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ASEAN Regional Economic Integration and the Internationalization of Capital

  • Faris Al-Fadhat
Chapter
Part of the Critical Studies of the Asia-Pacific book series (CSAP)

Abstract

This chapter explains the social foundations of regional economic integration of ASEAN, specifically with the recent initiative of the ASEAN Economic Community (AEC). The international political economy (IPE) literature has provided important explanations of economic regionalism in Southeast Asia which are superior to the prominent neofunctional and liberal perspectives. The IPE approaches mainly focus on two methods of analysis: the AEC is seen as a strategy that was initiated in response to the competition within the global economy, and as a process which has been enhanced through domestic politics. The limitation of this scholarship lies in its focus on the AEC institutions and their governance. It overlooks the significance of the broader structural dimensions of capitalist transformation within ASEAN member economies that underpin the formation and characteristics of institutional projects. This chapter argues that the recent project of ASEAN regional economic integration in the form of the AEC has established foundations for the internationalization of capital across the region. In turn, this regional capital accumulation has promoted the regionalization process of economic arrangements. In this context, big businesses have become the motor force of this regionalization of capital.

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Authors and Affiliations

  • Faris Al-Fadhat
    • 1
  1. 1.Department of International RelationsUniversitas Muhammadiyah YogyakartaBantulIndonesia

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