disputes and differences to be resolved.
The need for an ASCC is self-evident as the region is the home to 500 million
people and has various problems associated with population growth, education,
unemployment, prevention of infectious diseases, environmental degradation and
trans-boundary pollution.
"A number of social and cultural problems in the region can incur great
losses to ASEAN economy and security, so we need the ASCC," said Makarim
Wibisono, director-general for Asia, Pacific and Africa at the Indonesian
foreign ministry.
However, encouraging and heartening as the blueprint is, the road will not be
smooth for the regional grouping to fully realize integration.
For one thing, although ASEAN has done a good job in reducing tariff among
its members, only a small percentage of intra-ASEAN trade is conducted under the
ASEAN Free Trade Area (AFTA) due to the red tape and delays in the process of
applying for preferential treatment.
And the bewildering range of products standards, which vary from one member
country to another, also pose non-tariff barriers to the intra-ASEAN trade. For
example, to bring a new pharmaceutical drug to the ASEAN market, a manufacturer
needs the approval of 10 health authorities.
In view of the different levels of development and extents of liberalization,
the task of establishing the AEC is far from being easy.
Compared to AEC, more suspects and concerns were voiced on ASC, as some
members are wary of being involved in a military alliance and there are also
many differences on various security matters.
Notwithstanding all the disparities and problems, the ASEAN leaders took a
significant step at their summit by adopting the Bali Concord II, which is
definitely a good starting point for the grouping's future integration.