Prepared by: Brandon Hughes and Audel Shokohzadeh
Location: Washington, DC
Event: Discussing ASEAN Security Challenges
Front Row Seat – Kevin Rudd (Center) discussing Asia Security Challenges with former India National Security Advisor (Shivshankar Menon) and the Republic of Vietnam Ambassador to the U.S., Pham Quang Vinh
In preparation for an upcoming site visit to Thailand and Myanmar, FAO Global attended a high-profile event with influencers and high-ranking officials from Southeast Asia. The event highlighted opportunities and challenges facing the Association of Southeast Asian Nations (ASEAN), a 10-member trade bloc that represented 3.3% of the share of global GDP and 7.6% of the share of trade in goods in 2015.[i] ASEAN not only promotes free-trade within the region and between members and non-members but also organizes member states on issues surrounding politics and security. An understanding of the role that multilateral institutions have on business, geopolitics, and security will help organizations with strategic planning and governmental affairs.
Attendees and participant included Ambassador to the United States from Myanmar, Aung Lynn; Former Australian Prime Minister and President of the Asia Society Policy Institute, Kevin Rudd; Executive Dir
ector for the American Chamber of Commerce Thailand, Jud
y Benn; the First Secretary for Political Affairs for the Embassy of the Socialist Republic of Vietnam in the United States, Phi Hung; and former National Security Advisor to Prime Minister of India, Shivshankar Menon.
Kevin Rudd noted that ASEAN is playing a vital role in addressing concerns that countries in the region, whether they are members of the trade bloc or not, specifically within the context of a “fractious” relationship between the U.S. and China. Rudd highlighted the ability of ASEAN to adapt and evolve with the concerns and priorities of member states. While ASEAN has positive trend-lines, especially with impressive projected growth in 2017 and 2018 in export-oriented manufacturing, tourism, and Foreign Direct Investment,[ii] there is still room for ASEAN to strengthen as an institution.
According to Menon the greatest opportunities for improvement and collaboration are on issues surrounding maritime, cyber security, and conventional defense. One of the major challenges facing the region is the codification of maritime measures in the South and the East China Sea. Ambassador Lynn noted that the key to ASEAN’s success will be the acceptance that the organization can effectively centralize and advocate for Southeast Asian affairs. This also highlights one of the major drawbacks to ASEAN, a collective action problem. Countries only voluntarily recognize ASEAN and tend to do so when it serves their countries interests.
Courtesy: Gunawan Kartapranata
As ASEAN continues to position itself as a major player on economic, security, and political affairs, it is important for prospective investors and CEOs to be aware of the role and limitations that multilateral institutions have in setting rules and policies. An awareness of the geopolitical dynamics within and between multilateral institutions will ensure that business resources are utilized strategically and effectively. While this understanding is necessary it is vital to also have knowledge of local dynamics as well.
FAO Global has a talented and dedicated team of researchers that can provide you with the big picture and localized analysis and recommendation for your business needs. For information on tailored country/city packages to meet the needs of your organization please contact us at DC@FAOGlobal.com.
[i] ASEAN Secretariat Office, “ASEAN Economic Chartbook 2016,” 2016, http://www.aseanstats.org/wp-content/uploads/2016/11/AEC-Chartbook-2016-1.pdf.
[ii] The World Bank Group, “Balancing Act,” 2017, https://openknowledge.worldbank.org/bitstream/handle/10986/28396/9781464812095.pdf?sequence=4&isAllowed=y
