Regional Integration in Southeast Asia: Better Macroeconomic Co-operation Can Mitigate Risks

The ten member states of the Association of Southeast Asian Nations (ASEAN) have created one of the most dynamic developing regions. They have unveiled the Blueprint for the ASEAN Economic Community (AEC) to achieve a “single market” by 2015. More recently, the full ratification of the ASEAN Charter in December 2008 has provided an institutional framework for what had been de facto regional integration underway since the 1980s. Realising the end goal of economic integration enshrined in the association’s blueprint and in the charter poses a major challenge to the region facing the global economic downturn. This Policy Insight suggests possible ways forward.