Asian Regionalism

1
Asian Regionalism?

• ASEAN
• Northeast Asia

2
Outline

• Economic development
• Flying geese, falling geese
• Economic interdependence
• ASEAN
• Northeast Asia

3
Postwar Development I

• Flying geese pattern of economic development, by
  industry

4
Postwar Development II

• Flying geese pattern of economic development, by
  region

5
Falling geese?
6
Trade Interdependence
7
Japan to Asia
8
ASEAN overview

• Association of Southeast Asian Nations
• 10 member states
• Brunei, Cambodia, Indonesia, Laos, Malaysia,
  Myanmar, Philippines, Singapore, Thailand,
  Vietnam
• home to over 500 million people
• collective GDP of US750 billion

9
ASEAN founding (1967)

• 5 founding members
• Thailand, Malaysia, Singapore, Indonesia,
  Philippines
• Bangkok Declaration of 1967
• accelerate economic growth
• promote regional peace and stability
• contain the spread of communism

10
Arc of Containment
11
End of Cold War

• ASEAN Free Trade Area
• initiated at ASEAN summit in 1992
• comprehensive program of regional tariff
  reduction
• program later broadened accelerated
• reaffirmed during Asian Financial Crisis of
  1997-98

12
End of Cold War

• Expansion of ASEAN
• 1995 Vietnam
• 1997 Laos
• 1997 Myanmar
• 1999 Cambodia

13
ASEAN external links

• A joint forum with Japan was established in 1977
• A cooperation agreement with the European
  Community was signed in 1980
• ASEAN 3
• regular series of meetings at the cabinet and
  head-of-government levels with Japan, China, and
  South Korea since 1997

14
ASEAN and U.S.

• Investment
• US88 billion in U.S. direct investment
• Market
• 3rd largest overseas market for U.S. exports
• Trade
• Two-way ASEAN-U.S. trade totaled US149 billion
  in 2005, up from 85 billion in 1990

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Northeast Asia

• Japan, South Korea, North Korea
• Mainland China, Hong Kong, Taiwan
• Mongolia, Russia

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Political Difficulties

• Legacies of World War II
• Japanese atrocities in Pacific Asia
• Legacies of Cold War
• partition of Korea

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Economic Competition I
20
Economic Competition II
21
Trade Disputes

• South Korea criticized Japans weak-yen policy
• Japan restricted agricultural imports
• China threatened to retaliate

22
Encouraging Signs

• Beijing and Tokyo solved trade disputes without
  resorting to WTO
• Japan welcomed ASEAN-China Free Trade Agreement
  (2001-11)
• Japan proposed ASEAN-Japan FTA
• China proposed ASEAN3 FTA
• Japan proposed ASEAN6 FTA