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Asean

The Asian Century: more than economics and security

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Author: Jiemian Yang, SIIS

The Asian Century, or Pacific Century, has become a catchphrase that places great emphasis on economic dynamism and political power shifts.

But the cultural and intellectual aspects of the Asian Century have somewhat been neglected. In the coming 25–50 years, three trends in Asia will likely develop in the context of continuous globalisation, evolving regionalism and the ongoing information revolution.

First, Asia will develop a greater sense of regional awareness and cohesion. The continent is still compartmentalised into Northeast, Southeast, South, Central and West Asia. But the region’s current collaborative efforts — such as the ASEAN-Plus formula, the Shanghai Cooperation Organisation and the South Asian Association for Regional Cooperation — will gradually lead toward a greater level of pan-Asian cooperation.

Second, the global configuration of power will become more evenly distributed between established and emerging powers, and Asia will be a very important component of the latter. Asia will no longer be complacent and content with its position at the lower end of the world economy and as a follower of the Western model. Rather, in both their bilateral and multilateral relations, Asian countries will call for a bigger say in rule making and agenda setting throughout regional and global affairs. In this sense, the G20’s elevation and the reform of the IMF and World Bank are indicative of Asia’s increasing role in world affairs.

And third, Asia will contribute more to the mainstream of world thinking. In the coming 25–50 years, Asia will substantially change its status as merely a recipient — or at most an adaptor — of Western cultures. Asia has already made some great contributions in this regard. For instance, China, India and Burma worked out the Five Principles of Peaceful Coexistence, and the Southeast Asian nations have built up the ASEAN Way of consensus making. With its traditional and intellectual cultures both experiencing a renaissance, Asia will provide the world with more public goods in the form of ideas, principles and values.

Apart from contributing to the global economy and international security through these three trends, the Asian Century will also provide the world with alternative models of regionalism. Pragmatism and inclusiveness will be two major features of the new Asian regionalism. Asia’s pragmatism has helped its countries converge into an Asian community, from the ASEAN-Plus process through to a much broader membership based around consensus building. And unlike regional groupings such as the EU, ‘New Asianism’ embraces non-Asian members such as the US, Australia and New Zealand. This inclusiveness shows that Asia respects the history, current standing and future development of its members. By relying on incrementalism, rather than coerciveness, New Asianism is also conducive to the peaceful transition of the international system and more-effective global governance.

The Asian Century will present a fusion of cultures to the world as compared to many other regions, which are often dominated by a single culture. Asia is renowned for its cultural and religious diversity and its accommodation of these many differences. In this fast-changing world full of immediate concerns and conflicts, the inclusivity of Asian cultures can play the bridging role between regions and populations that geopolitics and geo-economics cannot.

The Asian Century will create new moral standards and values in the course of tackling future challenges. The universality and particularity of moral standards and values constitutes a perennial debate within international society. While it is difficult for the actors in these debates to convince others to change their mainstream moralities and values, it may be possible for them to agree on making new ones. For instance, Asian values attach much greater importance to the non-material aspects of life, such as diligence, work ethics, family cohesion and consensus making. These will undoubtedly contribute to the eventual pooling of shared values, which in turn will help facilitate global affairs and international relations.

Finally, the Asian Century will help to crystallise a greater sense of wisdom. This will help the international community to approach the many global challenges we face from a broader perspective. Many existing regional bodies are of an economic, political or security nature, and while certainly necessary, they are not sufficient for elevating the current level of international and regional community building to face the challenges likely to occur in the next 25–50 years. Asian nations have much expertise and leadership that can be called upon in this regard, such as the rich traditional civilizations of China and India and the economic dynamism of countries such as South Korea and Singapore which can be adaptable to new challenges. And Asia’s exceptional willingness to contribute to this new century will help it digest the wisdom of others and assimilate it into its own.

When talking about the Asian Century, we should pay sufficient attention to long-term trends other than material goods and physical security. Thinking more about consensus building, shared values and converged moralities will each be essential, as both Asia and the world strive for a better future.

Jiemian Yang is President at the Shanghai Institutes for International Studies.

This post is part of the series on the Asia Century which feeds into the Australian government White Paper on Australia in the Asian Century.

  1. The rise of the Asian century
  2. Population in the Asian Century
  3. America and China: strategic choices in the Asian Century

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The Asian Century: more than economics and security

Asean

ASEAN weathering the COVID-19 typhoon

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Vietnam's Prime Minister Nguyen Xuan Phuc addresses a special video conference with leaders of the Association of Southeast Asian Nations (ASEAN), on the coronavirus disease (COVID-19), in Hanoi 14 April, 2020 (Photo:Reuters/Manan Vatsyayana).

Author: Sandra Seno-Alday, Sydney University

The roughly 20 typhoons that hit Southeast Asia each year pale in comparison to the impact on the region of COVID-19 — a storm of a very different sort striking not just Southeast Asia but the world.

 

Just how badly is the COVID-19 typhoon thrashing the region? And what might the post-crisis recovery and reconstruction look like? To answer these questions, it is necessary to investigate the strengths and vulnerabilities of Southeast Asia’s pre-COVID-19 economic infrastructure.

Understanding the structure of the region’s economic house requires going back to 1967, when Southeast Asian countries decided to pledge friendship to one another under the ASEAN framework. While other integrated regions such as NAFTA and the European Union have aggressively broken down trade barriers and significantly boosted intra-regional trade, ASEAN regional economic integration has chugged along slower.

Southeast Asian countries have not viewed trade between each other as a top priority. The trade agreements in the region have been forged around suggestions for ASEAN countries to lower tariffs on intra-regional trade to within a certain range and across limited industries. This has lowered but not eliminated barriers to intra-regional trade. Consequently, a relatively significant share of Southeast Asian trade is with countries outside the region. This active extra-regional engagement has resulted in ASEAN countries’ successful integration into global value chain networks.

A historically outward-facing region, in 2010 around 75 per cent of Southeast Asian commodity imports and exports came from countries outside of ASEAN. This share of extra-regional trade nudged closer to 80 per cent in 2018. This indicates that ASEAN’s global value chain network embeddedness has deepened over time.

Around 40 per cent of ASEAN’s extra-regional trade is with the rest of Asia. From 2010 to 2018 Southeast Asian countries forged major trade relationships with four Asian countries: China, Japan, South Korea and India. Outside Asia, the United States is the region’s major trading partner. ASEAN’s trade focus on Asia’s largest markets is not surprising. Countries tend to establish trade relationships with large, geographically close, and culturally similar markets.

Fostering deep relationships with a few large markets, however, is a double-edged sword. While it has allowed ASEAN to benefit from integration in global value chains, it has also resulted in increased vulnerability to the shocks affecting its network connections.

ASEAN’s participation in global value chains has allowed it to transition from a net regional importer in 1990 to a net regional exporter in 2018. But the region’s deep embeddedness in a small and tightly-coupled network cluster of extra-regional global value chain partners has exposed it to disruption to any and all of its external partners. By contrast, ASEAN’s intra-regional trade network structure is much more loosely-coupled: a consequence of persistent intra-regional trade barriers and thus lower intra-regional trade intensity.

In the pre-COVID-19 period, ASEAN built for itself an economic house held up by just five extra-regional markets, while doing less to expand and diversify its intra-regional trade network. The data shows that ASEAN trade became increasingly concentrated in these few external markets between 2010 and 2018.

This dependence on a handful of markets does not bode well for risk and crisis management. All of the region’s major trading partners have been significantly affected by COVID-19 and this in turn is blowing the ASEAN economic house down.

What are the ways forward? The immediate task at hand is to get a better picture of the region’s position in global value chain networks and to get on top of managing its network risk exposure. Already there are red flags around the region’s food security arising from its position in food value chains. It is critical to look for ways to introduce flexibility into existing supply chains for greater agility in responding to crises.

It is also an opportune time for ASEAN to harness the technology transfer gains of global value chain participation and invest in innovation-driven diversification of products and markets. The region’s embeddedness in global value chain networks certainly places it in a strong position to readily access large export markets not just in Asia but also Europe and the Americas.

Over the longer term, ASEAN is faced with the question of whether it should seriously look…

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Tiger Trade Launches SGX Trading, Meeting Demand from Asian Investors

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SINGAPORE (ACN Newswire) – Tiger Trade, a one-stop mobile and online trading application by Tiger Brokers, has launched access to the Singapore Exchange (SGX).

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Asean

Can Asia maintain growth with an ever ageing population ?

To boost productivity in the future, Asian governments will have to implement well-targeted structural reforms today.

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Asia has been the world champion of economic growth for decades, and this year will be no exception. According to the latest International Monetary Fund Regional Economic Outlook(REO), the Asia-Pacific region’s GDP is projected to increase by 5.5% in 2017 and 5.4% in 2018. (more…)

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