Markets and Integration in the Indo-Pacific Region
The Association of Southeast Asian Nations (ASEAN) is one of the most important and dynamic socioeconomic blocs in the world, particularly the Indo-Pacific region. The ten member nations of ASEAN are the Philippines, Malaysia, Myanmar (Burma), Brunei, Indonesia, Singapore, Vietnam, Laos, Thailand, and Cambodia. Together, the nations of ASEAN have a total population of almost 645 million citizens, which is larger than the total population of the European Union. Similarly, if ASEAN were a single country it would be one of the seven largest economies in the world. In terms of purchasing power parity (PPP), the aggregate gross domestic product (GDP) of ASEAN is approximately US$8 trillion, compared to the GDP of the United States at US$19.4 trillion or that of India at US$9.5 trillion. As part of the Association’s regional integration project, the ASEAN Economic Community (AEC) was created in 2015, which marked a major step towards the unification of trade policies and consumer goods regulation as well as the freedom of movement for capital and skilled labor. Simultaneously, ASEAN leads an even larger regional integration effort in the form of the Regional Comprehensive Economic Partnership (RCEP), which seeks to integrate the economies of ASEAN with those of six major partners in the Indo-Pacific region. Seeking to unify the six nations with whom ASEAN has standing free trade agreements (FTAs) into a single market, the RCEP would also include China, South Korea, Japan, Australia, New Zealand, and India. However, RCEP is still under negotiation and would take years to come into full effect.
If the Regional Comprehensive Economic Partnership (in negotiation since 2011) becomes a reality, it will be the world’s largest unified economic market and an agricultural powerhouse. For instance, in the case of green coconuts, the RCEP would incorporate four of the top six producers in the world, including Indonesia, the Philippines, India, and Vietnam.
Markets and Integration in the Indo-Pacific Region
As a member of both the BRICS and of the potential RCEP, India is a key player within the Indo-Pacific region that could achieve a big power role in global politics. Currently, India has a total territory of almost 3.3 million square kilometers, which is more than a third of the size of the United States. Geographically, the country is dominated by a highland plateau and rolling plains along major rivers as well as the Himalaya Mountains in the north and a coastline of 7,000 kilometers. India has a total population of approximately 1.3 billion citizens, 34% of which live in an urban setting, notably the cities of New Delhi (capital), Mumbai, and Kolkata. India’s annual GDP is US$9.5 trillion, making it the third largest economy in the world. Similarly, India’s national economy has experienced positive growth upwards of 6.0% in recent years. The national economy is divided into 16% agriculture, 23% manufacturing, and 61% services. Likewise, the Indian agricultural industry employs 47% of the national labor force, while manufacturing employs about 22%, and services employ another 31%. Meanwhile, the agriculture industry utilizes some 61% of the national territory, while another 23% is forested.
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