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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- 1.
The ASEAN membership has been expanded to ten members. Following its independence from Britain, Brunei joined the group in 1984. Four countries became members after the end of the Cold War: Vietnam in 1995, Laos and Myanmar in 1997, and Cambodia in 1999.
- 2.
Interview with Hassan Wirajuda, Indonesian Foreign Minister (2001–2009), in Jakarta, 27 May 2015.
- 3.
The AEC is among the three pillars of the ASEAN Community 2020 that was signed under the Declaration of the Bali Concord II in order to set a new direction for ASEAN. The other two pillars are the ASEAN Political Security Community (APSC) and the ASEAN Socio-Cultural Community (ASCC). The AEC was first proposed at the ASEAN Heads of Government meeting in Phnom Penh in November 2002. It was the continuation of the previous ASEAN Vision 2020, which was declared during the Summit in Kuala Lumpur, December 1997, as well as the recommendations of the High Level Task Force on ASEAN Economic Integration. The Task Force was formed by the ASEAN economic ministers two months before the November 2002 Phnom Penh Summit. Its task is to recommend measures for deepening the ASEAN’s economic integration beyond AFTA. At the ASEAN Summit held in Cebu, the Philippines, in January 2007, ASEAN decided to bring forward the landmark by five years to 2015—with a longer timeline of 2018–2020 for CLMV (Cambodia, Laos, Myanmar, and Vietnam) states (see ASEAN Secretariat. 2007. Cebu Declaration on th Acceleration of the Establishment of an ASEAN Community by 2015. ASEAN Secretariat. Available from: accessed 20 May 2015).
- 4.
Interview with Gandi Sulistiyanto, Managing Director of Sinar Mas Group, in Jakarta, 28 May 2015.
- 5.
Interview with Riza Damanik, Executive Director of Indonesia for Global Justice (IGJ), in Jakarta, 3 June 2015.
- 6.
Interview with Suryo Bambang Sulisto, President Commissioner of Bumi Resources, Bakrie Group; Chairman, Indonesian Chamber of Commerce and Industry (Kadin), in Jakarta, 9 April 2015; Interview with Revrisond Baswir, Economist and Commissioner of National Bank of Indonesia (Bank Negara Indonesia), in Jakarta, 25 May 2015.
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Al-Fadhat, F. (2019). ASEAN Regional Economic Integration and the Internationalization of Capital. In: The Rise of International Capital. Critical Studies of the Asia-Pacific. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-3191-6_5
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