1AsianEconomicIntegration by IDIA

The Institute for Domestic and International Affairs

United Nations Development Programme Regional Integration in Asia Rutgers Model United Nations 16-19 November 2006

Director: Asami Kondo

ÂŠ 2006 Institute for Domestic & International Affairs, Inc. (IDIA) This document is solely for use in preparation for Rutgers Model United Nations 2006. Use for other purposes is not permitted without the express written consent of IDIA. For more information, please write us at idiainfo@idia.net

Introduction _________________________________________________________________ 1 Background _________________________________________________________________ 2 North / South Divide_______________________________________________________________ 3 The Korean Peninsula _____________________________________________________________ 6 China and Taiwan ________________________________________________________________ 8 Mistrust _________________________________________________________________________ 9 China and Japan _________________________________________________________________________9

Mistrust of Western Influence______________________________________________________ 11 Necessity for Integration __________________________________________________________ 12 Economic Integration ____________________________________________________________________12 Common Market ________________________________________________________________________13 Common Currency ______________________________________________________________________14

Political Integration ______________________________________________________________ 16 Social Integration ________________________________________________________________ 17 International Organizations _______________________________________________________ 17 ASEAN _______________________________________________________________________________17 APECC _______________________________________________________________________________18 APEC ________________________________________________________________________________18 ASEM ________________________________________________________________________________19 Accomplishments _______________________________________________________________________20 Challenges_____________________________________________________________________________20

Current Status ______________________________________________________________ 21 Key Positions _______________________________________________________________ 23 China __________________________________________________________________________ 23 Japan __________________________________________________________________________ 24 ASEAN Member States ___________________________________________________________ 24 United States ____________________________________________________________________ 25 Europe _________________________________________________________________________ 25 Middle East _____________________________________________________________________ 25 Latin America ___________________________________________________________________ 26 Africa __________________________________________________________________________ 26 NGOs __________________________________________________________________________ 27 Business Interests ________________________________________________________________ 27 Media Interests __________________________________________________________________ 27

Summary___________________________________________________________________ 28 Work Cited _________________________________________________________________ 29

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Introduction After witnessing the success of the process through which Europe integrated its economic, political and social structures, scholars have suggested that a similar process could prove advantageous to states throughout Asia. As one of the United Nation Development Programmeâ&#x20AC;&#x2122;s (UNDP) goals is to â&#x20AC;&#x153;bring people together within nations and around the world, [by] building partnerships and sharing ways to promote participation, accountability and effectiveness at all levels,â&#x20AC;? it is important for UNDP analyze the integration of Asia. This particular region is receiving more and more attention from the world because of their great economic and political growth throughout the past few decades. Although their growth is significant, if the Asian countries were to unite and create a community in order to support and encourage economic, political, and social growth, the region would become even stronger and even more productive. The countries in Asia have all encountered development; however, if they combined their information and strengths, they would be able to experience even more significant economic, political, and social change in their nations. Economically, regions of Asia would be able to increase their profit through greater trade benefits. If the nations integrated, they would be able to create a Common Market, which will encourage the freedom of movement in goods, services, capital, and labor, and they may also create Common Currency, which will discourage unfair trade and will promote cooperation. Politically, Asian nations will benefit through the diffusion of tension and political support of unstable countries. Since the nations will become a community, they would not be threatened by the other nations due to competition. Socially, the countries will benefit from sharing of information, open communication, and migration. The nations have experienced difficulty in migrating into a different Asian country and also problems with illegal migration. If the nations cooperated, the region would be able to solve migration problems through communication. Although the Asian region would highly benefit from integration, there are varieties of problems that make creating an Asian Union difficult. Long-term issues, such

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as mistrust among one another, mistrust of western influence, and division due to past harm, are slowing down the integration process. Despite these daunting problems, there are organizations, such as ASEAN and APEC, who promote cooperation and partnership within the region. The well-respected organizations are committed to promoting unity and assistance to unstable nations. The idea of implementing Asian Integration is overwhelming due the problems of mistrust and division but it is not impossible. In order to assist undeveloped nations to develop and to help maintain stability in developed nations of Asia, cooperation and support by the international community is important. Without the successful application of integration, undeveloped countries will continue to suffer due to disparity.

Background In order to understand Asian integration, it is necessary to understand three critical factors regarding the relationship among Asian states: division, mistrust, and opportunity for growth.

Division in Asia plays a major role in the prevention of the regional

integration. First, there is significant economic disparity between the northern and southern regions of the continent. Secondly, there is mistrust among states states, such as the divide between North and South Korea, China and Taiwan, China and Japan, and Russia and China. For much of history, Asia was home to a series of foreign occupations and efforts at meddling by Western powers, resulting in ongoing friction among states. Since there are historical issues that have not been resolved, it is becoming more apparent, how difficult it is to create a cooperative institution in Asia. One focus is economic cooperation. With great interest of trade in current events, it is important for Asian states to be able to support one another in order to develop economically. Another category is political regionalization. Political support will allow diffusion of tension between two or more Asian states. Such support will also aid countries in bringing stability to their country and their policies. The third focus is social collaboration. Since migration is becoming in an issue in Asia, social cooperation will allow states to find more control within their countries and others.

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North / South Divide World War II affected the Southeast region of Asia profoundly. In less than five years, the colonial world that Southeast Asia had known was destroyed. This left states of the area to fight for themselves for something they saw as theirs, rather than something predisposed by colonial rule. Also, the region had never seen the things evoked by the war, “the innumerable deaths, the material damage, and the interrupted lives.” 1 These experiences left a heavy mark on the Southeast Asians as they were focused on freeing their societies and producing strong feelings of nationalism. The Southeast region now consists of Burma, Indonesia, Cambodia, Laos, Vietnam, Philippines, Siam, Malaya, Thailand, Malaysia, Singapore, and Brunei. These states, after their independence have developed with help from other states. They have reached out for help from larger powers and allowed these powers to influence their international alignments.2 Also, the economic relations of the Southeast Asia states have changed. These states “have begun to develop their domestic economies in ways that have had significant consequences on the structure of their societies, the nature of employment patterns and lifestyles, and the ecology of the region.”3 As a result, several Southeast Asian states have been able to make an entrance into the industrial world. However, others have been slower in this change due to the lack of their own development strategies or internal direst. Since most Southeast Asian states found it difficult to produce their own capital, they welcomed foreign investment, aid, and loans. In Northeast Asia, which includes Japan, South Korea, North Korea, the northeastern section of China, Far East Russia and Mongolia, both conflict and growth are possible. In the early 20th Century there were many border conflicts in the region. Particularly the borders among China, North Korea, and Far East Russia, were in severe

David P. Chandler, William R. Roff, John R. W. Smail, David Joel Steinberg, Robert H. Taylor, Alexander Woodside, and David K. Wyatt, In Search of Southeast Asia: A Modern History, ed. David Joel Steinberg, Revised ed. (Sydney, N.S.W.: Allen & Unwin, 1971) 349, Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=10615178>. 2 Ibid. 3 Ibid 445.

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strife. As a result infrastructure had been developed which includes the opening of the Siberian Railroad, starting a foundation for prosperity in Northeast Asia.4 Despite its advances, a series of wars including the Sino-Japanese War, the Russo-Japanese War, the Japan-China War, and the Pacific War as well as the Cold War have blocked further development of Northeast Asiaâ&#x20AC;Ś Although more than ten years have passed since the Cold War between the East and the West, the Cold War structure still remains in the Korean Peninsula, and the border between the South and the North is maintained under wartime conditions.5

With such differences ingrained in culture, it is difficult to make any advances in a communal matter. Both sides and belief structures must be addressed and compromised. It is also important to note the difference in colonial powers between the two regions. Thailand and all the Southeast Asian countries were colonies of Western powers. However the countries of Northeast Asia were never European colonies.6 Rather, they were ruled by dynasties. These dynasties invoked an extremely hierarchical society with the emperor and his family at the top of the societal structure. The dynasty controlled everything in the state including access to education and political office, tax obligations and exemptions, legal accountability and punishment. Farmers and their families made up 80-90 per cent of the population. The peasants made the revenue for the dynasties; all the while the dynasties did all they could to keep the minimum standard of living for the peasants.7 Aside from colonial and religious divides, there is an economic one as well. The development in Eastern Asia was called the â&#x20AC;&#x153;flying geese patternâ&#x20AC;? due to its staggered levels of growth depending on the hegemon of the time.8 The first to lead Asia was Japan as the first-tier industrial economy, followed by Korea, Taiwan, Hong Kong, and Singapore as the second-tier industrial economy. Thailand, Malaysia, Indonesia, and the 4

Tamotsu Nakano, "A Grand Design for Northeast Asia," International Journal on World Peace 20.3 (2003), Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=5006443577>. 5 Ibid. 6 Michio Morishima, Collaborative Development in Northeast Asia /, trans. Janet Hunter (New York: St. Martin's Press, 2000) 136, Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=102377152>. 7 Charles Benn, Daily Life in Traditional China: The Tang Dynasty (Westport, CT: Greenwood Press, 2002) 35, Questia, 27 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=101327360>. 8 Lim, Lee. 39.

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Philippines followed after as the third-tier economies. The “flying geese pattern” created a link for these countries to become technologically and politically dependent on each other. 9 Since Japan led the region it has surpassed the others by its opportunities to trade with the west. This is a desire that the other tiers have that would be easier to facilitate given a regional organization. Although the Eastern Asian countries were able to rely on one another for information and development for two decades, the Asian economic crisis became a turning point in Asia. The crisis heavily affected the economy of every Asian country, especially Indonesia, Thailand, and the Philippines.10 Most northeastern states were able to recover through export-centered revival, but the three mentioned states plus Singapore and Malaysia are stumbling upon economic challenges, such as heavy financial debt, that require structural reforms from the aid received from the World Bank. Thailand’s financial crisis began in 1994 when the Bank of Thailand saw the failure of a medium-sized bank. In the end, what was first thought to be a limited problem, turned into a USD $7 billion bailout. By 1997, the financial crisis in Thailand grew worse. The first default on foreign loan repayments occurred in February 1997. Rather than shift bank-based losses to shareholders of the various banks, the government undertook a strategy of bailouts, costing the government billions of Dollars, while having very little positive effect.11 Meanwhile, in Indonesia, the enormous wealth of the Suharto clan caused widespread suspicion and opposition to the ruling family. In addition, Chinese businessmen began to lose confidence in the regime and the Rupiah as early as 1996, and withdrew about $100 billion in foreign direct investment from the country between 1995 and 1997.12 South Korea also suffered economic downturn in the late 1990s. The financial crisis did not appear until December 1997, when presidential elections took place and rival candidates disavowed a loan package from the International Monetary Fund. Concerns over South Korea’s solvency undermined the confidence of 9

Ibid. Lim, Lee. 38 11 Breslin, Shaun et al. New Regionalisms in the Global Political Economy. New York, NY: Routledge, 2002. 114. 12 Ibid, 114 10

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international financial markets and therefore hindered the stateâ&#x20AC;&#x2122;s ability to implement true economic reform.13 In the face of sharp increases in Dollar-denominated debt burdens, illiquidity and bankruptcy, these three governments guaranteed the assets of creditors and defended national currencies until they had used up virtually all their reserves. This forced the IMF to put together three bail-out packages for a total of USD $120bn. This tremendous expenditure in three seemingly small Asian countries caused a lack of available funding for other developing economies throughout the world.14 The seemingly common theme across these states is that not only did they lack a strong internal economic marketplace, but they also lacked the political fortitude to bring about meaningful economic reform. Economic downturns can happen at any time, and it is the countries that have planned for them, and that are able to implement reforms that are able to weather these periods. The division between the northeast and debt-heavy southeast are becoming more evident every day. With todayâ&#x20AC;&#x2122;s Information Technology knowledge and its advancements, the world is continually becoming dependent on technology. However, the Southeast Asian states are not able to obtain the same amount of technological production or information as the northeast states, nor are they able to manufacture as much. As a result, the division creates a bigger informational and economic gap between the two Asian regions.15

The Korean Peninsula Division within a state is another problem that Asian countries are trying to solve. When there is conflict within a state, it makes it difficult for the state to focus on worldly issues because there are so many problems and much tension within their country. Most of the stateâ&#x20AC;&#x2122;s time and money is focused on their local politics, such as security. Since North and South Korea are both two of the wealthier influences in Asia, their political split is holding back integration in Asia. 13

Ibid 115 Ibid 15 Ibid. 14

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Boundaries for North and South Korea were fully recognized and were in writing after World War II when the United States and U.S.S.R. signed an agreement. In the treaty, it clearly distinguished that the boundaries north of the 38th parallel was in the trust of the U.S.S.R and the land that lay south of the parallel was in the trust of the United States. This agreement was made without consulting any Koreans. Soviet and American military command would continue in a five year, trusteeship system. During the five year period it was expected that the two powers set up a “provisional democratic government for the entire peninsula.”16 However the two powers could not decide on which Korean political groups to allow form the government and handed over the matter to the United Nations. Coming after the announcement of the Truman Doctrine, this bit of diplomacy could not but help push forward the development of two separate Korean states. This treaty heavily influenced their relationship with one another because the Cold War had a big influence on world politics during the 20th Century.17 Since the two super powers of the time, United States and the U.S.S.R, were in conflict with each other and were racing the other to spread their ideological influence first, their influence controlled Korea’s political decisions and future. Naturally, North and South Korea took on their hegemonic country’s ideology. North Korea became a Communist nation and South Korea became a democratic nation. In 1950, North Korea fired the first attack that overturned South Korea’s capital, Seoul.18 Their attack quickly involved the United States because the attack was regarded as a Communist attack on a Democratic state. Under United Nations Command (UNC) the US led a sixteen member coalition to fight against North Korea. China intervened on North Korea’s behalf. After China’s entry to the war, a stalemate between the two sides concluded the final two years of the war. On 27 July 1953 the Armistice Agreement was signed after two years of negotiations. Though the agreement was signed by the Korean 16

Herbert P. Bix, "Regional Integration: Japan and South Korea in America's Asian Policy," Bulletin of Concerned Asian Scholars5.3 (1973): 17, Questia, 26 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=97732500>. 17 Infoplease, “Korea, South,”Pearson Education, inc., http://www.infoplease.com/ipa/A0107690.html (accessed April 23, 2006) 18 Ibid.

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People’s Army, the Chinese People’s Volunteers, and the U.S.-led United Nations Command (UNC), the Republic of Korea refused to sign the Armistice Agreement. Since, then a peace treaty has never been signed, but the powers have tolerated each other.19

China and Taiwan The tensions between China and Taiwan find their roots in the 1949 Chinese revolution, when communists led by Chairman Mao claimed control of the mainland. As a result of this Nationalist leader Chiang Kai-shek withdrew to Taiwan, with two million refugees, vowing the reclaim the mainland. Chiang ruled with an iron fist, restricting liberties and killing thousands of opponents

As the Korean War broke out, the United

States sent its fleet into the Taiwan straight to help prevent China from attacking Taiwan. It was under these conditions that in the 1960s the native Taiwanese sought independence from mainland china.20 Almost at this same time, in order to curb soviet expansionism, the US started to work on improving relations with other states. In 1979 The US formally recognized mainland China’s government and its ‘one China’ policy. “The U.S. move meant that America accepted Beijing's "one China" mandate and abandoned its defense pact with the island. Within months, though, the U.S. Congress reinstated unofficial economic ties with Taiwan, including the sale of arms.” 21 However China was unhappy because it sees Taiwan as its rightful territory and is fearful that Taiwan increasingly is moving toward an independent state. Beijing has consistently vowed to take the land back, using force if necessary. This situation is sticky though as anything could easily involve the United States. China refuses to deal with Taiwan’s President until Taiwan recognizes that there is “one China.” However, Taiwan has seemingly done well. It boasts very large economy and has 19

“Background note: South Korea,” US Department of State, http://www.state.gov/r/pa/ei/bgn/2800.htm, Accessed 21 August 2006. 20 “China-Taiwan History,” PBS.org, 7 March 2000, http://www.pbs.org/newshour/bb/asia/china/china-taiwan.html, Accessed 21 August 2006. 21 Ibid.

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developed into a functioning democracy. Yet, the question of independence still remains and has yet to be addressed between the two sides.22 During the period of 1999-2000, a serious of events occurred between the two states that added to the tension between the two parties: 1. Lee Teng-hui's controversial statement in July 1999 that any exchanges between the two sides of the Taiwan Strait “should be based on a special state-to-state relationship”; 2. Beijing's second Taiwan White Paper in February 2000, which for the first time implied that China could resort to force should Taiwan refuse indefinitely to return to the negotiating table; 3. The PRC premier Zhu Rongji's stark warning to Taiwan on March 16, 2000, on the consequences of Taiwan's presidential election, should Chen Shui-bian, the candidate of the proindependence Democratic Progressive Party (DPP), win; and 4. Chen's victory in the Taiwanese presidential election two days later.23

After the election of Chen, China seemed somewhat soft spoken about the situation. But then China increased its military coercion tactics. In May 2001, China mobilized the PLA army, navy and air force along its east coast. These actions demonstrate not only China’s resolve but its military readiness as well.

Despite China’s readiness and ability to

overwhelm the island of Taiwan militarily, China’s refrains from doing so. It fears that military action could severely hamper its efforts to further develop its growing economy.24

Mistrust China and Japan The relationship between China and Japan plays one of the most important roles in the movement of Asian integration. Their cooperation is vital because they are two of the most industrialized and developed countries in Asia. Although collaboration is necessary, it is incredibly difficult because China mistrusts Japan due to past Chinese-Japanese historical and cultural links. One possible reason for the mistrust is because of China’s concern for Japan’s militarization. Since the 1930s Japanese invasion and occupation of China, China has 22 23

Ibid.

Jing Huang, "2 China's Taiwan Policy: Past and Present," Conflict in Asia: Korea, China-Taiwan, and IndiaPakistan, ed. Uk Heo and Shale A.Horowitz (Westport, CT: Praeger, 2003) 30, Questia, 26 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=106735630>. 24

Ibid.

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perceived Japan as a “possible resurgent of threat.”25 Because the invasion created a great amount of death and suffering, they are constantly concerned about Japan’s potential remilitarization.

Japan dismantled their military at the beginning of the

People’s Republic, but China’s insecurity continuously created mistrust and difficulty for growth between them. During the Cultural Revolution, China, again, had concern of Japan’s remilitarization because Japan was becoming politically and economically stronger and independent from outside influence. China feared that Japan would become imperialistic and controlling again. China’s concern of remilitarization makes it harder for them to trust Japan. Another potential reason for mistrust is due to the United States’ presence in Japan. During the 1950s, when China and the Soviets were allies, they created a treaty that protected one another “from an attack by Japan or any state allied with it.”26 The United States allied with Japan and threatened China and the Soviet Union because of their economic and political dominance. The United States also threatened them because the western states were spreading ideas of Democracy, which was a conflicting system of government from Communism. Since these two ideas were competing for support around the world, China was insulted that Japan chose to side with the United States. Since they were offended, they tried to influence Japan through trade, relationships with opposition political parties, and political pressure, but initially, China’s plan failed and worsened their relationship. 27 Japan’s involvement in the situation between Taiwan and China may also create a potential reason for China’s need to mistrust. When tension was rising between Taiwan and China, Japan desired a good relationship with both in order to maintain open trade and cooperation. Beijing China was not pleased and criticized Japan for having a “’two

U.S. Library of Congress, “China: Japan,” U.S. Library of Congress, http://countrystudies.us/china/132.htm Ibid. 27 Ibid. 26

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Chinas’ policy.” 28 Since the Chinese were also struggling with the above-mentioned problems, the conflict with Taiwan just escalated the problems with Japan. Being that Japan and China are great economic powers in the regions, it would be obvious that they may have conflicts of interest when it comes to the idea of regional integration because neither of them would want to lose its position in the region. Therefore in order for regionalization of Asia to occur, China must acknowledge Japan’s demilitarization and make sure that its people are aware of it as well. Japan would also be better off it is acknowledge its victims of war within China. Also, Japan must understand that acting as a balancer and competing with China makes little economic sense as growth for both would best help the region – not one or the other. And both states must realize that neither single handily will run the region.29

Mistrust of Western Influence Most Southeast Asian countries are finding it difficult to be able to trust western influence because of past relations. To Asian states, it seemed as though the tension intensified when the western forces intervened in their affairs. The relationship between China and Japan is a good example of this sentiment. Although Japan enjoyed their alliance with the United States, China felt discouraged because the United States “sided” with the opposing state. They also felt threatened by British imperialism and the influential power of the United States because they felt as though the west was trying to change their ideology and culture. 30 Another example of why Southeast Asia is mistrustful of the west is because of the North and South Korean conflict. Although the United States were allied with South Korea and were trying to help the situation, because they also had other motives, such as spreading the idea of democracy, it inflated the tension and problem between the two powers. The increase in tension made it more difficult for North and South Korea to find ways to cooperate and to reunite. 28

Ibid. Shiping,Tang, “Last Chance for East Asian Integration,” The Straits Times, 18 November 2006, http://iaps.cass.cn/english/Articles/showcontent.asp?id=390, Accessed 28 August 2006. 30 Landon, Dale E. 29

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Also, Colonialism plays a large role in Asia’s mistrust of Western powers. The united States and Great Britain were more liberal in their colonial structures. They allowed access to education, economic opportunity and respected civil liberties and political participation more so that less liberal states. The Spanish, Dutch and French were much less liberal in their approach to their colonies. They generally placed the European in a superior legal position, and limited civil liberties. Political activities were discouraged. Access to modern education was restricted in numbers and to certain social groups. Censorship was common. Southeast Asians were not encouraged to engage in modern economic activities. And there were major problems of corruption in the Spanish and French colonial governments.31

The suppression of basic liberties only fuels resentment of the natives against the colonial power. As a result nationalist movements started, fueled by western education and indigenous religions.

As time progressed Asia and its people developed a distinct

identity, separate from that of the West. The nature of this culture still exists to this day.32

Necessity for Integration Economic Integration Economic integration is currently the most focused and discussed area of regionalization in Asia. Since Asia’s economy relies on export, creating a union among Asian states and establishing a sense of community will aid in the growth of all members involved. Different ideas, such as a common market or common currency, will allow cooperation and growth in all economic areas. The possibility for growth is endless for Asia. The region has the potential to become an economic activity center equivalent to the EU or the North American Free Trade Association (NAFTA). In order for this to happen, multilateral cooperation, proper financing, technology, and natural resources within the region must be utilized. “The region is one of great variety, with differences in the natural environment, race, culture, and historical recognition, as well as differences between liberalism and communism, 31

Wilson, Dr. Constance, “Colonialism and Nationalism in Southeast Asia,” http://www.seasite.niu.edu/crossroads/wilson/colonialism.htm, Accessed 22 August 2006. 32 Ibid.

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between market-oriented economies and controlled economies, and per capita income differential.”33 Asia has an immense wealth of human, geopolitical and natural resources coupled with unique and cultural characteristics that have been developed over thousands of years. As a landmass, it constitutes one-third of the world's land area and houses than half of the world's population.34 The region primarily practices the Five Principles of Peaceful Coexistence. These principles include which are mutual respects for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence.35 Due to their experience with war, Asian’s “deeply appreciate the value of peace, the urgency of development and the importance of cooperation.” Most Asian states believe in working together to achieve development. As a result, Asia has its own unique conditions for economic cooperation, and these practices are continuously evolving. Its trading practices are moving from bilateral to bilateral with regional co-operation at different levels. In the past the region has worked off of trade and investment alone. More recently, the region has extensive operations with trade, investment, currency and finance.36

Common Market A common market is a customs union with common policies on product regulations and allows freedom of movement in goods, services, capital, and labor. But in order to achieve and maintain this union, the member states must have strong will to cooperate create a common economic policy. The European Community, also known as the Common Market, was established in the 1980s in order to promote a single-market economy in Europe. Even though the idea 33

Joseph Yu-Shek Cheng, "Collaborative Development in Northeast Asia," Pacific Affairs 75.3 (2002), Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=5002508508>. 34 “Asian Nations Rise Up In Mutual Confidence,” Business Daily Update, 24 April 2006, LexusNexis, Accessed 11 August, 2006. 35 “Backgrounder: Five principles of peaceful coexistence (2004/06/14),”The Chinese Embassy, http://www.chinaembassy.org.in/eng/ssygd/fiveprinciple/t132640.htm, Accessed 11 August 2004. 36 “Asian Nations Rise Up In Mutual Confidence,” Asia Intelligence Wire, 24 April 2006, LexisNexis, Accessed 11 August 24.

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of a common market interested European States, it seemed difficult to unite different states and so, the Single European Act, a revision of the Treaty of Rome, was created. The goal of this act was to eliminate borders and to increase cooperation so that Europe will be able to become economically and politically competitive as a unit. As the list of states that accepted the act increased, the European Community became more united and stronger, politically and economically. 37 Since the single market economy creates a competitive environment for businesses, Europe was able to weave out the inadequate businesses while strengthening the efficient firms through competition and lower costs. Europeans also benefited from the single-market economy because the products were less expensive, there were more providers, and there were more choices of products. Since the market became so competitive, European consumers also benefited from the increase of now inventions and different types of products.38 The EU is not the only example of integration relating to economic development. Other organizations such as the Common Market of the South (Mercosur), the North American Free Trade Agreement (NAFTA), and the African Union all present relevant case studies as they are in various stages of regional economic integration. By exploring these other organizations and trade regimes, the international community can see whether implementing a common market to promote economic integration is a viable solution toward long term growth.

Common Currency The most well known example of common currency is represented in Europe. The European Union created the Euro in order to encourage different European states to be able to work and cooperate with on another, peacefully. The Euro was the next step in order to progress economically. After the creation of the European Community, a representation of common currency was necessary to promote economic unity. The Euro also allowed Europe to feel like a community, a team, instead of twenty-five individual 37 38

Farrell, Mary et al. eds. European Integration in the 21st Century. London, UK: SAGE Publications, 2002. Ibid.

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states competing again one another. For Europe, the common currency has become a type of symbol that represents the rebirth of Europe as a world leader in economics and cultural matters. 39 The use of the single currency decreased transaction costs and exchange rate risks, increased foreign investment, and encouraged competition. “One of the political attractions of a single currency in Europe is the economic weight it offers to the EU in trade negotiations with the other powerful economies of the US and Asia.”40 Since the European Union can impose tariffs or subsidize over an enormous economy when negotiating with other world powers, a single currency economy, like Europe, can become stronger to deal with other broad-scale economies. The Euro is a sure example of how successful Common Currencies can be. Through common currencies there are many benefits that the countries involved can gain. First, common currencies remove the exchange rate risk. If a common currency exists in Asia, trade and investments across borders will increase. Most states do not invest in other countries because of the risk of changes in the value of respective currencies have increased risk of import/export outside of their own currency zones. Since exchange rates fluctuate on a daily basis, it has been difficult to invest in other countries but with a common currency, this will not be of an issue. For example, for over a decade China has pegged its currency to the US Dollar. This made Chinese goods extremely cheap in the US. But in 2005 China un-pegged the Yuan which would allow it to increase its value to the US Dollar.41 Similarly, bank transactions will be less complicated when traveling or trading because of the removal of conversion fees.42 Another benefit is having a deeper financial market. Having a common market will increase competition and will increase the over all production of different products. It will also encourage businesses to come up with new ideas and new innovations to stay in the market. Since trade will also be increased within these states and the complications of different currency rates will be 39

Farrell, Mary et al. eds. European Integration in the 21st Century. London, UK: SAGE Publications, 2002. Ibid 119 41 Isidore, Chris, “China revalues Yuan,” 21 July 2005, http://money.cnn.com/2005/07/21/news/international/china_yuan/index.htm, Accessed 27 July 2006. 42 Ibid. 40

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eliminated, there will be a decrease of inflation within the market. The reduction of inflation will also be very beneficial to the consumers. In addition, the Asian states will also be able to benefit from competitive funding, which allows corporations to borrow money from cross border banks without higher rates, macroeconomic stability because inflation will decrease, and will be able to enjoy non-specific monetary policies. Since the region would be sharing the same common currency, governments will not have to spend time debating on which currency should be the rate of exchange.43

Political Integration Since Asia struggles with deep-seeded problems from past wars and occupations, political collaboration is necessary.

European Commission President Jose Manuel

Barroso said, “East Asia must embrace closer political ties if it is to follow the path of the European Union to economic integration.”44 Such political integration is important if Asia wishes to develop the institutions necessary for facilitating such practices. Since integration has progressed through mostly multinational firms initiatives, larger regional institutions are necessary to further promote integration.45 Political integration can help in numerous ways.

First, it can help even the

economic field. The income disparities in Asia are outstanding. Per capita income difference between Japan and Cambodia today is almost 100 times. Not to mention the diverse political regimes. Developing political integration must be done with care. Since the region’s states has vast differences, political integration should focus on getting each state into a position where it can interact easier with others, especially LDCs.46

Ibid. “Economic and political integration go hand-in-hand, Barroso tells Asia,” Agence France Presse, 24 April 2006, Lexis Nexis, Accessed 11 August 2006. 45 Fujita, Masahisa, “Regional Integration in Asia: How to be further promoted in harmony?,” Institute of Economic Research, http://www.scj.go.jp/ja/info/syusai/jizoku/DYNAMISMASIA/program/pdf/04_masahisa-fujita.pdf#search=%22political%20integration%20in%20asia%22, Accessed 22 August 2006. 44

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Social Integration As is true in any country, social harmony can only be realized when the gap between the rich and poor is narrowed down. Harmonious international relations can be built up only when the gap between rich and poor neighbors is significantly reduced. Also, political parties play an important role in their own country's political, economic, cultural and foreign relations with other nations, as well as in fostering international relations and promoting understanding and friendship between different people groups.47

International Organizations In order to aid in the process of Asian Integration, it is important to have a strong foundation to help organize the problems that Southeast Asia is having. Since there are problems of mistrust of the west, there must be new, respected, Asian organizations that will motivate Asian states to become involved and encourage the process to occur.

ASEAN The Association of Southeast Asian Nations (ASEAN) was founded on August 8th, 1967 in Bangkok by five of the original members, Indonesia, Malaysia, Philippines, Singapore, and Thailand.48 Currently, the association has ten members. These members include the original five member states, Brunei Darussalam, Cambodia, Laos, Myanmar, and Vietnam.49 Although ASEAN only has ten members, the organization is strengthened by the strong support from the United Nations. The United Nations helps promote the association because their goals focuses on the growth and development of economic, political, and social issues that Asian states are struggling with. The organization also encourages equality and partnership in order to establish “a prosperous and peaceful community of Southeast Asian nations [and strongly urges the region to gain stability

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through] respect for justice and the rule of law.”50 Since ASEAN began to work closely with the United Nations, they also promote obedience to the principles of the UN Charter. The organization was the first to promote all three, economic, political, and social, focuses, and also the first to promote the UN Charter in their Declaration. ASEAN also heavily focuses on strong and open cooperation and shared prosperity.

APECC The Asia Pacific Exhibition and Convention Council (APECC) began in November of 1989 at the Inaugural Meeting, which was held in Seoul, Korea. This organization was originally found by nine Charter Members but is now representing “thirty organizations in fourteen countries.”

The APECC members involve

organizations from Australia, Canada, China, Germany, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand, United Kingdom, and The United States of America.52 The first APECC General Assembly meeting was held in May of 1990 in Osaka, Japan. Starting from the first meeting, the organization was able to decide on what their main objectives were as an association. APECC’s purpose include but are not limited to support and encourage the development of the exhibition and convention industry of the Asia Pacific region, to promote mutual assistance, open communication and communication between members, to promote membership and participation, to define the role of industry, and to uphold professionalism in conventions and exhibition in Pacific Asia.

APEC Asia Pacific Economic Cooperation was found in Canberra, Australia in 1989, as an informal communication network by 12 members. Currently, they have expanded to have 21 members. These members are referred as “Member Economies” and include 50

Ibid. APECC, “Member Status (As at September 24, 2006, the 15th General Assembly,” APECC, http://www.apecc.org/default.asp?PageID=5 (accessed April 27, 2006) 52 Ibid. 51

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Australia, Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam. 53 The focus of APEC is to “facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region.” 54 Although the organization’s objective is similar to the above-mentioned groups,55 this group is quite different. APEC is the only intergovernmental organization that is based on non-binding agreements, open dialogue, and respect of members. The group does not require their members to have any treaty obligations because all decisions are made through member consensus and agreements are all voluntary based.

ASEM The Asia-Europe Meeting is an informal trade of dialogue that allows Asian states to be able to obtain open communication with Europe. The dialogue involves the European Union member states, the European Commission, and thirteen Asian states of Brunei, Burma/Myanmar, China, Cambodia, Indonesia, Japan, South Korea, Malaysia, Laos, the Philippines, Singapore, Thailand, and Vietnam. 56 The purpose of ASEM was to create an open dialogue between Asia and Europe to discuss political, economic, and cultural problems and to promote and strengthen relations between the two regions. 57 The informality of the dialogue creates a better atmosphere for both regions to easily cooperate with one another. This dialogue also helps encourage Asia to form a type of Union to aid one another in economic, political, and cultural progress and development.

APEC, “About APEC, What is Asian Pacific Economic Cooperation?,” APEC, http://www.apec.org/content/apec/about_apec.html (accessed April 17, 2006) 54 Ibid. 55 Ibid. 56 ASEM, “Overview,” External Relations, http://ec.europa.eu/comm/external_relations/asem/intro/index.htm (accessed April 27, 2006) 57 Ibid.

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Accomplishments The organizations that have been promoting Asian Integration have been able to begin the process of unity. Organizations, such as ASEAN, have been able to successfully develop networking between their members to share information, such as information on health and education reforms, and have been able to encourage some cooperation. APEC has also been able to encourage cooperation and prosperity among their members. In the last ten years, the organization was able to create such improvements like increase of exports by one hundred thirteen percent, growth of foreign direct investment by two hundred ten percent overall and by four-hundred seventy-five percent in the lower income APEC economies, and the growth of real gross national products by about a third. 58 Thanks to these organizations, the overall involvement, development, and cooperation of Asian states have all increased.

Challenges Although the organizations have been able to increase the overall functions of Asian states, there are still many problems in Asia that have not been addressed. Kofi Annan, the Secretary-General of the United Nations stated, “Today, ASEAN is not only a well-functioning, indispensable reality in the region. It is a real force to be reckoned with far beyond the region. It is also a trusted partner of the United Nations in the field of development…”59 but have they been able to reach the three major powers of Asia, China, Japan, and South Korea. All the other organizations are also heavily focused on their members and although they may try to reach out and promote participation, they are not able to obtain interest from all Asian states. Even if the organizations promote cooperation and equal prosperity, Asian Integration will not occur if all Asian states are not involved.

APEC, “About APEC, What is Asian Pacific Economic Cooperation?,” APEC, http://www.apec.org/content/apec/about_apec.html (accessed April 17, 2006) 59 ASEAN, “Establishment and Membership,” ASEAN, http://www.aseansec.org/64.htm (accessed April 27, 2006)

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Another problem is that the organizations are not as firm as they can be. For example, APEC believes in non-binding contracts and is the only inter-governmental organization with that type of casual membership. The members are not pressured into cooperation and although that may be positive in some situations, if states do not put pressure on one another to cooperate, then how can they take the organization and the work put into each agreement honestly? States may sign the commitments but if it is not binding then that gives the states leisure to be able to break their commitment and thus making the agreement seem illegitimate. Although the different organizations have been able to promote and encourage cooperation and have increased economic growth, they have only been able to uplift a small portion of the problems in Asia. Many problems of poverty, educational disparity, economic disparity, health issues, and political disunity are still major issues and are existent in different parts of Asia.

Current Status As globalization has reached the entire world, the principles of peace, cooperation, and prosperity have become mainstream. Globalization has can help underdeveloped states positively by providing them with new technologies. Its negative impacts allow the spread of conflicts and problems across borders faster. This is evident from the 1997 Asian financial crisis that started in Thailand and quickly spread throughout Southeast Asia. After acknowledging the negative effects of globalization, Asian states formed the 10-3 framework. This is an annual summit meeting between leaders of the 10-member Association of Southeast Asian Nations (ASEAN) and China, Japan and the Republic of Korea (ROK). During these summits the state will discuss way to facilitate co-operation between them.60 Yet, despite the states efforts there are numerous factors that factor into the hindrance of a cooperative regional institution. Though most notably, the differences and

Huaipu, Zhao, â&#x20AC;&#x153;Speeding up East Asian Integration,â&#x20AC;? China Daily, 22 October 2004.

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separations between states such as those mentioned above. In light of this, Asian states find most attractive about other regional groups like the EU is the security factor. The idea of mutual cooperation that has ensured peace and stability for the European continent is especially appealing to the Asian states.61 It should be noted that the rapid development of economic co-operation and marked improvement of political relations among Asian countries have been achieved simultaneously.62 At the 2004 annual meeting of the Asian Development Bank (ADB), member states discussed ideas such as a “euro-style single currency for East Asia, capital market development, corporate restructuring, challenges of infrastructure financing and the role of domestic credit rating agencies in Asia.”63 Integration is a key part to the ADB’s goals for poverty reduction The Former Philippine President Fidel V. Ramos proposed an East Asian Economic Grouping (EAEG) that would include all East Asian economies. Only by combining into one East Asian grouping can a future ASEAN 10-plus-three” generate enough leverage to enforce reciprocity on their trading partners in the NAFTA - North American Free Trade Agreement - and the European Union,” he said. Only with this combination can Asia as a whole make a larger impact on the World Trade Organization that is dominated by the United States and Europe.64 The ongoing 2006 Boao Asia Forum, held in its name-sake home city in South China's Hainan Province, has chosen the theme of "Asia in Search of Common Prosperity New Opportunities for Asia," which reflects the reality of Asian countries and the aspiration of all Asian people. As Asia houses most of today’s largest and robust economies, it has large potential to grow. It also has some of the largest energy reserves

Ibid. “Asian Nations Rise Up In Mutual Confidence,” Business Daily Update, 24 April 2006, Lexus Nexis, Accessed 11 August, 2006. 63 Jae-kyoung, Kim and Peter Strydom, “ADB Focuses on Integration,” The Korea Times, 14 May 2006, http://times.hankooki.com/lpage/biz/200405/kt2004051418112211870.htm, Accessed 26 August 2006. 64 Dedolph, Carolyn, “Towards Asian Integration,” Asian Development Bank, http://www.adb.org/Documents/Periodicals/ADB_Review/2002/vol34_4/asian_integration.asp, Accessed 26 August 2006. 62

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in the world. As states of the region are increasingly working together, “a new reality characterized by equal, diversified, open and mutually beneficial co-operation is taking shape in the region.”65 During the 1997 Asian financial crisis, Asian nations helped one another. Also, fellow Asian states helped the areas stricken after the tsunami hit south East Asia in 2004. In August 2006, the ministers of ASEAN meet to study a Japanese proposed free trade zone. This zone incorporates the ten states of ASEAN plus Japan, China, South Korea, India, New Zealand and Australia. Japan believes that a large zone will be more beneficial economically, “three billion people and economic output totaling $9 trillion.”66 Another study, submitted by China suggests an economic trading bloc of the ten ASEAN states, China, Japan and South Korea. In light of the proposals in the table, in the ASEAN economic ministers meeting with China, South Korea and Japan agreed that the first priority should be to create and institute separate free trade agreements between ASEAN and Japan, China and South Korea. Once this is done, the group can branch out and include others in the trade agreements.67

Key Positions China China was skeptical about regional integration until 1999. There are many factors that contributed to its change of perspective. China’s accession to the World Trade Organization, its increasing trade and financial flow with East Asian economies, financial system reform, and further opening to the world market aided in China becoming more supportive of regional integration. China realizes its comparative advantage in many

“Asian Nations Rise Up In Mutual Confidence,” Business Daily Update, 24 April 2006, Lexus Nexis, Accessed 11 August, 2006. 66 Stephanie Phang and Chan Tien Hin, “Japan and China push rival plans for trade areas,” 24 August 2006, International Herald Tribune, http://www.iht.com/articles/2006/08/24/bloomberg/sxasean.php, Accessed 28 August 2006. 67

Ibid.

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areas and hope that further integration in the region can help assure its stability.68 Also, many Asian states are becoming export states. China proposes and economic bloc of the ASEAN states, China, Japan, and South Korea. It is in oppositions to Japan’s proposal for a larger economic bloc.69

Japan Taking note of Japan’s unique relationship with the West, if the region creates an Asian regional organization, Japan may have the special role of a mediator between the US and the rest of the region. This role may become very important due the the existing anti-west sentiment. It may also be important that Japan, during the development of a regional organization, to hold back from appointing itself automatic leader. Rather it may opt to push for a horizontal structure where all members can interact on equal footing.70 Recently, Japan pushed for a 16 member free trade zone saying that it would reap greater economic benefits. This grouping included New Zealand and Austrailia. With this announcement Japan was accused of fostering ways to decrease China’s growing influence in the region. Japan denied this claim.71

ASEAN Member States During the last meeting of representatives leaders decided that it would be feasible to push up the goal for ASEAN Economic Community (AEC) from 2020 to 2015. They also agreed that the free flow of goods is a key part of what they envision the AEC to be. For this vision to come to be trade facilitation must be enhanced as it will reduce transaction cost and the cost of doing business in ASEAN. As a result, they agreed to put more emphasis on trade facilitation.

They also addressed ways in which to balance

Mingqi, Xu, “East Asian Economic Integration: China’s Perspective and Policy,” Australian National University, Australia–Japan Research Centre, http://apseg.anu.edu.au/pdf/pep/pep341.pdf#search=%22asian%20integration%20china%22, , Accessed 26 August 2006.

69 70

Stephanie Phang and Chan Tien Hin.

Furuoka, Fumitaka, “Japan and the 'Flying Geese' Pattern of East Asian Integration,” East Asia, 1 October 2005, http://www.eastasia.at/vol4_1/article01.htm, Accessed 25 August 2006.

Stephanie Phang and Chan Tien Hin

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domestic and regional issues. They agreed that there must be a forum for discussion on this matter to ensure cooperation between states of the region.72

United States There is concern in the United States that an East Asian community may hinder US influence in the region. The US would have less weight when it comes to the regions security and economic policies. Currently, the US plays a major role in keeping the peace in the region. Also, The US is a major export partner to many states in the region, thus their development is largely based on good economic terms with the US. Despite these reasons for the US strong influence in the region, the East Asian integration process has started and cannot be reversed. Thus the US should keep its good terms with the region.73

Europe The EU has been fully cooperative with East Asia and ASEAN. The region even developed its own strategy, ‘On A New Partnership with Southeast Asia’ to help facilitate better relations. The two groups are fully committed to working with each other. They can share information to help each other’s initiatives, such as increased trade, development, and anti-terrorism schemes. The two regions have been in continuous talks regarding how to better implement cooperation.74

Middle East The Middle East is in cooperation with East Asian integration. Some states, such as Pakistan have gone so far as to sign an agreement. The Pakistani agreement is titled, The Islamic Republic of Pakistan Instrument of Accession to the Treaty of Amity and 72

“Joint Media Statement of the Thirty-Eight ASEAN Economic Ministers’ (AEM) Meeting,” ASEAN, 22 August 2006, http://www.aseansec.org/18722.htm, Accessed 26 August 2006. 73 Watanabe, Osamu, “Integration of East Asian Economies: A Role for the United States and Japan,” 14 December 2005, http://www.jetro.go.jp/en/jetro/profile/speeches/2005/dec14.pdf#search=%22United%20states%20asian%20integrat ion%22, Accessed 28 August 2006. 74 “15th ASEAN-EC Joint Cooperation Committee (JCC) Joint Press Release,” ASEAN, 26 February 2006, http://www.aseansec.org/17279.htm Accessed 28 August 2006.

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Cooperation in Southeast Asia.”75 Also, India has been through numerous talks with the regional organization ASEAN. They two parties currently are working on a partnership for peace security and prosperity. However ASEAN’s push for free trade talks have not developed as fast as the group would have liked as progress remains slow.76

Latin America Set apart geographically, the two regions have in the past, very little dealings in terms of trade.

High freight and transportation costs hindered their cooperation.

However, with globalization and its effects, the two sides can increasingly work together. Latin America is like Asia in that its growing economy seeks to compete and break into the larger economies of developed states. Therefore it is important that these two regions work together to gain the competitive market access that they both need. In this respect, Latin America is supportive of Asian integration, as it would the Asian region more bargaining power with the larger economies.77

Africa States in Asia and Africa continue to be marginalized, despite globalization. “There is therefore a need to actively pursue a common view and collective action to ensure the equitable sharing of the benefits of globalization.” With this in mind the two region believe that trade liberalization should be stressed. Therefore, Africa is no against Asian Integration. Such an organization would allow Asia to trade independent amongst its states, but also allow for better facilitation to trade throughout the world, including Africa.78

“The Islamic Republic of Pakistan Instrument of Accession to the Treaty of Amity and Cooperation in Southeast Asia,” ASEAN, 2 July 2004, http://www.aseansec.org/16237.htm, Accessed 28 August 2006. 76 “Chairman’s Statement of the Fourth ASEAN-India Summit,” ASEAN, 13 December 2005, http://www.aseansec.org/18079.htm, Accessed 28 August 2006. 77 Severino, Rodolfo C., “Asean And The Andean Community: Cooperating In The New Millennium,” Asean, 8 May 2000, http://www.aseansec.org/12935.htm, Accessed 28 August 2006. 78 “Co-Chairs’ Statement Asian-African Subregional Organizations Conference” ASEAN, 29 July 2006, http://www.aseansec.org/15478.htm, Accessed 28 August 2006.

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NGOs NGOs have played a major role in driving integration.

As international

organizations evolved, they were based on the equality of states but the importance and central role of major powers was accommodated. “NGOs were increasingly influential in pushing for social, pressing human rights, demanding accountability and exposing corruption.” These actions by NGOs are important to note because they brought to the forefront issues that integration can help combat. NGOs are increasingly included and active in international forums and therefore should continue to be a major role player in the future evolution of this issue.79

Business Interests Asia remains house world's most diverse regions and offers multiple opportunities for businesses and investors. The recent and rapid growth of china and other East Asian has increased the enthusiasm for business interests in the region. The Economic progress has increased the integration within the region, which helps to facilitate easier transactions for investors. Since integration will help most business owners in the aspects of furthering their trade and investments, they are in favor or regional integration.80

Media Interests The media has covered Asian business and the possibilities quite extensively. Every major news source from CNN, BBC, to Asia Times have all reported on the issue. Yet, the coverage is not limited to news sources, different banks and groups all have coverage the issue in their news sections including the Asian Development Bank, World Trade Organization, and International Monetary Fund. Not to mention that integration of Asia has been broadly discussed throughout schools of higher learning throughout the world including Universities in Australia, Canada and the US. 79

“The Future of Global and Regional Integration,” The Institute of Intergovernmental Relations, Queens University, 12 October 1999, http://www.iigr.ca/pdf/publications/270_The_Future_of_Global_and.pdf#search=%22NGO%20interest%20asian%2 0integration%22, Accessed 28 August 2006. 80 “Asia: the best bet for businesses,” 2 August 2005, http://www.atimes.com/atimes/Japan/GH02Dh01.html, Accessed 28 August 2006.

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Summary As globalization has reached all ends of the world, no states can seemingly survive on its worn.

Therefore states have taken to joining together to assure cooperation

between each other. This is evident from regional groups like the EU and NAFTA. It is only common sense that other reasons would seek to achieve the same sort of regional institutions as this is the case with Asia today. Asia is in the forefront of major economic talks throughout the world due to its vast growth and economy. Yet despite the regions desire to create a regional institution, it faces certain challenges. These challenges include historical disputes and sentiments, some that have existed for nearly a decade. Also, in the scope of regionalization, states of Asia are very wary of western influence. However states of the west can prove very helpful in giving guidance and advice to the fledgling regional organization the Asia will create. Also, as some states are more developed than others, creation of a regional organization must take into account these states and help them develop In order to achieve a well functioning organization the states of the Asian region must put aside their differences. There are numerous organization that would allow for a forum to discuss differences. These organizations are playing a large role in pushing for a regional organization. These include Association of Southeast Asian Nations, the 10+3 Mechanism and the Shanghai Co-operation Organization. Only with cooperation among the states and the help of organization already in place can an effective regional organization be attainable.

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Work Cited “15th ASEAN-EC Joint Cooperation Committee (JCC) Joint Press Release.” ASEAN. 26 February 2006. http://www.aseansec.org/17279.htm . APEC. “About APEC, What is Asian Pacific Economic Cooperation?” APEC. http://www.apec.org/content/apec/about_apec.html. APECC. “APECC is a non-profit, non-political, international organization.” APECC, http://www.apecc.org. APECC. “Member Status As at September 24, 2006, the 15th General Assembly.” APECC, http://www.apecc.org/default.asp?PageID=5. ASEAN. “Establishment and Membership.” ASEAN, http://www.aseansec.org/64.htm. ASEM. “Overview.” External Relations. http://ec.europa.eu/comm/external_relations/asem/intro/index.htm. “Asia: the best bet for businesses,” 2 August 2005, http://www.atimes.com/atimes/Japan/GH02Dh01.html “Asian Nations Rise Up In Mutual Confidence.” Asia Intelligence Wire, 24 April 2006. LexisNexis. Accessed 11 August 24. “Background note: South Korea.” US Department of State. http://www.state.gov/r/pa/ei/bgn/2800.htm. Accessed 21 August 2006. “Backgrounder: Five principles of peaceful coexistence (2004/06/14).”The Chinese Embassy., http://www.chinaembassy.org.in/eng/ssygd/fiveprinciple/t132640.htm. Boyer, Robert, Katsuno, Masahiro. “Asian Integration: What can be learned from the European Union.” RIETI. http://www.rieti.go.jp/en/events/bbl/03020601.html. Breslin, Shaun et al. New Regionalisms in the Global Political Economy. New York, NY: Routledge. 2002. 114. “Chairman’s Statement of the Fourth ASEAN-India Summit.” ASEAN. 13 December 2005. http://www.aseansec.org/18079.htm, Accessed 28 August 2006.

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Charles Benn, Daily Life in Traditional China: The Tang Dynasty (Westport, CT: Greenwood Press, 2002) 35, Questia, 27 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=101327360>. China-Taiwan History.” PBS.org.7 March 2000. http://www.pbs.org/newshour/bb/asia/china/china-taiwan.html. “Co-Chairs’ Statement Asian-African Subregional Organizations Conference.” ASEAN. 29 July 2006. http://www.aseansec.org/15478.htm. David P. Chandler, William R. Roff, John R. W. Smail, David Joel Steinberg, Robert H. Taylor, Alexander Woodside, and David K. Wyatt, In Search of Southeast Asia: A Modern History, ed. David Joel Steinberg, Revised ed. (Sydney, N.S.W.: Allen & Unwin, 1971) 349, Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=10615178>. Dedolph, Carolyn. “Towards Asian Integration.” Asian Development Bank. http://www.adb.org/Documents/Periodicals/ADB_Review/2002/vol34_4/asian_int egration.asp. Farrell, Mary et al. eds. European Integration in the 21st Century. London, UK: Publications, 2002.

SAGE

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Jae-kyoung, Kim and Peter Strydom. “ADB Focuses on Integration.” The Korea Times. 14 May 2006. http://times.hankooki.com/lpage/biz/200405/kt2004051418112211870.htm. Jing Huang, "2 China's Taiwan Policy: Past and Present," Conflict in Asia: Korea, ChinaTaiwan, and India-Pakistan, ed. Uk Heo and Shale A.Horowitz (Westport, CT: Praeger, 2003) 30, Questia, 26 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=106735630>. “Joint Media Statement of the Thirty-Eight ASEAN Economic Ministers’ (AEM) Meeting.” ASEAN. 22 August 2006. http://www.aseansec.org/18722.htm,. Joseph Yu-Shek Cheng. "Collaborative Development in Northeast Asia," Pacific Affairs 75.3 (2002), Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=5002508508>. “Korea, South,” Pearson Education, Inc. http://www.infoplease.com/ipa/A0107690.html Landon, Dale E. “Western Imperialism.”, Indiana University, http://idcs0100.lib.iup.edu/modernera/western.htm. Michio Morishima, Collaborative Development in Northeast Asia /, trans. Janet Hunter (New York: St. Martin's Press, 2000) 136, Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=102377152>. Mingqi, Xu. “East Asian Economic Integration: China’s Perspective and Policy.” Australian National University. Australia–Japan Research Centre. http://apseg.anu.edu.au/pdf/pep/pepPhang, Stephanie, and Chan Tien Hin, “Japan and China push rival plans for trade areas,” 24 August 2006 International Herlad Tribune.http://www.iht.com/articles/2006/08/24/bloomberg/sxasean.php. Severino, Rodolfo C. “Asean And The Andean Community: Cooperating In The New Millennium.” Asean, 8 May 2000, http://www.aseansec.org/12935.htm.. Tamotsu Nakano, "A Grand Design for Northeast Asia," International Journal on World Peace 20.3 (2003), Questia, 11 Aug. 2006 <http://www.questia.com/PM.qst?a=o&d=5006443577>.

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U.S. Library of Congress. “Country Studies.” U.S. Library of Congress. http://countrystudies.us/. Watanabe, Osamu. “Integration of East Asian Economies: A Role for the United States and Japan.” 14 December 2005. http://www.jetro.go.jp/en/jetro/profile/speeches/2005/dec14.pdf#search=%22Unite d%20states%20asian%20integration%22. Wilson, Dr. Constance. “Colonialism and Nationalism in Southeast Asia.” http://www.seasite.niu.edu/crossroads/wilson/colonialism.htm.