ASEAN Economic Community: 7 Things to Know

asean

The Association of Southeast Asian Nations (ASEAN) is pushing efforts towards realizing the ASEAN Economic Community by 31 December 2015. Various initiatives are geared towards creating a single market and production base, allowing the free flow of goods, services, investments, and skilled labor, and the freer movement of capital across the region. Below are 7 things which may help you in understanding AEC further –

1)  If ASEAN were one economy, it would be seventh largest in the world with a combined gross domestic product (GDP) of $2.4 trillion in 2013. It could be fourth largest by 2050 if growth trends continue;

2)  With over 600 million people, ASEAN’s potential market is larger than the European Union or North America. Next to the People’s Republic of China and India, ASEAN has the world’s third largest labor force that remains relatively young;

3) ASEAN is one of the most open economic regions in the world, with total merchandise exports of over $1.2 trillion – nearly 54% of total ASEAN GDP and 7% of global exports;

4) Created in 1967 mainly for political and security reasons, ASEAN is today a successful model for regionalism, widely recognized globally;

5) On its 40th anniversary in 2007, ASEAN adopted the ASEAN Economic Community Blueprint, which advanced the completion target to 2015 from 2020;

6) The ASEAN Economic Community is defined by four pillars: (i) creating a single market and production base, (ii) increasing competitiveness, (iii) promoting equitable economic development, and (iv) further integrating ASEAN with the global economy;

7)The areas of cooperation among ASEAN members include:
– Human resources development and capacity building
– Recognition of professional qualifications
– Closer consultation on macroeconomic and financial policies
– Trade financing measures
– Enhanced infrastructure and communications connectivity
– Development of electronic transactions through e-Asean
– Integrating industries across the region to promote regional sourcing
– Enhancing private sector involvement for the building of the AEC

One comment

  1. Pingback: ASEAN Economic Community: 7 Things to Know | Global SCM News

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