Comments welcome! PLEASE DO NOT CIRCULATE!

Over the past decade, the Association of Southeast Asian Nations (ASEAN) has shifted from its original focus on regional peace and stability towards embracing a progressively economics-dominated agenda. A multitude of initiatives concerning cooperation in the areas of trade and finance has been launched. At the 2003 ASEAN Summit in Bali, ASEAN leaders even declared the goal of establishing an ASEAN Economic Community by 2020. This paper discusses two factors that have contributed to ASEAN’s increasing focus on economic cooperation: (1) the Asian financial crisis, and (2) the emergence of China as a major international and economic power. It is argued that these determinants have paved the way for closer economic cooperation within the region despite the great heterogeneity and conflicting interests of the ASEAN member countries