There are three recent developments compelling ASEAN to change and improve:

1. Competition from emerging economies, such as China and India. Before 1999, ASEAN was the “darling” of foreign investors. Now, the ten Southeast Asian countries have to work harder and collectively to increase the FDI inflow.

2. The sense of insecurity arising from transnational challenges.  Terrorist attacks and large-scale natural disasters, such as the tsunami of December 2004, have made ASEAN to come together to take multilateral initiatives in response.

3. The maturity or coming of age of many ASEAN Member Countries. Some of the ASEAN Member Countries have opened up their society and economy.

Since ASEAN’s establishment in 1967, the Leaders of ASEAN seem to conduct ASEAN’s work based upon three main principles: 

1) “Lead by Visioning”

We know that leadership requires visioning. Vision will put together concerted efforts whether of an individual or of an organisation to achieve goals and outcomes. Ever since the establishment of ASEAN, ASEAN Member Countries have been aware of their limitations, mutual interests and challenges.  These conditions dictate a step-by-step regional cooperation, with visioning marking each phase of cooperation. Through these stages, visioning has lead ASEAN to progress in the right direction.

The ASEAN Declaration 1967

When the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand met in Bangkok in 1967 and established ASEAN, the Southeast Asian region was amidst political uncertainty. The five countries were searching for positive economic development. They were brought together upon mutual interests and common problems in Southeast Asia (ASEAN Declaration, 1967).

Bali Concord I

Ten years later in 1976, the ASEAN Leaders gained more confidence and declared “to consolidate the achievements of ASEAN and expand ASEAN cooperation in the economic, social, cultural and political fields” through the Declaration of ASEAN Concord (the Bali Concord I). At this stage, the Leaders stressed the importance of promoting regional security through non-ASEAN avenues. The Bali Concord I became the holistic framework for ASEAN cooperation by giving more specific directives.

Laying such a foundation, ASEAN started to develop gradually yet steadily in political and security, economic, and socio-cultural cooperation, with economic cooperation in the lead.  The initiative for the ASEAN Free Trade Area (AFTA) started to roll in 1992, which led to the commencement of AFTA in 2003 for the ASEAN 6.

Vision 2020 

Sensing the strengthening of ASEAN cooperation, the ASEAN Leaders took a further step in 1997 with the ASEAN Vision 2020 which envisions ASEAN as “a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in community of caring societies” by the year 2020. An integrated economy is also part of their vision. 

Bali Concord II

The ASEAN Leaders in 2003, through the Declaration of ASEAN Concord II (Bali Concord II), declared the establishment of the ASEAN Community by the year 2020.  The timeline has now been accelerated to year 2015.

The Bali Concord II is the continuation of the assurance of the strengthening of cooperation in ASEAN for “durable peace, stability and shared prosperity in the region”.

The ASEAN Community shall comprise three pillars: the political and security cooperation, economic cooperation and socio-cultural cooperation.  These pillars will take the form of: 1) the ASEAN Political Security Community; 2) the ASEAN Economic Community; and 3) the ASEAN Socio-Cultural Community.  That ASEAN started as a loosely-organised association has been gradually transformed into a formal regional body is in itself an accomplishment.

• The ASEAN Political Security Community (APSC) shows that ASEAN has gained more confidence in addressing political and security matters. Countries in the region are assured of living in peace with one another.
• The ASEAN Economic Community (AEC) is the end goal of ASEAN economic integration. It aims to build a single market of 560 million people, which would accelerate the economic development of ASEAN Member Countries
• The ASEAN Socio-Cultural Community (ASCC) will bind ASEAN Member Countries together in improving the quality of life of ASEAN people towards a community of caring societies.

ASEAN Charter

In building the ASEAN Community and realising regional economic integration, ASEAN Leaders recognise the need to coordinate and to implement agreed plans effectively. To do so, the ASEAN Leaders signed the ASEAN Charter at the 13th ASEAN Summit in Singapore on 20 November 2007. The ASEAN Charter means the following to ASEAN Community building:

1. The ASEAN Charter provides transparent rules for ASEAN to operate, and gives predictability for the outside world to know about ASEAN and its commitments;
2. The Charter institutionalise the working processes of ASEAN to enable ASEAN officials to make decisions more effectively;
3. In relation to the first two points, the Charter provides the necessary adjustments to ensure better coordination and efficiency; 
4. The ASEAN Secretary-General has more monitoring functions towards programmes/activities agreed upon by ASEAN.

2) “Use the ASEAN Way”

We have discussed how the Leaders’ visions carried ASEAN regional cooperation forward in gradual phases. Such a process cannot be separated from ASEAN’s adherence to its principles of regional cooperation stipulated in the ASEAN Declaration 1967 and practical modalities. The outside world called this “the ASEAN Way”.   

By adhering to the principles of regional cooperation, the Leaders and the ASEAN Member Countries used practical procedures in day-to-day cooperation, such as:

1. Decision-making based on consultation and consensus;
2. Equal sharing of responsibilities; 
3. Emphasis on win-win outcome; and 
4. Fulfillment of all obligations in good faith.

For the non-ASEAN quarters, “the ASEAN Way” has been associated with potential indecisiveness, or lethargic progress on cooperation matters that seem to require immediate decisions.  For ASEAN, “the ASEAN Way” has proven effective for managing national sensitivities and regional concerns. The comfort level of ASEAN Member Countries is obtained and forward momentum is possible. 

3)  “Prosper Thy Neighbour”

The ASEAN Leaders pay much attention to the prosperity amongst the Member Countries. ASEAN Leaders like to operate on the principle of “Prosper Thy Neighbour”. This principle was made famous in ASEAN by former Prime Minister of Malaysia, Dr. Mahathir Mohammad, and was formally adopted by the Leaders at the launching of Initiative for ASEAN Integration (IAI) in year 2000.

IAI was built upon this principle. The IAI focuses on narrowing the development gaps within ASEAN. The action and measures are concentrated on Cambodia, Lao PDR, Myanmar and Viet Nam, although not limited only to them.

The basic philosophy is that no prosperous country can feel secure if its neighbourhood is impoverished. It will be to the benefit of all in the region if the more developed countries help the less developed countries, and the latter sustain their national development plans to progress.

Furthermore, the Leaders facilitate the creation of a caring and sharing community by cultivating the “caring and sharing feeling”. During the aftermath of the Indian Ocean tsunami, the Leaders’ held the Special ASEAN Leaders’ Meeting on Aftermath of Earthquake and Tsunami in January 2005, and agreed to mobilise additional resources for emergency relief; to support efforts of rehabilitation and reconstruction; and establish regional mechanisms on disaster prevention and mitigation. 

We have observed three leadership principles which had shaped ASEAN today.
Today’s ASEAN has three positive characteristics:

1) ASEAN is Unique

ASEAN is the only regional organisation in Southeast Asia having the most holistic approach to regional cooperation. ASEAN has progressed in political and security, economic, and socio-cultural cooperation. ASEAN does not stop at the wide sectoral spectrum of regional cooperation. It continuously strives to improve operations and mechanisms, in the view of building the ASEAN Community.

Secondly, ASEAN believes in integration. The ten economies are stronger when combined.  The population of 560 million people is a huge market and producer. High accordance as a strategic political, economic and social global player can be better achieved when the ten Countries come as a group. 

The familiarity towards ASEAN regional cooperation has brought ASEAN Member Countries with special interests to engage in sub-regional cooperation among them. These include: 1) BIMP-EAGA, 2) IMT-GT, and 3) AMBDC (a cooperation mechanism with China to develop the Mekong sub-region).

2) ASEAN gives good value and delivers on projects

In recent years, we can see the efforts and challenges in paving the way for ASEAN economic integration. In the first place, compliance of the Member Countries is crucial.  Putting in place national mechanisms that comply with economic agreements is also another challenge. The Member Countries started to analyse their comparative advantage. This also shows the exercise have cultivated a sense of regional competitiveness. 

Besides a sense of competitiveness, a sense of regional solidarity has grown. And through the solidarity, ASEAN managed to deliver its projects. Under the IAI programme, as of 2007, ASEAN has implemented 96 projects, out of 134 projects of the IAI Work Plan. The programme brought in funding from ASEAN-6 and ASEAN Dialogue Partners. The ASEAN Secretariat, also has undertaken a programme for officials from CLMV countries to work in the Secretariat on short-term attachment. This gives the opportunity for these officials to be exposed in a regional setting, and to learn ways of ASEAN cooperation. 

3) ASEAN engages big powers peacefully in Southeast Asia

To date, ASEAN has successfully engaged big powers, such as China, Japan, India, the EU and the US.  The grouping itself brings diplomatic advantage for its members to be able to engage the big players.

ASEAN maintained dialogue relations through the following:

1. ASEAN Plus One with 11 Dialogue Partners (and Pakistan as Sectoral Dialogue Partner). 
2. ASEAN Plus Three mechanism, cooperation with China, Japan, and Republic of Korea (ROK). 
3. ASEAN engaged Australia, China, India, Japan, ROK, and New Zealand in the East Asian Summit (EAS).
4. Together with other participating countries, ASEAN established the ASEAN Regional Forum (ARF) as a forum of consultation of political and security issues affecting the region.

Conclusion

ASEAN has its own characteristics and shape, because of the ASEAN Leaders’ style of leadership. Based on the limitations and regional settings, the Leaders have guided ASEAN cooperation. The changes we are facing can be considered as reflections of progress, of perfecting the organisation to fulfill the demands and needs of the ASEAN Member Countries. The least we can say for Southeast Asia is, the region’s peace, security and stability cannot be separated from ASEAN’s efforts in implanting stronger ties and greater regional confidence through its 40 years of cooperation.