An ASEAN Digital Single Market: Boosting the Aspiration for a Single Market in the Digital Era

Paul John, Pena (2019): An ASEAN Digital Single Market: Boosting the Aspiration for a Single Market in the Digital Era.

Abstract

Advancements in information and communications technologies have changed the way individuals, firms, and nations create and exchange value across borders. Value comes in the form of goods, services, information, and data, but may also include talent, capital, ideas, and even culture. Southeast Asia is a thriving digital economy with the prospect of becoming a US$200B economy by 2025. However, new forms of protectionist measures arise, which may impede the free flow of value within the region. An aspirational digital single market concept and the changing dynamics of digital trade are explored. A digital economic integration framework that is interoperable, inclusive, and agile is proposed to address both barriers to the creation of an ASEAN digital single market. Requisite conditions for policy solutions are identified, and an empowered digital transformation board with the task of leading the change agenda is proposed as a critical governance enabler across the region.

• Item Type: MPRA Paper
• Language: English
• Keywords: ASEAN, digitalization, digital trade, digital transformation, regional integration, single market
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade ; e-Commerce; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

References

Association of Southeast Asian Nations. (2008). ASEAN economic community blueprint. Jakarta: ASEAN Secretariat. Retrieved August 9, 2019 from https://asean.org/wpcontent/uploads/archive/5187-10.pdf.

Association of Southeast Asian Nations. (2015a). ASEAN 2025: Forging ahead together. Jakarta: ASEAN Secretariat. Retrieved June 14, 2018 from https://asean.org/wpcontent/uploads/2015/11/67.-December-2015-ASEAN-2025-Forging-Ahead-Together2nd-Reprint.pdf.

Association of Southeast Asian Nations. (2015b). The ASEAN ICT masterplan 2020. Jakarta: ASEAN Secretariat. Retrieved June 14, 2018 from https://www.asean.org/storage/images/2015/November/ICT/15b%20-%20AIM%202020_Publication_Final.pdf.

Association of Southeast Asian Nations. (2015c). ASEAN economic community blueprint 2025. Jakarta: ASEAN Secretariat.

Association of Southeast Asian Nations. (2016a). ASEAN trade facilitation framework. Retrieved June 14, 2018, from https://asean.org/storage/2016/08/ASEAN-Trade-FacilitationFramework.pdf. .

Association of Southeast Asian Nations. (2016b). Master plan on ASEAN connectivity 2025. Jakarta: ASEAN Secretariat. Retrieved June 14, 2018 from https://asean.org/storage/2016/09/Master-Plan-on-ASEAN-Connectivity-20251.pdf.

Association of Southeast Asian Nations. (2018a). ASEAN work programme on electronic commerce 2017-2025. Retrieved August 3, 2018, from https://asean.org/aseaneconomic-community/sectoral-bodies-under-the-purview-of-aem/e-commerce/.

Association of Southeast Asian Nations. (2018b). Chairman’s statement of the 32nd ASEAN Summit, ASEAN Singapore 2018: Resilient and Innovative. Retrieved July 29, 2018 from https://www.asean2018.sg/Newsroom/Press-Releases/Press-Release-Details//media/784A2671B67F4220A62FC4FFECF578F8.ashx

Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester School, 33(2), 99–123. doi:10.1111/j.1467-9957.1965.tb00050.x

Bin Yahya, F. (2018, January 28). Building the digital economy in ASEAN. Singapore: Lee Kuan Yew School of Public Policy, National University of Singapore. Retrieved August 2, 2018 from https://lkyspp.nus.edu.sg/gia/article/building-the-digital-economy-in-asean

Box, S., & Lopez-Gonzalez, J. (2017). The future of technology: Opportunities for ASEAN in the digital economy. In S. Tay & J. Tijaja (Eds.), Global megatrends: Implications for the ASEAN economic community (pp. 37–60). Jakarta: ASEAN Secretariat and Singapore Institute of International Affairs.

Cardona, M., Duch-Brown, N., Francois, J., Martes, B., & Yang, F. (2015). The macroeconomic impact of e-commerce in the EU digital single market (JRC Technical Reports, Digital Economy Working Paper 2015/09). Luxembourg: European Commission.

Chia, S. Y. (2013). The ASEAN economic community: Progress, challenges, and prospects (ADBI Working Paper Series, No. 440). Tokyo: ADB Institute.

Common Market for Eastern and Southern Africa. (2018). Towards digital economic integration (Final communiqué of the Twentieth Summit of the Authority of Heads of State and Government). Retrieved July 20, 2018 from http://www.comesa.int/summit2018/wpcontent/uploads/2018/07/Final-Communique-20.7.18-5.37-1.pdf

Cory, N. (2018). The worst innovation mercantilist policies of 2017. Washington: Information Technology & Innovation Foundation. Retrieved August 1, 2018, http://www2.itif.org/2018-worst-mercantilist-policies-2017.pdf

Cowgill, B., Dorobantu, C., & Martens, B. (2013). Does online trade live up to the promise of a borderless world? Evidence from the EU digital single market (JRC Technical Reports, Digital Economy Working Paper 2013/08 Report EUR 26217 EN). Luxembourg: European Commission.

Das, S. B. (2017). Mind the gap: Explaining implementation shortfalls in the ASEAN economic community (ISEAS Economics Working Paper No. 2017-8). Singapore: ISEAS Yusof Ishak Institute.

Das, S. B. (2018a, March 5). Pursue integration of ASEAN digital economy under ‘open regionalism’. Singapore: ISEAS Yusof Ishak Institute. Retrieved July 12, 2018 from https://www.iseas.edu.sg/medias/commentaries/item/7092-pursue-integration-of-aseandigital-economy-under-open-regionalism-by-sanchita-basu-das

Das, S. B . (2018b, March 7). An ASEAN single digital market? Small beginnings, great endings. Singapore: ISEAS Yusof Ishak Institute. Retrieved July 12, 2018 from https://www.iseas.edu.sg/medias/commentaries/item/7102-to-an-asean-single-digitalmarket-small-beginnings-great-endings-by-sanchita-basu-das

De Franceschi, A. (2016). European contract law and the digital single market: Current issues and new perspectives. In A. de Franceschi (Ed.), European contract law and the digital single market: The implications of the digital revolution (pp. 1–18). Cambridge: Intersentia.

Economic Commission for Latin America and the Caribbean. (2018). Regional digital market: Strategic aspects. Santiago: United Nations.

European Commission. (2015). A digital single market for Europe (Official communique COM(2015) 192 final). Brussels: European Commission. Retrieved July 10, 2018 from https://eur-lex.europa.eu/legalcontent/EN/TXT/?qid=1447773803386&uri=CELEX%3A52015DC0192

European Commission. (2016). Towards a single VAT EU area – Time to decide. Official communique COM(2016) 148 final. Brussels: European Commission. Retrieved July 16 2018 from https://ec.europa.eu/taxation_customs/sites/taxation/files/com_2016_148_en.pdf.

European Commission. (2017). A connected digital single market for all (Official communique COM(2017) 228 final). Brussels: European Commission. Retrieved July 10, 2018 from https://eur-lex.europa.eu/legalcontent/EN/TXT/?qid=1496330315823&uri=CELEX:52017DC0228

European Commission. (2018a). Completing a trusted digital single market for all (Official communique COM(2018) 320 final). Brussels: European Commission. Retrieved July 10, 2018 from https://ec.europa.eu/digital-single-market/en/news/completing-trusted-digitalsingle-market-all

European Commission. (2018b). Digital single market: Creating a digital single market, European Commission actions since 2015. Retrieved June 28, 2018 from https://ec.europa.eu/digital-single-market/en/news/creating-digital-single-marketeuropean-commission-actions-2015

European Commission. (2018c). Towards a common European data space (Official communique COM(2018) 232 final). Brussels: European Commission. Retrieved July 10, 2018 from https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2018:0232:FIN

Google & Temasek Holdings. (2016). e-conomy SEA: Unlocking the $200B digital opportunity. Retrieved July 10, 2018 from https://www.thinkwithgoogle.com/_qs/documents/4859/economy_handout_1_20160525_eXq5Gdl.pdf

Google & Temasek Holdings. (2017). e-Conomy SEA Spotlight 2017: Unprecedented growth for Southeast Asia’s $50B internet economy. December report. Retrieved July 10, 2018 from https://www.thinkwithgoogle.com/_qs/documents/5335/Final_TwG_APAC_TemasekGoogle.pdf

Grossman, G., & Hart, O. (1986). The costs and benefits of ownership: A theory of vertical and lateral integration. Journal of Political Economy, 94(4), 691–719.

Group of 20. (2017, December 1). Overview of Argentina’s G20 Presidency 2018: Building consensus for fair and sustainable development. Retrieved August 1, 2018 from http://www.g20.utoronto.ca/2018/2018-Overview-en.html.

Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52–61.

Hoekman, B., & Kostecki, M. (2009). The political economy of the world trading system: The WTO and beyond. Oxford: Oxford University Press.

Kearney, A. T. (2015). The ASEAN digital revolution. Retrieved August 9, 2019 from https://www.atkearney.com/documents/10192/7567195/ASEAN+Digital+Revolution.pdf.

Leamer, E. (1984). Sources of international comparative advantage: Theory and evidence. Cambridge: MIT Press. Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339–343.

Mattli, W. (1999). The logic of regional integration: Europe and beyond. London: Cambridge University Press.

Organisation for Economic Co-operation and Development. (2016). Cancún declaration: Ministerial declaration on the digital dconomy. Retrieved July 10, 2018 from http://www.oecd.org/sti/ieconomy/Digital-Economy-Ministerial-Declaration-2016.pdf

Organisation for Economic Co-operation and Development. (2017a). Key issues for digital transformation in the G20. Report prepared for a joint G20 German Presidency/OECD Conference, Berlin, January 12. Retrieved August 1, 2018 from http://www.oecd.org/G20/key-issues-for-digital-transformation-in-the-G20.pdf

Organisation for Economic Co-operation and Development. (2017b). OECD digital economy outlook 2017. Paris: OECD Publishing. Retrieved July 22, 2018 from http://dx.doi.org/10.1787/9789264276284-en

Organisation for Economic Co-operation and Development & Association of Southeast Asian Nations. (2017). Business priorities and recommendations to promote digital transformation for an enhanced inclusive business environment in Southeast Asia. Joint OECD-ASEAN Business Statement at the Southeast Asia Regional Forum, August 24, 2017. Retrieved 11 July 2018 from https://www.oecd.org/southeast-asia/events/regionalforum/SEARF_2017_Business_Statement.pdf

Pitakdumrongkit, K. (2018). Addressing digital protectionism in ASEAN: Towards better regional governance in the digital age (Policy Report March 2018). Singapore: S. Rajaratnam School of International Studies. Retrieved July 20, 2018 from https://www.rsis.edu.sg/wp-content/uploads/2018/03/PR180321_Addressing-DigitalProtectionism-in-ASEAN.pdf

PwC. (2018). Accelerate to a trusted digital single market. London: PricewaterhouseCoopers International Limited (PwCIL).

Robson, P. (1998). The economics of regional integration (4th ed.). New York: Routledge. Suominen, K. (2017). Fuelling trade in the digital era: Policy poadmap for developing countries. Geneva, Switzerland: International Centre for Trade and Sustainable Development (ICTSD).

Tay, S., Tan, C., & Kiruppalini, S. (2017). Global megatrends and the ASEAN economic community: Regional integration in context. In S. Tay & J. Tijaja (Eds.), Global megatrends: Implications for the ASEAN economic community (pp. 12–36). Jakarta: ASEAN Secretariat and Singapore Institute of International Affairs.

United States International Trade Commission. (2013). Digital trade in the US and global economies, part 1 (USITC Publication 4415). Retrieved August 1, 2018 from https://www.usitc.gov/publications/332/pub4415.pdf

United States International Trade Commission. (2014). Digital trade in the US and global economies, part 2 (USITC Publication 4485). Retrieved August 1, 2018 from https://www.usitc.gov/publications/332/pub4485.pdf

United States Trade Representative. (2018). 2018 fact sheet: Key barriers to digital trade. Washington: Office of the US Trade Representative. Retrieved August 1, 2018 from https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2018/march/2018-factsheet-key-barriers-digital.

Vu, K. M. (2017). ICT diffusion and production in ASEAN countries: Patterns, performance, and policy directions. Telecommunications Policy, 41(10), 962–977.

Westerman, G., Tannou, M., Bonnet, D., Ferraris, P., & McAfee, A. (2012). The digital advantage: How digital leaders outperform their peers in every industry. MIT-Sloan Management and Capgemini Consulting, 2, 2–23.

World Bank. (2016). World development report 2016: Digital dividends. Washington, DC: World Bank. Retrieved 21 July 2018 from http://www.worldbank.org/en/publication/wdr2016 https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/L/940.pdf. Vu, K.M. (2017). ICT diffusion and production in ASEAN countries: patterns, performance, and policy directions. Telecommunications Policy, 41(10), 962-977.

Zhu, K., Dong, S., Xu, S. X., & Kraemer, K. L. (2006). Innovation diffusion in global contexts: Determinants of post-adoption digital transformation of European companies. European Journal of Information Systems, 15(6), 601–616.

Zwillenberg, P., Field, D., & Dean, D. (2014, January 20). The connected world: Greasing the wheels of the Internet economy. Retrieved August 9, 2019 from https://www.bcg.com/publications/2014/technology-industries-public-sector-greasingwheels-internet-economy.aspx.