Globalisation, Domestic Politics, and Regionalism: The ASEAN Free Trade Area

By Helen E. S. Nesadurai | Go to book overview

4

Domestic capital and developmental regionalism

Domestic distributive concerns temper the growth imperative

The particular design of the AIA component programme suggests that there is another dimension to the AFTA story apart from open regionalism and the concern with FDI that remains unexplored. It is clear that the approach to investment liberalisation adopted in the AIA sought to privilege ASEAN domestic capital in the AFTA market, at least temporarily for up to a ten-year period. The decision to offer full market access and national treatment privileges to ASEAN investors ahead of foreign investors in the AIA is certainly puzzling given AFTA’s acknowledged role as an instrument to maintain the region’s attractiveness as a site for FDI. This chapter explains this as a move by ASEAN member governments spearheaded by the Malaysian authorities to use the investment liberalisation programme of AFTA as a developmental tool to build up domestic firms, in addition to employing AFTA’s tariff liberalisation CEPT programme to attract FDI to the single regional market. It is a perspective on AFTA that has so far been missed in the literature.

Specifically, the idea was to nurture domestic capital in the face of globalisation pressures by using both the expanded regional market and the offer of temporary investment privileges to domestic-owned capital ahead of foreign investors. These temporary investment privileges took the form of earlier market access and national treatment for ASEAN national investors in the ASEAN regional market, particularly in non-manufacturing sectors. It represents an attempt at developmental regionalism. In other words, AFTA displayed the features of both open and developmental regionalism due to the political significance of foreign- and domestic-owned capital in ASEAN. While both forms of regionalism were driven by the imperative of growth, distributive concerns tempered the concern with growth in developmental regionalism.

Although developmental regionalism was not about disengaging from globalisation, policymakers and leaders in at least two countries, namely Indonesia and especially Malaysia, were not prepared to accept the hegemony of foreign TNCs that was a growing feature of globalisation. Fearing that politically important domestic-owned businesses, especially emerging firms, would be adversely affected by unfettered market

-99-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Globalisation, Domestic Politics, and Regionalism: The ASEAN Free Trade Area
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 228

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.