Bridging the ASEAN Developmental Divide: Challenges and Prospects (Association of Southeast Asian Nations‪)‬

I. Introduction Over the past two decades, economic integration through trade and investment has been a major driving force for ASEAN's growth and economic development. During 1980-2005, the Association's intra-regional trade as a share of total trade rose from 18 to 25 per cent. This increase in economic interdependence took place without any formal framework of economic co-operation. In recognition of the benefits of economic integration and to formalize the process, in October 2003, ASEAN leaders during the Ninth ASEAN Summit agreed to establish an ASEAN Economic Community (AEC) by 2020. The AEC, along with two other pillars--the ASEAN Security Community and the ASEAN Socio-cultural Community--make up the ASEAN Community as declared in the Bali Concord II.