Fourth East Asia Summit
The Fourth East Asia Summit was rescheduled several times, had its venue changed and one attempt to hold it was cancelled due to the 2008–2009 Thai political crisis. It was held on 25 October 2009 in Cha-am and Hua Hin, Thailand; the 16 countries participating at the head-of-government or head-of-state level were: World economic conditions were to have been on the agenda of the summit, but by the time of the summit, the immediate crisis had passed. The summit in October 2009 was scheduled to receive a report on the proposed Comprehensive Economic Partnership for East Asia to establish the world's largest trading bloc. Prime Minister Kevin Rudd of Australia and retired Australian diplomat Richard Woolcott were to address the summit on regional architecture and the idea of an Asia Pacific community; the members were to consider India's plans for the revival of Nalanda University. The summit was to be held in Bangkok on 17 December 2008, it was announced in late-October 2008 that the summit would be shifted from Bangkok to Chiang Mai due to concerns about political unrest in the capital city.
It was announced on 2 December 2008 that due to the 2008 Thai political crisis the summit would be postponed from 17 December 2008 to March 2009. On 12 December 2008 Abhisit Vejjajiva indicated that if he became the next prime minister of Thailand he would seek to hold the summit in February 2009. In January 2009 it was announced that, although the ASEAN Summit had been scheduled for 27 February 2009 to 1 March 2009, those dates were not convenient for the ASEAN delegates and that the East Asia Summit and the ASEAN Plus Three meetings would be held later; the re-scheduling of the heads of government/state of the 16 nations caused the EAS to be tentatively re-scheduled for April, coinciding with Easter. The revised date meant; the revised date and venue were subsequently confirmed. The venue was to be the Pattaya Conference Hall, it was announced that India would be represented at the summit by Commerce and Industry Minister Kamal Nath, not its prime minister. On 11 April 2009, anti-Thai government protesters smashed their way into the East Asian summit, forcing the Prime Minister of Thailand, Abhisit Vejjajiva, to cancel the meeting and evacuate foreign leaders by helicopter.
Officials did not say whether or when the summit would resume. Following the cancellation, United Nations Secretary-General Ban Ki-moon expressed regret over the incident. Abhisit Vejjajiva vowed legal action against anti-government protesters "who reduced a showcase Asian summit to a shambles and exposed the nation to international embarrassment". During the lead up to the summit, there were several border clashes between Thailand and Cambodia; the summit was said to be used as an opportunity for discussions on the sidelines between the respective nations' leaders. Australian Prime Minister Kevin Rudd was en route to the summit from Australia when he was contacted by the Australian Department of Foreign Affairs and advised to return to Australia; the leaders of China and Korea were airlifted out by their Thai hosts, whilst New Zealand Prime Minister John Key did not make it out of Bangkok airport. By late-April the Thai government was looking to reschedule the summit to June 2009 in Phuket. There had been earlier reports.
Australian press reports suggested. In early-May Thailand proposed, at a senior officials meeting, the dates of 13–14 June in Phuket, with a promise of a five kilometre "no rally zone" around the venue; this revised date was said to be inconvenient for the leaders of Indonesia and New Zealand. The summit was subsequently confirmed as having been rescheduled for 25 October 2009 in Phuket, but was moved again to Cha-am and Hua Hin; the summit adopted two documents. The first was a statement on disaster management; the second related to the re-establishment of Nalanda University by India. The chairman's statement noted: 21. We acknowledged the importance of regional discussions to examine ways to advance the stability and prosperity of the Asia Pacific region. In this connection, we noted with appreciation the following: the Philippines’s proposal to invite the heads of other regional fora and organizations in Asia-Pacific to future EAS meetings to discuss measures that will protect the region from future economic and financial crisis and strengthen Asia economic cooperation, including through the possible establishment of an economic community of Asia.
Japan's new proposal to reinvigorate the discussion towards building, in the long run, an East Asian community based on the principle of openness and inclusiveness and functional cooperation. Australia's proposal on the Asia Pacific community in which ASEAN will be at its core, will be further discussed at a 1.5 track conference to be organized by Australia in December 2009. The statement of the ASEAN Plus Three meeting noted that it was "a main vehicle" in building the East Asian Community. 14th ASEAN summit
Second East Asia Summit
The East Asia Summit is a pan-Asia forum held annually by the leaders of 16 countries in the East Asian region. EAS meetings are held after annual ASEAN leaders’ meetings; the Second EAS was to be held on December 2006 in Metro Cebu, Philippines. After the confidence building of the First EAS the 2006 EAS was to intended help to define the future role of the EAS, its relationship with ASEAN Plus Three and the involvement of Russia in EAS. However, in the face of Tropical Typhoon Utor the summit was postponed until January 2007, it has been re-scheduled for January 15, 2007 a month after the original scheduled date. The 16 countries involved were: The meeting of EAS foreign ministers in Kuala Lumpur on 26 July 2006 identified energy, education, avian flu and national disaster mitigation as the priority issues for the 2006 EAS; the Philippines, the host of the 2006 EAS said the failure of the Doha Round would be on the agenda. In April 2006 Japan announced a proposal for an East Asian Economic Partnership Agreement consisting of the current members of the EAS.
Japan, the promoter of the concept, described it as an "East Asia OECD". This was linked with a timetable for discussions to commence in 2008 and to conclude in 2010, which met with some scepticism. By August 2006 this had been refined to a Japanese proposal championed by Japanese Trade Minister Toshihiro Nikai consisting of: a fund of US$80 million to $100 million to initiate a comprehensive economic partnership with East Asia, modelled on the OECD. Responses were mixed. Following the discussions of EAS Foreign Minister in Kuala Lumpur on 26 July 2006, to establish the agenda for the second EAS, it appeared that the proposal as it stood did not have sufficient support to be included as an agenda item for the second EAS. Although the Philippines, the host for the second EAS, said trade would be on the agenda but in terms of the present difficulties with the Doha Round. After the meeting of the EAS Foreign Ministers Japan appeared keen to continue to discuss the idea in terms of a Free Trade Agreement between the members of the EAS.
India came out publicly in support of a pan-Asia Free Trade Agreement. New Zealand expressed its support; as has Malaysia. Australia described the proposal as "interesting". Indonesia gave guarded support to the proposal, linking it with the proposed East Asian Community and Asian Values. ASEAN gave its support to the Japanese proposal to research the proposed EAFTA. Ong Keng Yong, the secretary-general of ASEAN has suggested that "it can be done", referring to an EAFTA, estimated it would take 10 years. ASEAN as a whole seemed to have a pessimistic view as to the feasibility of the idea at 2006. Japan said it was delighted with the positive response to the proposal. China, South Korea and ASEAN were said to have indirectly expressed scepticism about the idea; the difficulties with the ASEAN - India FTA does not augur well for a larger FTA. Japan had to defend itself from the allegation that the proposal was advanced as a mechanism to counter ChinaThe position of China was expected by some commentators although not all agreed.
China appears to prefer the narrower grouping of Three for a future Free Trade Agreement. New Zealand has expressed confidence that China will support the proposal if the research shows a benefit to East Asia from an EAFTAThe United States of America has proposed an FTA within the members of APEC which may be in response to the suggestion of an FTA between the members of the EAS. Japan has suggested that the EAFTA could be used as a building block for the larger APEC FTA; the US is aggressively coming out against such a move concerned about a line down the middle of the Pacific while Asian economies are concerned about the US's ability to deliver a broad based FTA. In September 2006 Toshihiro Nikai was replaced as Minister of Economy and Industry by Akira Amari. Nikai's successor has pursued the Nikai initiative - Comprehensive Economic Partnership for East Asia. In November 2006 India and China announced plans to double bilateral trade by 2010; the growing relationship between the world's two most populous nations was seen as a potential source of stability and co-operation for the region.
The two countries joint declaration of 21 November 2006 agreed at paragraph 43 to "cooperate closely" in the context of the EAS. Further the change in leadership in Japan with Shinzo Abe's election to the Prime Ministership of Japan in September 2006 brought about some thawing in Japan's relationship with both China and South Korea; these changes suggested the potential for different dynamics in the second EAS to the tensions in the First EAS. It is proposed that an agreement to standardise rules for bio-fuels and agreements on stockpiling fuels will form part of the 2006 EAS; the outcomes are summarised in the Statement of the Second East Asia Summit. The EAS members signed the Cebu Declaration on East Asian Energy Security, a declaration on energy security and biofuels containing statement for members to prepare, non-binding, targets; as to trade and regional integration the following was noted in the Chair's report: 12. We welcomed ASEAN's efforts towards further integration and community building, reaffirmed our resolve to w
Indonesia the Republic of Indonesia, is a country in Southeast Asia, between the Indian and Pacific oceans. It is the world's largest island country, with more than seventeen thousand islands, at 1,904,569 square kilometres, the 14th largest by land area and the 7th largest in combined sea and land area. With over 261 million people, it is the world's 4th most populous country as well as the most populous Muslim-majority country. Java, the world's most populous island, is home to more than half of the country's population; the sovereign state is a constitutional republic with an elected parliament. It has 34 provinces. Jakarta, the country's capital, is the second most populous urban area in the world; the country shares land borders with Papua New Guinea, East Timor, the eastern part of Malaysia. Other neighbouring countries include Singapore, the Philippines, Australia and India's Andaman and Nicobar Islands. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support a high level of biodiversity.
The country has abundant natural resources like oil and natural gas, tin and gold. Agriculture produces rice, palm oil, coffee, medicinal plants and rubber. Indonesia's major trading partners are China, United States, Japan and India. History of the Indonesian archipelago has been influenced by foreign powers drawn to its natural resources, it has been an important region for trade since at least the 7th century, when Srivijaya and later Majapahit traded with entities from mainland China and the Indian subcontinent. Local rulers absorbed foreign cultural and political models from the early centuries and Hindu and Buddhist kingdoms flourished. Muslim traders and Sufi scholars brought Islam, while European powers brought Christianity and fought one another to monopolise trade in the Spice Islands of Maluku during the Age of Discovery. Although sometimes interrupted by the Portuguese and British, the Dutch were the foremost European power for much of its 350-year presence in the archipelago. In early 20th century, the concept of "Indonesia" as a nation state emerged, independence movements began to take shape.
During the decolonisation of Asia after World War II, Indonesia achieved independence in 1949 following an armed and diplomatic conflict with the Netherlands. Indonesia consists of hundreds of distinct native ethnic and linguistic groups, with the largest—and politically dominant—ethnic group being the Javanese. A shared identity has developed, defined by a national language, ethnic diversity, religious pluralism within a Muslim-majority population, a history of colonialism and rebellion against it. Indonesia's national motto, "Bhinneka Tunggal Ika", articulates the diversity that shapes the country. Indonesia's economy is the world's 16th largest by nominal GDP and the 7th largest by GDP at PPP. Indonesia is a member of several multilateral organisations, including the UN, WTO, IMF and G20, it is a founding member of Non-Aligned Movement, Association of Southeast Asian Nations, Asia-Pacific Economic Cooperation, East Asia Summit, Asian Infrastructure Investment Bank and Organisation of Islamic Cooperation.
The name Indonesia derives from the Greek name of the Indos and the word nesos, meaning "Indian islands". The name dates to the 18th century, far predating the formation of independent Indonesia. In 1850, George Windsor Earl, an English ethnologist, proposed the terms Indunesians—and, his preference, Malayunesians—for the inhabitants of the "Indian Archipelago or Malayan Archipelago". In the same publication, one of his students, James Richardson Logan, used Indonesia as a synonym for Indian Archipelago. However, Dutch academics writing in East Indies publications were reluctant to use Indonesia. After 1900, Indonesia became more common in academic circles outside the Netherlands, native nationalist groups adopted it for political expression. Adolf Bastian, of the University of Berlin, popularised the name through his book Indonesien oder die Inseln des Malayischen Archipels, 1884–1894; the first native scholar to use the name was Ki Hajar Dewantara, when in 1913 he established a press bureau in the Netherlands, Indonesisch Pers-bureau.
Fossils and the remains of tools show that the Indonesian archipelago was inhabited by Homo erectus, known as "Java Man", between 1.5 million years ago and 35,000 years ago. Homo sapiens reached the region around 45,000 years ago. Austronesian peoples, who form the majority of the modern population, migrated to Southeast Asia from what is now Taiwan, they arrived around 4,000 years ago, as they spread through the archipelago, confined the indigenous Melanesians to the far eastern regions. Ideal agricultural conditions and the mastering of wet-field rice cultivation as early as the 8th century BCE allowed villages and small kingdoms to flourish by the first century CE; the archipelago's strategic sea-lane position fostered inter-island and international trade, including links with Indian kingdoms and Chinese dynasties, which were established several centuries BCE. Trade has since fundamentally shaped Indonesian history. From the 7th century CE, the powerful Srivijaya naval kingdom flourished as a result of trade and the influences of Hinduism and Buddhism that were imported with it.
Between the 8th and 10th century CE, the agricultural Buddhist Saile
Manmohan Singh is an Indian economist and politician who served as the Prime Minister of India from 2004 to 2014. The first Sikh in office, Singh was the first prime minister since Jawaharlal Nehru to be re-elected after completing a full five-year term. Born in Gah, Singh's family migrated to India during its partition in 1947. After obtaining his doctorate in economics from Oxford, Singh worked for the United Nations during 1966–69, he subsequently began his bureaucratic career when Lalit Narayan Mishra hired him as an advisor in the Ministry of Commerce and Industry. Over the 70s and 80s, Singh held several key posts in the Government of India, such as Chief Economic Advisor, Reserve Bank governor and Planning Commission head. In 1991, as India faced a severe economic crisis, newly elected Prime Minister P. V. Narasimha Rao inducted the apolitical Singh into his cabinet as Finance Minister. Over the next few years, despite strong opposition, he as a Finance Minister carried out several structural reforms that liberalised India's economy.
Although these measures proved successful in averting the crisis, enhanced Singh's reputation globally as a leading reform-minded economist, the incumbent Congress party fared poorly in the 1996 general election. Subsequently, Singh served as Leader of the Opposition in the Rajya Sabha during the Atal Bihari Vajpayee government of 1998–2004. In 2004, when the Congress-led United Progressive Alliance came to power, its chairperson Sonia Gandhi unexpectedly relinquished the premiership to Manmohan Singh. Singh's first ministry executed several key legislations and projects, including the Rural Health Mission, Unique Identification Authority, Rural Employment Guarantee scheme and Right to Information Act. In 2008, opposition to a historic civil nuclear agreement with the United States nearly caused Singh's government to fall after Left Front parties withdrew their support. Although India's economy grew under UPA I, its security was threatened by several terrorist incidents and the continuing Maoist insurgency.
The 2009 general election saw the UPA return with an increased mandate, with Singh retaining the office of Prime Minister. Over the next few years, Singh's second ministry government faced a number of corruption charges—over the organisation of the 2010 Commonwealth Games, the 2G spectrum allocation case and the allocation of coal blocks. After his term ended in 2014 he opted out from the race to the office of the Prime Minister of India during 2014 Indian general election. Singh was never a member of the Lok Sabha but continues to serve as a member of the Parliament of India, representing the state of Assam in the Rajya Sabha for the fifth consecutive term since 1991. Singh was born to Gurmukh Singh and Amrit Kaur on 26 September 1932, in Gah, British India, into a Sikh family, he lost his mother when he was young and was raised by his paternal grandmother, to whom he was close. After the Partition of India, his family migrated to Amritsar, where he studied at Hindu College, he attended Panjab University in Hoshiarpur, studying Economics and got his bachelor's and master's degrees in 1952 and 1954 standing first throughout his academic career.
He completed his Economics Tripos at University of Cambridge as he was a member of St John's College in 1957. In a 2005 interview with the British journalist Mark Tully, Singh said about his Cambridge days: I first became conscious of the creative role of politics in shaping human affairs, I owe that to my teachers Joan Robinson and Nicholas Kaldor. Joan Robinson was a brilliant teacher, but she sought to awaken the inner conscience of her students in a manner that few others were able to achieve, she made me think the unthinkable. She propounded the left wing interpretation of Keynes, maintaining that the state has to play more of a role if you want to combine development with social equity. Kaldor influenced me more. Joan Robinson was a great admirer of what was going on in China, but Kaldor used the Keynesian analysis to demonstrate that capitalism could be made to work. After Cambridge, Singh returned to India to his teaching position at Punjab University. In 1960, he went to the University of Oxford for the D.
Phil, where he was a member of Nuffield College. His 1962 doctoral thesis under the supervision of I. M. D. Little was titled "India's export performance, 1951–1960, export prospects and policy implications", was the basis for his book "India's Export Trends and Prospects for Self-Sustained Growth". After completing his D. Phil, Singh returned to India until 1966 when he went to work for the United Nations Conference on Trade and Development from 1966–1969, he was appointed as an advisor to the Ministry of Foreign Trade by Lalit Narayan Mishra, in recognition of Singh's talent as an economist. From 1969 to 1971, Singh was a Professor of International Trade at the Delhi School of Economics, University of Delhi. In 1972, Singh was Chief Economic Adviser in the Ministry of Finance and in 1976 he was Secretary in the Finance Ministry. In 1980–1982 he was at the Planning Commission, in 1982, he was appointed Governor of the Reserve Bank of India under Finance Minister Pranab Mukherjee and held the post until 1985.
He went on to become the deputy chairman of the Planning Commission from 1985 to 1987. Following his tenure at the Planning Commission, he was Secretary General of the South Commission, an independent economic policy think tank headquartered in Geneva, Switzerland
Malaysia is a country in Southeast Asia. The federal constitutional monarchy consists of 13 states and three federal territories, separated by the South China Sea into two sized regions, Peninsular Malaysia and East Malaysia. Peninsular Malaysia shares a land and maritime border with Thailand and maritime borders with Singapore and Indonesia. East Malaysia shares land and maritime borders with Brunei and Indonesia and a maritime border with the Philippines and Vietnam. Kuala Lumpur is the national capital and largest city while Putrajaya is the seat of federal government. With a population of over 30 million, Malaysia is the world's 44th most populous country; the southernmost point of continental Eurasia, Tanjung Piai, is in Malaysia. In the tropics, Malaysia is one of 17 megadiverse countries, with large numbers of endemic species. Malaysia has its origins in the Malay kingdoms which, from the 18th century, became subject to the British Empire, along with the British Straits Settlements protectorate.
Peninsular Malaysia was unified as the Malayan Union in 1946. Malaya was restructured as the Federation of Malaya in 1948, achieved independence on 31 August 1957. Malaya united with North Borneo and Singapore on 16 September 1963 to become Malaysia. In 1965, Singapore was expelled from the federation; the country is multi-cultural, which plays a large role in its politics. About half the population is ethnically Malay, with large minorities of Malaysian Chinese, Malaysian Indians, indigenous peoples. While recognising Islam as the country's established religion, the constitution grants freedom of religion to non-Muslims; the government system is modelled on the Westminster parliamentary system and the legal system is based on common law. The head of state is the king, known as the Yang di-Pertuan Agong, he is an elected monarch chosen from the hereditary rulers of the nine Malay states every five years. The head of government is the Prime Minister; the country's official language is a standard form of the Malay language.
English remains an active second language. Since independence, Malaysian GDP has grown at an average of 6.5% per annum for 50 years. The economy has traditionally been fuelled by its natural resources, but is expanding in the sectors of science, tourism and medical tourism. Today, Malaysia has a newly industrialised market economy, ranked fourth largest in Southeast Asia and 38th largest in the world, it is a founding member of the Association of Southeast Asian Nations, the East Asia Summit and the Organisation of Islamic Cooperation, a member of Asia-Pacific Economic Cooperation, the Commonwealth of Nations, the Non-Aligned Movement. The name "Malaysia" is a combination of the word "Malay" and the Latin-Greek suffix "-sia"/-σία; the word "melayu" in Malay may derive from the Tamil words "malai" and "ur" meaning "mountain" and "city, land", respectively. "Malayadvipa" was the word used by ancient Indian traders. Whether or not it originated from these roots, the word "melayu" or "mlayu" may have been used in early Malay/Javanese to mean to accelerate or run.
This term was applied to describe the strong current of the river Melayu in Sumatra. The name was adopted by the Melayu Kingdom that existed in the seventh century on Sumatra. Before the onset of European colonisation, the Malay Peninsula was known natively as "Tanah Melayu". Under a racial classification created by a German scholar Johann Friedrich Blumenbach, the natives of maritime Southeast Asia were grouped into a single category, the Malay race. Following the expedition of French navigator Jules Dumont d'Urville to Oceania in 1826, he proposed the terms of "Malaysia", "Micronesia" and "Melanesia" to the Société de Géographie in 1831, distinguishing these Pacific cultures and island groups from the existing term "Polynesia". Dumont d'Urville described Malaysia as "an area known as the East Indies". In 1850, the English ethnologist George Samuel Windsor Earl, writing in the Journal of the Indian Archipelago and Eastern Asia, proposed naming the islands of Southeast Asia as "Melayunesia" or "Indunesia", favouring the former.
In modern terminology, "Malay" remains the name of an ethnoreligious group of Austronesian people predominantly inhabiting the Malay Peninsula and portions of the adjacent islands of Southeast Asia, including the east coast of Sumatra, the coast of Borneo, smaller islands that lie between these areas. The state that gained independence from the United Kingdom in 1957 took the name the "Federation of Malaya", chosen in preference to other potential names such as "Langkasuka", after the historic kingdom located at the upper section of the Malay Peninsula in the first millennium CE; the name "Malaysia" was adopted in 1963 when the existing states of the Federation of Malaya, plus Singapore, North Borneo and Sarawak formed a new federation. One theory posits the name was chosen so that "si" represented the inclusion of Singapore, North Borneo, Sarawak to Malaya in 1963. Politicians in the Philippines contemplated renaming their state "Malaysia" before the modern country took the name. Evidence of modern human habitation in Malaysia dates back 40,000 years.
In the Malay Peninsula, the first inhabitants are thought to be Negritos. Traders and settlers from India and China arrived as early as the first century AD, establishing trading ports and coastal towns in the second and third centuries, their presence resulted in strong Indian and Chinese influences on the local cultures, the people of the Malay Peninsula adopted the religions of Hinduism and Buddhism. Sanskrit inscriptions appear as early as the fifth century; the Kingdom of
1997 Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of East and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. The crisis started in Thailand with the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U. S. dollar. At the time, Thailand had acquired a burden of foreign debt that made the country bankrupt before the collapse of its currency; as the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, a precipitous rise in private debt. Indonesia, South Korea, Thailand were the countries most affected by the crisis. Hong Kong, Laos and the Philippines were hurt by the slump. Brunei, Singapore and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region. Japan was affected, though less significantly.
Foreign debt-to-GDP ratios rose from 100% to 167% in the four large Association of Southeast Asian Nations economies in 1993–96 shot up beyond 180% during the worst of the crisis. In South Korea, the ratios rose from 13% to 21% and as high as 40%, while the other northern newly industrialized countries fared much better. Only in Thailand and South Korea did. Although most of the governments of Asia had sound fiscal policies, the International Monetary Fund stepped in to initiate a $40 billion program to stabilize the currencies of South Korea and Indonesia, economies hard hit by the crisis; the efforts to stem a global economic crisis did little to stabilize the domestic situation in Indonesia, however. After 30 years in power, Indonesian President Suharto was forced to step down on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah; the effects of the crisis lingered through 1998. In 1998, growth in the Philippines dropped to zero.
Only Singapore and Taiwan proved insulated from the shock, but both suffered serious hits in passing, the former due to its size and geographical location between Malaysia and Indonesia. By 1999, analysts saw signs that the economies of Asia were beginning to recover. After the crisis, economies in the region worked toward financial stability and better financial supervision; until 1999, Asia attracted half of the total capital inflow into developing countries. The economies of Southeast Asia in particular maintained high interest rates attractive to foreign investors looking for a high rate of return; as a result, the region's economies received a large inflow of money and experienced a dramatic run-up in asset prices. At the same time, the regional economies of Thailand, Indonesia and South Korea experienced high growth rates, of 8–12% GDP, in the late 1980s and early 1990s; this achievement was acclaimed by financial institutions including IMF and World Bank, was known as part of the "Asian economic miracle".
The cause of the debacle are many and disputed. Thailand's economy developed into an economic bubble fueled by hot money. More and more was required as the size of the bubble grew; the same type of situation happened in Malaysia and Indonesia, which had the added complication of what was called "crony capitalism". The short-term capital flow was expensive and highly conditioned for quick profit. Development money went in a uncontrolled manner to certain people only - not the best suited or most efficient, but those closest to the centers of power. In the mid-1990s, Thailand and South Korea had large private current account deficits, the maintenance of fixed exchange rates encouraged external borrowing and led to excessive exposure to foreign exchange risk in both the financial and corporate sectors. In the mid-1990s, a series of external shocks began to change the economic environment; the devaluation of the Chinese renminbi, the Japanese yen due to the Plaza Accord of 1985, the raising of U. S. interest rates which led to a strong U.
S. dollar, the sharp decline in semiconductor prices, all adversely affected their growth. As the U. S. economy recovered from a recession in the early 1990s, the U. S. Federal Reserve Bank under Alan Greenspan began to raise U. S. interest rates to head off inflation. This made the United States a more attractive investment destination relative to Southeast Asia, attracting hot money flows through high short-term interest rates, raised the value of the U. S. dollar. For the Southeast Asian nations which had currencies pegged to the U. S. dollar, the higher U. S. dollar caused their own exports to become more expensive and less competitive in the global markets. At the same time, Southeast Asia's export growth slowed in the spring of 1996, deteriorating their current account position; some economists have advanced the growing exports of China as a factor contributing to ASEAN nations' export growth slowdown, though these economists maintain the main cause of their crises was excessive real estate speculation.
China had begun to compete with other Asian exporters in the 1990s after the implementation of a number of export-oriented reforms. Other economists dispute China's impact, noting that both ASEAN and China experienced simultaneous rapid export growth in the early 1990s. Many economists believe that the Asian crisis was created not by market psychology or technology, but by policies that distorted incentives within the lender–borrower relationship. The
European Economic Community
The European Economic Community was a regional organisation which aimed to bring about economic integration among its member states. It was created by the Treaty of Rome of 1957. Upon the formation of the European Union in 1993, the EEC was incorporated and renamed as the European Community. In 2009 the EC's institutions were absorbed into the EU's wider framework and the community ceased to exist; the Community's initial aim was to bring about economic integration, including a common market and customs union, among its six founding members: Belgium, Italy, the Netherlands and West Germany. It gained a common set of institutions along with the European Coal and Steel Community and the European Atomic Energy Community as one of the European Communities under the 1965 Merger Treaty. In 1993, a complete single market was achieved, known as the internal market, which allowed for the free movement of goods, capital and people within the EEC. In 1994, the internal market was formalised by the EEA agreement.
This agreement extended the internal market to include most of the member states of the European Free Trade Association, forming the European Economic Area covering 15 countries. Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a wider range than economic policy; this was when the three European Communities, including the EC, were collectively made to constitute the first of the three pillars of the European Union, which the treaty founded. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon, which incorporated the EC's institutions into the EU's wider framework and provided that the EU would "replace and succeed the European Community"; the EEC was known as the Common Market in the English-speaking countries and sometimes referred to as the European Community before it was renamed as such in 1993. In 1951, the Treaty of Paris was signed, creating Steel Community; this was an international community based on supranationalism and international law, designed to help the economy of Europe and prevent future war by integrating its members.
In the aim of creating a federal Europe two further communities were proposed: a European Defence Community and a European Political Community. While the treaty for the latter was being drawn up by the Common Assembly, the ECSC parliamentary chamber, the proposed defense community was rejected by the French Parliament. ECSC President Jean Monnet, a leading figure behind the communities, resigned from the High Authority in protest and began work on alternative communities, based on economic integration rather than political integration. After the Messina Conference in 1955, Paul Henri Spaak was given the task to prepare a report on the idea of a customs union; the so-called Spaak Report of the Spaak Committee formed the cornerstone of the intergovernmental negotiations at Val Duchesse conference centre in 1956. Together with the Ohlin Report the Spaak Report would provide the basis for the Treaty of Rome. In 1956, Paul Henri Spaak led the Intergovernmental Conference on the Common Market and Euratom at the Val Duchesse conference centre, which prepared for the Treaty of Rome in 1957.
The conference led to the signature, on 25 March 1957, of the Treaty of Rome establishing a European Economic Community. The resulting communities were the European Economic Community and the European Atomic Energy Community; these were markedly less supranational than the previous communities, due to protests from some countries that their sovereignty was being infringed. The first formal meeting of the Hallstein Commission was held on 16 January 1958 at the Chateau de Val-Duchesse; the EEC was to create a customs union while Euratom would promote co-operation in the nuclear power sphere. The EEC became the most important of these and expanded its activities. One of the first important accomplishments of the EEC was the establishment of common price levels for agricultural products. In 1968, internal tariffs were removed on certain products. Another crisis was triggered in regard to proposals for the financing of the Common Agricultural Policy, which came into force in 1962; the transitional period whereby decisions were made by unanimity had come to an end, majority-voting in the Council had taken effect.
Then-French President Charles de Gaulle's opposition to supranationalism and fear of the other members challenging the CAP led to an "empty chair policy" whereby French representatives were withdrawn from the European institutions until the French veto was reinstated. A compromise was reached with the Luxembourg compromise on 29 January 1966 whereby a gentlemen's agreement permitted members to use a veto on areas of national interest. On 1 July 1967 when the Merger Treaty came into operation, combining the institutions of the ECSC and Euratom into that of the EEC, they shared a Parliamentary Assembly and Courts. Collectively they were known as the European Communities; the Communities still had independent personalities although were integrated. Future treaties granted the community new powers beyond simple economic matters which had achieved a high level of integration; as it got closer to the goal of political integration and a peaceful and united Europe, what Mikhail Gorbachev described as a Common European Home.
The 1960s saw the first attempts at enlargement. In 1961, Ireland and the United Kingdom applied to join the three Communities. However, Presi