DEVARE, Sudhir

Institutional Knowledge at Singapore Management University

Singapore Management University 
Institutional Knowledge at Singapore Management University 
Asian Management Insights Centre for Management Practice 
5-2015 
ASEAN's role in Asia Pacific: In the driver's seat or just a back-seat 
driver? 
Sudhir DEVARE 
Follow this and additional works at: https://ink.library.smu.edu.sg/ami 
 Part of the Asian Studies Commons, and the Models and Methods Commons 
Citation 
DEVARE, Sudhir. ASEAN's role in Asia Pacific: In the driver's seat or just a back-seat driver?. (2015). Asian 
Management Insights. 2, (1), 94-98. Asian Management Insights. 
Available at: https://ink.library.smu.edu.sg/ami/24 
This Magazine Article is brought to you for free and open access by the Centre for Management Practice at 
Institutional Knowledge at Singapore Management University. It has been accepted for inclusion in Asian 
Management Insights by an authorized administrator of Institutional Knowledge at Singapore Management 
University. For more information, please email library@smu.edu.sg. 
PARTING SHOT
ASEAN’S ROLE 
IN ASIA PACIFIC
IN THE DRIVER’S SEAT OR JUST A BACK-SEAT DRIVER?
The Association of Southeast Asian 
Nations (ASEAN) has often been 
described as the fulcrum around 
which the security, political and 
economic architecture of Asia-
Pacific will be built. But can ASEAN 
play that role?
By Sudhir Devare
sia is a diverse continent in terms of political regimes, demographic trends, 
economic development, and religious and cultural richness. At one end of the spectrum 
are established regional powers such as Japan, China and India, and at the other 
end are f ledgling democracies and nascent economies like Myanmar, Cambodia 
and Laos. Political and economic diversity, along with geopolitical disputes, have 
prevented the region from integrating and leveraging the power and potential that 
would accompany greater regional unity.
From its inception in 1967, and especially since the end of the Cold War, ASEAN 
has worked towards creating dialogue among the major powers and preserving 
peace and stability in the Asia-Pacific region. ASEAN is still a ‘work in progress’ 
on many fronts, but its record so far in community-building can be regarded as 
a milestone. So maybe it is no surprise that ASEAN is now seen as playing a pivotal 
role in the evolving regional architecture—be it security, political or economic. 
But how can ASEAN serve in this leadership role? And does it have the strength, 
cohesiveness and skill to be in the driver’s seat going forward?
How can ASEAN  
take on a leadership 
role? Does it have the 
strength, cohesiveness 
and skill to be in the 
driver’s seat?
A
Vol.2 / Asian Management Insights96
Understanding the playing field
The geopolitical dynamics in Asia-Pacific have undergone a major change in the 
last decade, including the emergence of six or seven major powers—a phenomenon 
rarely seen in history. ASEAN, a grouping of economically developing and 
militarily weak states, crafted useful instruments such as dialogue partnerships, the 
ASEAN Regional Forum (ARF), ASEAN Defence Ministers’ Meeting and the 
East Asia Summit (EAS). All these forums essentially sought to keep the regional 
powers engaged in dialogue on political-security issues and economic cooperation. 
That the U.S. and Russia decided to join the EAS testifies to the utility of the forum. 
On the other hand, there are competing and often conflicting issues creating 
tension and political unease within the region. Even the basic freedom of navigating 
through international waters is currently feared by certain nations. China’s assertive 
position vis-à-vis other claimants on the South China Sea islands is a major concern. 
The resurgence of Japan under the leadership of Prime Minister Shinzo Abe and the 
Sino-Japanese rivalry on the contentious issue of the islands in the Pacific further 
impact the political-security landscape of the Asia-Pacific. The U.S. 
policy of ‘rebalancing ‘or ‘pivot to Asia’ introduces yet another dimension as 
the U.S. seeks to assure the countries of the region, particularly ASEAN, of its 
resolve to maintain and strengthen its presence not only in Asia-Pacific, but 
in the broader geographical space of Indo-Pacific. The Indian Prime Minister’s 
initiatives to open intensive dialogues with the leaders of Japan, China, America, 
Australia and ASEAN to build closer partnerships, as well as the Chinese 
President’s continuing emphasis on Silk Road and maritime route initiatives— 
all create a stage for a major interplay among the large players of the 
Indo-Pacific region.
Political Cohesiveness
ASEAN is no doubt wary and watchful of these developments even as it continues 
to work towards its goals of establishing an integrated regional community 
across multiple fronts—political, security, economic, social and cultural—
by 2015. However, ASEAN’s reaction to the evolving conflict is constrained 
by the varying interests of individual nations within the regional grouping. For 
instance, on the South China Sea dispute, there are four ASEAN states— 
Vietnam, the Philippines, Malaysia and Brunei—which are rival claimants. 
Moreover, the bilateral relationship, especially in the economic field with 
China, varies from one ASEAN state to the other. ASEAN’s inability 
in 2012 to come out with a Joint Communiqué on the subject and its 
slow progress in finalising a Code of Conduct on the South China Sea 
issue point to the difficulties faced by ASEAN states in adopting a 
common position. 
Politically ASEAN seems in a state of transition. While the establishment of 
democracy in Indonesia is hailed as a welcome development, recent political 
changes in Thailand cast a shadow of uncertainty. Myanmar has made progress 
towards democratisation, but has yet to achieve national reconciliation and secure 
ethnic peace. ASEAN states’ relative weakness in military strength, outside of 
Singapore and perhaps Vietnam, also acts as an inhibiting factor in playing an 
effective role as a catalyst to bring together major Asia-Pacific powers.
Economic partnership
A SE A N’s emphasis on economic cooperation has paid 
dividends, such as the far-reaching decisions to participate 
in A PEC (Asia-Pacif ic Economic Cooperation), initiating 
ASEAN+1 summits, entering into free trade area agreements 
on trade and investment, building connectivity projects, and 
leading the negotiations on the Regional Comprehensive 
Economic Partnership (RCEP). These initiatives have led 
to rising living standards for millions of people in ASEA N 
countries. With the removal of trade barriers and the expected 
free f low of capital once ASEAN forms the Economic Community 
later this year, intra-ASEAN trade will undoubtedly f lourish. 
Today, economic pa rtnership is much more tha n the 
lowering of tariff barriers, which have already decreased 
or been eliminated across the globe. W hat matters more 
is t he capacit y to at t ract a nd absorb i nvest ment, 
including foreign direct investment (FDI)—an area of concern 
for A SE A N. Fu r t her more, t he t rade dependence of 
most of ASEAN states on major economic powers, especially on 
China, restricts the economic clout that ASEAN can have as an 
integrated regional bloc.
Politically, ASEAN seems 
to be in a state of 
transition.
ASEAN’s response to 
the evolving South 
China Sea conflict is 
constrained by the 
varying interests of 
individual nations  
within the region.
us$100b 
India-ASEAN trade  
by end-2015
Besides signing bilateral free trade agreements or 
comprehensive economic partnership agreements with leading 
economies like Japan, China, India and Korea, ASEAN states 
are now engaged in negotiations on the proposed Trans Pacific 
Partnership (TPP), the RCEP, or both. Indeed, these regional 
and trans-continental arrangements are going to be critical 
in the coming years for political-economic interaction across 
Asia-Pacific. And in fact, the RCEP is the initiative of the EAS, 
an ASEAN-centred forum, and the success of negotiating the 
RCEP will inevitably reflect on ASEAN’s leadership role.
With regard to investment, ASEAN countries, especially the 
CLMV states (Cambodia, Lao PDR, Myanmar and Vietnam), are 
still in dire need of infrastructure development. Governmental fiscal 
constraints mean that these investments need to come from either 
the private sector, for instance through public-private-partnerships, 
or via FDI.
Another area that needs attention is the regional 
supply chain, which remains poorly integrated and cost-
inefficient. The potential of a unified market and free 
trade cannot be attained without seamless and efficient 
distribution networks that allow smooth movement of goods 
98
across borders. This limitation will 
continue to deter major investment players, 
especially multinational corporations, 
from making investments in ASEAN. 
For the younger or weaker economies, 
a first step is to focus on national supply 
chains before being able to develop intra-
regional networks.
Expanding relationships 
with India 
India is steadily assuming an important 
place on the Asia-Pacific political-security 
mosaic. In the mid-1990s, ASEAN brought 
India into the ASEAN-led mechanisms 
of dialogue and partnership. To India’s 
‘Look East’ policy initiated at that time, 
ASEAN extended key and vital support. 
Starting with sector-specific cooperation, 
and expanding to a full dialogue, the 
relationship has evolved into a ‘Strategic 
Partnership’ with a commitment to 
‘ensuring the peace, stabilit y and 
development of Southeast Asia’. In 
India, there has been consensus across 
the political spectrum on the need 
to vigorously pursue the ‘Look East’ 
policy. The new government has further 
emphasised its importance by declaring 
it as the ‘Act East’ policy. India-ASEAN 
trade has risen signif icantly in the 
last 10 years, with a target to reach 
US$100 billion by the end of 2015. 
The expanding trade flows and FDI from 
India, to the order of US$1.3 billion 
(in 2013), speak to the promising 
possibilities of growing interdependence 
and inter-linkages.1 
Indian Prime Minister Narendra 
Modi’s presence at the ASEAN and EAS 
summits in Myanmar last year, in addition 
to his other foreign visits, demonstrate 
the importance of Asia-Pacific in India’s 
foreign policy and securit y policy 
pa rad ig ms. Indeed Ind ia-A SE A N 
relations have become a cornerstone of 
India’s foreign policy and foundation of 
its ‘Act East’ policy. India’s membership 
in the East Asia Summit in 2005, 
largely at the behest of A SE A N, 
places it alongside all major powers of 
Asia-Pacif ic and Indo-Pacif ic. India 
has all along supported the utility and 
criticality of ASEAN’s catalytic role in 
bringing diverse powers together for 
maintenance of peace and stability in 
Asia-Pacific, and supported ASEAN’s 
centrality in all dialogue instruments.
ASEAN is today at a crossroads. The 
deadline of its ambitious project of building 
a three-pillared regional community—
political-security, economic and social-
cultural—by the end of 2015 is soon 
approaching. ASEAN’s overall strength 
and capability will no doubt be judged 
by the fulf ilment of this initiative. 
Politically, ASEA N’s ability to reach 
consensus in handling intra-ASEAN or 
inter-state disputes will be put to test on 
the South China Sea issue. If ASEAN 
can succeed in negotiating a Code of 
Conduct in this volatile region, it will 
surely confirm its role of being in the 
‘driver’s seat’. On the economic side, 
leading the negotiating process at the 
East Asia Summit on the proposed 
RCEP is fraught with several challenges. 
For one, there is a competing agreement 
on TPP spearheaded by the United States. 
China also has a number of economic 
initiatives, such as the Asian Infrastructure 
Investment Bank and the Maritime Silk 
Route. ASEAN’s leadership in resolving 
the outstanding differences among EAS 
member states on the proposed RCEP 
will go a long way in creating a solid 
Sudhir Devare 
is former Secretary in the Ministry of  
External Affairs, Government of India 
and presently Ram Sathe Chair Professor, 
Symbiosis International University,  
Pune and Noida, India
India has all along supported the utility and criticality  
of ASEAN’s catalytic role in Asia-Pacific.
foundation for economic integration 
in A sia-Paci f ic a nd est abl ishing 
ASEAN’s centrality.
It needs to be recognised that 
ASEAN is endowed, among other things, 
with the asset of its strategic geographical 
location. For maritime connectivity 
in Asia-Pacific, the choke points in 
Southeast Asia are indispensable. Land 
or air communication across Asia-Pacific 
cannot be possible without crossing the 
ASEAN region. Add the vast natural 
resources, middle-income economies, 
a large population of over 600 million 
with a substantial proportion of youth 
and active workforce, a large market 
and rich cultural tradition, and ASEAN 
can be a powerhouse.
How relevant ASEA N is in the 
present context, and whether it can 
remain in the ‘driver’s seat’ while 
confronted with more powerful forces 
around it, will largely depend on the 
strength and determination of the 
leadership within ASEAN to play this 
role with nimble and deft diplomacy. 
ASEAN should expect support in this 
regard from a number of stakeholders in 
the region, including India.
Reference
1  “Overview of ASEAN-India Dialogue Relations”, 
January 2015, ASEAN.


English

ASEAN's role in Asia Pacific: In the driver's seat or just a back-seat driver?

Singapore Management UniversityInstitutional Knowledge at Singapore Management UniversityAsian Management Insights Centre for Management Practice5-2015ASEAN's role in Asia Pacific: In the driver's seat orjust a back-seat driver?Sudhir DEVAREFollow this and additional works at: https://ink.library.smu.edu.sg/amiPart of the Asian Studies Commons, and the Models and Methods CommonsThis Magazine Article is brought to you for free and open access by the Centre for Management Practice at Institutional Knowledge at SingaporeManagement University. It has been accepted for inclusion in Asian Management Insights by an authorized administrator of Institutional Knowledge atSingapore Management University. For more information, please email libIR@smu.edu.sg.CitationDEVARE, Sudhir. ASEAN's role in Asia Pacific: In the driver's seat or just a back-seat driver?. (2015). Asian Management Insights. 2,(1), 94-98. Asian Management Insights.Available at: https://ink.library.smu.edu.sg/ami/24PARTING SHOTASEAN’S ROLE IN ASIA PACIFICIN THE DRIVER’S SEAT OR JUST A BACK-SEAT DRIVER?The Association of Southeast Asian Nations (ASEAN) has often been described as the fulcrum around which the security, political and economic architecture of Asia-Pacific will be built. But can ASEAN play that role?By Sudhir Devaresia is a diverse continent in terms of political regimes, demographic trends, economic development, and religious and cultural richness. At one end of the spectrum are established regional powers such as Japan, China and India, and at the other end are f ledgling democracies and nascent economies like Myanmar, Cambodia and Laos. Political and economic diversity, along with geopolitical disputes, have prevented the region from integrating and leveraging the power and potential that would accompany greater regional unity.From its inception in 1967, and especially since the end of the Cold War, ASEAN has worked towards creating dialogue among the major powers and preserving peace and stability in the Asia-Pacific region. ASEAN is still a ‘work in progress’ on many fronts, but its record so far in community-building can be regarded as a milestone. So maybe it is no surprise that ASEAN is now seen as playing a pivotal role in the evolving regional architecture—be it security, political or economic. But how can ASEAN serve in this leadership role? And does it have the strength, cohesiveness and skill to be in the driver’s seat going forward?How can ASEAN  take on a leadership role? Does it have the strength, cohesiveness and skill to be in the driver’s seat?AVol.2 / Asian Management Insights96Understanding the playing fieldThe geopolitical dynamics in Asia-Pacific have undergone a major change in the last decade, including the emergence of six or seven major powers—a phenomenon rarely seen in history. ASEAN, a grouping of economically developing and militarily weak states, crafted useful instruments such as dialogue partnerships, the ASEAN Regional Forum (ARF), ASEAN Defence Ministers’ Meeting and the East Asia Summit (EAS). All these forums essentially sought to keep the regional powers engaged in dialogue on political-security issues and economic cooperation. That the U.S. and Russia decided to join the EAS testifies to the utility of the forum. On the other hand, there are competing and often conflicting issues creating tension and political unease within the region. Even the basic freedom of navigating through international waters is currently feared by certain nations. China’s assertive position vis-à-vis other claimants on the South China Sea islands is a major concern. The resurgence of Japan under the leadership of Prime Minister Shinzo Abe and the Sino-Japanese rivalry on the contentious issue of the islands in the Pacific further impact the political-security landscape of the Asia-Pacific. The U.S. policy of ‘rebalancing ‘or ‘pivot to Asia’ introduces yet another dimension as the U.S. seeks to assure the countries of the region, particularly ASEAN, of its resolve to maintain and strengthen its presence not only in Asia-Pacific, but in the broader geographical space of Indo-Pacific. The Indian Prime Minister’s initiatives to open intensive dialogues with the leaders of Japan, China, America, Australia and ASEAN to build closer partnerships, as well as the Chinese President’s continuing emphasis on Silk Road and maritime route initiatives— all create a stage for a major interplay among the large players of the Indo-Pacific region.Political CohesivenessASEAN is no doubt wary and watchful of these developments even as it continues to work towards its goals of establishing an integrated regional community across multiple fronts—political, security, economic, social and cultural—by 2015. However, ASEAN’s reaction to the evolving conflict is constrained by the varying interests of individual nations within the regional grouping. For instance, on the South China Sea dispute, there are four ASEAN states— Vietnam, the Philippines, Malaysia and Brunei—which are rival claimants. Moreover, the bilateral relationship, especially in the economic field with China, varies from one ASEAN state to the other. ASEAN’s inability in 2012 to come out with a Joint Communiqué on the subject and its slow progress in finalising a Code of Conduct on the South China Sea issue point to the difficulties faced by ASEAN states in adopting a common position. Politically ASEAN seems in a state of transition. While the establishment of democracy in Indonesia is hailed as a welcome development, recent political changes in Thailand cast a shadow of uncertainty. Myanmar has made progress towards democratisation, but has yet to achieve national reconciliation and secure ethnic peace. ASEAN states’ relative weakness in military strength, outside of Singapore and perhaps Vietnam, also acts as an inhibiting factor in playing an effective role as a catalyst to bring together major Asia-Pacific powers.Economic partnershipA SE A N’s emphasis on economic cooperation has paid dividends, such as the far-reaching decisions to participate in A PEC (Asia-Pacif ic Economic Cooperation), initiating ASEAN+1 summits, entering into free trade area agreements on trade and investment, building connectivity projects, and leading the negotiations on the Regional Comprehensive Economic Partnership (RCEP). These initiatives have led to rising living standards for millions of people in ASEA N countries. With the removal of trade barriers and the expected free f low of capital once ASEAN forms the Economic Community later this year, intra-ASEAN trade will undoubtedly f lourish. Today, economic pa rtnership is much more tha n the lowering of tariff barriers, which have already decreased or been eliminated across the globe. W hat matters more is t he capacit y to at t ract a nd absorb i nvest ment, including foreign direct investment (FDI)—an area of concern for A SE A N. Fu r t her more, t he t rade dependence of most of ASEAN states on major economic powers, especially on China, restricts the economic clout that ASEAN can have as an integrated regional bloc.Politically, ASEAN seems to be in a state of transition.ASEAN’s response to the evolving South China Sea conflict is constrained by the varying interests of individual nations  within the region.us$100b India-ASEAN trade  by end-2015Besides signing bilateral free trade agreements or comprehensive economic partnership agreements with leading economies like Japan, China, India and Korea, ASEAN states are now engaged in negotiations on the proposed Trans Pacific Partnership (TPP), the RCEP, or both. Indeed, these regional and trans-continental arrangements are going to be critical in the coming years for political-economic interaction across Asia-Pacific. And in fact, the RCEP is the initiative of the EAS, an ASEAN-centred forum, and the success of negotiating the RCEP will inevitably reflect on ASEAN’s leadership role.With regard to investment, ASEAN countries, especially the CLMV states (Cambodia, Lao PDR, Myanmar and Vietnam), are still in dire need of infrastructure development. Governmental fiscal constraints mean that these investments need to come from either the private sector, for instance through public-private-partnerships, or via FDI.Another area that needs attention is the regional supply chain, which remains poorly integrated and cost-inefficient. The potential of a unified market and free trade cannot be attained without seamless and efficient distribution networks that allow smooth movement of goods 98across borders. This limitation will continue to deter major investment players, especially multinational corporations, from making investments in ASEAN. For the younger or weaker economies, a first step is to focus on national supply chains before being able to develop intra-regional networks.Expanding relationships with India India is steadily assuming an important place on the Asia-Pacific political-security mosaic. In the mid-1990s, ASEAN brought India into the ASEAN-led mechanisms of dialogue and partnership. To India’s ‘Look East’ policy initiated at that time, ASEAN extended key and vital support. Starting with sector-specific cooperation, and expanding to a full dialogue, the relationship has evolved into a ‘Strategic Partnership’ with a commitment to ‘ensuring the peace, stabilit y and development of Southeast Asia’. In India, there has been consensus across the political spectrum on the need to vigorously pursue the ‘Look East’ policy. The new government has further emphasised its importance by declaring it as the ‘Act East’ policy. India-ASEAN trade has risen signif icantly in the last 10 years, with a target to reach US$100 billion by the end of 2015. The expanding trade flows and FDI from India, to the order of US$1.3 billion (in 2013), speak to the promising possibilities of growing interdependence and inter-linkages.1 Indian Prime Minister Narendra Modi’s presence at the ASEAN and EAS summits in Myanmar last year, in addition to his other foreign visits, demonstrate the importance of Asia-Pacific in India’s foreign policy and securit y policy pa rad ig ms. Indeed Ind ia-A SE A N relations have become a cornerstone of India’s foreign policy and foundation of its ‘Act East’ policy. India’s membership in the East Asia Summit in 2005, largely at the behest of A SE A N, places it alongside all major powers of Asia-Pacif ic and Indo-Pacif ic. India has all along supported the utility and criticality of ASEAN’s catalytic role in bringing diverse powers together for maintenance of peace and stability in Asia-Pacific, and supported ASEAN’s centrality in all dialogue instruments.ASEAN is today at a crossroads. The deadline of its ambitious project of building a three-pillared regional community—political-security, economic and social-cultural—by the end of 2015 is soon approaching. ASEAN’s overall strength and capability will no doubt be judged by the fulf ilment of this initiative. Politically, ASEA N’s ability to reach consensus in handling intra-ASEAN or inter-state disputes will be put to test on the South China Sea issue. If ASEAN can succeed in negotiating a Code of Conduct in this volatile region, it will surely confirm its role of being in the ‘driver’s seat’. On the economic side, leading the negotiating process at the East Asia Summit on the proposed RCEP is fraught with several challenges. For one, there is a competing agreement on TPP spearheaded by the United States. China also has a number of economic initiatives, such as the Asian Infrastructure Investment Bank and the Maritime Silk Route. ASEAN’s leadership in resolving the outstanding differences among EAS member states on the proposed RCEP will go a long way in creating a solid Sudhir Devare is former Secretary in the Ministry of  External Affairs, Government of India and presently Ram Sathe Chair Professor, Symbiosis International University,  Pune and Noida, IndiaIndia has all along supported the utility and criticality  of ASEAN’s catalytic role in Asia-Pacific.foundation for economic integration in A sia-Paci f ic a nd est abl ishing ASEAN’s centrality.It needs to be recognised that ASEAN is endowed, among other things, with the asset of its strategic geographical location. For maritime connectivity in Asia-Pacific, the choke points in Southeast Asia are indispensable. Land or air communication across Asia-Pacific cannot be possible without crossing the ASEAN region. Add the vast natural resources, middle-income economies, a large population of over 600 million with a substantial proportion of youth and active workforce, a large market and rich cultural tradition, and ASEAN can be a powerhouse.How relevant ASEA N is in the present context, and whether it can remain in the ‘driver’s seat’ while confronted with more powerful forces around it, will largely depend on the strength and determination of the leadership within ASEAN to play this role with nimble and deft diplomacy. ASEAN should expect support in this regard from a number of stakeholders in the region, including India.Reference1  “Overview of ASEAN-India Dialogue Relations”, January 2015, ASEAN.