The Association of Southeast Asian Nations (ASEAN) was established in August 1967 in Thailand and is composed of Thailand, Singapore, the Philippines, Malaysia, and Indonesia. The aim of ASEAN is to accelerate area economic, social, and cultural cooperation and development.
The major findings of this study may be summarized as follows:
(1) Economic Growth
According to World Bank statistics, from 1970-80, the annual GDP (Gross Domestic Product) growth rate of all developing countries grew by 5.1 percent. During the same period, the lowest GDP growth rate of an ASEAN country, the Philippines, was 6.3 percent. Therefore, the GDP growth rate of ASEAN countries was higher than developing countries in general.
(2) Foreign Trade
During the period 1961-80, among the ASEAN countries, only Singapore adopted export substitution measures. Its export relative shares of manufactured goods grew from 34.3 percent in 1965 to 49.7 percent in 1979. Other ASEAN countries adopted either export promotion or import substitution policies. But, all exported a large quantity of primary commodities, such as crude rubber, rice, lumber, and jute.
On the import side, all ASEAN nations have implemented industrialization policies and have been steady importers of a large quantity of manufacturing equipment from the United States and Japan.
(3) Economic Integration
There are various forms and degrees of economic integration. The historical prototype is the customs union, the loosest and least intensive form of integration is the free-trade area; a common market represents the next higher degree of economic integration. ASEAN countries signed An Agreement on the Asian Preferential Trading Arrangements in February 1977, and thereby agreed to reduce or exempt turiffs on specified goods.
