Asean can’t afford to miss out on Belt and Road push

In considering the merits of China’s Belt and Road Initiative, the member states of the Association of South-east Asian Nations (Asean) have little room for manoeuvring (China’s Belt and Road: Devil is in the details; May 19).

From the Marshall Plan to the Asian Development Bank, history has demonstrated that participation in economic blocs is lucrative, regardless of the geopolitical risks and costs assumed. Exclusion or abstention from these institutions has seldom worked in countries’ favour.

After all, members within a trade pact are more likely to engage with one another than with external partners.

For example, China’s induction into the World Trade Organisation in 2001 was key to expediting its industrial development by enabling access to markets based on established standards.

Now that Beijing is striving to create its own trade ecosystem, Asean can scarcely risk being left out in the cold.

The benefits are apparent: They include investment in infrastructural projects, such as ports and high-speed rail, and preferential access to what will become the world’s largest market.

China has launched several initiatives on its part, such as an International Import Exposition, enabling its trade partners to serve mainland consumers better. This may mitigate Asean’s trade deficit with China.

There are political risks associated with dependency and leverage, but these are not unique to the Belt and Road proposition. All economic agreements carry some element of a broader agenda.

The details are cause for some concern, but at the same time, we cannot miss the forest for the trees.