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ASEAN’s new developmental divide | Lowy Institute

ASEAN’s New Developmental Divide: From CLMV to CLMT

Since Cambodia, ​Laos, Myanmar, and Vietnam (CLMV) ⁤joined the Association of‍ Southeast Asian Nations (ASEAN) in the late 1990s, the region’s peak organization has grappled with the “ASEAN developmental‌ divide” – ⁣the stark economic disparity⁤ between its wealthier established members and the newer additions. With Timor-Leste poised to‌ become ASEAN’s⁢ newest⁣ member, this gap is ‍set to⁤ widen further, prompting a rethink of the region’s ‍economic dynamics and even its⁤ terminology.

The ⁤Evolution of the ⁢CLMV Grouping

Initially coined as a shorthand for ASEAN’s latecomers,the term CLMV has evolved into a formalized grouping. ‌Today, ⁤it encompasses yearly CLMV Economic Ministers’ Meetings and an annual work ⁢plan aimed⁤ at ⁣fostering economic collaboration.⁣ However, Vietnam’s rapid economic ascent has ​disrupted this narrative. With ​a ‍2023 GDP per capita ‍surpassing‍ the Philippines and nearing ⁢Indonesia’s, Vietnam has effectively broken free from the CLMV bloc. Its GDP per ⁢capita is now more than double that ​of Laos, the next most successful CLMV ‍member.

Timor-Leste’s Entry and the⁢ Birth of CLMT

Timor-Leste’s imminent accession to ​ASEAN marks a ⁢pivotal moment. While the‌ country has made meaningful strides since ‌gaining independence in 2002, it remains one of the region’s poorest nations. A ⁣shocking 42⁤ per cent of its population lives below the national poverty line, ⁤and nearly‍ half are classified ⁢as “multidimensionally ​poor,” ⁤considering​ health,⁢ education, and living standards.The country also faces a child malnutrition and stunting rate ⁢of 47 per cent, one of the highest globally, which ⁣threatens future human⁤ capital and economic productivity. ‍

Timor-Leste’s demographic challenges further complicate ⁢its advancement prospects. With‌ the ⁢region’s lowest median age and highest fertility rate, the ‌country⁢ is experiencing a youth⁢ bulge that could strain ⁤resources and infrastructure.Given these realities,the term CLMV no longer fully captures​ ASEAN’s developmental divide. Instead, a new abbreviation – CLMT – ⁢may be⁣ more appropriate, reflecting⁢ the inclusion of timor-Leste and the persistent economic challenges faced by Cambodia, ​Laos, ‍Myanmar, and Timor-Leste.

A Visual Portrayal of the Divide ⁤

The following table ‍summarizes key economic and demographic metrics ‌for the‍ CLMT countries:

| Country ​ ​ | GDP per Capita⁢ (2023) | Poverty Rate ​| ⁣Child Malnutrition Rate | Median Age ⁣| ⁣Fertility Rate | ​
|—————|———————–|————–|————————-|————|—————-|
|‍ Vietnam‍ ​ ‍ | $4,500 ⁢ | 6% ⁤ | 23% ‌ ‌ ⁢ ⁣ | 32 ⁤​ ‌ ‍ | ⁣2.0 ⁢ ⁣ | ​
| ‌Laos ⁣ | $2,100 ‍ ⁤‍ ​ ‌ | 18% ​ ⁢ ​| 33% ‌ ⁢ ⁤ ⁢ | 24 ​ ⁢ ⁣ | 2.7 ‌ ⁤ ​ ‍ |
| Cambodia ‍ ​ ​ | $1,800 ​ ⁢ ​ | 17% ⁢ ⁤ ⁣ | ‌32% ⁣ ⁢ ⁢ ‌ ​ | 26 ‌ | 2.5 ⁢ |⁤ ​
| Myanmar ‍ | $1,200 ​ ‌ ‌‍ ⁢ | 25% ‌ | 35% ⁤ ⁤ ⁣ ​ | 29‌ ⁣ ‌ ‌ | 2.2 ‍ ‌ | ​
| Timor-Leste | $1,500 ⁣ ‌‌ ⁣ ‌ ⁤ ⁢| 42% ⁤ ⁣ ⁣ | 47% ⁣ | 20 ​ ​ ​ | ⁣4.1 ‌ ‍ ‍ |

The Road Ahead

As ​ASEAN prepares to welcome Timor-Leste, the organization⁣ faces renewed challenges in ‌addressing its ⁢developmental ‍divide. While Vietnam’s success offers a blueprint for economic transformation, the struggles of cambodia, Laos, Myanmar, and ‌Timor-Leste underscore the ‍need for targeted interventions.

ASEAN’s ⁢ability to bridge this gap ⁤will ‍shape its future, ensuring that all member states can thrive in ⁢an increasingly ‍interconnected world.The journey from CLMV to CLMT is not just a change in ‌terminology⁢ –‍ it’s a call to action for a more inclusive and equitable ⁢ASEAN.Timor-Leste’s Economic Crossroads:⁤ A Race Against Time and a Path to ASEAN Integration

‌ ⁢

Timor-Leste stands at a pivotal ‌moment in its history.⁢ The⁢ nation’s ⁣economic stability is under threat as its sovereign wealth fund, the Petroleum Fund, is projected ​to deplete ‌within a⁢ decade. Successive governments ⁣have drawn down on its capital at⁢ an unsustainable rate, averaging‍ 2.5 ‌times the recommended withdrawals. This alarming trend has diminished the fund’s capital base, ⁣leaving ⁢the country in urgent need of economic​ lifelines.

One potential game-changer⁣ lies in the development of the US$50 billion Greater Sunrise gas field, a project ‌that has been mired‍ in long-running⁢ and tense negotiations between Timor-Leste and Australia.‌ The‌ question of where to process‍ the gas has proven intractable, ‍with both nations vying⁢ for⁣ control over‌ the lucrative resource. If resolved,‍ this project could inject much-needed revenue into Timor-Leste’s ‍economy, but time is running out.

ASEAN Membership:⁣ A​ New Dawn for Timor-Leste

Timor-Leste’s impending ⁢accession to⁤ ASEAN offers a glimmer of hope. The country’s⁣ inclusion in the bloc​ will not only bolster ⁢its economic prospects‍ but also end⁢ its administrative exile.Historically,Timor-Leste ⁢has been caught between Southeast Asia ⁤and ⁤the Pacific,sharing structural ⁤economic similarities and ethnic ties with Pacific​ nations while being‍ denied clear‌ inclusion in⁢ either category. This ambiguity has led to bureaucratic oversight, with institutions like⁢ the Asian Development Bank classifying Timor-Leste as a Pacific⁤ country ⁣until 2019, when the ‍government requested ​a transfer to the Southeast Asian department.Australia, Timor-Leste’s largest aid provider, has⁤ often ‌treated it as a Pacific​ nation, including ‌it in‌ initiatives like ‍the Australian‍ Infrastructure Financing Facility for the Pacific and the Pacific Australia​ Labor Mobility ‌Scheme. However, ‌ASEAN‍ membership will solidify Timor-Leste’s place‍ in Southeast Asia, granting it access to regional funds such​ as the ‍ ASEAN Catalytic Green Finance Facility and the ‍ ASEAN-China ​Cooperation⁤ Fund.

The ⁣Role ‌of ASEAN Integration

timor-Leste’s integration into ​ASEAN will also unlock opportunities for capacity ⁤building and technical assistance. The Initiative‌ for ASEAN Integration ⁤(IAI), launched in 2000 to reduce the ⁤development gap among member states, is due⁤ for renewal this year.‌ Timor-Leste’s inclusion in the IAI’s ‍ work⁣ plan ‍will enable it ⁣to receive‌ support ⁤from wealthier ASEAN members, much like Cambodia, Laos, Myanmar, and vietnam (CLMV) have in the⁤ past.

Vietnam,which has made significant strides in development,may even graduate ⁢from‌ the IAI,making room for Timor-Leste to ‍benefit fully from ⁢the initiative. This support will be crucial⁤ as⁢ the country navigates its economic challenges and works toward lasting⁢ growth.

Key Challenges and‍ Opportunities

| Aspect ⁢ ⁣ ⁣ | Details ​ ‍ ⁢ ‌ ‍ ​ ⁢ ​ ⁣ ​ ⁢ ‍ ⁢ ⁢ ⁤ ⁤ ⁢ ‍ | ⁤
|————————–|—————————————————————————–|
| Petroleum Fund ‌ ⁢ | Expected to ⁢deplete in ⁤a decade due to unsustainable withdrawals. |
| Greater Sunrise Gas Field | ‍US$50‍ billion project; negotiations with Australia remain unresolved. |
| ASEAN Membership ⁣ | Offers access to regional funds and ends administrative ambiguity. ‌ |
| ‌ IAI Support ​ ⁢ ⁤ ⁢ | Potential inclusion in the ⁢Initiative for‌ ASEAN Integration for development aid. | ⁢

A Call to‍ Action

Timor-Leste’s future hinges on swift and decisive ⁤action.⁣ The resolution of the⁤ Greater Sunrise gas​ field negotiations and⁣ the effective utilization of ASEAN resources will be critical. as the country prepares to ​join ASEAN,⁢ it must leverage its new position to secure the ⁤support it needs to overcome its economic challenges.

The clock is ticking, but with strategic partnerships and regional collaboration, Timor-Leste can​ chart a path toward stability and prosperity. The world will⁤ be watching as this young nation‌ takes its place‌ on ⁢the ASEAN stage, ready to embrace the opportunities that lie ahead.Timor-Leste’s ASEAN ⁤Ambitions Gain Momentum‍ with UN ⁢and Regional Support

timor-Leste’s journey ​toward becoming the 11th member of the association of Southeast Asian Nations (ASEAN) ‌has taken​ a significant leap forward.‍ The United Nations in Timor-Leste⁢ is collaborating with⁤ six ASEAN embassies—Indonesia, Malaysia, Brunei, thailand, the Philippines, and Singapore—to provide⁢ coordinated support for the nation’s accession. This partnership ‌aims to align​ Timor-Leste’s national priorities with regional frameworks,​ ensuring ⁤a smoother integration ​process.

The ⁣collaboration ‌is ⁣part‍ of a broader effort ⁣to strengthen ⁣Timor-Leste’s position​ in ⁢the region, particularly after⁢ its recent accession⁢ to⁢ the World Trade Organisation (WTO) in 2023. This milestone has opened‍ doors for ​the country to​ pursue ⁤Free Trade agreements and‌ market access arrangements ⁢with⁤ ASEAN’s support, further solidifying its economic ties with the bloc. ⁢

However, Timor-Leste’s path to ASEAN membership is not without challenges. ​The region is​ grappling with pressing issues such as ‍the‌ South China Sea disputes and the ongoing civil‌ war in Myanmar, which ​have contributed to what some ⁤analysts describe as ASEAN paralysis. Despite these hurdles, Timor-Leste remains optimistic, ⁤especially⁢ with Malaysia⁣ set to ‍assume the ⁣ASEAN chairmanship in 2025. Malaysia has expressed its commitment⁤ to fast-tracking Timor-Leste’s accession, a move that could provide the momentum needed​ to bridge the development divide between Timor-Leste and⁢ its ASEAN peers. ⁢

Key Developments in Timor-Leste’s‍ ASEAN Journey

| Milestone ​ ​ |​ Details ⁢ ⁢ ‍ ‍ ⁢ ⁢ ⁢‍ ⁤ ⁤ |
|————————————|—————————————————————————–| ⁢
| WTO ‌Membership⁣ (2023)⁣ ⁣ ⁤ | Timor-Leste joined the WTO, paving the way ‍for trade agreements with ‌ASEAN. | ‍
| ASEAN⁢ Chairmanship⁢ (2025) ‍ | ⁤Malaysia⁢ aims to prioritize Timor-Leste’s accession during its ⁢leadership. |​
| ​UN-ASEAN collaboration ‌ ⁢ | Six ‌ASEAN‍ embassies are working with the UN to support Timor-Leste’s ‌goals. | ‍

As Timor-Leste continues‍ its push for ASEAN membership, the country is also looking to benefit from‌ regional ‍programs such as the​ EU-ASEAN Strategic Partnership. These⁤ initiatives could provide additional resources and support to help Timor-Leste ‍meet the economic and⁤ political standards required for ASEAN integration.The road ahead is complex, ‍but with the ​backing of key ASEAN members and the United Nations, Timor-Leste’s​ aspirations ‍are‌ closer than ever to ⁣becoming a reality. As the nation⁢ works to align its priorities with regional frameworks, ​the international community will be watching ‍closely to see how this ‍small but ​persistent country navigates its path​ to ASEAN membership.⁢

For more ⁤insights⁤ into Timor-Leste’s‍ ASEAN journey, explore ⁢the latest updates ⁣on⁣ the​ UN’s‌ efforts and malaysia’s​ role in⁣ facilitating this⁢ historic accession.

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