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National Trade Data Bank
ITEM ID     : ST BNOTES ASEAN
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - ASEAN

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | ASEAN

US DEPARTMENT OF STATE
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS

BACKGROUND NOTE:  ASEAN, March 1992

Official Name:  Association of Southeast Asian Nations

PROFILE1

Member states:  Brunei Darussalam, Indonesia, Malaysia, the
Philippines, Singapore, and Thailand.

Geography
Area:  3 million sq. km. (1 million  sq. mi.); about the size of
the US east of the Mississippi River, plus Texas and Oklahoma.
Major cities:  Brunei Darussalam--Bandar Seri Begawan (70,000);
Indonesia--Jakarta (8.8 million), Surabaya (2 million), Bandung
(1.4 million), Medan (1 million); Malaysia--Kuala Lumpur (1
million); Philippines--Manila (6 million); Singapore--(2.7
million); Thailand--Bangkok (6 million).

People
Total population (1990):  333 million.  Avg. annual growth rate:
2%.  Ethnic groups:  Malay, Thai, Chinese, Indian, others.
Religions:  Islam, Buddhism, Christianity, Taoism, Hinduism.
Languages:  Malay, Indonesian, Filipino, Thai, Chinese, English.

Foundation and Goals
Established: August  8, 1967, with the signing of the Bangkok
Declaration by Indonesia, Malaysia, Philippines, Singapore, and
Thailand.  Purpose:  To strengthen regional cohesion and
self-reliance, while emphasizing economic, social, and cultural
cooperation and development.

Organization
Principal organs:  Meetings of the ASEAN Foreign Ministers, the
ASEAN Standing Committee, and the ASEAN Economic Ministers.  There
is an ASEAN Secretariat, located in Jakarta, with associated
specialized intergovernmental committees.

Economy
Members' aggregate GDP (1990):  $303 billion.  GDP growth rate
(1990):  7.6%.  Per capita GDP (1990 avg.):  About $950.
        Natural resources:  Petroleum, natural gas, timber, tin,
nickel, copper, iron, bauxite, other minerals.
        Agriculture (about 22% of GDP):  Products--rice, rubber,
cassava, sugar, coffee, corn, pineapple, bananas, coconuts, palm
oil.
        Industry (about 32% of GDP):  Types--electronics,
petroleum, textiles, minerals, chemicals, food processing, wood
products, fabricated steel, ships.
        Trade (1990): Exports--$141 billion ($27 billion to US):
office machinery and electronics, petroleum, textiles,
telecommunications equipment, natural rubber, processed seafood and
fruits, wood products, tin, palm oil, sugar, coffee.  Major
markets--Japan, US, European Community (EC).  Imports--$155 billion
($19 billion from US): machinery and other capital goods,
chemicals, oil, food.  Major sources--Japan, US, EC, Saudi Arabia.

ASEAN Officials

ASEAN Secretary General:  Rusli Noor.  The Government of Brunei is
the designated liaison channel between ASEAN and the US for the
1991-94 period.  ASEAN Representation in the US: Liaison through
embassies of ASEAN member countries in Washington, DC, with
chairmanship on a 6-month rotating basis.

        1To ensure comparability, single sources for statistics
have been used whenever possible; therefore, figures in this
Background Note may be at variance with those in the Notes on
individual ASEAN countries.

GEOGRAPHY

Located in Southeast Asia on the Malay Peninsula and the islands to
the south and east in the South China Sea, the six ASEAN states
adjoin some of the most important sea lanes in the world.  The
ASEAN states lie astride the Equator and extend from roughly 1,600
kilometers (1,000 mi.) north to 800 kilometers (500 mi.) south.

PEOPLE

        One of the most striking characteristics of ASEAN is its
wide diversity in race, language, culture, and religion.  Many
ethnic groups coexist within ASEAN.  Malayo-Polynesians make up the
majority in the Philippines, Malaysia, and Indonesia (and thus in
ASEAN), although Malaysia and Indonesia have significant numbers of
other groups.  Thailand is 84% Thai.  Ethnic Chinese make up 75% of
the population of Singapore, and sizable Chinese minorities are
found in each of the other ASEAN nations.
        Derivatives of the Malayo-Polynesian linguistic family,
most notably Malay, Indonesian, and Pilipino, are the dominant
languages in all but Thailand and Singapore.  In Thailand, 85% of
the population speak Thai.  Various Chinese dialects are spoken
throughout the region.  English is the region's most widely spoken
non-indigenous language.

HISTORY

        ASEAN was founded officially on August 8, 1967, with the
signing of the Bangkok Declaration by the foreign ministers of the
original five members.  The organization was created to strengthen
regional cohesion and self-reliance through economic, social, and
cultural cooperation.  It developed slowly during its first decade,
partly because of diverse economic interests, varied historical
experience, and the initially fragile political ties among the five
original states.
        Brunei Darussalam, formerly a British protectorate, joined
ASEAN as its sixth member state in January 1984, shortly after
attainment of full independence.
        To curb external interference, in 1971 the ASEAN nations
set as their goal the establishment of a zone of peace, freedom,
and neutrality (ZOPFAN) for Southeast Asia, and this was included
in the Bali Declaration signed by the ASEAN heads of government in
1976.  This concept remains a long-term objective.
        The fall of the Republic of Vietnam in 1975 led to a new
phase of ASEAN relations.  In 1976, the first ASEAN summit
conference was convened in Bali, Indonesia, and collaboration among
ASEAN states took a major step forward with the signing of the
Declaration of ASEAN Concord.  Aimed at promoting cooperative
activities in industry, trade, and other fields, this declaration
remains the major "constitutional base" for ASEAN cooperation.  It
also authorized the formation of the ASEAN Secretariat in Jakarta.

Growing Cooperation
        The Vietnamese invasion of Cambodia, starting in December
1978, played a key role in furthering ASEAN collaboration.  During
the 1980s, the ASEAN nations successfully managed passage of yearly
UN General Assembly resolutions calling for an end to Vietnamese
occupation and were instrumental in the 1991 peace settlement in
Cambodia.  These accomplishments and the political cooperation thus
fostered have been ASEAN's major political achievements.
        Diverse economic interests and levels of development have
limited the extent of economic cooperation between member nations.
However, the collapse of international commodity prices in the
mid-1980s and the subsequent downturn in the economies of several
ASEAN nations spurred regional leaders to initiate serious economic
reforms and trade liberalization plans.  The December 1987 ASEAN
summit gave new impetus to reducing internal trade barriers and
establishing joint industrial projects; it also fostered closer
coordination on economic issues by ASEAN governments, particularly
in international forums.  The 1989 creation of APEC (Asia-Pacific
Economic Cooperation, an informal economic grouping of the US,
Canada, Japan, South Korea, Australia, New Zealand, and ASEAN,
which expanded in 1991 to include the People's Republic of China,
Taiwan, and Hong Kong) has provided an additional important venue
in which ASEAN representatives can meet and discuss issues of
broader regional importance.  ASEAN economic ministers in 1991
agreed to move toward an ASEAN Free Trade Area (AFTA).  The
decision to create AFTA was taken by ASEAN heads of government at
the fourth ASEAN summit in January 1992.

INSTITUTIONS

        Since its inception, ASEAN gradually has developed a number
of formal, regular consultative meetings and committees, but it has
only a very limited permanent structure.  Decisions are made by
consensus and often are achieved through informal, ad hoc
consultations.  However, there are several formal bodies that
consult and make decisions on various common issues.

Foreign Ministers' Meetings
        The periodic meetings of the six foreign ministers
constitute the principal decision-making body for ASEAN.  In
addition to their regular annual sessions in June or July, the
foreign ministers gather on other occasions as needed.  The venue
of the ministerial meetings rotates annually among the six
countries.
        The foreign ministers' meetings have assumed a prominent
role partially as a result of events in Indochina.  Recognizing the
importance of a unified front on the Cambodia question, ASEAN has
used the foreign ministers' consultations to reaffirm their common
stand.  Periodic meetings of senior officials plan for and
supplement the work of the foreign ministers.  In addition, an
ASEAN Standing Committee, composed of ambassadors resident in the
venue of the ministerial meeting and chaired by the foreign
minister of the host country, meets as needed.

Economic Ministers' Meetings
        The economic ministers usually meet twice a year to discuss
common approaches to economic questions and to review cooperative
programs.  Decisions on economic questions are then referred to the
foreign ministers or heads of government for final approval.
Various sectoral committees, subcommittees, and working groups have
been established to deal with specific economic and social issues.
Regular ministerial consultations also are held in such sectors as
labor, social welfare, education, energy, and information.

The ASEAN Secretariat
        The ASEAN Secretariat is located in Jakarta in a
headquarters building provided by the Indonesian Government.  The
ASEAN states have not favored development of a strong central
coordinating authority.  The Secretariat is limited in size and is
tasked mainly with serving the various ministerial meetings and
committees.  It has been suggested that the Secretariat might serve
as a regional research, information, and statistical center, but
this and other roles have not yet been authorized.
        Complementing the ASEAN Secretariat, each government
maintains its own National Secretariat in its Foreign Ministry;
these vary in size and function.  The six National Secretariats are
responsible to their own governments.

FOREIGN RELATIONS

        In order to achieve closer relations with major developed
nations, ASEAN has instituted an annual "Post-Ministerial
Conference" at the foreign minister level with the United States,
Japan, Canada, South Korea, the European Community, Australia, and
New Zealand.  Beginning in 1979, immediately following the ASEAN
foreign ministers' mid-year meeting, joint and individual meetings
have been held among ASEAN ministers and their counterparts from
the seven "dialogue partners" named above.
        ASEAN's relations with Japan have strengthened steadily
since the early 1970s.  Links in trade, investment, and aid are
particularly strong and are rapidly growing.  Examples of Japan's
increasing commitment to the region include the $2 billion fund
established in 1987 to finance ASEAN industrial projects, joint
ASEAN-Japanese industrial ventures, and Japanese-sponsored
technical training institutes.  ASEAN's relations with Australia,
Canada, New Zealand, and the EC also have deepened, and other
nations, including the former Soviet republics, China, and Vietnam,
have sought "dialogue" roles.

ECONOMY

        The ASEAN region is one of the world's economic success
stories in agriculture, industry, and trade.  The economies range
from resource-rich but still largely agricultural Indonesia, with
a per capita gross domestic product (GDP) of $505, to the highly
industrialized city-state of Singapore, with a per capita GDP of
$12,720.  The ASEAN nations are mainly committed to market- and
export-oriented economic growth strategies.  Their dynamic
economies averaged annual GDP growth of about 7% during the 1970s
but experienced stagnation or recession in the mid-1980s due to
slackening world trade and deteriorating commodity and oil prices.
Since the late 1980s, growth rates have increased steadily and in
1990 ranged from 2.1% for the Philippines to 12% for Thailand; the
combined ASEAN economies grew 7.6% in 1990.
        Except for Singapore and Brunei, the ASEAN economies are
still largely agricultural, producing commodities such as rubber,
palm oil, rice, copra, and coffee for export, though manufacturing
sectors in Malaysia, Thailand, and Indonesia are of increasing
importance in each economy.  Singapore has a highly diversified
commercial and industrial economy, with growing emphasis on the
service sector.  Commercialized cultivation and processing of
primary agricultural products are important industries in
Indonesia, Malaysia, Thailand, and the Philippines.  ASEAN accounts
for 72% of world exports of rubber and is the world's largest
source of tropical timber.  Mineral resources include 26% of the
world's tin exports and significant amounts of copper, coal,
nickel, and tungsten.  Indonesia, Malaysia, and Brunei are
important energy exporters, producing most of East Asia's petroleum
and natural gas.

COOPERATION WITHIN ASEAN

        Political Cooperation: The Cambodia Conflict.  The common
challenge to regional security posed by the events in Indochina
stimulated closer political cohesion among the ASEAN countries.
The war in Cambodia and the resulting flood of refugees into
Thailand raised challenges to regional security that ASEAN
collectively moved to meet.
        ASEAN led efforts in the United Nations and other forums to
oppose Vietnam's occupation of Cambodia and  requested the 1981 UN
conference on Cambodia.  The 93 nations attending the conference
unanimously approved a final declaration embodying the principles
on which a settlement should be based to establish an independent
and neutral Cambodia: a political settlement, withdrawal of all
foreign troops, and UN-supervised elections.  ASEAN strongly
supported the peace agreement reached in 1991 and Prince Norodom
Sihanouk's election to head a coalition government.  Indonesian
Foreign Minister Ali Alatas served as co-chairman of the Paris
International Conference on Cambodia, where the peace settlement
was reached.  He articulated the ASEAN "vision of one Southeast
Asia, at peace within itself and with its neighboring powers, its
constituent countries harmoniously cooperating with one another for
common progress and prosperity."  The conference was attended by
foreign ministers of all six ASEAN countries.
        The end of hostilities in  Southeast Asia has permitted
discussion of the possibility that those nations will become
involved in ASEAN.  The "Singapore Declaration" of the 1992 summit
included a pledge to play an active role in inter- national efforts
to reconstruct Vietnam, Laos, and Cambodia.  ASEAN leaders also
stated that they welcome accession to the ASEAN Treaty of Amity and
Cooperation by all countries in Southeast Asia.  Laos and Vietnam
are reportedly interested in joining, perhaps in anticipation of
being asked to a participate as observers in some ASEAN meetings.
        Refugees.  The role of the ASEAN states has been crucial in
coping with the refugee flow from Cambodia, Laos, and Vietnam.
Since 1979, these nations have provided first asylum to more than
2 million refugees from these countries.  Countries of first asylum
for boat people--Thailand, Malaysia, and Indonesia--are working
closely with the United States, the UN High Commissioner for
Refugees, and European nations toward the eventual resettlement or
repatriation of refugees.  However, in recent years the ASEAN
countries have become concerned about the continued exodus of
refugees.  In 1989, Malaysia ceased granting first asylum to newly
arrived boat people.  In May 1990, ASEAN publicly stated that the
burden of providing first asylum had become intolerable and pressed
for an international effort to resolve the Southeast Asian refugee
problem.
        Economic Cooperation.  ASEAN leaders agreed in 1992 to cut
intra-ASEAN tariffs to 0-5% on all manufactured products and
processed agricultural goods within 15 years and thus create an
ASEAN Free Trade Area.  This is an important step toward overcoming
barriers to greater integration among the economies of the various
ASEAN states.  Since its inception, ASEAN has faced constraints on
eco- nomic cooperation.  ASEAN members, except Singapore, depend on
the production and export of primary commodities and manufactured
goods that tend to compete with, rather than complement, the
products of their ASEAN partners.  Intra-ASEAN trade, although
significant and growing, is still less than 20% of total ASEAN
trade.  ASEAN members generally seek a common policy on commodities
and on other economic issues in international forums, such as the
General Agreement on Tariffs and Trade (GATT) and the UN Conference
on Trade and Development (UNCTAD).
        The semi-annual meetings of the economic ministers
constitute the key consultative mechanism on regional economic
policy.  In addition, ASEAN has established a number of economic
committees and consultative arrangements dealing with a wide range
of economic issues.

DEFENSE

        While the heads of government had discussed ways to promote
dialogue on regional security issues, ASEAN still has not been
given a defense or security role.  Cooperation among member-states
has been conducted on a bilateral basis.  ASEAN remains committed
to its 1971 call for a zone of peace, freedom, and neutrality.
        ASEAN governments recognize that under current
circumstances a US security presence in the area is an important
stabilizing force.  While no other ASEAN member has offered to
replace US bases in the Philippines (or been asked by the United
States to do so), several have come forward with offers to
negotiate arrangements under which US military forces would have
access to repair facilities, sources of supply, and training sites.


Strength In Diversity
        ASEAN has shown a remarkable ability to put aside
historical disputes and limited economic complementarity in order
to concentrate on issues of common interest.  All six members have
made preservation and enhancement of regional cohesion through
ASEAN a foreign policy priority.  During more than 20 years of
cooperation, ASEAN has grown into a dynamic group of developing
countries with some of the highest growth rates in the world.  It
has gained the respect and acceptance of the entire international
community, which are matters of great pride to its peoples, who now
feel that they can determine their own destiny.
        ASEAN unity and cooperation have not only served regional
security and development but also increased these nations'
influence in international forums such as the United Nations and
the GATT, and in international commodity agreements.  ASEAN is
recognized as a leader of the developing world, with successful,
market-oriented economies.  In seeking to advance its interests,
ASEAN has stressed cooperation rather than confrontation with
industrialized countries in international organizations and
conferences.

US-ASEAN RELATIONS

        The US-ASEAN relationship is substantial and expanding.
Secretary of State Baker attended the 1989, 1990, and 1991 ASEAN
Post-Ministerial Conferences, following a precedent established by
his predecessors of meeting annually with the ASEAN foreign
ministers.  By encouraging wide-ranging discussions of issues,
these meetings reinforce the value the United States places on our
long-standing relationship with the ASEAN nations.

Economic Relations
        With trade totalling $45 billion in 1990 ASEAN is the
United States' fifth largest trading partner, and the US is ASEAN's
largest single market.  Principal US exports to ASEAN are capital
goods, transportation equipment, chemicals, and agricultural
products.  The United States imports ASEAN's natural rubber, tin,
petroleum, sugar, and palm oil, as well as textiles and electronics
products and components.
        Generally favorable investment climates, market-oriented
economies, relatively low labor costs, and abundant natural
resources have attracted significant US investment to ASEAN.
However, US investment in the region faces competition from that of
Japan, Taiwan, and Singapore, among other nations.  The United
States is currently the largest investor in Singapore and the
Philippines, second-largest in Thailand, third-largest in Malaysia,
and fourth-largest in Indonesia.  The Overseas Private Investment
Corporation, a US government agency, has over $600 million of
investment guarantees and loans outstanding to ASEAN as of
mid-1991.  US Export-Import Bank export insurance and loans
outstanding to ASEAN totaled $2.4 billion as of September 1991.

US Economic Assistance
        The US Agency for International Development (AID) strategy
supports strengthening the private sector and freeing financial
resources, promoting democratic institutions, and sustaining the
natural resource bases of member states.
         The Private Investment and Trade Opportunities (PITO)
project is a joint effort by the US and ASEAN governments and
private sectors to expand trade, investment, and technology
transfer between the United States and ASEAN.  The project is
funded by private contributions and by the ASEAN Regional Program
of AID.  The most significant project developed under PITO's
auspices to date is the environmental improvement project, which
would use $17 million in aid over a 6-year period to lessen
industrial and urban pollution.
        In addition to regional development assistance to ASEAN,
the United States has provided substantial funding for bilateral
development assistance to Indonesia, Thailand, and the Philippines.
Post-World War II US bilateral eco- nomic assistance to ASEAN
countries through fiscal year 1990 is more than $14 billion.  There
also are a number of cooperative programs with ASEAN in the
educational, cultural, and scientific fields.

Political Relations
        ASEAN's moderating influence in international councils, as
well as its relative prosperity, have contributed to the peace and
stability of the region.  ASEAN cooperation also is important to
the United States on the issue of long-term resettlement of
refugees out of first-asylum nations and efforts to account for
Americans missing and unaccounted for in Indochina.
        Frequent ASEAN-US consultations increase understanding of
common interests and provide opportunities to consult informally on
a wide range of issues.
        The ASEAN-US economic dialogue began in September 1977 in
Manila.  Subsequent dialogues have been held approximately every 18
months.  Additional informal political and economic consultations
have evolved over the years.
        The ASEAN Washington Committee (AWC) is composed of the
ambassadors to the United States of the six ASEAN countries.  It
meets periodically with US officials to discuss common issues.
        The Economic Coordinating Committee (ECC) was established
at the third economic dialogue in Manila and comprises senior
ASEAN-nation embassy officials in Washington, DC, and their
counterparts in the United States, as well as US and ASEAN private
sector representatives.  The ECC generally meets monthly to review
cooperative activities and economic issues.
        The US-ASEAN Council for Business and Technology was
established in 1979 to bring together US and ASEAN private sector
leaders to discuss common interests and the enhancement of trade
and investment and relations between the two regions.
        Under a program known as the ASEAN-US Initiative (AUI), the
US Trade Representative and ASEAN ambassadors signed a memorandum
of understanding in December 1990 to  establish regular
ministerial-level trade consultations and a senior officials'
working group to explore mechanisms for enhancing trade and
investment relations.

ASEAN SOCIOECONOMIC INDICATORS, 1990 (est.)

            Area   Adult  Pop.    Life  Literacy  Per      GDP   Exports Imports
           (1,000   Pop.  Growth  Expect. (%)     Capita  Growth  $bill   $bill
          sq.km.) (mill.) Rate(%) (yrs.)          GDP($)  Rate(%)



Brunei         5.8   0.3   3.0      80     75     13,247    2.7     2.2    1.7
Indonesia  1,919.0 183.0   2.0      55     55        505    9.0    25.9   20.0
Malaysia     330.0  17.8   2.4      78     70      2,393    9.7    29.0   27.3
Philippines  300.0  60.7   2.3      88     63        766    2.1     8.2   12.0
Singapore      0.6   3.0   3.4      86     74     12,720    8.3    52.5   60.7
Thailand     514.0  56.6   1.7      86     64      1,408   10.3    23.0   33.3