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Essay On ASEAN

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Over the past thirty years since its establishment in August 1967, the ASEAN has been one of the fastest growing economies in the world with Gross Domestic Product (GDP) grew at an average annual rate of 6.6 per cent. Growth enormously peaked in 1994-1995 with Malaysia, Singapore, and Thailand enjoying growth rates in the range of 8-10 per cent. The region benefited from macroeconomic stability with countries ran budgetary surpluses up to the middle of 1997. The engine growth was said to be the exports, which grew more than fifty-fold from US$6.3 billion in 1970 to US$340 billion in 1996 (Setboonsarng, 1998). Much of the growth in the region could be attributed to the ASEAN leaders’ decision to launch the region on the road to real …show more content…

They formulated the ASEAN Vision 2020, where they resolved to create an even more dynamic and outward-looking ASEAN. From then on, ASEAN had made adjustments in the economic structure, management, and operation of the ASEAN economies. In 1998, the ASEAN Foreign Ministers established the ASEAN Surveillance Process (ASP) designed to prevent future crisis by putting early warning systems and by conducting regional economic surveillance exercises (Cristobal, 2009). ASEAN member countries have reduced government expenditures, tightened monetary policies, increased interest rates, sought to improve the regulation and supervision of their financial systems, and deregulated important sectors of the economy (Severino, R., 1998). Since then, the region has made impressive progress in rebuilding buffers and policy foundations for economic growth, which enabled it to weather the Global Financial Crisis in 2008 relatively well. Thailand for example, has undertaken wide-ranging and fundamental policy reforms in establishing an inflation targeting monetary policy framework with a flexible exchange rate regime, and incorporate financial sector governance, and a risk based regulatory and supervisory framework. There reforms have helped Thailand build up its reserve buffers and a strong fiscal position (ASEAN+3 Macroeconomic Research Office, 2017).

In the wake of the global financial crisis, the ASEAN

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