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ESTABLISHMENT The Association of Southeast Asian Nations or ASEAN was established on 8 August 1967 in Bangkok by the five original Member Countries, namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam joined on 8 January 1984, Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999. The ASEAN region has a population of about 500 million, a total area of 4.5 million square kilometers, a combined gross domestic product of almost US$ 700 billion, and a total trade of about US$ 850 billion.


VISON The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of ASEAN, agreed on a shared vision of 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 a community of caring societies.


OBJECTIVE To accelerate economic growth, social progress and cultural development in the region. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter. In 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established comprising three pillars, namely, ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community.


FUNDAMENTAL PRINCIPLES Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations. The right of every State to lead its national existence free from external interference, subversion or coercion. Non-interference in the internal affairs of one another. Settlement of differences or disputes by peaceful manner. Renunciation of the threat or use of force. Effective cooperation among themselves.




ASEAN SECURITY COMMUNITY ASC shall aim to ensure that countries in the region live at peace with one another and with the world in a just, democratic and harmonious environment. Of intra-regional differences and regard their security as fundamentally linked to one another and bound by geographic location, common vision and objectives. Political development; shaping and sharing of norms; conflict prevention; conflict resolution; post-conflict peace building; and implementing mechanisms.

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CONT……. ASC will be built on the strong foundation of ASEAN processes, principles, agreements, and structures, which evolved over the years and are contained in the following major political agreements: - ASEAN Declaration, Bangkok, 8 August 1967. Zone of Peace, Freedom and Neutrality Declaration, Kuala Lumpur, 27 November 1971. Declaration of ASEAN Concord, Bali, 24 February 1976. Treaty of Amity and Cooperation in Southeast Asia, Bali, 24 February 1976. ASEAN Declaration on the South China Sea, Manila, 22 July 1992. Treaty on the Southeast Asia Nuclear Weapon-Free Zone, Bangkok, 15 December 1997. ASEAN Vision 2020, Kuala Lumpur, 15 December 1997. Declaration of ASEAN Concord II, Bali, 7 October 2003.


ASEAN ECONOMIC COMMUNITY The ASEAN Economic Community shall be the end-goal of economic integration measures as outlined in the ASEAN Vision 2020. The goal is to create a stable, prosperous and highly competitive ASEAN economic region. A free flow of goods, services, investment and a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities in year 2020. The ASEAN Economic Community shall establish ASEAN as a single market and production base, turning the diversity that characterises the region into opportunities for business complementation and making the ASEAN a more dynamic and stronger segment of the global supply chain. ASEAN’s strategy shall consist of the integration of ASEAN and enhancing ASEAN’s economic competitiveness.

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CONT… Institute new mechanisms and measures to strengthen the implementation of its existing economic initiatives including the ASEAN Free Trade Area (AFTA), ASEAN Framework Agreement on Services (AFAS) and ASEAN Investment Area (AIA). Accelerate regional integration in the following priority sectors by 2010: air travel, agro-based products, automotives, e-commerce, electronics, fisheries, healthcare, rubber-based products, textiles and apparels, tourism, and wood-based products. Facilitate movement of business persons, skilled labour and talents. Strengthen the institutional mechanisms of ASEAN, including the improvement of the existing ASEAN Dispute Settlement Mechanism and legally-binding resolution of any economic disputes.

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CONT… In 1992, the ASEAN Free Trade Area (AFTA), it aims to promote the region’s competitive advantage as a single production unit. The elimination of tariff and non-tariff barriers among Member Countries is expected to promote greater economic efficiency, productivity, and competitiveness. Roadmap for Financial and Monetary Integration of ASEAN in four areas, namely, capital market development, capital account liberalisation, liberalisation of financial services and currency cooperation. Trans-ASEAN transportation network consisting of major inter-state highway and railway networks, including the Singapore to Kunming Rail-Link, principal ports, and sea lanes for maritime traffic, inland waterway transport, and major civil aviation links. Roadmap for Integration of Air Travel Sector.

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CONT… Interoperability and interconnectivity of national telecommunications equipment and services, including the ASEAN Telecommunications Regulators Council Sectoral Mutual Recognition Arrangement (ATRC-MRA) on Conformity Assessment for Telecommunications Equipment; Trans-ASEAN energy networks, which consist of the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline Projects; Initiative for ASEAN Integration (IAI) focusing on infrastructure, human resource development, information and communications technology, and regional economic integration primarily in the less develop countries. Visit ASEAN Campaign and the private sector-led ASEAN Hip-Hop Pass to promote intra-ASEAN tourism. Agreement on the ASEAN Food Security Reserve.


ASEAN SOCIO-CULTURAL COMMUNITY ASEAN Work Programme for Social Welfare, Family, and Population; ASEAN Work Programme on HIV/AIDS; ASEAN Work Programme on Community-Based Care for the Elderly; ASEAN Occupational Safety and Health Network; ASEAN Work Programme on Preparing ASEAN Youth for Sustainable Employment and Other Challenges of Globalisation; ASEAN University Network (AUN) promoting collaboration among seventeen member universities ASEAN; ASEAN Students Exchange Programme, Youth Cultural Forum, and the ASEAN Young Speakers Forum; The Annual ASEAN Culture Week, ASEAN Youth Camp and ASEAN Quiz; ASEAN Media Exchange Programme; and Framework for Environmentally Sustainable Cities (ESC) and ASEAN Agreement on Transboundary Haze Pollution.


MAJOR CONTROVERSORY The Asian financial crisis was initiated by two rounds of currency depreciation that have been occurring since early summer 1997. The first round was a precipitous drop in the value of the Thai baht, Malaysian ringgit, Philippine peso, and Indonesian rupiah. As these currencies stabilized. The second round begain with downward pressures hitting the Taiwan dollar, South Korean won, Brazilian real, Singaporean dollar, and Hong Kong dollar.

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CONT… Shortage of foreign exchange that has caused the value of currencies and equities in Thailand, Indonesia, South Korea and other Asian countries to fall dramatically. Inadequately developed financial sectors and mechanisms for allocating capital in the troubled Asian economies. Effects of the crisis on both the United States and the world. The role, operations, and replenishment of funds of the International Monetary Fund.


OVERCOME The International Monetary Fund has arranged support packages for Thailand, Indonesia, and South Korea. The packages include an initial infusion of funds with conditions that must be met for additional loans to be made available. World Bank and Asian Development Bank and pledges of standby credit from the Exchange Stabilization Fund.

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