1 Association of Southeast Asian Nations (ASEAN) London International Model United Nations 21st Session | 2020
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Association of Southeast Asian Nations (ASEAN) London International Model United Nations
21st Session | 2020
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Table of Contents
Introduction to the Association of Southeast Asian
Nations (ASEAN): 7
TOPIC A: Bridging the Development Gap among ASEAN
Member States 11
Definitions 13
Timeline of Events 14
Discussion of the Problem 15
Bloc Positions 20
Conclusion 21
Questions a Resolution should answer: 21
Further Reading 22
Bibliography 23
TOPIC B: Implementing Measures to Tackle Labour
Exploitation and Challenges for Businesses in the ASEAN
Region 26
Timeline of Events 28
Discussion 30
Bloc Positions 36
Conclusion 42
Questions a Resolution should answer: 42
Further Reading 43
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Bibliography - Introduction to the Association of Southeast
Asian Nations: 44
Bibliography – Topic B 45
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Dear Delegates,
It is our greatest pleasure to welcome you to London International Model
United Nations 2020. We hope that this conference will be both an
informative, rewarding, and exciting experience for you.
After 20 years, LIMUN still continues to serve as a forum and simulation
for internationally minded university students from around the world to
discuss and debate the challenges which our common humanity faces.
LIMUN continues to imbue in its participants an understanding of the
principles of collaboration and cooperation.
This year, the ASEAN committee’s topics are ‘Bridging the development
gap among ASEAN member states’ and ‘Implementing measures to tackle
labour exploitation and challenges for businesses in the ASEAN region.’
We expect delegates to propose creative solutions to the two topics at
hand, while staying in line with ASEAN’s core objectives outlined in the
ASEAN Declaration.
This study guide has been designed to provide you with a framework for
your research and highlight areas that we, as Directors would like to see
discussed throughout committee sessions. We strongly encourage you to
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use this guide to help you come up with relevant solutions that you can
bring to the committee. In order to stand out and ensure the most
productive committee session possible, we also recommend you read
from various other sources and come up with creative solutions that we
may not necessarily cover in this guide.
If you have any questions before or during the conference, whether your
question concerns the procedure of the committee or the content of the
topics themselves, please feel free to contact us.
We wish you the best of luck preparing for the committee and are excited
for the fruitful debate that is to come.
Yours truly,
Lina Jeffcock & Francis Acevedo
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Director - Lina Jeffcock
Lina is a second-year History student at the London School of Economics
and hopes to convert to Law upon completing her undergraduate degree.
She is the President of the London School of Economics’ United Nations
Society and loves the unique sense of community that Model United
Nations brings.
Lina has had a somewhat nomadic upbringing moving back and forth from
France, the USA, the UK and Japan. She is a serious foodie and starting a
conversation on the topic of food could have her talking for hours!
Lina looks forward to hearing debate about all the solutions that she has
considered, as well as ones she has not thought of herself. She loves a bit
of creative thinking in committees! As the Director of the ASEAN Regional
Summit, she hopes to ensure a high-quality and memorable learning
experience and is excited to meet all the delegates of her committee.
Assistant Director – Francis Acevedo
Francis Acevedo is a Filipino second-year International Relations student
at the London School of Economics. He is active in the UK MUN circuit and
also is the Chief Design Officer for LSE’s United Nations Society. Francis
grew up mostly in the Philippines but has also lived in Singapore,
providing him great insight into life, culture, and politics in Southeast
Asia. Outside of MUN, he is passionate about discussions on life, the
pursuit of happiness, and the latest trends in aviation.
Francis is passionate about all aspects ASEAN and is interested to see
what perspectives and solutions delegates bring forward during
committee session. He is eager and cannot wait to meet the delegates of
the ASEAN committee!
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Introduction to the
Association of Southeast
Asian Nations (ASEAN):
“One Vision, One Identity, One Community” - ASEAN’s Motto
The Association of Southeast Asian Nations (ASEAN) was formed in 1967
by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to help
promote regional stability through political and economic cooperation.1 Its
creation was arguably driven by a common fear of communism from its
founding members.2 The ASEAN declaration of 1967 is considered to
be its founding document and emphasizes ASEAN’s dedication to key
principles of peace and cooperation. Other aims set out in the ASEAN
declaration include the acceleration of economic growth, social progress,
and cultural development in the region. 3
At the end of the Vietnam War in 1975, the change in the regional
power dynamic strengthened the organisation’s ability to coordinate.
ASEAN’s joint response to Vietnam’s invasion of Cambodia in 1979 is a
key example of this.4 In 1984, Brunei joined ASEAN as its sixth member,
1 Julie Ginsberg, “Background: ASEAN: The Association of Southeast Asian Nations,” The New York Times (The New York Times, February 25, 2009),
https://archive.nytimes.com/www.nytimes.com/cfr/world/slot3_20090225.html)
2 Ibid. 3 “Overview - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY,” ASEAN, accessed
November 29, 2019, https://asean.org/asean/about-asean/overview/) 4 “TIMELINE: Key Dates in ASEAN History,” Reuters (Thomson Reuters, November 20,
2007), https://www.reuters.com/article/us-asean-history-timeline-
idUSGOR01167020071120)
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and Vietnam, Laos, Myanmar, and Cambodia joined the association in the
90s. The end of the Cold War brought a period of greater political
independence in the ASEAN region and throughout the 1990s ASEAN’s
influence in the global arena began to grow. On December 15th 1995, the
bloc signed the Southeast Asian Nuclear-Weapon-Free Zone Treaty,
which agreed that Southeast Asia would remain a nuclear weapon free
zone in an effort to promote peace and stability in the region.5 The treaty
became fully ratified and effective in 2001, sending a powerful message
to the rest of the world.6
In 2015, ASEAN formed the ASEAN Economic Community (AEC),
whose purpose is to form a common market similar to that of the
European Union. ASEAN’s 10 members have since had discussions about
creating common standards in agriculture and financial services,
intellectual property rights, and consumer protection.7 Through such
measures the AEC aims to work towards free movement of goods and
services, skilled labour, investment and capital.
On June 23, 2019, the 34th ASEAN Summit was held in Bangkok. During
the conference, ASEAN leaders asked the United States and China to
resolve their trade war and warned the United States of the harm their
protectionist policies would pose on ASEAN states and international trade
more generally. A major point of discussion was China’s influence in the
South China Sea and the way in which this could pose a threat to ASEAN
members’ maritime rights.8
5 “Treaty on the Southeast Asia Nuclear Weapon-Free Zone - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY,” ASEAN, accessed November 29, 2019,
https://asean.org/?static_post=treaty-on-the-southeast-asia-nuclear-weapon-free-zone) 6 Ibid.
7 Ginsberg, Background: ASEAN: The Association of Southeast Asian Nations”
8 Ibid.
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Figure 1: ASEAN Heads of States Holding Hands at the 34th ASEAN Summit
STRUCTURE AND FUNCTIONS OF THE ASEAN SUMMIT
As of December 2008, ASEAN principles such as non-interference, the
importance of respecting democracy, the rule of law, and human rights
have been codified in the ASEAN Charter.9 The ASEAN Charter sets out
the mandate and function of different ASEAN bodies and made ASEAN a
legal entity. These bodies include the ASEAN summit, ASEAN Coordinating
9 David Martin Jones, “Security and Democracy: the ASEAN Charter and the Dilemmas of
Regionalism in South-East Asia,” International Affairs 84, no. 4 (2008): pp. 735-737,
https://doi.org/10.1111/j.1468-2346.2008.00735.x)
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Council, and ASEAN Community Councils.10 The ASEAN body delegates at
LIMUN will be simulating is the ASEAN Summit. The ASEAN Summit is the
supreme policy-making body of ASEAN, comprised of the ASEAN Heads of
State or Government.11 The ASEAN Summit meets twice a year, and the
meetings take place over a period of three days. The meetings are hosted
by the member state holding the ASEAN Chairmanship. The Chairmanship
of ASEAN for 2020 is held by Vietnam. ASEAN Summit meetings observe
ASEAN specific terminology, seating arrangements, and resolution
structure.12 However, for the most part, ASEAN protocols are very similar
to traditional UN General Assembly rules of procedure. Thus, the ASEAN
summit at LIMUN will follow the standard LIMUN rules of procedure
concerning procedural and substantive voting.
10 “ASEAN Charter,” Maruah Singapore, June 3, 2008, https://maruah.org/asean-charter/)
11 Ibid.
12 Ginsberg, Background: ASEAN: The Association of Southeast Asian Nations”
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TOPIC A: Bridging the
Development Gap among
ASEAN Member States
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Introduction
Undoubtedly, ASEAN has achieved impressive economic growth, and
continues to develop at impressive economic growth rates every year. In
2018, ASEAN’s global GDP growth rate was 5.1% compared to the global
average of 3.6%.13 However, this growth is not without its problems. A
long-term challenge for the member states of ASEAN is posed by the
developmental differences socially, economically, and politically. Even if
economic growth continues in the region, a gap continues to persist
between ASEAN's most developed members and its least; Singapore's
HDI of 0.932 is miles away from Myanmar's 0.578.14 And while ASEAN
has made commitments to attempt to narrow this gap, the gap persists
and the main plan, Initiative for ASEAN Integration (IAI) Work Plan III, is
set to end in 2020.15 The development gap, if unaddressed, could
threaten the process of further integration within the ASEAN Economic
Community. If economic and developmental inequality continues to
persist within the bloc, it presents the danger of dismantling any chance
of cohesion in economic interests. Furthermore, the development gap has
implications for regulatory harmonisation, intra-bloc trade, the possibility
for free movement within the bloc, the region’s prosperity as a whole, and
the reification of the ASEAN way.16 For this committee, delegates should
address this topic by discussing and debating solutions to address the
development gap amongst ASEAN members, and the factors that allow
this developmental gap to persist.
13 ASEAN Secretariat, “ASEAN Economic Integration Brief No. 5,” ASEAN Secretariat,
June 2019, https://asean.org/storage/2019/06/AEIB_5th_Issue_Released.pdf. 14 United Nations Development Programme. Human Development Indices and Indicators:
2018 Statistical Update. (New York: United Nations Development Programme, 2018),
22-25. 15 ASEAN Secretariat, Initiative for ASEAN Integration (IAI): Work Plan III, (Jakarta:
ASEAN Secretariat, 2016), 10. 16 Ludo Cuyvers, “The ‘ASEAN Way’ and ASEAN’s development gap with Cambodia, Laos,
Myanmar and Vietnam: A Critical View,” Asia Pacific Business Review 25, no. 2 (2019),
DOI: 10.1080/13602381.2019.1652980.
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Definitions
ASEAN Economic Community (AEC): Established in 2015, the AEC is
the main framework within which ASEAN economic integration in trade,
freedom of movement, and capital is meant to take place. The AEC,
together, forms the seventh-largest economy in the world.17
Official Development Assistance (ODA): A term first deployed by the
OECD, it refers to any financial aid provided by governments, agencies, or
international institutions to countries in order to promote economic
development.18 Grants and loans are the two main forms of ODA.
The ‘CLMV’ Group: A term to refer to Cambodia, Laos, Myanmar, and
Vietnam. In discussions regarding ASEAN economic development, these
four countries are often grouped together as they are transitioning
between stages of economic development.19
ASEAN-6: A grouping that includes the Philippines, Singapore, Indonesia,
Thailand, Malaysia, and Brunei.20 A comparison of HDI levels reveals that
the states of the ASEAN-6 are considerably more developed than those of
the CLMV group.21
17 Wolfgang Lehmacher, “What you need to know about the ASEAN Economic Community,” World Economic Forum, May 31, 2016,
https://www.weforum.org/agenda/2016/05/asean-economic-community-what-you-need-to-know/.
18 “Official Development Assistance – Definition and Coverage,” OECD, accessed
November 17, 2019, https://www.oecd.org/dac/stats/officialdevelopmentassistancedefinitionandcoverage.htm
19 “Bridging the Development Gap among Members of ASEAN,” ASEAN Secretariat, last
modified July 3, 2012, https://asean.org/?static_post=bridging-the-development-gap-among-members-of-asean.
20 Ibid. 21 United Nations Development Programme. Human Development Indices and Indicators:
2018 Statistical Update. (New York: United Nations Development Programme, 2018),
22-25.
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Timeline of Events
• 23 July 2001 – Hanoi Declaration on Narrowing the
Development Gap: In 2001, foreign ministers of ASEAN member
states signed the Hanoi Declaration, one of the first agreements
produced specifically on the development gap.22
• 29 July 2002 – IAI Work Plan I: The first work plan was signed
in Brunei at the 35th ASEAN Ministerial Meeting and covered 232
projects during its course.23
• 28 February 2009 – IAI Work Plan II: Following the end of IAI
Work Plan I in 2008, ASEAN member states agreed upon IAI Work
Plan II in 2009. This plan covered 182 projects.24
• 22 November 2015 – Signing of the Declaration of the AEC:
During the 27th ASEAN summit, heads of government signed the
agreement that brought the AEC into existence, a key event in
ASEAN economic integration.25
• 6 September 2016 – Vientiane Declaration on the Adoption
of IAI Work Plan III: Heads of ASEAN member states met in Laos
to jointly adopted the Vientiane Declaration to usher in IAI Work
Plan III, which guides ASEAN’s efforts on the development gap into
the future.26
22 ASEAN Secretariat, “Ha Noi Declaration On Narrowing Development Gap For Closer
ASEAN Integration,” accessed November 17, 2019, https://asean.org/ha-noi-
declaration-on-narrowing-the-development-gap-2001/. 23 ASEAN Secretariat, Initiative for ASEAN Integration, 7.
24 Ibid, 7. 25 “ASEAN Economic Community,” ASEAN Secretariat, accessed November 21, 2019.
https://asean.org/asean-economic-community/.
26 ASEAN Secretariat, Initiative for ASEAN Integration, 3-4.
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• 14 November 2018 – ASEAN-China Strategic Partnership
Vision 2030: ASEAN member states and China made an
agreement for further cooperation at the 21st ASEAN-China Summit
in Singapore, with clauses 7 and 8 making specific mention of the
development gap.27
Discussion of the Problem
The Current Situation
Narrowing and closing the development gap among ASEAN member
states requires policymakers to make multiple considerations. From an
economic development standpoint, ASEAN member states can be divided
into two categories: the ASEAN-6 and the CLMV group.28 The goal of
narrowing the development gap is contingent on the achievement of
convergence among these two groups, utilising untapped economic
growth potential in CLMV countries to achieve ‘catch-up’ growth.29
ASEAN’s official approach to addressing the development gap has, so far,
been mixed. Most effort done by the organization to address the problem
has been within the framework of ASEAN economic integration, with
member states and the ASEAN Secretariat placing the issue within IAI
work plans and AEC blueprints.30 However, despite the best efforts of
member states and the numerous projects supported by these work
plans, there are no strong commitments by ASEAN itself to provide direct
assistance and aid to CLMV countries.31
27 “ASEAN-China Strategic Partnership Vision 2030,” ASEAN Secretariat, last modified
November 14, 2018, https://asean.org/storage/2018/11/ASEAN-China-Strategic-
Partnership-Vision-2030.pdf. 28 Cuyvers, “ASEAN’s development gap.”
29 Moses Abramovitz, "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History 46, no. 2 (1986): 385.
30 Cuyvers, “ASEAN’s development gap.”
31 Cuyvers, “ASEAN’s development gap.”
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The ASEAN Development Fund (ADF) is an example of a prior ASEAN
attempt at a solution to narrowing the development gap. The ADF was
established in 1994 by an agreement signed in Bangkok and was funded
by equal contributions from all member states equalling USD 1 million per
year, in addition to any further voluntary contributions or contributions
made by ASEAN dialogue partners.32 The ADF, however, fell out of
relevance primarily because of a lack of professional control and limited
scope in terms of the activities that it was able to undertake.33 This is
especially so because of the minute USD 1 million contribution each state
was required to make to the ADF, leading to a considerably small
development fund.34
The Environment and Human Rights
Plans to pursue development come also with certain complications. Many
development projects both directly and indirectly contribute to a country’s
carbon emissions. Large infrastructural projects can also impact entire
ecosystems and environments. The Xayaburi Dam in Laos, for example,
has dried up parts of the Mekong, affected fish populations, and impacted
the livelihood of villagers who live along the river.35 This serves as an
example of how certain groups like residents, fishermen, and farmers are
typically negatively affected, often because of necessary relocation as a
result of such infrastructural projects.
32 “Terms of Reference of the ASEAN Development Fund,” ASEAN Secretariat, accessed
November 17, 2019, https://www.asean.org/storage/images/archive/ADF-TOR.pdf.
33 Cuyvers, “ASEAN’s development gap.” 34 Ibid.
35 Reuters, “New Mekong dam in Laos opens to protests from villagers in Thailand,” The Japan Times, October 29, 2019, https://www.japantimes.co.jp/news/2019/10/29/asia-
pacific/new-mekong-dam-laos-opens-protests-villagers-thailand/#.XdF5ZTL7TUo.
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International Involvement
With the various developmental, economic, and infrastructural concerns
among ASEAN member states, various governments have taken interest
in helping fund projects across Southeast Asia. Many ASEAN member
states are currently recipients of ODA from foreign government agencies,
intergovernmental organisations, and international financial institutions.
The funding for these projects come primarily in the form of loans and
grants, with various conditions attached depending on the donor country
or institution.
International institutions, such as the UN, the World Bank, and the
Asian Development Bank (ADB), have played key roles in providing
financial assistance for development projects. In partnership with ASEAN,
the ADB established the ASEAN Infrastructure Fund (AIF) in 2011 to
provide loans to fund infrastructural projects in energy, water, and
transport by using savings in the region.36 World Bank investments in the
region have specifically prioritized the development of human capital, with
36 “ASEAN Infrastructure Fund,” Asian Development Bank, last modified June 18, 2019,
https://www.adb.org/site/funds/funds/asean-infrastructure-fund.
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the institution committing USD 3 billion to projects on health and
education.37
Western countries and groups, such as the EU and the US have also
contributed to development projects in Southeast Asia. The EU has
committed over EUR 200 million specifically for ASEAN integration and
has provided a greater sum of EUR 2 billion in bilateral deals; more than
half of this 2 billion goes to CMLV countries.38 The US, traditionally more a
security partner than an economic one, has also acted through USAID to
support the ASEAN Smart Cities Initiative and the US-ASEAN Connect
plan.39
More recently, China has become a key player in providing ODA
bilaterally to ASEAN member states. In total, China has provided close to
USD 230 billion to Southeast Asia.40 The top three recipients being
Indonesia, Vietnam, and Cambodia.41 Even the lowest recipient, the
Philippines, is projected to acquire USD 14 billion from China which would
usurp its traditional top-ODA partner, Japan, which also provides
development loans and grants.42 China is helping fund large projects in
ASEAN member states, such as the 600km-long East Coast Rail Link in
37 Victoria Kwakwa, “Investing in people: ASEAN's key to better development,” World
Bank Blogs, September 16, 2019, https://blogs.worldbank.org/eastasiapacific/investing-people-aseans-key-better-development.
38 EU Mission to ASEAN, EU-ASEAN Blue Book 2019 (Jakarta: European External Action
Service, 2019), 8, https://eeas.europa.eu/sites/eeas/files/eu-asean_blue_book_2019.pdf.
39 Kaewkamol Pitakdumrongkit, “Pence in Southeast Asia: Ways forward for U.S.-ASEAN cooperation on infrastructure development,” Brookings Institute, November 27, 2018,
https://www.brookings.edu/blog/order-from-chaos/2018/11/27/pence-in-southeast-
asia-ways-forward-for-u-s-asean-cooperation-on-infrastructure-development/ 40 Michelle Jamrisko, “China No Match for Japan in Southeast Asia Infrastructure Race,”
Bloomberg, June 23, 2019, https://www.bloomberg.com/news/articles/2019-06-
23/china-no-match-for-japan-in-southeast-asia-infrastructure-race. 41 Jinny Yan, “The BRI in Southeast Asia,” in China's Belt and Road Initiative (BRI) and
Southeast Asia, (Kuala Lumpur: CIMB ASEAN Research Institute, 2018), 8. 42 Jenny Lei Ravelo, “Japan, China battle for ODA influence in the Philippines,” Devex,
November 20, 2018, https://www.devex.com/news/japan-china-battle-for-oda-
influence-in-the-philippines-93868.
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Malaysia.43 China has heavily invested in some of the CLMV countries as
well. In Cambodia, Laos, and Myanmar, China is effectively the largest
foreign investor in these three economies.44 China’s involvement in
economic development projects has raised the ire of many in Southeast
Asia as they are concerned by the influx of Chinese investment. Non-
administration political figures in the Philippines, for example, have raised
concerns about the lack of transparency in many of these deals and the
potential for debt-trap diplomacy endangering national sovereignty.45
Such opaque deals and agreements coupled with tensions with claimant
countries, especially Vietnam, over territorial disputes in the South China
Sea also threaten China’s ability to pursue BRI projects with Southeast
Asia as a whole.46
Japan, however, continues to be the region’s top ODA investor. Overall,
Japan supports 240 infrastructural development projects throughout the
Southeast Asian region, beating China by 30 projects, worth an estimated
USD 367 billion.47 Many of the Japanese-funded projects are also high-
profile, like the USD 58.7 billion high-speed railway between Ho Chi Minh
City to Hanoi.48 Seeing as China’s economy already outsizes Japan’s and
as Chinese projects begin to get more attention, competition between the
two will continue.49
43 Hong Liu and Guanie Lim, “The Political Economy of a Rising China in Southeast Asia:
Malaysia’s Response to the Belt and Road Initiative,” Journal of Contemporary China 28, no. 116 (2019), 223.
44 Ate Hoekstra, “Is Chinese invesment taking over the Mekong?” Deutsche Welle, January 15, 2018, https://www.dw.com/en/is-chinese-investment-taking-over-the-
mekong/a-42150023.
45 Aika Rey, “Poe: Release 'made in China' loan contracts in full for public scrutiny,” Rappler, April 4, 2019, https://www.rappler.com/nation/227256-grace-poe-says-
release-made-in-china-loan-contracts-public-scrutiny.
46 Wenjuan Nie, "Xi Jinping's Foreign Policy Dilemma: One Belt, One Road or the South China Sea?" Contemporary Southeast Asia 38, no. 3 (2016): 424.
47 Jamrisko, “China No Match for Japan.” 48 Ibid.
49 Panos Mourdoukoutas, “Japan, Not China, Is The Biggest Investor In Southeast Asia's
Infrastructure,” Forbes, June 27, 2019,
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Bloc Positions
The CLMV Group:
The less economically developed members of ASEAN, particularly the
CMLV group, have a vested interest in ensuring that they are prioritized
for projects related to narrowing the development gap. Of great
importance is the acquisition of ODA, particularly of grants and softer
loans with low interest rates. Furthermore, the CLMV group should seek
to solicit greater support from ASEAN member states to pursue economic
development objectives beyond regional economic integration. These
states must be mindful as well of potential brain-drain that may occur as
a result of policies that pursue human capital improvement and must
balance this with policies that improve the overall economic condition in
their countries.
ASEAN-6:
The ASEAN-6 must consider the needs of their respective states while also
considering the greater objectives of narrowing the development gap,
enhancing regional integration, and making Southeast Asia a more
prosperous region. These relatively more economically developed ASEAN
member states must first consider their individual foreign policy stances
on providing more developmental support for less economically developed
member states and whether they are capable of doing so. These member
states must also consider their relations with ASEAN’s dialogue partners
and should reflect on the political and economic implications of pursuing
further relations with these external states. Lastly, seeing as economic
development even within this group is not consistent, these member
https://www.forbes.com/sites/panosmourdoukoutas/2019/06/26/japan-beats-china-in-
the-philippines-singapore-and-vietnam/#663dfdec39d8.
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states should consider which sectors of their economies require further
investment.
Conclusion
Conclusively, the issues of economic inequality and the questions
surrounding how to narrow the development gap are great areas of
debate and discussion. There are many sub-areas and topics that
delegates could debate, namely how much the more developed members
should help the less developed, if sustainability should be a primary
concern, what sectors development should focus on, and whether ASEAN
should seek help from external actors in financing development (namely
China). The topic particularly calls upon the first, third, and fifth aims of
the ASEAN Declaration. With the differing stances ASEAN member states
hold on those questions, resolution blocs should form among delegates
fairly naturally. Delegates should be aware of the relevant commitments
made by their own countries and ASEAN-wide commitments as well.
Questions a Resolution should answer:
❖ How should ASEAN member states approach ODA from external
actors (such as the EU, US, China, the World Bank etc.)?
❖ What place should concerns regarding maintaining environmental
sustainability take in comparison to the goal of economic growth?
❖ If economic integration continues, particularly in movement of
labour, what solutions can be in place to prevent ‘brain drain’ from
less economically developed member states?
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❖ How should ODA be distributed among and within ASEAN member
states; who and what should be prioritized?
❖ Should ASEAN seek to revive the ADF or not?
Further Reading
● China, Economic Statecraft and Policy Banks provides a brief
overview of how China has used its policy banks in other regional
contexts: https://www.clingendael.org/sites/default/files/2018-
05/Report_Hybrid_Conflict.pdf#page=32
● The ASEAN Economic Integration Briefs, published every June
and November since 2017, provide progress reports on the state of
economic integration in the region: https://asean.org/asean-
economic-community/aec-monitoring/asean-economic-integration-
brief/
● Catching Up, Forging Ahead, and Falling Behind is a core text
in economic history on how countries can economically catch up:
https://www.jstor.org/stable/2122171
● Do CLMV countries catch up with the older ASEAN members
in terms of income level? Gives insight on recent trends with the
CLMV group:
https://www.tandfonline.com/doi/abs/10.1080/13504851.2018.148
9494
● How to keep the ASEAN economies growing for another 50
years is a projection into the region’s future:
https://www.weforum.org/agenda/2018/09/to-keep-growing-
aseans-economy-must-adapt-heres-how/
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Bibliography
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Behind. The Journal of Economic History, 46(2), 385-406.
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21, 2019, from https://asean.org/ha-noi-declaration-on-narrowing-the-
development-gap-2001/.
ASEAN Secretariat. (2012, July 3). Bridging the Development Gap among
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members-of-asean.
ASEAN Secretariat. (2016). Initiative for ASEAN Integration (IAI): Work
Plan III. Jakarta: ASEAN Secretariat.
ASEAN Secretariat. (2018, November 14). ASEAN-China Strategic
Partnership Vision 2030. Retrieved November 21, 2019, from
https://asean.org/storage/2018/11/ASEAN-China-Strategic-
Partnership-Vision-2030.pdf.
ASEAN Secretariat. (2019, June). ASEAN Economic Integration Brief No.
5. Retrieved November 29, 2019, from
https://asean.org/storage/2019/06/AEIB_5th_Issue_Released.pdf.
ASEAN Secretariat. (n.d.). ASEAN Economic Community. Retrieved
November 21, 2019, from https://asean.org/asean-economic-
community/.
Asian Development Bank. (2019, June 18). ASEAN Infrastructure Fund.
Retrieved October 29, 2019, from https://www.adb.org/
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Cuyvers, L. (2019). The ‘ASEAN Way’ and ASEAN’s development gap with
Cambodia, Laos, Myanmar and Vietnam: A Critical View, Asia Pacific
Business Review, 25(5), 683-704, DOI:
10.1080/13602381.2019.1652980
EU Mission to ASEAN. (2019). EU-ASEAN Blue Book 2019. Retrieved from
https://eeas.europa.eu/sites/eeas/files/eu-asean_blue_book_2019.pdf
Hoekstra, A. (2018, January 15). Is Chinese invesment taking over the
Mekong? Deutsche Welle. Retrieved from https://www.dw.com/
Jamrisko, M. (2019, June 23). China No Match for Japan in Southeast Asia
Infrastructure Race. Retrieved October 29, 2019, from
https://www.bloomberg.com/
Kwakwa, V. (2019, September 16). Investing in people: ASEAN's key to
better development. Retrieved October 29, 2019, from
https://blogs.worldbank.org/
Lehmacher, W. (2016, May 31). What you need to know about the ASEAN
Economic Community. Retrieved October 19, 2019, from
https://www.weforum.org/agenda/2016/05/asean-economic-
community-what-you-need-to-know/.
Liu, H., & Lim, G. (2019). The Political Economy of a Rising China in
Southeast Asia: Malaysia’s Response to the Belt and Road Initiative,
Journal of Contemporary China, 28(116), 216-231, DOI:
10.1080/10670564.2018.1511393
Mourdoukoutas, P. (2019, June 27). Japan, Not China, Is The Biggest
Investor In Southeast Asia's Infrastructure. Retrieved October 29,
2019, from https://www.forbes.com/.
Nie, W. (2016). Xi Jinping's Foreign Policy Dilemma: One Belt, One Road
or the South China Sea? Contemporary Southeast Asia, 38(3), 422-
444.
OECD. (2018). Official development assistance – definition and coverage.
Retrieved November 17, 2019, from
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https://www.oecd.org/dac/stats/officialdevelopmentassistancedefinition
andcoverage.htm.
Pitakdumrongkit, K. (2018, November 27). Pence in Southeast Asia: Ways
forward for U.S.-ASEAN cooperation on infrastructure development.
Retrieved October 29, 2019, from https://www.brookings.edu/
Ravelo, J. L. (2018, November 20). Japan, China battle for ODA influence
in the Philippines. Retrieved October 20, 2019, from
https://www.devex.com/
Reuters. (2019, October 29). New Mekong dam in Laos opens to protests
from villagers in Thailand. Retrieved October 29, 2019, from
https://www.japantimes.co.jp/
Rey, A. (2019, April 4). Poe: Release 'made in China' loan contracts in full
for public scrutiny. Retrieved October 29, 2019, from
https://www.rappler.com/
United Nations Development Programme. (2018). Human Development
Indices and Indicators: 2018 Statistical Update. New York, NY: United
Nations Development Programme.
Yan, J. (2018). The BRI in Southeast Asia. In China's Belt and Road
Initiative (BRI) and Southeast Asia. Retrieved from
http://www.lse.ac.uk/ideas/Assets/Documents/reports/LSE-IDEAS-
China-SEA-BRI.pdf
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TOPIC B: Implementing
Measures to Tackle Labour
Exploitation and
Challenges for Businesses
in the ASEAN Region
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Introduction
The Association of Southeast Asian Nations (ASEAN) is home to some of
the world’s fastest growing emerging markets. ASEAN as a block ranks as
the seventh largest economy in the world with around US$ 5.3 trillion
worth of global trade passing through the region each year.50
As ASEAN member states continue to establish their manufacturing base
and tap-into their rich resources, ASEAN’s economic performance is
expected to outperform the global average. On top of this, ASEAN’s
regional economic integration agenda of the ASEAN Economic
Community (AEC) is likely to encourage further economic growth and
cooperation between ASEAN member states.51
However, despite these promising signs for the region, ASEAN faces many
challenges to realising their full economic potential. Firstly, this topic will
focus on the business challenges that ASEAN member states and will
require delegates to consider how ASEAN can approach these issues as a
bloc. The other half of this topic demands delegates to consider what
further measures ASEAN can take to rid the region of exploitative labour
practices.
Business barriers delegates should consider include the lack of
standardisation of legal and regulatory frameworks. This includes, varying
tax, financial, and legal systems, as well as disparities in capital and
exchange controls across ASEAN member nations. A lack of a regional
50 Fraser Thompson, “Understanding ASEAN: Seven Things You Need to Know,” McKinsey & Company, accessed November 29, 2019,
https://www.mckinsey.com/industries/public-sector/our-insights/understanding-asean-seven-things-you-need-to-know)
51 The economies of ASEAN and the opportunities they present. (2019), from
https://home.kpmg/vn/en/home/insights/2018/06/asean-business-guide.html
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strategy means that ASEAN cannot take full advantage of its growth
story, as businesses are often unable to overcome these barriers.52
Other challenges for businesses in the ASEAN region include dealing with
the lower demand for workers following the rise of the digital economy as
well as adjusting to the decline in the manufacturing sector as foreign
industries have been moving to locations with cheaper labour outside of
the ASEAN region53. ASEAN member states must, therefore, consider
progressive labour practices to enhance their competitiveness in the
global market. The committee must also discuss these business
challenges within the global context of rising protectionism. Seeing as one
of the AEC’s main goals is to liberalise trade in services, the ASEAN
committee must be prepared to take some bold measures to achieve this.
Timeline of Events
• August 8th 1967: ASEAN was founded in Bangkok by Indonesia,
Malaysia, Philippines, Singapore, and Thailand through the ASEAN
Declaration.
• February 24 1976: The first ASEAN Summit takes place declaring
ASEAN’s Fundamental Principles. The Principles include but are not
limited to mutual respect for the independence, sovereignty,
equality, territorial integrity, and national identity of all nations and
the right of every state to lead its national existence free from
external interference, subversion, or coercion.54
• January 8th 1984: Brunei Darussalam joins ASEAN.
52 Tashi, J. (2019). The Five Biggest Issues Related to Business and Human Rights in
Asia. Retrieved 1 November 2019, from https://asia.fnst.org/content/five-biggest-issues-related-business-and-human-rights-asia
53 Ibid.
54 Ginsberg, Background: ASEAN: The Association of Southeast Asian Nations”
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• July 28th 1995: Vietnam joins ASEAN.
• July 23rd 1997: Laos and Myanmar join ASEAN.
• January 1992: ASEAN creates the Common Effective Preferential
Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA). Both
CEPT and AFTA were created to increase the region’s global
competitive advantage as a production base.55
• April 30th 1999: Cambodia joins ASEAN.
• November 2007: Signing of the ASEAN Charter, a constitution to
serve as guiding principles and conduct for the 10 member states.
• December 2008: The ASEAN leaders met and addressed the need
to turn ASEAN into a legal entity that will create a single free-trade
area.56
• February 2009: A Free Trade Agreement was undertaken between
ASEAN, Australia and New Zealand. This is expected to boost GDP
across all parties involved by US$48 billion from 2010-2020.57
• February 2013: The first round of negotiations between ASEAN
and its six major trading partners were held to discuss establishing
a regional comprehensive partnership.
• 2015: The ASEAN Economic Community (AEC) is put into place as a
way to promote economic, political, social and cultural cooperation
across the region.58
• January 2017: On the third day of his Presidency, Trump signs an
executive order withdrawing the US from the Trans Pacific
Partnership Trade Deal.59
55 Ibid.
56 “TIMELINE: Key Dates in ASEAN History,” Reuters (Thomson Reuters, November 20,
2007), https://www.reuters.com/article/us-asean-history-timeline-
idUSGOR01167020071120)
57 “Overview - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY,” ASEAN, accessed
November 29, 2019, https://asean.org/asean/about-asean/overview/) 58 Ibid.
59 “TPP: What Is It and Why Does It Matter?,” BBC News (BBC, January 23, 2017),
https://www.bbc.co.uk/news/business-32498715)
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Discussion
The issue of Labour Exploitation in the ASEAN region:
The UN Guiding Principles on Business and Human Rights put into
effect in 2011, states in its introduction that “business enterprises can
profoundly impact the human rights of employees, consumers, and
communities wherever they operate. These impacts may be positive, such
as increasing access to employment or improving public services, or
negative, such as polluting the environment, underpaying workers, or
forcibly evicting communities.”60
The International Labour Organisation reports that more than 1.1 million
people die annually from work-related accidents and diseases in
Asia and the Pacific.61 Among the less economically developed ASEAN
nations, crime, corruption, exploitation of human rights, weak monitoring
and implementation of rule of law set the environment for labour
exploitation. The issue of labour exploitation is a particularly difficult to
address due to the notion that the protection of human rights falls under
the sole responsibility of the government and not the private sector.
Labour exploitation can manifest itself in many ways including poor
60 THE UN GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS AN INTRODUCTION. (2019),
https://www.ohchr.org/Documents/Issues/Business/Intro_Guiding_PrinciplesBusinessHR
.pdf 61 ILO Estimates Over 1 Million Work-Related Fatalities Each Year. (2019). Retrieved 1
November 2019, from https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_007969/lang--en/index.htm
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working conditions and safety, low wages, the use of child labour, unfair
land acquisition and gender inequality.62
Effectively combating extreme labour exploitation requires a collective
effort from all stakeholders involved, seamless collaboration across
countries, and policies to prevent further abusive treatments. Thus, the
role of ASEAN in addressing this issue as a united group is significant.
Past action taken by ASEAN to address labour exploitation:
In 2015, the ASEAN framework was expanded to include the ASEAN
Community, which covers the following three areas: Political-Security
Community, Economic Community, and Socio-Cultural Community. The
creation of the Socio-Cultural Community is particularly important for
the discussion of this topic and reflects ASEAN’s emphasis on developing
its human capital. With over half of ASEAN’s population being under the
age of 30 it is an area of particular importance for ASEAN. So far, the
ASEAN Socio-Cultural Community has succeeded in lowering the
proportion of people living on less than US$1.25 per day from one in two
to one in eight.63
On the 12th December 2018, the ASEAN Safe Migration Campaign was
launched to raise public awareness on safe labour migration that benefits
all. The Campaign launch was supported by the ASEAN Secretariat and
the International Labour Organization (ILO).64 The Campaign aims to
62 Jamyang Tashi, (2019). The Five Biggest Issues Related to Business and Human Rights in Asia. Retrieved 1 November 2019, from https://asia.fnst.org/content/five-
biggest-issues-related-business-and-human-rights-asia
63 Beginda Pakpahan, “ASEAN at 52: Achievements and Challenges Ahead > Articles,”
n.d., http://globalasia.org/v14no3/feature/asean-at-52-achievements-and-challenges-ahead_beginda-pakpahan) 64 ASEAN launches Safe Migration Campaign; top ASEAN, EU officials discuss safe labour
migration - ASEAN | ONE VISION ONE IDENTITY ONE COMMUNITY. (2019), from
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help achieve the goals outlined in the ASEAN Consensus on the Protection
and Promotion of the Rights of Migrant Workers and has helped bring
international attention to the issue of labour exploitation. While the
dynamic picture of labour exploitation is on the decline, progress is far too
slow.65 Thus, delegates must consider how ASEAN can take a more
proactive role in addressing various forms of labour exploitation.
Family-owned conglomerates and state-linked enterprises:
ASEAN is home to a wide
range of business models
including multiple family-
owned conglomerates and
state-linked enterprises
such as the Central Group in
Thailand, the Salim Group in
Indonesia, Singtel in
Singapore, and Vinamilk in
Vietnam.66 However, small
and medium-sized
enterprises, typically referred to as SMEs combined with entrepreneurs
make up around 89% of business activity in the ASEAN region yet
receive little support from the AEC.67 Widespread corruption amongst
some ASEAN member states in addition to entrenched interests of large
conglomerates means that the region’s business environment is
https://asean.org/asean-launches-safe-migration-campaign-top-asean-eu-officials-
discuss-safe-labour-migration/ 65 "7 key challenges for the future of ASEAN - Business - EBR", (2019)
66 Ibid. 67 Aucky Pratama , “SMEs as the Backbone of Southeast Asia's Growing Economy,” IFAC,
accessed November 29, 2019, https://www.ifac.org/knowledge-gateway/practice-
management/discussion/smes-backbone-southeast-asia-s-growing-economy)
^The Central World shopping complex in Bangkok is
owned by Central Group, a Thai conglomerate
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compromised. Therefore, the committee must consider policies that will
benefit SMEs and tackles said issues.
What efforts has ASEAN made to promote the growth of SMEs?:
The ASEAN Coordinating Committee for Micro, Small, and Medium
Enterprises (ACCMSME) and the Economic and Social Commission for
Asia and the Pacific (ESCAP) have promoted a forum for policy dialogue
on transforming SMEs in Southeast Asia.68 The forum allows stakeholders
in the region to share good practices on how to realize the transformation
of SMEs.69 The two key areas of focus they have outlined are fostering
access to digital techniques and promoting the acceleration of high-
growth enterprises.70 Delegates must therefore carefully consider ASEAN’s
past actions on this issue and look at how they can be improved upon.
Next steps for the ASEAN Economic Community (AEC):
Despite the fact that the AEC is primarily a form of state-level
cooperation, the inclusion of the private sector in integration is a key
factor in the implementation of AEC.71 The ASEAN and member countries’
attempts to promote and accelerate AEC implementation beyond
government and academic research have been insufficient. The lack of
information dissemination, and the AEC’s poor governance as a
supranational institution has been widely recognised since the
implementation of the ASEAN Free Trade Agreement (AFTA).
68 "ASEAN Commemorates Micro, Small and Medium-sized Enterprises Day - ASEAN | ONE VISION ONE IDENTITY ONE COMMUNITY", (2019)
69 Ibid. 70 "Policy Dialogue on Transforming SMEs in Southeast Asia | United Nations ESCAP",
(2019)
71 "ASEAN Achievements and Challenges in Regional Integration", (2019)
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Only slightly over 50% of ASEAN businesses have made use of tariff
reductions set out in the AFTA.72 While on the whole the use of tariffs in
ASEAN are in decline, the use of non-tariff measures such as licenses and
quotas are on the rise and need to be addressed. In addition, ASEAN
must encourage greater intra-regional trade to reduce the region’s
vulnerability to external shocks. To incentivise greater intra-regional
trade, delegates must consider ways to address infrastructure gaps and
simplify administrative policies and regulations across the ASEAN
region.73
Comprehensive Progressive Agreement for the TPP:
When the United States withdrew from the Trans-Pacific Partnership (TPP)
agreement in January of 2017, the rest of the eleven TPP members
proceeded forward without the United State’s participation to form the
Comprehensive Progressive Agreement for the TPP (CPTPP).74 The
four ASEAN member states that are part of the CPTPP are Brunei,
Singapore, Vietnam, and Malaysia. The TPP with the United States was
set to be the largest regional trade agreement in history with a combined
GDP of US$38 trillion.75 While more liberalized access to the US market
through the TPP would have generated far greater economic growth than
what the CPTPP can currently provide, the CPTPP leaves the option for
other members such as China to join at a later date. Thus, it is evident
that while the United States might have taken the road of protectionism,
the remaining TPP members did not follow suit. Some benefits and
requirements outlined in the CPTPP include requiring members to adopt
the following benefits and requirements:
72 Ibid. 73 Lehmacher, (2019)
74James McBride, “What Is the Trans-Pacific Partnership (TPP)?,” Council on Foreign Relations (Council on Foreign Relations), accessed November 29, 2019,
https://www.cfr.org/backgrounder/what-trans-pacific-partnership-tpp)
75 Ibid.
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• Establishing a committee to help developing country members take
full advantage of the agreement opportunities.
• Cooperating to ensure international standards do not create
unnecessary barriers to trade.
• Requiring members to adopt, maintain and apply national
competition laws that outline anticompetitive business conduct.
• Providing a system to settle disputes for areas covered under the
agreement.76
Only four ASEAN member states are part of the CPTPP. However,
delegates should consider the viability of an all-inclusive partnership
agreement between all ASEAN nations and the remaining CPTPP
members. Would the standards of uniformity enforced in the CPTPP
promote business activity in the ASEAN region?
The Digital Economy:
The digital transformation provides a range of opportunities for small and
medium-sized enterprises (SMEs). SMEs play a significant role in
Southeast Asia by contributing to employment and inclusive growth,
however, they face barriers related to access and use of digital
technologies that prevent them from achieving their full potential.77 In
particular, many ASEAN member states lack countrywide broadband-
based services, which would increase productivity, improve social welfare
and promote regional integration.78 The Organisation for Economic
Co-operation and Development (OECD) has conducted a project
called “Going Digital” which identifies seven key policy areas that need
to be improved on to usher in the age of digital transformation in the
76"The economies of ASEAN and the opportunities they present", (2019) 77 Southeast Asia Going Digital. (2019). Retrieved 1 November 2019, from
https://www.oecd.org/going-digital/southeast-asia-connecting-SMEs.pdf 78 Ibid.
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ASEAN region.79 These seven areas include: enhancing access to
communication services and related technologies; increasing the use of
digital services and applications; unleashing digital innovation; ensuring
good jobs; promoting social prosperity; strengthening trust; and fostering
market openness.80 The digital transformation has the potential to
completely reform how people live and work by facilitating new services,
products and applications. Thus, the digital economy is an important area
for delegates to focus on when thinking of ways to promote business
activity in the ASEAN region.81
However, the digital economy also poses challenges for some businesses
in the ASEAN region. The rise of the digital economy has in some
instances resulted in a lower demand for workers and the decline of the
manufacturing sector as foreign industries have been moving to locations
with cheaper labour outside of the ASEAN region.82 ASEAN member states
must, therefore, consider progressive labour practices to enhance their
competitiveness in the global market. These may include helping the
younger generation prepare for the demands of an integrated economic
region as more and more people move to cities such as Manila or Jakarta
in search of better opportunities.83
Bloc Positions
Looking at the ASEAN’s economy only through a regional lens, omits the
fact that ASEAN economies vary dramatically. ASEAN economies range
from the high-value knowledge economy of Singapore to the resource-
80 Ibid. 81 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH
THROUGH DIGITALISATION" 2019
82 Ibid. 83 "ASEAN Achievements and Challenges in Regional Integration", (2019)
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focused industries of Myanmar. Thus, it is evident that while ASEAN
aspires to be an increasingly integrated single market, the reality is that
there are significant disparities between ASEAN member state
economies.
Brunei
Brunei has one of the world’s highest standards of living and per capita
GDP. Furthermore, Brunei’s combined history of political and economic
stability along with its abundant natural resources is an ideal environment
for businesses to prosper in.84 However, much of the country’s wealth
comes from the hydrocarbon industry so Brunei must diversify their
economy in the long term to stay competitive85. The government
recognizes the need to move the economy beyond exports of oil and gas
and thus welcomes economic and technical cooperation, as well as pro-
business policies that fit into Brunei’s long-term development plan,
“Wawasan Brunei 2035”.86
Cambodia
Cambodia possesses relatively small-scale domestic investment
opportunities, but has captured a great share of global manufacturing and
has been successful at attracting global investors. Cambodia has a large
young workforce, and they have used this to their competitive advantage
with multinationals seeking a lower cost base. Consequently, labour
exploitation has been an issue in Cambodia.87 Thus, some areas the
government will need to focus on include the lack of transparency in the
legal system, as well as reforming working conditions and poor wages. In
84 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH THROUGH DIGITALISATION" 2019 85 Ibid.
86 The economies of ASEAN and the opportunities they present. (2019). Retrieved 1 November 2019, from https://home.kpmg/vn/en/home/insights/2018/06/asean-
business-guide.html
87 Ibid.
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addition, providing greater access to financing for small and medium-
sized enterprises (SMEs) will be crucial for Cambodia’s continued
economic growth. Furthermore, the Cross-Border Transport Agreement
(CBTA) made up of six countries, Cambodia, Laos, Myanmar, People’s
Republic of China, Thailand, and Vietnam has played an important role in
improving Cambodia’s soft and hard infrastructure.88
Indonesia
Indonesia, the largest country in Southeast Asia is rich in natural
resources such as coal, minerals, oil and gas, making it an attractive
country for foreign investors.89 Indonesia’s fertile land has allowed it to
become a significant agricultural producer and it has experienced
impressive economic growth since its resilience during the 2008 financial
crisis.90 Reforms since 2015 include greater investment in public
infrastructure and opening new areas of the economy to the private
sector. Over 50% of the population is below the age of 30 and are thus
likely to be highly adaptive to new technology.91 Indonesia needs to
promote reforms that can help narrow the skills gap between workers by
expanding vocational training opportunities for example.92
Laos
Laos has welcomed foreign investment that encourages infrastructure-led
growth, including major projects under China’s One Belt One Road
Initiative (OBOR). Furthermore, the Cross-Border Transport Agreement
(CBTA) made up of six countries, Cambodia, Lao PDR, Myanmar, People’s
Republic of China, Thailand, and Vietnam has played an important role in
88 "About us - Transport and Trade Facilitation", (2019)
89 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH
THROUGH DIGITALISATION" 2019 90 "The economies of ASEAN and the opportunities they present", (2019)
91 Ibid.
92 Ibid.
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improving Laos’ soft and hard infrastructure.93 Laos looks to make their
energy and tourism sectors more attractive to foreign investors to boost
growth. In recent years, unfavorable weather has affected Laos’
agricultural sector for the worse.94
Malaysia
In Malaysia ethnic policies have too often hindered state institutional
capacities to support economic growth. Nonetheless, Malaysia has a
multi-sector economy and boasts liberal, market-oriented policies.
Malaysia aims to become a high-income developed country by 2025.95 It
has been focusing on innovation and knowledge-based activities and is
one of the most technologically advanced countries in Southeast Asia. The
World Bank ranks Malaysia as one of the top performing economies in the
Asia Pacific region.96 Thus, Malaysia can play an important role in
increasing ASEAN economic influence.
Myanmar
As a developing country, Myanmar holds a lot of economic potential
through its abundance of natural resources and large workforce. Myanmar
needs to continue to develop itself in terms of infrastructure, easing legal
restrictions, and ensuring a strong education for its workforce. In 2016,
Myanmar experienced the fastest economic growth in the world following
the relaxation of sanctions after a peaceful election. Myanmar is expecting
major investment from China, the US, Japan, India, and Singapore in the
coming years as they have improved bilateral relationships with these
93 Ibid.
94 "The economies of ASEAN and the opportunities they present", (2019)
95 Kirk, Tom. 2019. "The Relationship Between Ethnic Diversity & Development: A Diversity Dividend?". Assets.Publishing.Service.Gov.Uk.
https://assets.publishing.service.gov.uk/media/5b507c88e5274a73380f7b3e/The_Relationship_between_Ethnic_Diversity___Development-
__A_Diversity_Dividend_Kirk__Stein___Fisher_21.6.18.pdf.
96 Ibid.
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countries. Furthermore, Myanmar’s low-cost of labour is a key asset to
growing its manufacturing base.97
Philippines
The Philippines boasts cultural ties from more than 10 million Filipino
living overseas, making it a popular choice for international business and
investors.98 GDP growth has been outpacing population growth, leading to
rising household incomes and stable inflation.99 As a result, consumption
spending has been the main driver of economic expansion. The Philippines
is one of the five best-educated ASEAN countries, according to the United
Nations Development Programme (UNDP). Looking forward, the
Philippines should look to improve the business climate for SMEs.100
Singapore
Singapore boasts one of the most livable cities in the world. Access to
efficient public transport, healthcare services, and education, makes
Singapore an attractive place to work. Singapore has a well-developed
market economy and has continued to grow and attract foreign
investors.101 Singapore is thus considered a first-class business
environment and is an ideal base for companies seeking access to
emerging markets in the ASEAN region. Looking forward, Singapore looks
to deepen digital capabilities, develop promising industries, and continue
to support a pro-business regulatory environment.102
97 "The economies of ASEAN and the opportunities they present", (2019)
98 “KPMG ASEAN Business Guide,” Philippines, 2018,
https://assets.kpmg/content/dam/kpmg/mm/pdf/2018/06/asean-guide-philippines.pdf) 99 Philippines continues reforms to improve the business climate: Doing Business report.
(2019). Retrieved 1 November 2019, from https://www.worldbank.org/en/news/press-release/2017/10/31/philippines-continues-reforms-to-improve-the-business-climate-
doing-business-report
100 Ibid. 101 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH
THROUGH DIGITALISATION" 2019
102 "The economies of ASEAN and the opportunities they present", (2019)
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Thailand
Thailand is actively seeking to strengthen relationships with trading
partners, including ASEAN countries to remain competitive. For the past
few years, Thailand has retained its spot as one of the top 50 economies
on ease of doing business.103 Thailand has made it easier to start a
business by reducing the time needed to obtain a company seal and by
creating a single window for registration payment. The Thai government
is looking to shift the country from a production-based to a service-based
economy.104 Thus, promoting technology and innovation in business will
be a key area of focus for Thailand in the coming years.
Vietnam
Vietnam has one of the fastest-growing economies in the world yet ranks
low for ease of doing business due to its bureaucratic regulatory
environment.105 However, as labour in China becomes more expensive,
Vietnam has become the go-to-destination for manufacturing in textiles
and electronics. Going forward, the government will need to push on with
market liberalization to stay competitive and reform the State-Owned
Enterprise (SOE) sector. Other reforms Vietnam will need to focus on
include labour representation, intellectual property rights, e-commerce
and the digital economy.106 In addition, while the Vietnamese education
system produces a high level of literacy, additional training of workers will
be necessary to reduce the skills gap.107
103 Doing Business 2019. (2019). Retrieved 1 November 2019, from
https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-
Reports/English/DB2019-report_web-version.pdf 104 "The economies of ASEAN and the opportunities they present", (2019)
105 The World Bank in Vietnam . (2019, October 18). Retrieved from https://www.worldbank.org/en/country/vietnam/overview.
106 Ibid.
107 "The economies of ASEAN and the opportunities they present", (2019)
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Conclusion
The scope of this topic is large seeing as delegates must consider
measures to tackle both labour exploitation and challenges for business in
the ASEAN region. However, the two issues are closely intertwined. While
cheap labour can be beneficial for the growth of businesses, the focus of
this topic is to ensure that businesses grow sustainably and do not hinder
the rights of its citizens. For this reason, delegates should be careful to
address both parts of the topic at hand.
Questions a Resolution should answer:
❖ How can ASEAN take a more proactive role in preventing poor
working conditions and safety, low wages, the use of child labour,
unfair land acquisition and gender inequality throughout the region?
❖ Keeping ASEAN’s past efforts to tackle various types of labour
exploitation in mind, how can ASEAN ensure greater collaboration
between all stakeholders involved to prevent further abusive
treatments?
❖ What steps can ASEAN take to prepare the younger generation for
the demands of an integrated economic region as more and more
people move to cities in search of better opportunities?
❖ How can ASEAN help reduce digital barriers for businesses, in
particular the lack of countrywide broadband-based services?
❖ What measures can ASEAN take to narrow the skills gap between
workers, particularly among the young working population?
❖ What stance should ASEAN take on foreign investment that
encourages infrastructure-led growth, including major projects
under China’s One Belt One Road Initiative (OBOR)?
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❖ How can ASEAN simplify administrative policies and regulations to
incentivise greater intra-regional trade?
❖ What policies can the ASEAN Economic Community (AEC) introduce
to support SMEs and counter entrenched interests of large
conglomerates?
Further Reading
• KPMG’s “ASEAN Business Guide: The economies of ASEAN
and the opportunities they present”. A useful resource for
finding out more about various ASEAN member states’ business
climate. Available at:
https://assets.kpmg/content/dam/kpmg/vn/pdf/publication/2018/A
sean_Guide/ASEAN_Business_Guide.pdf
• OECD: “Southeast Asia Going Digital: Connecting SMEs”. A
guide to how the digital transformation can be used to the
advantage of SMEs. Available at:
https://www.oecd.org/going-digital/southeast-asia-connecting-
SMEs.pdf
• UNCTAD: “Achievements and Challenges in Regional
Integration”. A detailed guide on the history and future of ASEAN
integration. Available at:
https://unctad.org/en/PublicationsLibrary/gdsecidc2017d2_en.pdf
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Bibliography - Introduction to the Association of
Southeast Asian Nations:
ASEAN Charter. (2008, June 3). Maruah Singapore. Retrieved November 29,
2019, from https://maruah.org/asean-charter/
Ginsberg, J. (2009, February 25). Backgrounder: ASEAN: The Association of
Southeast Asian Nations. The New York Times. The New York Times.
Retrieved November 29, 2019, from
https://archive.nytimes.com/www.nytimes.com/cfr/world/slot3_2009022
5.html
Jones, D. M. (2008). Security and democracy: the ASEAN charter and the
dilemmas of regionalism in South-East Asia. International Affairs, 84(4),
735–737.
Overview - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY.
(n.d.). ASEAN. Retrieved November 29, 2019, from
https://asean.org/asean/about-asean/overview/
TIMELINE: Key dates in ASEAN history. (2007, November 20). Reuters.
Thomson Reuters. Retrieved November 29, 2019, from
https://www.reuters.com/article/us-asean-history-timeline-
idUSGOR01167020071120
Treaty on the Southeast Asia Nuclear Weapon-Free Zone - ASEAN: ONE
VISION ONE IDENTITY ONE COMMUNITY. (n.d.). ASEAN. Retrieved
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November 29, 2019, from https://asean.org/?static_post=treaty-on-the-
southeast-asia-nuclear-weapon-free-zone
Bibliography – Topic B
7 key challenges for the future of ASEAN - Business - EBR. (2019).
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ASEAN launches Safe Migration Campaign; top ASEAN, EU officials discuss
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migration/
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BBC. (2017, January 23). TPP: What is it and why does it matter? Retrieved
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nual-Reports/English/DB2019-report_web-version.pdf
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ilo/newsroom/news/WCMS_007969/lang--en/index.htm
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guide-philippines.pdf.
Lehmacher, W. (2019). What you need to know about the ASEAN
Economic Community. Retrieved 1 November 2019, from
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at-52-achievements-and-challenges-ahead_beginda-pakpahan.
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business-climate-doing-business-report
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Policy Dialogue on Transforming SMEs in Southeast Asia | United Nations
ESCAP. (2019). Retrieved 1 November 2019, from
https://www.unescap.org/events/policy-dialogue-transforming-smes-
southeast-asia
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Economy. IFAC. Retrieved November 29, 2019, from
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management/discussion/smes-backbone-southeast-asia-s-growing-
economy
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SMEs.pdf
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and-human-rights-asia
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Retrieved 1 November 2019, from
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nciplesBusinessHR.pdf
Thompson, F. (n.d.). Understanding ASEAN: Seven things you need to
know. Retrieved November 29, 2019, from
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https://www.mckinsey.com/industries/public-sector/our-
insights/understanding-asean-seven-things-you-need-to-know.