What can ASEAN do in the midst of the 'New Normal'

Abstract

Some studies have shown that trade and industrialization are key to economic success in East and Southeast Asia. The export-oriented development strategy which focused on industrialisation and production networks led East Asia to become the region with the highest growth in the world. But the world is changing. Currently, the global economy is slowing, as is global trade. The ascendency of Donald Trump as US President, the Brexit phenomenon, and the rise of economic nationalism, as well as anti-immigration sentiment, point to a growing resistance to globalization. In the recent G-20 meeting in Germany in mid-March, finance ministers and central bank governors could not reach agreement on support for free trade and investment. At the same time, we are witnessing a move in the economic structure from manufacturing to the service sector. How will this impact ASEAN and its future prospects for economic integration? What can ASEAN countries do to counter this trend and/or mitigate the impact? And what is the role of regional cooperation in addressing these emerging challenges in the global trade and investment environment? Dr M Chatib Basri is one of Indonesia�s leading economists and policymakers. He held two cabinet-level positions in the second Yudhoyono presidency, first as Head of the Investment Board and later as Minister of Finance. He is the author of numerous academic publications, as well as being a prolific public commentator. Graduating from the University of Indonesia, he holds Masters and PhD degrees from ANU. Dr Basri is currently the Indonesia Project�s Thee Kian Wie Distinguished Visiting Professor. Show more