Explaining the failure of the ASEAN economic community: the primacy of domestic political economy

Abstract

All reliable indicators suggest that ASEAN's (Association of Southeast Asian Nations) Economic Community (AEC) will not be successfully established by its 2015 deadline. Why? Against technocratic, realist and constructivist accounts, this article offers an explanation rooted in the political economy of ASEAN's member-states. Economic liberalisation agreements promote the rescaling of economic governance, involving regulatory changes that may radically redistribute power and resources. Consequently, they are heavily contested between coalitions of social and political forces, without outcomes reflecting the outcome of these struggles. The argument is demonstrated by exploring the uneven sectoral liberalisation achieved under the AEC, the constrained integration of ASEAN's energy markets, and the limited deregulation of skilled labour migration.

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