IMPORTANCE AND THE ROLE OF REGIONAL

ORGANISATIONS: THE EUROPEAN UNION AND

ASEAN

Prepared by

DR. AFROZ ALAM

ASSISTANT PROFESSOR OF POLITICS
NATIONAL LAW UNIVERSITY, ORISSA
E-MAIL: afrozalam2@gmail.com
afroz@nluo.ac.in

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IMPORTANCE AND THE ROLE OF REGIONAL ORGANISATIONS:
THE EUROPEAN UNION AND ASEAN
Structure:
12.0 Objectives
12.1 Introduction
12.2 Meaning of Regional Organisation
12.3 Importance of Regional Organisation
12.4 The Role of Regional Organisations and the United Nations
12.5 European Union
12.5.1 Objectives
2.5.2 Structure of the EU
12.6 Association of Southeast Asian Nations (ASEAN)
12.6.1 Objectives
12.6.2 Fundamental Principles
12.7 ASEAN Communities
12.7.1 ASEAN Security Community
12.7.2 ASEAN Economic Community
12.7.3 ASEAN Socio-Cultural Community
12.8 Structures and Mechanisms
12.9 Let Us Sum Up
12.10 Some Useful Books

12.0 Objectives:
The present chapter intends to study the role and importance of regional organisations. With this
purpose in mind, we identified European Union and the ASEAN, the two dynamic regional
organisations, as a focus of our study. After going through this chapter you will be able to:
• Understand the meaning of regional organisations
• Analyse the role and importance of regional organisations with reference to United
Nations
• Observe the dynamics of the European Union and the ASEAN

12.1 Introduction:
We cannot understand the phenomenon of this world completely by simply relying on the
yardstick of globalisation that gives birth to global community. The regionalisation process is
equally dominant with the emergence of the formation of regional organisations and regional
society along with the globalising tendency of the present day world. The world arena allows for
both regionalisation and globalisation to coexist in a sometimes competing and sometime
mutually supporting relationship. Post-World War II is marked by the rapid growth in the
number of intergovernmental regional organisations. In fact, regional organisations founded
since 1945 outnumber those of a universal nature by approximately a five-to-one ratio, but some
have assumed important roles in world affairs.

12.2 Meaning of Regional Organisation:

The concept of regional organisation in international affairs is inherently ambiguous. Regional
organisations are defined often on the basis of geographical proximity of the members. But the

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categorisation of regional organisation on the basis of geography is subject to many limitations.
Therefore, while geography may be one factor in determining the regional character of many
organisations, but the lack of geographical proximity is not decisive criteria in excluding certain
members to join the regional organisations. The United States, for example, is a member of
several regional organisations that claim regional status in the different part of the world. The
inclusion of Greece and Turkey in the membership of the North Atlantic Treaty Organisation
(NATO) throws further doubt on conformity to regional limits. The membership of the
Organisation of American States includes all states within North, South, and Central America,
but geographers have never viewed both continents as a single well-defined region. So is the case
with the Commonwealth, a regional organisation with the membership dispersed around the
globe.
However, the term regional organisation is understood as the segment of the world bound
together by a common set of objectives based on geographical, social, cultural, economic, or
political ties and possessing a formal structure provided for in formal intergovernmental
agreements. A regional organisation is intended to appeal only to a specified category of states,
less than global in scope.
In general, however, regional organizations can be grouped according to three basic types. First,
there are the security organizations such as NATO, visible in the alliance systems of the cold
war, in which member states engage in joint military planning for the purpose of common
defence. Second, functional organizations, such as the Central American Common Market
(CACM) seek to improve specific economic and social conditions within a region of the world
by providing a framework for common action. Third, multipurpose organizations, such as
Organization of American States (OAS), are motivated to some extent by both kinds of concerns,
and their members agree to cooperate on a wide range of issues. All of these organizations rest
upon treaties providing for regular meetings, and in most cases they require the growth of
international bureaucracies to achieve their goals.

12.3 Importance of Regional Organisation:

We can count the importance of regional organisations along the following lines:
1. There is a natural tendency toward regionalism based on the homogeneity of interests,
traditions, and values within small groups of neighbouring states.
2. Political, economic, and social integration is more easily attained among a lesser number
of states within a limited geographic area than on a global basis.
3. Regional economic cooperation provides more efficient economic units than the smaller
states, and these larger units can compete successfully in world markets.
4. Local threats to the peace are more willingly and promptly dealt with by the
governments of that area than by disinterested states at greater distances from the scene
of conflict.
5. By combining states into regional groupings, a global balance of power will be
maintained and world peace and security will be promoted.
6. The world is not ready to establish global authority sufficient to maintain world peace
and promote world welfare. Regional organisation is the first step in gaining experience
and building areas of consensus toward eventual intergovernmental coordination or
integration.
7. Those who ardently support the global organisation fail to take into account the
heterogeneity of political, economic, social, and geographical factors throughout the

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 world that militate against global unity. These differences can be more easily
accommodated within a regional framework.
The above points provide sufficient basis to justify the importance of regional organisations in
present day world. However, the nature of the problems to be solved also determines the
importance of regional treatment. If the consequences of a problem are regional in nature or
scope, then a regional solution is appropriate.

12.4 The Role of Regional Organisations and the United Nations:

International regional organizations are created through treaty arrangements that commit member
states to act together for certain specified goals. At the height of the cold war, a number of such
groups came into being as security organizations—that is, organizations whose chief purpose is
to encourage joint military planning for common defence. These have declined somewhat in
importance in recent years, and those that remain viable are being seen increasingly as the
instruments of greater cold war détente. More recently, functional organizations, intended to
provide a unified approach to the solution of economic and social problems of a particular
region, have grown and, in some cases, flourished. These include loose customs unions, free-
trade areas, and common markets. Finally, several multipurpose organizations also exist,
combining to some extent the security and functional goals of the first two types of
organizations, although usually in somewhat more loosely knit arrangements. Here, emphasis is
strongly upon harmonizing political relationships among the members as well as on attempting
to provide a common front to the outside world.
However, the primary provisions of the United Nations Charter concerning regional
organisations are found in Chapter VIII containing only three articles (Articles 52-54). The most
important principles of Chapter III are the following:
1. regional agencies may exist for dealing with such issues of international peace and
security as are appropriate for regional action as long as their activities are consistent
with the purposes and principles of the United Nations;
2. states are encouraged to settle local disputes through regional agencies before referring
them to the Security Council;
3. the Security Council may, in turn, utilise such agencies for the settlement of local
disputes;
4. with the exception of action against enemy states resulting from World War II, no
enforcement action shall be taken by regional agencies without the authorisation of the
Security Council; and
5. the Security Council shall be kept fully informed of activities undertaken or contemplated
by regional agencies for the maintenance of peace and security.
However, these principles of the UN that focus upon its supremacy have been substantially
undermined by many regional organisations.

Check Your Progress 1

Note: Use the space given below for your answer. Also check your answer with the model
answer given at the end of the Unit.

Q. 1 Discuss the meaning and importance of regional organisations in short detail.

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Q. 2 What is the position of regional organisations under the UN Charter?
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12.5 European Union:
European Union (EU) is an intergovernmental organization of European countries dedicated to
increasing economic integration and strengthening cooperation among its members. The
European Union headquarters is in Brussels, Belgium. It was formally established on November
1, 1993. It is the most recent in a series of European cooperative organizations that originated
with the European Coal and Steel Community (ECSC) of 1951, which became the European
Community (EC) in 1967. The members of the EC were Belgium, Denmark, France, Germany,
Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, the United Kingdom, and Spain.
In 1991 the governments of the 12 member states signed the Treaty on European Union
(commonly called the Maastricht Treaty), which was then ratified by the national legislatures of
all the member countries.
The Maastricht Treaty transformed the European Community into the European Union. In 1995
Austria, Finland, and Sweden joined the EU. In May 2004, 10 more countries took up
membership, bringing the total number of EU member countries to 25. The 10 new members
were Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and
Slovenia.
With the accession of Bulgaria and Romania in January 2007, the total memberships of the
European Union have risen to 27 member states. The EU is the current stage of a continuing
open-ended process of European integration. Turkey, Croatia, Macedonia, Albania, Bosnia and
Herzegovina, Montenegro and Serbia are now officially recognised as potential candidates for
the membership of EU. In Norway and Switzerland, however, application for membership was
rejected by referendum. Iceland is also often touted as potential applicant. Eurosceptics fear that
process will ultimately deprive member states of their sovereignty.
The EU is now the largest political and economic entity on the European continent, with around
493 million people and an official GDP of €10.5 trillion. The Union is a customs union and a
developing single market, with a common trade policy. It has its own currency, the euro - already
adopted by 13 member states. The Union has a Common Agricultural Policy, a Common
Fisheries Policy, and a regional Policy to assist poorer regions. It has initiated a limited Common
Foreign and Security Policy, and a limited joint policy on crime.
Important EU institutions and bodies include the European Commission, the Council of the
European Union, the European Council, the European Central Bank, the European Court of
Justice, and the European Parliament. Citizens of EU member states are also EU citizens: they
directly elect the European Parliament, once every five years. They can live, travel, work, and
invest in other member states (with some restrictions on new member states). Passport control
and customs checks at most internal borders were abolished by the Schengen Agreement.
12.5.1 Objectives:
The EU has a number of objectives. Its principal goal is to promote and expand cooperation
among member states in economics and trade, social issues, foreign policy, security and defense,
and judicial matters. Under the Maastricht Treaty, European citizenship was granted to citizens
of each member state. Border controls were relaxed. Customs and immigration agreements were
modified to allow European citizens greater freedom to live, work, and study in any of the
member states.
Another major goal of the EU has been to implement Economic and Monetary Union (EMU),
which introduced a single currency, the euro, for EU members. In January 2002 the euro
replaced the national currencies of 12 EU member nations. Thirteen EU members do not

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currently participate in the single currency. They are Denmark, Sweden, the United Kingdom,
and the 10 nations that joined the EU in 2004.
12.5.2 Structure of the EU:
A: Pillar System:
The members of the EU cooperate in three distinct areas, often called pillars. At the heart of this
system is the European Community (EC) pillar with its supranational functions and its governing
institutions. The EC pillar is flanked by two pillars based on intergovernmental cooperation:
Common Foreign and Security Policy (CFSP) and Justice and Home Affairs (JHA). These two
pillars are a result of the Maastricht agreement to develop closer cooperation in these areas.
However, because the members were unwilling to cede authority to new supranational
institutions, policy decisions in these pillars are made by unanimous cooperation between
members and cannot be enforced. For the most part, the governing institutions of the EC pillar
have little or no input in the other two.
The CFSP and JHA pillars are based entirely on intergovernmental cooperation, and decisions
must be made unanimously. CFSP is a forum for foreign policy discussions, common
declarations, and common actions that work toward developing a security and defense policy. It
has successfully developed positions on a range of issues and has established some common
policy actions; however, the CFSP has failed to agree on a common security and defense. Some
countries, led by France, want an integrated European military force, while others, especially the
United Kingdom, insist that United States involvement through the North Atlantic Treaty
Organization (NATO) is vital for European security.
This second argument was reinforced when the EU failed to resolve the crisis in Yugoslavia that
began in 1991. Between 1991 and 1992 four of Yugoslavia’s six republics declared
independence, resulting in a series of violent wars (see Yugoslav Succession, Wars of). EU
attempts to find a settlement for these conflicts were ineffective because member states could not
agree on how they should be involved, and they feared being dragged into military intervention.
The Yugoslav crisis underlined the difficulties in achieving a common foreign policy for the EU.
Effective international intervention in Yugoslavia ultimately came only with U.S. and NATO
involvement, acting under the auspices of the United Nations.
As a result of lessons learned in Yugoslavia, clauses were included in the Amsterdam Treaty for
improving cooperation on security and defense. Since the late 1990s the EU has developed the
Common European Security and Defense Policy as an interim step toward the ultimate goal of a
common defense policy. The EU has expressed its determination to take on a greater
international role and more responsibility for humanitarian operations and peacekeeping
activities. The EU also began to develop a rapid-reaction military force to enable it to respond to
crises quickly with combat troops.
The EU has been more successful in JHA, which formalized and extended earlier
intergovernmental cooperation in combating crime, especially drug trafficking, and in setting
immigration and asylum policies. Under the Amsterdam Treaty, some aspects of JHA were
moved to the supranational EC pillar. These related to asylum and visa issues, immigration
policy, and external border controls. The JHA pillar is now primarily concerned with police
cooperation and combating international crime.
Standing above the three pillars and in a position to coordinate activities across all of them is the
European Council. The council is in strict legal terms not an EU institution. It is the meeting
place of the leaders of the national governments. Its decisions are almost always unanimous but
usually require intense bargaining. The council shapes the integration process and has been

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responsible for almost all EU developments, including the SEA and the Maastricht, Amsterdam,
and Nice treaties. The European Council has provided the EU with initiatives for further
development, agendas in various policy fields, and decisions that it expects the EU to accept. The
council’s actions illustrate one of the major dilemmas within the EU: how to promote further
unity and integration while permitting national governments to retain as much influence as
possible over decisions.
B: Major Bodies:
The European Community (EC) pillar contains all the governing institutions of the EU. The
major ones are the European Commission, the Council of the European Union, the European
Parliament, the European Court of Justice, and the Court of Auditors. In addition, there are many
smaller bodies in the EC pillar, such as the Economic and Social Committee, and the Committee
of the Regions.
(1) European Commission:
The European Commission is the highest administrative body in the EU. Unlike the European
Council, which oversees all three pillars of the EU, the commission concentrates almost solely
on the EC pillar. It initiates, implements, and supervises policy. It is also responsible for the
general financial management of the EU and for ensuring that member states adhere to EU
decisions. The commission is meant to be the engine of European integration, and it spearheaded
preparations for the single market and moves toward establishing the euro.
Commissioners are appointed by member governments and are supported by a large
administrative staff. France, Germany, Italy, Spain, and the United Kingdom each appoint two
commissioners; the other countries appoint one each. The policy of each member state selecting
a commissioner became the subject of debate during preparations for EU enlargement. If each
country in an enlarged EU were allowed to appoint at least one commissioner, the commission
would be much larger, making it too unwieldy to be an effective executive and decision-making
authority. In addition, the fact that the commission is appointed by member governments and not
elected by the people has raised questions about how much power it should be allowed to
exercise.
The Treaty of Nice clarified details about the future structure of the commission in an enlarged
EU. After 2005 each member state would have only one commissioner. However, when the EU
reached 27 member states, the European Council would be obliged to determine how large the
commission should be. The treaty also altered the selection procedures for commissioners, giving
the European Council and the European Parliament a role in the confirmation process.
(2) Council of the European Union:
The Council of the European Union (formerly called the Council of Ministers) represents the
national governments. It is the primary decision-making authority of the EU and is the most
important and powerful EU body. Although its name is similar to that of the European Council,
the Council of the European Union’s powers are essentially limited to the EC pillar, whereas the
European Council oversees all three pillars of EU cooperation.
When the Council of the European Union meets, one government minister from each member
state is present. However, the minister for each state is not the same for every meeting. Each
member state sends its government minister who is most familiar with the topic at hand. For
example, a council of defense ministers might discuss foreign policy, whereas a council of
agriculture ministers would meet to discuss crop prices.
The Council of the European Union adopts proposals and issues instructions to the European
Commission. The council is expected to accomplish two goals that are not always compatible:

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further EU integration on one hand and protection of the interests of the member states on the
other. This contradiction could become more difficult to reconcile as the EU continues to
expand.
Decision-making in the council is complex. A few minor questions can be decided by a simple
majority. Many issues, however, require what is called qualified majority voting, or QMV. In
QMV each country has an indivisible bloc of votes that is roughly proportional to its population.
It takes two-thirds of the total number of votes to make a qualified majority. QMV was
introduced in some policy areas to replace the need for a unanimous vote. This has made the
decision-making process faster and easier because it prevents any one state from exercising a
veto. Since the Single European Act, QMV has been steadily extended to more areas. Many
important decisions, however, still require unanimous support.
(3) European Parliament (EP):
The European Parliament (EP) is made up of 732 members who are directly elected by the
citizens of the EU. Direct elections to the EP were implemented in 1979. Before that time,
members were appointed by the legislatures of the member governments. The European
Parliament was originally designed merely as an advisory body; however, its right to participate
in some EU decisions was extended by the later treaties. It must be consulted about matters
relating to the EU budget, which it can reject; it can remove the European Commission as a body
through a vote of no confidence; and it can veto the accession of potential member states.
The European Parliament’s influence is essentially negative: It can block but rarely initiate
legislation, its consultative opinions can be ignored, and it has no power over the Council of the
European Union. Its effectiveness is limited by two structural problems: It conducts its business
in 20 official languages, with consequent huge translation costs, and it is nomadic, using three
sites in different countries for its meetings. Unless changes are made, these weaknesses will
likely intensify as the union grows larger. At the same time, there have been frequent calls for
expanding the powers of the European Parliament, which would increase the democratic
accountability of the EU. The weaknesses of the European Parliament can be remedied, however,
only by the national governments. To cope with an increase in the number of member states due
to EU enlargement, the Treaty of Nice allowed for a limit to the size of the EP by providing for a
reallocation of seats among the members.
(4) European Court of Justice (ECJ):
The European Court of Justice (ECJ) is the judicial arm of the EU. Each member country
appoints one judge to the court. The ECJ is responsible for the law that the EU establishes for
itself and its member states. It also ensures that other EU institutions and the member states
conform with the provisions of EU treaties and legislation. The court has no direct links with
national courts and no control over how they apply and interpret national law, but it has
established that EU law supersedes national law.
The ECJ’s assertion that EU law takes precedence over national law, and the fact that there is no
appeal against it, have given the ECJ a powerful role in the EU. This role has, on occasion,
drawn criticism from both national governments and national courts. The ECJ has declared both
for and against EU institutions and member states.
The ECJ’s historically high caseload was eased in 1989 when the Court of First Instance was
created. This court hears certain categories of cases, including those brought by EU officials and
cases seeking damages. Rulings by the Court of First Instance may be appealed to the ECJ, but
only on points of law. Despite the establishment of this court, the ECJ’s caseload has continued

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to rise. As a result, the Treaty of Nice introduced further reforms to reduce the accumulated
backlog of cases.
(5) Court of Auditors:
The Court of Auditors is made up of 25 members, one from each EU member state. The court
oversees the finances of the EU and ensures that all financial transactions are carried out
according to the EU budget and laws. The court issues a yearly report to the Council of the
European Union and the European Parliament detailing its findings.
(6) European Central Bank (ECB):
The European Central Bank (ECB) began operations in 1998. It is overseen by an executive
board that is chosen by agreement of EU member governments and includes the ECB president
and vice president. The ECB has exclusive authority for EU monetary policy, including such
things as setting interest rates and regulating the money supply. In addition, the ECB played and
continues to play a major role in overseeing the inauguration and consolidation of the euro as the
single EU currency. Its authority over monetary policy and its independence from other EU
institutions make the ECB a powerful body. There are misgivings in some quarters that the ECB
is too independent, leading to a debate over whether it should be subject to political direction.
(7) Other Bodies:
Other important bodies in the EU include the Economic and Social Committee and the
Committee of the Regions. The Economic and Social Committee is a 222-member advisory body
drawn from national interest groups of employers, trade unions, and other occupational groups. It
must be consulted by the European Commission and the Council of the European Union on
issues dealing with economic and social welfare. The Committee of the Regions was formed in
1994 as a forum for representatives of regional and local governments. It was intended to
strengthen the democratic credentials of the EU, but it has only a consultative and advisory role.

12.6 Association of Southeast Asian Nations (ASEAN)

Association of Southeast Asian Nations (ASEAN) is a regional alliance of ten independent
countries that promotes stability and economic growth in Southeast Asia. The organization also
encourages cultural exchanges between its members. ASEAN was founded in August 1967 by
Malaysia, Thailand, and the republics of Indonesia, Singapore, and the Philippines. Brunei joined
the alliance after attaining independence from the United Kingdom in 1984. Vietnam was
admitted as the first Communist member in 1995. Laos and Myanmar (formerly Burma) joined
ASEAN in 1997, and Cambodia became part of the alliance in 1999. The Melanesian state of
Papua New Guinea has observer status in ASEAN. In 23 July 2006, Jose Ramos Horta, Prime
Minister of Timor-Leste, signed a formal request for membership and expects a five-year
accession process. Australia is also interested in becoming a member of ASEAN. The ASEAN
secretariat, a central office that administers the organization's activities, is located in Jakarta,
Indonesia.
12.6.1 Objectives:
The ASEAN Declaration states that the aims and purposes of the Association are:
(1) to accelerate economic growth, social progress and cultural development in the region, and
(2) to promote regional peace and stability through abiding respect for justice and the rule of law
in the relationship among countries in the region and adherence to the principles of the United
Nations Charter. The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th
Anniversary of ASEAN, agreed on a shared vision of ASEAN as a concert of Southeast Asian

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nations, outward looking, living in peace, stability and prosperity, bonded together in partnership
in dynamic development and in a community of caring societies.
12.6.2 Fundamental Principles:
ASEAN Member Countries have adopted the following fundamental principles in their relations
with one another, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC):
• mutual respect for the independence, sovereignty, equality, territorial integrity, and
national identity of all nations;
• the right of every State to lead its national existence free from external interference,
subversion or coercion;
• non-interference in the internal affairs of one another;
• settlement of differences or disputes by peaceful manner;
• renunciation of the threat or use of force; and
• effective cooperation among themselves.
12.7.1 ASEAN Communities:
In 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established
comprising three pillars, namely, ASEAN Security Community, ASEAN Economic Community
and ASEAN Socio-Cultural Community.
12.7.1 ASEAN Security Community
Through political dialogue and confidence building, no tension has escalated into armed
confrontation among ASEAN Member Countries since its establishment more than three decades
ago.
To build on what has been constructed over the years in the field of political and security
cooperation, the ASEAN Leaders have agreed to establish the ASEAN Security Community
(ASC). The ASC shall aim to ensure that countries in the region live at peace with one another
and with the world in a just, democratic and harmonious environment.
The members of the Community pledge to rely exclusively on peaceful processes in the
settlement of intra-regional differences and regard their security as fundamentally linked to one
another and bound by geographic location, common vision and objectives. It has the following
components: political development; shaping and sharing of norms; conflict prevention; conflict
resolution; post-conflict peace building; and implementing mechanisms.
In recognition of security interdependence in the Asia-Pacific region, ASEAN established the
ASEAN Regional Forum (ARF) in 1994. The ARF’s agenda aims to evolve in three broad
stages, namely the promotion of confidence building, development of preventive diplomacy and
elaboration of approaches to conflicts.
The present participants in the ARF include: Australia, Brunei Darussalam, Cambodia, Canada,
China, European Union, India, Indonesia, Japan, Democratic Republic of Korea, Republic of
Korea (ROK), Lao PDR, Malaysia, Mongolia, Myanmar, New Zealand, Pakistan, Papua New
Guinea, the Philippines, the Russian Federation, Singapore, Thailand, the United States, and Viet
Nam. Bangladesh was added to ARF as the 26th member, starting from July 28, 2006.
The ARF discusses major regional security issues in the region, including the relationship
amongst the major powers, non-proliferation, counter-terrorism, transnational crime, South
China Sea and the Korean Peninsula, among others.
12.7.2 ASEAN Economic Community
The ASEAN Economic Community shall be the end-goal of economic integration measures as
outlined in the ASEAN Vision 2020. Its goal is to create a stable, prosperous and highly
competitive ASEAN economic region in which there is a free flow of goods, services,

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investment and a freer flow of capital, equitable economic development and reduced poverty and
socio-economic disparities in year 2020.
The ASEAN Economic Community shall establish ASEAN as a single market and production
base, turning the diversity that characterises the region into opportunities for business
complementation and making the ASEAN a more dynamic and stronger segment of the global
supply chain. ASEAN’s strategy shall consist of the integration of ASEAN and enhancing
ASEAN’s economic competitiveness.
In moving towards the ASEAN Economic Community, ASEAN has agreed on the following:
• institute new mechanisms and measures to strengthen the implementation of its existing
economic initiatives including the ASEAN Free Trade Area (AFTA), ASEAN
Framework Agreement on Services (AFAS) and ASEAN Investment Area (AIA);
• accelerate regional integration in the following priority sectors by 2010: air travel, agro-
based products, automotives, e-commerce, electronics, fisheries, healthcare, rubber-based
products, textiles and apparels, tourism, and wood-based products.
• facilitate movement of business persons, skilled labour and talents; and
• strengthen the institutional mechanisms of ASEAN, including the improvement of the
existing ASEAN Dispute Settlement Mechanism to ensure expeditious and legally-
binding resolution of any economic disputes.
Launched in 1992, the ASEAN Free Trade Area (AFTA) is now in place. It aims to promote the
region’s competitive advantage as a single production unit. The elimination of tariff and non-
tariff barriers among Member Countries is expected to promote greater economic efficiency,
productivity, and competitiveness.
As of 1 January 2005, tariffs on almost 99 percent of the products in the Inclusion List of the
ASEAN-6 (Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand)
have been reduced to no more than 5 percent. More than 60 percent of these products have zero
tariffs. The average tariff for ASEAN-6 has been brought down from more than 12 percent when
AFTA started to 2 percent today. For the newer Member Countries, namely, Cambodia, Lao
PDR, Myanmar, and Viet Nam (CLMV), tariffs on about 81 percent of their Inclusion List have
been brought down to within the 0-5 percent range.
12.7.3 ASEAN Socio-Cultural Community
The ASEAN Socio-Cultural Community, in consonance with the goal set by ASEAN Vision
2020, envisages a Southeast Asia bonded together in partnership as a community of caring
societies and founded on a common regional identity.
The Community shall foster cooperation in social development aimed at raising the standard of
living of disadvantaged groups and the rural population, and shall seek the active involvement of
all sectors of society, in particular women, youth, and local communities.
ASEAN shall ensure that its work force shall be prepared for, and benefit from, economic
integration by investing more resources for basic and higher education, training, science and
technology development, job creation, and social protection.
ASEAN shall further intensify cooperation in the area of public health, including in the
prevention and control of infectious and communicable diseases.
The development and enhancement of human resources is a key strategy for employment
generation, alleviating poverty and socio-economic disparities, and ensuring economic growth
with equity.

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12.8 Structures and Mechanisms
The highest decision-making organ of ASEAN is the Meeting of the ASEAN Heads of State and
Government. The ASEAN Summit is convened every year. The ASEAN Leaders' Formal
Summit was first held in Bali, Indonesia in 1976. At first there was no set schedule due to
domestic issues in the member countries. In 1992, leaders decided to hold meetings every three
years; and in 2001 it was decided to meet annually to address urgent issues affecting the region.
Member nations were assigned to be the summit host in alphabetical order except in the case of
Myanmar which dropped its 2006 hosting rights in 2004 due to pressure from the United States
and the European Union. At the 11th ASEAN Summit in 2005 in Kuala Lumpur, Malaysia, new
meetings were scheduled. These were:
• East Asia Summit - converging ASEAN and six dialogue partners namely China,
Japan, South Korea, Australia, New Zealand and India.
• ASEAN-Russia Summit - meeting between ASEAN leaders and the President of
Russia.
th
The 12 ASEAN Summit 2007, which was scheduled to be hold in Metro Cebu, Philippines, was
postponed in December 2006 because of Typhoon Seniang.
The ASEAN Ministerial Meeting (Foreign Ministers) is held annually. Ministerial meetings on
the following sectors are also held regularly: agriculture and forestry, economics (trade), energy,
environment, finance, health, information, investment, labour, law, regional haze, rural
development and poverty alleviation, science and technology, social welfare,
telecommunications, transnational crime, transportation, tourism, youth. Supporting these
ministerial bodies are committees of senior officials, technical working groups and task forces.
To support the conduct of ASEAN’s external relations, ASEAN has established committees
composed of heads of diplomatic missions in the following capitals: Beijing, Berlin, Brussels,
Canberra, Geneva, Islamabad, London, Moscow, New Delhi, New York, Ottawa, Paris, Riyadh,
Seoul, Tokyo, Washington D.C. and Wellington.
The Secretary-General of ASEAN is appointed on merit and accorded ministerial status. The
Secretary-General of ASEAN, who has a five-year term, is mandated to initiate, advise,
coordinate, and implement ASEAN activities. The members of the professional staff of the
ASEAN Secretariat are appointed on the principle of open recruitment and region-wide
competition.
ASEAN has several specialized bodies and arrangements promoting inter-governmental
cooperation in various fields including the following: ASEAN Agricultural Development
Planning Centre, ASEAN-EC Management Centre, ASEAN Centre for Energy, ASEAN
Earthquake Information Centre, ASEAN Foundation, ASEAN Poultry Research and Training
Centre, ASEAN Regional Centre for Biodiversity Conservation, ASEAN Rural Youth
Development Centre, ASEAN Specialized Meteorological Centre, ASEAN Timber Technology
Centre, ASEAN Tourism Information Centre, and the ASEAN University Network.
In addition, ASEAN promotes dialogue and consultations with professional and business
organisations with related aims and purposes, such as the ASEAN-Chambers of Commerce and
Industry, ASEAN Business Forum, ASEAN Tourism Association, ASEAN Council on
Petroleum, ASEAN Ports Association, Federation of ASEAN Ship owners, ASEAN
Confederation of Employers, ASEAN Fisheries Federation, ASEAN Vegetable Oils Club,
ASEAN Intellectual Property Association, and the ASEAN-Institutes for Strategic and
International Studies. Furthermore, there are 58 Non-Governmental Organizations (NGOs),
which have formal affiliations with ASEAN.

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Check Your Progress 1
Note: Use the space given below for your answer. Also check your answer with the model
answer given at the end of the Unit.

Q. 1 What do you mean by the “pillar system” of European Union?

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Q. 2 Discuss the fundamental principles of ASEAN.
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12.9 Let Us Sum Up
To sum up, growth in the number and variety of international regional organizations has
constituted one of the characteristic features of international politics since World War II.
Originally, the trend was toward creation of security organizations through long-term military
alliances. More recently, with the countries of Western Europe taking the lead, numerous
regional organizations have been created to serve functional purposes — that is, to promote
economic and social goals at a supranational level. A third type of regional grouping combines
some of the attributes and purposes of both the security and functional organizations. While not
full-scale military alliances, these organizations possess certain security interests and attempt to
promote cooperative policies among the members, even though they have no precise economic
or social goals. Although these three kinds of regional organizations differ considerably, they are
alike in that they are built upon treaties in which several nation-states unite to achieve certain
goals. In this context, we studied the European Union and the ASEAN as the two functional
regional organisations.

12.10 Some Useful Books:

1) LeRoy Bennett, International Organisations: Principles and Issues, New Jersey:
Prentice Hall Inc., 1998
2) Kalpana Rajaram (ed.), International Organisations, Conferences and Treaties, New
Delhi: Spectrum Books, 2005.

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