Why (most) Indonesian businesses fear the ASEAN Economic Community: struggling with Southeast Asia’s regional corporatism

Jürgen Rüland

Third World Quarterly, 2016, vol. 37, issue 6, 1130-1145

Abstract: By the end of 2015 the Association of Southeast Asian Nations (ASEAN) had ushered in a common market, the ASEAN Economic Community (AEC). However, the groups most affected by it – small businesses – were bypassed in the decision-making process. They are the victims of a selectively inclusive state corporatism which member countries have transferred from their domestic political system to the regional level. In this article I argue that the decision to create the AEC was promoted by ASEAN governments together with foreign economic and local corporate interests. This coalition was able to frame the AEC in a way that small businesses perceived it as a win-win scheme. Empirically the article focuses on Indonesia.

Date: 2016
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DOI: 10.1080/01436597.2015.1133245

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