Inequality in ASEAN through regional integration

The paper deals with the problem of inequality in ASEAN in terms of the role of membership in the Association for catching-up development of the «periphery» countries. ASEAN-4 accounts for 23% of ASEAN population but only 12% of its GDP. Four laggingbehind countries have GDP per capita equaling to 11,4-21,5% of average ASEAN level. Moreover, Cambodia, Laos, Myanmar and Vietnam face low education and healthcare coverage, poor infrastructure, lack of expenditure on research and development. Convergence of ASEAN-4 through active participation in regional trade and factor movement is limited due to the current level of liberalization. Intra-ASEAN trade, although being almost duty-free, is impeded with numerous non-tariff barriers which ASEAN failed to eliminate so far. Intra-regional migration is liberalized only for skilled workers. To promote convergence ASEAN established ASEAN Development Fund (ADF) aimed to reallocate capital from advanced ASEAN countries and partners of the Association to ASEAN-4. ADF is the key instrument of ASEAN cohesion policy. It aims to stimulate human development, deeper integration, small enterprises development, information technologies expansion, poverty reduction, etc. ADF is relatively underfunded to stimulate the growth of ASEAN-4. ASEAN Infrastructure Fund has higher capitalization as well as broader range of borrowers including not only ASEAN-4 but all ASEAN member countries. ASEAN growth zones deal with cross-regional disparities of advanced ASEAN economies rather than cross-country inequality. Briefly, ASEAN has a potential to contribute to ASEAN-4 convergence through deeper integration and further liberalization while investment is expected to originate mainly from third party countries.

Keywords

ASEAN, inequality, regional integration, cohesion policy, liberalization

Publication date

21.03.2019

Number of characters

17466

Cite

GOST	Chupina D., Vyalykh M. Inequality in ASEAN through regional integration // Asia and Africa Today – 2019. – Issue 1 C. 25-31 [Electronic resource]. URL: https://asaf-today.ru/S032150750003340-6-1 (circulation date: 26.04.2024). DOI: 10.31857/S032150750003340-6
MLA	Chupina, Daria, Vyalykh, Maria A "Inequality in ASEAN through regional integration." Asia and Africa Today 1 (2019):25-31. DOI: 10.31857/S032150750003340-6
APA	Chupina D., Vyalykh M. (2019). Inequality in ASEAN through regional integration. Asia and Africa Today (1), pp.25-31 DOI: 10.31857/S032150750003340-6

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