ASEAN FINANCE CORPORATION : A CASE STUDY OF THE PRIVATE SECTOR'S EFFORT IN ASEAN FINANCIAL COOPERATION

Abstract

Increasingly, ASEAN economic cooperation is gaining importance and momentum, with a prime objective to enhance economic development in the ASEAN region. One of the most important aspects of economic cooperation is financial cooperation. Financial cooperation is an important aspect economic cooperation because capital funds are one of the most important item needed for economic development. This AE investigates efforts made for financial cooperation, with special interest in the private sector's endeavour. ASEAN Finance Corporation is used as a case study. The background and achievements of AFC is presented, followed by an evaluation of it. The findings showed that though these efforts made by the private sector are viable, the results are hampered by several constraints. Lack of funds and political autonomy are some of the factors cited. Also, in AFC's case, the profit motive restricts its funding and other merchant banking activities. Nonetheless, these efforts are applaudable as it is encouraging that the private sector is gradually taking a more important role in fostering economic cooperation in ASEAN.