Importance and the Role of Regional Organisation

IMPORTANCE AND THE ROLE OF REGIONAL  ORGANISATIONS: THE EUROPEAN UNION AND  ASEAN

Prepared by

DR. AFROZ ALAM   ASSISTANT PROFESSOR OF POLITICS  NATIONAL LAW UNIVERSITY, ORISSA  E-MAIL: [email protected]  E-MAIL: [email protected]  [email protected] 

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IMPORTANCE AND THE ROLE OF REGIONAL ORGANISATIONS: THE EUROPEAN UNION AND ASEAN Structure: 12.0 Objectives 12.1 Introduction 12.2 Meaning of Regional Organisation 12.3 Importance of Regional Organisation 12.4 The Role of Regional Organisations and the United Nations 12.5 European Union 12.5.1 Objectives 2.5.2 Structure of the EU 12.6 Association of Southeast Asian Nations (ASEAN) 12.6.1 Objectives 12.6.2 Fundamental Principles 12.7 ASEAN Communities 12.7.1 ASEAN Security Community 12.7.2 ASEAN Economic Community 12.7.3 ASEAN Socio-Cultural Community 12.8 Structures and Mechanisms 12.9 Let Us Sum Up 12.10 Some Useful Books

12.0 Objectives: The present chapter intends to study the role and importance of regional organisations. With this purpose in mind, we identified European Union and the ASEAN, the two dynamic regional organisations, as a focus of our study. After going through this chapter you will be able to: Understand the meaning of regional organisations • Analyse the role and importance of regional organisations with reference to United • Nations Observe the dynamics of the European Union and the ASEAN •

12.1 Introduction: We cannot understand the phenomenon of this world completely by simply relying on the yardstick of globalisation that gives birth to global community. The regionalisation process is equally dominant with the emergence of the formation of regional organisations and regional society along with the globalising tendency of the present day world. The world arena allows for both regionalisation and globalisation to coexist in a sometimes competing and sometime mutually supporting relationship. Post-World War II is marked by the rapid growth in the number of intergovernmental regional organisations. In fact, regional organisations founded since 1945 outnumber those of a universal nature by approximately a five-to-one ratio, but some have assumed important roles in world affairs.

12.2 Meaning of Regional Organisation: The concept of regional organisation in international affairs is inherently ambiguous. Regional organisations are defined often on the basis of geographical proximity of the members. But the 2|Page

categorisation of regional organisation on the basis of geography is subject to many limitations. Therefore, while geography may be one factor in determining the regional character of many organisations, but the lack of geographical proximity is not decisive criteria in excluding certain members to join the regional organisations. The United States, for example, is a member of  several regional organisations that claim regional status in the different part of the world. The inclusion of Greece and Turkey in the membership of the North Atlantic Treaty Organisation (NATO) throws further doubt on conformity to regional limits. The membership of the Organisation of American States includes all states within North, South, and Central America, but geographers have never viewed both continents as a single well-defined region. So is the case with the Commonwealth, a regional organisation with the membership dispersed around the globe. However, the term regional organisation is understood as the segment of the world bound together by a common set of objectives based on geographical, social, cultural, economic, or political ties and possessing a formal structure provided for in formal intergovernmental agreements. A regional organisation is intended to appeal only to a specified category of states, less than global in scope. In general, however, regional organizations can be grouped according to three basic types. First, there are the security organizations such as NATO, visible in the alliance systems of the cold war, in which member states engage in joint military planning for the purpose of common defence. Second, functional organizations, such as the Central American Common Market (CACM) seek to improve specific economic and social conditions within a region of the world by providing a framework for common action. Third, multipurpose organizations, such as Organization of American States (OAS), are motivated to some extent by both kinds of concerns, and their members agree to cooperate on a wide range of issues. All of these organizations rest upon treaties providing for regular meetings, and in most cases they require the growth of  international bureaucracies to achieve their goals.

12.3 Importance of Regional Organisation: Organisation: We can count the importance of regional organisations along the following lines: 1. There is a natural tendency toward regionalism based on the homogeneity of interests, traditions, and values within small groups of neighbouring states. 2. Political, economic, and social integration is more easily attained among a lesser number of states within a limited geographic area than on a global basis. 3. Regional economic cooperation provides more efficient economic units than the smaller states, and these larger units can compete successfully in world markets. 4. Local threats to the peace are more willingly and promptly dealt with by the governments of that area than by disinterested states at greater distances from the scene of conflict. 5. By combining states into regional groupings, a global balance of power will be maintained and world peace and security will be promoted. 6. The world is not ready to establish global authority sufficient to maintain world peace and promote world welfare. Regional organisation is the first step in gaining experience and building areas of consensus toward eventual intergovernmental coordination or integration. 7. Those who ardently support the global organisation fail to take into account the heterogeneity of political, economic, social, and geographical factors throughout the 3|Page

world that militate against global unity. These differences can be more easily accommodated within a regional framework. The above points provide sufficient basis to justify the importance of regional organisations in present day world. However, the nature of the problems to be solved also determines the importance of regional treatment. If the consequences of a problem are regional in nature or scope, then a regional solution is appropriate.

12.4 The Role of Regional Organisations and the United Nations: International regional organizations are created through treaty arrangements that commit member states to act together for certain specified goals. At the height of the cold war, a number of such groups came into being as security organizations—that is, organizations whose chief purpose is to encourage joint military planning for common defence. These have declined somewhat in importance in recent years, and those that remain viable are being seen increasingly as the instruments of greater cold war détente. More recently, functional organizations, intended to provide a unified approach to the solution of economic and social problems of a particular region, have grown and, in some cases, flourished. These include loose customs unions, freetrade areas, and common markets. Finally, several multipurpose organizations also exist, combining to some extent the security and functional goals of the first two types of  organizations, although usually in somewhat more loosely knit arrangements. Here, emphasis is strongly upon harmonizing political relationships among the members as well as on attempting to provide a common front to the outside world. However, the primary provisions of the United Nations Charter concerning regional organisations are found in Chapter VIII containing only three articles (Articles 52-54). The most important principles of Chapter III are the following: 1. regional agencies may exist for dealing with such issues of international peace and security as are appropriate for regional action as long as their activities are consistent with the purposes and principles of the United Nations; 2. states are encouraged to settle local disputes through regional agencies before referring them to the Security Council; 3. the Security Council may, in turn, utilise such agencies for the settlement of local disputes; 4. with the exception of action against enemy states resulting from World War II, no enforcement action shall be taken by regional agencies without the authorisation of the Security Council; and 5. the Security Council shall be kept fully informed of activities undertaken or contemplated by regional agencies for the maintenance of peace and security. However, these principles of the UN that focus upon its supremacy have been substantially undermined by many regional organisations. Check Your Progress 1 Note: Use the space given below for your answer. Also check your answer with the model answer given at the end of the Unit. Q. 1 Discuss the meaning and importance of regional organisations in short detail. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q. 2 What is the position of regional organisations under the UN Charter? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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12.5 European Union: European Union (EU) is an intergovernmental organization of European countries dedicated to increasing economic integration and strengthening cooperation among its members. The European Union headquarters is in Brussels, Belgium. It was formally established on November 1, 1993. It is the most recent in a series of European cooperative organizations that originated with the European Coal and Steel Community (ECSC) of 1951, which became the European Community (EC) in 1967. The members of the EC were Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, the United Kingdom, and Spain. In 1991 the governments of the 12 member states signed the Treaty on European Union (commonly called the Maastricht Treaty), which was then ratified by the national legislatures of  all the member countries. The Maastricht Treaty transformed the European Community into the European Union. In 1995 Austria, Finland, and Sweden joined the EU. In May 2004, 10 more countries took up membership, bringing the total number of EU member countries to 25. The 10 new members were Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. With the accession of Bulgaria and Romania in January 2007, the total memberships of the European Union have risen to 27 member states. The EU is the current stage of a continuing open-ended process of European integration. Turkey, Croatia, Macedonia, Albania, Bosnia and Herzegovina, Montenegro and Serbia are now officially recognised as potential candidates for the membership of EU. In Norway and Switzerland, however, application for membership was rejected by referendum. Iceland is also often touted as potential applicant. Eurosceptics fear that process will ultimately deprive member states of their sovereignty. The EU is now the largest political and economic entity on the European continent, with around 493 million people and an official GDP of €10.5 trillion. The Union is a customs union and a developing single market, with a common trade policy. It has its own currency, the euro - already adopted by 13 member states. The Union has a Common Agricultural Policy, a Common Fisheries Policy, and a regional Policy to assist poorer regions. It has initiated a limited Common Foreign and Security Policy, and a limited joint policy on crime. Important EU institutions and bodies include the European Commission, the Council of the European Union, the European Council, the European Central Bank, the European Court of  Justice, and the European Parliament. Citizens of EU member states are also EU citizens: they directly elect the European Parliament, once every five years. They can live, travel, work, and invest in other member states (with some restrictions on new member states). Passport control and customs checks at most internal borders were abolished by the Schengen Agreement. 12.5.1 Objectives: The EU has a number of objectives. Its principal goal is to promote and expand cooperation among member states in economics and trade, social issues, foreign policy, security and defense, and judicial matters. Under the Maastricht Treaty, European citizenship was granted to citizens of each member state. Border controls were relaxed. Customs and immigration agreements were modified to allow European citizens greater freedom to live, work, and study in any of the member states. Another major goal of the EU has been to implement Economic and Monetary Union (EMU), which introduced a single currency, the euro, for EU members. In January 2002 the euro replaced the national currencies of 12 EU member nations. Thirteen EU members do not

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currently participate in the single currency. They are Denmark, Sweden, the United Kingdom, and the 10 nations that joined the EU in 2004. 12.5.2 Structure of the EU: A: Pillar System: The members of the EU cooperate in three distinct areas, often called pillars. At the heart of this system is the European Community (EC) pillar with its supranational functions and its governing institutions. The EC pillar is flanked by two pillars based on intergovernmental cooperation: Common Foreign and Security Policy (CFSP) and Justice and Home Affairs (JHA). These two pillars are a result of the Maastricht agreement to develop closer cooperation in these areas. However, because the members were unwilling to cede authority to new supranational institutions, policy decisions in these pillars are made by unanimous cooperation between members and cannot be enforced. For the most part, the governing institutions of the EC pillar have little or no input in the other two. The CFSP and JHA pillars are based entirely on intergovernmental cooperation, and decisions must be made unanimously. CFSP is a forum for foreign policy discussions, common declarations, and common actions that work toward developing a security and defense policy. It has successfully developed positions on a range of issues and has established some common policy actions; however, the CFSP has failed to agree on a common security and defense. Some countries, led by France, want an integrated European military force, while others, especially the United Kingdom, insist that United States involvement through the North Atlantic Treaty Organization (NATO) is vital for European security. This second argument was reinforced when the EU failed to resolve the crisis in Yugoslavia that began in 1991. Between 1991 and 1992 four of Yugoslavia’s six republics declared independence, resulting in a series of violent wars (see Yugoslav Succession, Wars of). EU attempts to find a settlement for these conflicts were ineffective because member states could not agree on how they should be involved, and they feared being dragged into military intervention. The Yugoslav crisis underlined the difficulties in achieving a common foreign policy for the EU. Effective international intervention in Yugoslavia ultimately came only with U.S. and NATO involvement, acting under the auspices of the United Nations. As a result of lessons learned in Yugoslavia, clauses were included in the Amsterdam Treaty for improving cooperation on security and defense. Since the late 1990s the EU has developed the Common European Security and Defense Policy as an interim step toward the ultimate goal of a common defense policy. The EU has expressed its determination to take on a greater international role and more responsibility for humanitarian operations and peacekeeping activities. The EU also began to develop a rapid-reaction military force to enable it to respond to crises quickly with combat troops. The EU has been more successful in JHA, which formalized and extended earlier intergovernmental cooperation in combating crime, especially drug trafficking, and in setting immigration and asylum policies. Under the Amsterdam Treaty, some aspects of JHA were moved to the supranational EC pillar. These related to asylum and visa issues, immigration policy, and external border controls. The JHA pillar is now primarily concerned with police cooperation and combating international crime. Standing above the three pillars and in a position to coordinate activities across all of them is the European Council. The council is in strict legal terms not an EU institution. It is the meeting place of the leaders of the national governments. Its decisions are almost always unanimous but usually require intense bargaining. The council shapes the integration process and has been 7|Page

responsible for almost all EU developments, including the SEA and the Maastricht, Amsterdam, and Nice treaties. The European Council has provided the EU with initiatives for further development, agendas in various policy fields, and decisions that it expects the EU to accept. The council’s actions illustrate one of the major dilemmas within the EU: how to promote further unity and integration while permitting national governments to retain as much influence as possible over decisions. B: Major Bodies: The European Community (EC) pillar contains all the governing institutions of the EU. The major ones are the European Commission, the Council of the European Union, the European Parliament, the European Court of Justice, and the Court of Auditors. In addition, there are many smaller bodies in the EC pillar, such as the Economic and Social Committee, and the Committee of the Regions. (1) European Commission: The European Commission is the highest administrative body in the EU. Unlike the European Council, which oversees all three pillars of the EU, the commission concentrates almost solely on the EC pillar. It initiates, implements, and supervises policy. It is also responsible for the general financial management of the EU and for ensuring that member states adhere to EU decisions. The commission is meant to be the engine of European integration, and it spearheaded preparations for the single market and moves toward establishing the euro. Commissioners are appointed by member governments and are supported by a large administrative staff. France, Germany, Italy, Spain, and the United Kingdom each appoint two commissioners; the other countries appoint one each. The policy of each member state selecting a commissioner became the subject of debate during preparations for EU enlargement. If each country in an enlarged EU were allowed to appoint at least one commissioner, the commission would be much larger, making it too unwieldy to be an effective executive and decision-making authority. In addition, the fact that the commission is appointed by member governments and not elected by the people has raised questions about how much power it should be allowed to exercise. The Treaty of Nice clarified details about the future structure of the commission in an enlarged EU. After 2005 each member state would have only one commissioner. However, when the EU reached 27 member states, the European Council would be obliged to determine how large the commission should be. The treaty also altered the selection procedures for commissioners, giving the European Council and the European Parliament a role in the confirmation process. (2) Council of the European Union: The Council of the European Union (formerly called the Council of Ministers) represents the national governments. It is the primary decision-making authority of the EU and is the most important and powerful EU body. Although its name is similar to that of the European Council, the Council of the European Union’s powers are essentially limited to the EC pillar, whereas the European Council oversees all three pillars of EU cooperation. When the Council of the European Union meets, one government minister from each member state is present. However, the minister for each state is not the same for every meeting. Each member state sends its government minister who is most familiar with the topic at hand. For example, a council of defense ministers might discuss foreign policy, whereas a council of  agriculture ministers would meet to discuss crop prices. The Council of the European Union adopts proposals and issues instructions to the European Commission. The council is expected to accomplish two goals that are not always compatible: 8|Page

further EU integration on one hand and protection of the interests of the member states on the other. This contradiction could become more difficult to reconcile as the EU continues to expand. Decision-making in the council is complex. A few minor questions can be decided by a simple majority. Many issues, however, require what is called qualified majority voting, or QMV. In QMV each country has an indivisible bloc of votes that is roughly proportional to its population. It takes two-thirds of the total number of votes to make a qualified majority. QMV was introduced in some policy areas to replace the need for a unanimous vote. This has made the decision-making process faster and easier because it prevents any one state from exercising a veto. Since the Single European Act, QMV has been steadily extended to more areas. Many important decisions, however, still require unanimous support. (3) European Parliament (EP): The European Parliament (EP) is made up of 732 members who are directly elected by the citizens of the EU. Direct elections to the EP were implemented in 1979. Before that time, members were appointed by the legislatures of the member governments. The European Parliament was originally designed merely as an advisory body; however, its right to participate in some EU decisions was extended by the later treaties. It must be consulted about matters relating to the EU budget, which it can reject; it can remove the European Commission as a body through a vote of no confidence; and it can veto the accession of potential member states. The European Parliament’s influence is essentially negative: It can block but rarely initiate legislation, its consultative opinions can be ignored, and it has no power over the Council of the European Union. Its effectiveness is limited by two structural problems: It conducts its business in 20 official languages, with consequent huge translation costs, and it is nomadic, using three sites in different countries for its meetings. Unless changes are made, these weaknesses will likely intensify as the union grows larger. At the same time, there have been frequent calls for expanding the powers of the European Parliament, which would increase the democratic accountability of the EU. The weaknesses of the European Parliament can be remedied, however, only by the national governments. To cope with an increase in the number of member states due to EU enlargement, the Treaty of Nice allowed for a limit to the size of the EP by providing for a reallocation of seats among the members. (4) European Court of Justice (ECJ): The European Court of Justice (ECJ) is the judicial arm of the EU. Each member country appoints one judge to the court. The ECJ is responsible for the law that the EU establishes for itself and its member states. It also ensures that other EU institutions and the member states conform with the provisions of EU treaties and legislation. The court has no direct links with national courts and no control over how they apply and interpret national law, but it has established that EU law supersedes national law. The ECJ’s assertion that EU law takes precedence over national law, and the fact that there is no appeal against it, have given the ECJ a powerful role in the EU. This role has, on occasion, drawn criticism from both national governments and national courts. The ECJ has declared both for and against EU institutions and member states. The ECJ’s historically high caseload was eased in 1989 when the Court of First Instance was created. This court hears certain categories of cases, including those brought by EU officials and cases seeking damages. Rulings by the Court of First Instance may be appealed to the ECJ, but only on points of law. Despite the establishment of this court, the ECJ’s caseload has continued

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to rise. As a result, the Treaty of Nice introduced further reforms to reduce the accumulated backlog of cases. (5) Court of Auditors: The Court of Auditors is made up of 25 members, one from each EU member state. The court oversees the finances of the EU and ensures that all financial transactions are carried out according to the EU budget and laws. The court issues a yearly report to the Council of the European Union and the European Parliament detailing its findings. (6) European Central Bank (ECB): The European Central Bank (ECB) began operations in 1998. It is overseen by an executive board that is chosen by agreement of EU member governments and includes the ECB president and vice president. The ECB has exclusive authority for EU monetary policy, including such things as setting interest rates and regulating the money supply. In addition, the ECB played and continues to play a major role in overseeing the inauguration and consolidation of the euro as the single EU currency. Its authority over monetary policy and its independence from other EU institutions make the ECB a powerful body. There are misgivings in some quarters that the ECB is too independent, leading to a debate over whether it should be subject to political direction. (7) Other Bodies: Other important bodies in the EU include the Economic and Social Committee and the Committee of the Regions. The Economic and Social Committee is a 222-member advisory body drawn from national interest groups of employers, trade unions, and other occupational groups. It must be consulted by the European Commission and the Council of the European Union on issues dealing with economic and social welfare. The Committee of the Regions was formed in 1994 as a forum for representatives of regional and local governments. It was intended to strengthen the democratic credentials of the EU, but it has only a consultative and advisory role.

12.6 Association of Southeast Asian Nations (ASEAN) Association of Southeast Asian Nations (ASEAN) is a regional alliance of ten independent countries that promotes stability and economic growth in Southeast Asia. The organization also encourages cultural exchanges between its members. ASEAN was founded in August 1967 by Malaysia, Thailand, and the republics of Indonesia, Singapore, and the Philippines. Brunei joined the alliance after attaining independence from the United Kingdom in 1984. Vietnam was admitted as the first Communist member in 1995. Laos and Myanmar (formerly Burma) joined ASEAN in 1997, and Cambodia became part of the alliance in 1999. The Melanesian state of  Papua New Guinea has observer status in ASEAN. In 23 July 2006, Jose Ramos Horta, Prime Minister of Timor-Leste, signed a formal request for membership and expects a five-year accession process. Australia is also interested in becoming a member of ASEAN. The ASEAN secretariat, a central office that administers the organization's activities, is located in Jakarta, Indonesia. 12.6.1 Objectives: The ASEAN Declaration states that the aims and purposes of the Association are: (1) to accelerate economic growth, social progress and cultural development in the region, and (2) 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. 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

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nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. 12.6.2 Fundamental Principles: ASEAN Member Countries have adopted the following fundamental principles in their relations with one another, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC): 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; and • effective cooperation among themselves. •

12.7.1 ASEAN Communities: 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. 12.7.1 ASEAN Security Community Through political dialogue and confidence building, no tension has escalated into armed confrontation among ASEAN Member Countries since its establishment more than three decades ago. To build on what has been constructed over the years in the field of political and security cooperation, the ASEAN Leaders have agreed to establish the ASEAN Security Community (ASC). The 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. The members of the Community pledge to rely exclusively on peaceful processes in the settlement of intra-regional differences and regard their security as fundamentally linked to one another and bound by geographic location, common vision and objectives. It has the following components: political development; shaping and sharing of norms; conflict prevention; conflict resolution; post-conflict peace building; and implementing mechanisms. In recognition of security interdependence in the Asia-Pacific region, ASEAN established the ASEAN Regional Forum (ARF) in 1994. The ARF’s agenda aims to evolve in three broad stages, namely the promotion of confidence building, development of preventive diplomacy and elaboration of approaches to conflicts. The present participants in the ARF include: Australia, Brunei Darussalam, Cambodia, Canada, China, European Union, India, Indonesia, Japan, Democratic Republic of Korea, Republic of  Korea (ROK), Lao PDR, Malaysia, Mongolia, Myanmar, New Zealand, Pakistan, Papua New Guinea, the Philippines, the Russian Federation, Singapore, Thailand, the United States, and Viet Nam. Bangladesh was added to ARF as the 26th member, starting from July 28, 2006. The ARF discusses major regional security issues in the region, including the relationship amongst the major powers, non-proliferation, counter-terrorism, transnational crime, South China Sea and the Korean Peninsula, among others. 12.7.2 ASEAN Economic Community The ASEAN Economic Community shall be the end-goal of economic integration measures as outlined in the ASEAN Vision 2020. Its goal is to create a stable, prosperous and highly competitive ASEAN economic region in which there is a free flow of goods, services, 11 | P a g e

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. In moving towards the ASEAN Economic Community, ASEAN has agreed on the following: 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; and • strengthen the institutional mechanisms of ASEAN, including the improvement of the • existing ASEAN Dispute Settlement Mechanism to ensure expeditious and legallybinding resolution of any economic disputes. Launched in 1992, the ASEAN Free Trade Area (AFTA) is now in place. It aims to promote the region’s competitive advantage as a single production unit. The elimination of tariff and nontariff barriers among Member Countries is expected to promote greater economic efficiency, productivity, and competitiveness. As of 1 January 2005, tariffs on almost 99 percent of the products in the Inclusion List of the ASEAN-6 (Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) have been reduced to no more than 5 percent. More than 60 percent of these products have zero tariffs. The average tariff for ASEAN-6 has been brought down from more than 12 percent when AFTA started to 2 percent today. For the newer Member Countries, namely, Cambodia, Lao PDR, Myanmar, and Viet Nam (CLMV), tariffs on about 81 percent of their Inclusion List have been brought down to within the 0-5 percent range. 12.7.3 ASEAN Socio-Cultural Community The ASEAN Socio-Cultural Community, in consonance with the goal set by ASEAN Vision 2020, envisages a Southeast Asia bonded together in partnership as a community of caring societies and founded on a common regional identity. The Community shall foster cooperation in social development aimed at raising the standard of  living of disadvantaged groups and the rural population, and shall seek the active involvement of  all sectors of society, in particular women, youth, and local communities. ASEAN shall ensure that its work force shall be prepared for, and benefit from, economic integration by investing more resources for basic and higher education, training, science and technology development, job creation, and social protection. ASEAN shall further intensify cooperation in the area of public health, including in the prevention and control of infectious and communicable diseases. The development and enhancement of human resources is a key strategy for employment generation, alleviating poverty and socio-economic disparities, and ensuring economic growth with equity.

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12.8 Structures and Mechanisms The highest decision-making organ of ASEAN is the Meeting of the ASEAN Heads of State and Government. The ASEAN Summit is convened every year. The ASEAN Leaders' Formal Summit was first held in Bali, Indonesia in 1976. At first there was no set schedule due to domestic issues in the member countries. In 1992, leaders decided to hold meetings every three years; and in 2001 it was decided to meet annually to address urgent issues affecting the region. Member nations were assigned to be the summit host in alphabetical order except in the case of  Myanmar which dropped its 2006 hosting rights in 2004 due to pressure from the United States th and the European Union. At the 11 ASEAN Summit in 2005 in Kuala Lumpur, Malaysia, new meetings were scheduled. These were: East Asia Summit - converging ASEAN and six dialogue partners namely China, • Japan, South Korea, Australia, New Zealand and India. ASEAN-Russia Summit - meeting between ASEAN leaders and the President of  • Russia. th The 12 ASEAN Summit 2007, which was scheduled to be hold in Metro Cebu, Philippines, was postponed in December 2006 because of Typhoon Seniang. The ASEAN Ministerial Meeting (Foreign Ministers) is held annually. Ministerial meetings on the following sectors are also held regularly: agriculture and forestry, economics (trade), energy, environment, finance, health, information, investment, labour, law, regional haze, rural development and poverty alleviation, science and technology, social welfare, telecommunications, transnational crime, transportation, tourism, youth. Supporting these ministerial bodies are committees of senior officials, technical working groups and task forces. To support the conduct of ASEAN’s external relations, ASEAN has established committees composed of heads of diplomatic missions in the following capitals: Beijing, Berlin, Brussels, Canberra, Geneva, Islamabad, London, Moscow, New Delhi, New York, Ottawa, Paris, Riyadh, Seoul, Tokyo, Washington D.C. and Wellington. The Secretary-General of ASEAN is appointed on merit and accorded ministerial status. The Secretary-General of ASEAN, who has a five-year term, is mandated to initiate, advise, coordinate, and implement ASEAN activities. The members of the professional staff of the ASEAN Secretariat are appointed on the principle of open recruitment and region-wide competition. ASEAN has several specialized bodies and arrangements promoting inter-governmental cooperation in various fields including the following: ASEAN Agricultural Development Planning Centre, ASEAN-EC Management Centre, ASEAN Centre for Energy, ASEAN Earthquake Information Centre, ASEAN Foundation, ASEAN Poultry Research and Training Centre, ASEAN Regional Centre for Biodiversity Conservation, ASEAN Rural Youth Development Centre, ASEAN Specialized Meteorological Centre, ASEAN Timber Technology Centre, ASEAN Tourism Information Centre, and the ASEAN University Network. In addition, ASEAN promotes dialogue and consultations with professional and business organisations with related aims and purposes, such as the ASEAN-Chambers of Commerce and Industry, ASEAN Business Forum, ASEAN Tourism Association, ASEAN Council on Petroleum, ASEAN Ports Association, Federation of ASEAN Ship owners, ASEAN Confederation of Employers, ASEAN Fisheries Federation, ASEAN Vegetable Oils Club, ASEAN Intellectual Property Association, and the ASEAN-Institutes for Strategic and International Studies. Furthermore, there are 58 Non-Governmental Organizations (NGOs), which have formal affiliations with ASEAN. 13 | P a g e

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Check Your Progress 1 Note: Use the space given below for your answer. Also check your answer with the model answer given at the end of the Unit. Q. 1 What do you mean by the “pillar system” of European Union? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q. 2 Discuss the fundamental principles of ASEAN. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12.9 Let Us Sum Up To sum up, growth in the number and variety of international regional organizations has constituted one of the characteristic features of international politics since World War II. Originally, the trend was toward creation of security organizations through long-term military alliances. More recently, with the countries of Western Europe taking the lead, numerous regional organizations have been created to serve functional purposes — that is, to promote economic and social goals at a supranational level. A third type of regional grouping combines some of the attributes and purposes of both the security and functional organizations. While not full-scale military alliances, these organizations possess certain security interests and attempt to promote cooperative policies among the members, even though they have no precise economic or social goals. Although these three kinds of regional organizations differ considerably, they are alike in that they are built upon treaties in which several nation-states unite to achieve certain goals. In this context, we studied the European Union and the ASEAN as the two functional regional organisations.

12.10 Some Useful Books: 1) LeRoy Bennett,   International Organisations: Principles and Issues, New Jersey: Prentice Hall Inc., 1998 2) Kalpana Rajaram (ed.),   International Organisations, Conferences and Treaties, New Delhi: Spectrum Books, 2005. 15 | P a g e