JC History Tuition Bishan Singapore - How does ASEAN promote economic growth - JC History Essay Notes

How did ASEAN promote economic growth?

Topic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN : Building regional peace and security)

Learn more about the recent developments of the ASEAN Economic Community (AEC) to understand the significance of regional economic cooperation.

Origins of regional economic cooperation
ASEAN was formed as a regional organization with many aims. One of such aims included the desire for economic progress.

To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of South-East Asian Nations.

The ASEAN (Bangkok) Declaration, 8 August 1967

In view of this declaration, ASEAN member states continued to pursue economic development, especially countries like Singapore.

Initial steps for economic cooperation: ASEAN Concord
On 24 February 1976, ASEAN members gathered and signed the ASEAN Concord at Bali, Indonesia. Within the agreement, member states intensified their efforts.

Member states shall progress towards the establishment of preferential trading arrangements (PTA) as a long term objective on a basis deemed to be at any particular time appropriate through rounds of negotiations subject to the unanimous agreement of member states.

The expansion of trade among member states shall be facilitated through cooperation on basic commodities, particularly in food and energy and through cooperation in ASEAN industrial projects (AIP).

ASEAN Concord, 26 February 1976

Evidently, two forms of economic cooperation emerged: namely the PTAs and the AIPs.

Approach #1: Preferential Trading Arrangements [PTAs]
On 24 February 1977, the agreement on ASEAN PTAs was adopted in Manila, Philippines. In principle, the PTA aimed to encourage intra-ASEAN trade via tariff reductions. For instance, tariff rates had to be lowered by 10%. More importantly, each member state has to indicate which product should be considered for tariff reduction.

RECALLING the Declaration of ASEAN Concord signed in Bali, Indonesia on 24 February 1976, which provides that Member States shall take cooperative action in their national and regional development programmes, utilizing as far as possible the resources available in the ASEAN region to broaden the complementarity of their respective economies.

Agreement on ASEAN Preferential Trading Arrangements, 24 February 1977

Approach #2: ASEAN Industrial Projects [AIPs]
On 6 March 1980, the agreement on AIPs was signed in Kuala Lumpur, Malaysia. The AIPs aimed to encourage large-scale economic projects among member states that allow the flow of investment between project partners. Similar to the PTAs, these projects had tariff reductions. For example, Indonesia and Malaysia engaged in a project that focused on urea.

Considering that the establishment of ASEAN Industrial Projects, through joint endeavours in the spirit of equality and partnership, can contribute to the acceleration of economic growth in the region.

To give priority to projects which utilize the available resources in the Member States and which contribute to the increase in food production and foreign exchange earnings or which save foreign exchange and create employment.

Basic Agreement on the ASEAN Industrial Projects, 6 March 1980

Approach #3: ASEAN Industrial Complementation [AICs]
On 18 June 1981, ASEAN members signed the agreement on AICs at Manila, Philippines. The AIC focused on resource-pooling and intra-ASEAN trade. It can be considered a continuation of the AIP that encountered setbacks.

The AIC was carried out via vertical integration. The ideal process was the involve each ASEAN member in one stage of production. For example, the “ASEAN Car” was conceptualised as the initial project. Each stage of the car production was carried out in a different country. By doing so, every member state would gain from the economic cooperation.

An ASEAN Industrial Complementation (AIC) product shall be an industrial product manufactured or to be manufactured in an ASEAN member country and allocated to that particular country as its participation in the AIC package. The product thus produced shall be entitled to enjoy the privileges herein provided for products in an AIC package.

Basic Agreement On ASEAN Industrial Complementation, 18 June 1981

Approach #4: ASEAN Industrial Joint Ventures [AIJVs]
On 8 November 1983, ASEAN signed the agreement on AIJVs at Jakarta, Indonesia. This approach involved private investors and at a smaller scale. To enhance flexibility and encourage closer cooperation, only two member countries were involved. The AIJVs also focused on tariff reductions, in which governments could enjoy up to 90% concessions.

ASEAN member countries shall examine such tentative list and indicate to COIME at a subsequent meeting, the products in which they would like to participate and declare any existing production facilities they have for such products. Those products for which at least two ASEAN member countries have indicated their intention to participate shall be included in the final list of AIJV products, showing the participating member countries.

Basic Agreement On ASEAN Industrial Joint Ventures, 7 November 1983

Approach #5: ASEAN Free Trade Area [AFTA]
On 28 January 1992, the member states of ASEAN signed the AFTA in Singapore. The AFTA marked a significant turning point for regional economic cooperation.

ASEAN shall establish the ASEAN Free Trade Area using the Common Effective Preferential Tariff (CEPT) Scheme as the main mechanism within a time frame of 15 years beginning 1 January 1993 with the ultimate effective tariffs ranging from 0% to 5%.

Directions in ASEAN Economic Cooperation, The Singapore Declaration, 28 January 1992

The AFTA functioned on the basis of the CEPT scheme. Additionally, member countries could add specific products deemed important in their national interests in the ‘exclusion list’. Such products would not be subjected to tariff reductions. Notably, the AFTA proved useful as intra-regional trade rose by more than US$53 billion by 2000.

What can we learn from this article?
Consider the following question:
– Assess the significance of ASEAN economic cooperation from 1967 to 2000 [to be discussed in class].

After examining the main approaches of ASEAN economic cooperation, you should apply your newfound knowledge to source-based case study questions (SBCS) to review your knowledge comprehension. Additionally, you can consider joining our JC History Tuition as we refine your answering techniques, such as information extraction, set arrangement and provenance analysis.

Furthermore, you can join JC tuition classes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.

JC History Tuition Bishan Singapore - What is the South China Sea dispute - JC History Essay Notes

What is the South China Sea dispute?

Topic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN: Building regional peace and security – relations between ASEAN and external powers)

Historical Background
South China Sea dispute involves a large region of islands, reefs and banks. In particular, the region relates to contentious parts like Spratly Islands and Scarborough Shoal. The dispute originated from competing territorial claims between ASEAN-related countries (Philippines and Vietnam) and external powers, particularly China. For example, China based its territorial claims on the ‘nine dash line’ map, which was contested on by other claimants.

Unfortunately, these competing claims have resulted in clashes that occasionally escalated into violent confrontations. In January 1974, China clashed with South Vietnam over the ‘Paracels’, which resulted in the sinking of several Vietnamese ships and a substantial number of casualties. In 1988, China attacked Vietnamese forces in the Spratlys Islands, leading to frayed bilateral tensions.

Competing Claims
From the late 1970s to 1980s, Philippines advanced its claims on the Spratlys. In June 1978, Marcos announced the Presidential Decree that established the Philippine Exclusive Economic Zone (EEZ), which covered 200 nautical miles of the affected region. Likewise, in 1988, Brunei outlined an EEZ that stretched into the southern part of the Spratlys.

ASEAN’s intervention I: The Manila Declaration
On 22 July 1992, during the 25th ASEAN Ministerial Meeting (AMM), the regional organization formed the ASEAN Declaration of the South China Sea at Manila, Philippines. The Declaration was formed on the basis of the Treaty of Amity and Cooperation (TAC) of 1976, which advocated non-violent means of dispute resolution. It was a significant milestone for ASEAN as China agreed to sign the document.

However, the competing claims resurfaced again in the mid-1990s. On 8 February 1995, Philippines observed the development of a militarised Mischief Reef. In the late 1990s, Philippines clashed with China at the Mischief Reef and the Scarborough Shoal.

A divided ASEAN?
Given Philippines’ proximity to the contested region, it raised the matter to ASEAN. Yet, not all ASEAN members held a similar position regarding the dispute. This was observed in the disagreements over Philippines’ proposal for a new code-of-conduct during the AMM in July 1999. Furthermore, most countries were occupied with their domestic matters, given the severity of the Asian Financial Crisis of July 1997.

Besides, Indonesia sought to pursue an alternative solution due to the lack of unanimity in ASEAN. In 1990, Indonesia conducted the Workshops on Managing Potential Conflicts in the South China Sea. The workshop functions on a ‘two-track diplomacy’: (a) regional cooperation between ASEAN and China (b) bilateral cooperation between claimant parties

This informal diplomacy did make significant contributions to the management of disputes as China was unwilling to work with multilateral arrangements.

ASEAN’s intervention II: Declaration on the Conduct of Parties in the South China Sea (DOC)
On 4 November 2002, ASEAN promulgated another landmark agreement, which was known as the DOC at Phnom Penh, Cambodia. The document was signed by both China and ASEAN.

Contents included the reaffirmed commitment to adhere to the UN Convention on the Law of the Sea (UNCLOS), TAC and other international law. For example, “The Parties concerned undertake to resolve their territorial and jurisdictional disputes by peaceful means“.

What can we learn from this article?
Consider the following question:
– How successful was ASEAN managing the South China Sea dispute? [to be discussed in class].

In view of the above-mentioned points, you should attempt source-based case study questions to review your knowledge competency. Join our JC History Tuition to improve your answering skills. You can consider other JC tuition programmes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Singapore - What is the ASEAN Way - JC History Essay Notes

What is the ASEAN Way?

Topic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN : Building regional peace and security)

What is the ‘ASEAN Way’?
The ASEAN Way is a guiding principle that shapes the approach of member nations in Southeast Asia for conflict management. It emphasises heavily on consultation and consensus-building, which later inspired the introduction of other forms of political co-operation, like the Treaty of Amity and Co-operation (TAC).

As pointed out by the former Secretary-General of ASEAN, Rodolfo Severino, in a public address, the ASEAN Way “has served Southeast Asia well” by “moving its members from animosity to the close co-operative relationship that they enjoy today”.

Origins of the ASEAN Way
Following the formation of the regional organization in 1967, member nations had to learn from past errors as well as on-going disputes. One such incident involved the “Corregidor affair” (1968), which broke out due to the territorial disputes over Sabah. Similarly, the Confrontation (Konfrontasi) of 1963 was a contentious issue that strained diplomatic relations between affected member nations. Therefore, the ASEAN Way was implemented to encourage the use of diplomacy rather than forceful means to resolve conflicts.

Interestingly, the ASEAN Way was inspired by Malay culture, seen in terms of musjawarah (consultation) and muafakat (consensus-building). This practice involves a gradual decision-making process, in which all member states must be consulted before the regional organization can come to a consensus on the possible course of action to undertake.

How does it work?
One of the core principles of ASEAN Way involves the ‘principle of non-interference’. Should one or a few member nations disagree with the proposals put forth during the ASEAN meetings, the organization must postpone the decision-making for future settlement.

The main purpose of this cautious approach is to provide adequate time for considerations and prevent the outbreak and escalation of tensions. Therefore, regional stability can be maintained.

Subsequent impacts on ASEAN’s political framework
Following its inception in the 1960s, ASEAN has evolved over time in response to the changing international climate. The ASEAN Way was implemented in the form of institutionalized forms of co-operation.

One such example is the Zone of Peace, Freedom and Neutrality (ZOPFAN) Declaration (1971). Against the backdrop of the Cold War, these Southeast Asian member nations asserted a firm position to be free from external interference to prevent ideological manipulation.

Another application is observed in the Treaty of Amity and Co-operation (TAC) that emphasises heavily on amicable co-operation among member nations and non-ASEAN countries. The TAC endorses the practice of cautious diplomacy that focuses on the compartmentalization of contentious issues.

The most important case study that can be used to examine the significance of the ASEAN Way is the Third Indochina War (1978-1991) as it arguably provided a timely opportunity to display ASEAN’s solidarity to the rest of the world.

What can we learn from this article?
Consider the following question:
– Assess the success and limitations of the ASEAN Way in managing regional conflicts in Southeast Asia since 1967 [to be discussed in class].

Now that you have examined the fundamental concepts of the ASEAN Way, it is imperative that you explore and attempt source-based case study questions. You can also consider signing up for our JC History Tuition to find out how you can apply your knowledge to answer similar questions that are based on past examination papers.

Also, you can learn more about other JC tuition programmes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to register now!

JC History Tuition Bishan Singapore - Why was the ASEAN established - JC History Essay Notes

Why was the ASEAN established?

Topic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN

What is ASEAN?
On 8 August 1967, the Association of Southeast Asian Nations (ASEAN) is a regional organization that was established. The foreign ministers of five Southeast Asian countries – Malaysia, Indonesia, Singapore, Philippines and Thailand – signed the historic document, known as the ‘ASEAN Declaration‘ in Bangkok, Thailand.

In the 1980s and 1990s, ASEAN expanded its membership by including other neighbouring countries, like Brunei (1984), Vietnam (1995), Laos and Myanmar (1997) and Cambodia (1999).

The aims and purposes of ASEAN
Within the ASEAN Declaration, it outlined what ASEAN was meant to achieve objectives such as:

  • “To accelerate the economic growth, social progress and cultural development”
  • “To promote regional peace and stability”
  • “To promote active collaboration and mutual assistance on matters of common interest”

In view of these efforts, it is important to consider the challenges that countries in the Southeast Asian region encountered in the 1950s and 1960s to understand the rationale behind its establishment.

Factor #1: Maintenance of regional security
Before ASEAN was formed, there were inter-state tensions that gave rise to conflicts. These conflicts threatened the security of affected countries, including those in the neighbouring zones. For instance, the Konfrontasi (Confrontation) was a controversial foreign policy that affected the political stability of nations, like Singapore and Malaysia. Following the de-escalation of the tumultuous phase, the formation of ASEAN would help to mend the diplomatic ties of the affected countries and encourage Indonesia to adopt a more collaborative position.

Furthermore, following the Suez Crisis, the British announced the withdrawal of its military from the region by 1971. This move raised security concerns for Singapore as its small and vulnerable state could expose the country from any potential external threat. Therefore, the formation of a regional organization (i.e. ASEAN) would arguably compensate for the departure of the external powers.

Factor #2: Assertion of an independent region free from external interference
In view of the Konfrontasi, Southeast Asian nations formed the regional organization to promote accommodation and collaboration between one another. Although some of these member nations held contrasting perspectives towards co-ooperation with external powers, there was a general consensus that ASEAN would become the central focus in promoting intra-ASEAN engagement.

For example, Singapore was supportive of the formation as it would lead to the increased accessibility of the region’s markets. Following the ‘Separation’, Singapore was in dire need of economic support from abroad to facilitate its economic nation-building efforts. In 1967, it was estimated that Southeast Asia had a combined market of more than US$280 million. Hence, intra-ASEAN trade would no doubt be beneficial for member nations.

What can we learn from this article?
Consider the following question:
– Assess the view that security reasons were the most important in explaining the formation of ASEAN in 1967 [to be discussed in class].

Now that you have learnt the reasons that explain the formation of ASEAN, we strongly encourage you to attempt related source-based case study questions to review your knowledge application skills. Alternatively, you can join our JC History Tuition as we provide numerous practice questions and review your answers to ensure that there is progressive learning.

Furthermore, you can find out more about other JC tuition programmes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now.