Southeast Asian nations formally launched Thursday an economic bloc in the hope of emulating the integration of the European Union. There was no official ceremony or fanfare to mark the establishment of the new grouping, reflecting perhaps the difficult task ahead in creating a single market.
The level of economic progress in the 10-member Association of Southeast Asian Nations, or Asean, is uneven, while individual democratic institutions in the region are not that developed as in Europe.
Asean counts Singapore, one of the world’s most developed countries, oil-rich Brunei, and developing nations such as the Philippines, Thailand, Indonesia, Malaysia and Vietnam, and poorer states like Laos, Cambodia and Myanmar. The region is resource-rich and offers a market of over 600 million people.
But the goal of attracting investments in a single market with a free flow of goods will remain problematic. The elimination of non-tariff barriers, for one, may not be immediately implemented despite a common agreement because of sensitive commodities and a vocal farming sector.
Asean members have set their own individual economic goals. With the exception of wealthy Singapore, many Asean countries are still struggling to make their economic growth inclusive and are still way off from becoming powerhouse exporters.
Asean nations should solidify their individual economic gains first before looking outward for further expansion. The lack of infrastructure remains a problem, especially in the Philippines, Vietnam and the poorer states, where the leadership has failed to grasp the urgency of the matter.
The transportation system and the road network in the rural areas of these countries should be addressed to create the market for the farmers and the fisherfolk. Economic growth in the region has remained largely concentrated in the urban areas and bypassed the countryside.
Economic integration, however, should be the ultimate goal of the region to boost its trading clout and make Asean products competitive with China and the rest of the world.
