South East Asian Financial Crisis Essay Example | Topics and Well Written Essays - 3500 words

South East Asian Financial Crisis - Essay ExampleIts primary function was to school scotch yield, social progress and cultural development.National resilience refers to all aspects of nation building - social, cultural, economic, ideological and political. It deals with security of nation emerging from the strength of national building. The member countries ar ready to neglect in brief term losses in favor of long term achievements and friendships.ASEAN practice non-interference. It does not mean that the countries are indifferent to one an separate or close their eyes on member countries. The countries refrain from criticizing the other countries but support them in all their needs. In whatever ASEAN countries economic development has been given gustation over income distribution and employment creation. This has resulted in poverty and income disparities existing along with economic growth.The creation of ASEAN was politically motivated. Its initial objective was to promote uniformity among member nations as most of the nations were under security threat. frugal integration was the next priority.ASEAN Free Trade Area was to be formed in 2003 comprising all the 10 South East Asian countries. AFTA was earlier established in 1992 as a political and economic entity. The objective of ASEAN Standing Committee (ASC) is to ensure peace in the region and live in harmony respecting the geographic and historical boundary. (Hank, Lim (2005), Regional trade agreements and conflict the case of Southeast Asia, available at, http//www.idrc.ca/en/ev-132673-201-1-DO_TOPIC.html )The countries mentation that free trade would benefit their economy. It was decided that zero tariffs should be the ultimate goal of AFTA. Originally, only capital of Singapore was in favor of a free zone. Obviously, because, distant other countries, it is without natural resources and is an export based stock economy. The motive behind the formation of AFTA was to attract foreign investmen ts. But AFTA started running into problems right from the beginning itself. That is because round countries were more interested in protecting their domestic industries. AFTA has been considered as a developmental form of regionalism unlike blossom regionalism which is for globalization. In fact it is between open regionalism and resistance regionalism which tries to protect industries from globalization. However it is closer to open regionalism. Though almost all the countries were in favor of a free zone, at least some of them were against their home industries with high economic status being put at risk. For example, rice in Indonesia, Philippines and Malaysia and colewort in Indonesia and Philippines. Automobile industry is bound to adjoin because of lack of tariff protection. Singapore is likely to suffer because of the unwillingness of ASEAN countries to accept AFTA. Singapore backs up not only APEC but also WTO. Creation of growth triangular natural economic territories a lso establishes security of economy. Apart from that they ensure political stability and good will between nations. It is being pointed that some of the members of the triangles were bitter enemies in the past. ASEAN has been successful in reducing conflicts among its member nations. AFTA went a step further by going for lower tariffs, which would boost intra regional trade and cement bump relationship among