Initiative for ASEAN Integration & Narrowing Development Gap (IAI & NDG)
Background
When the Association of Southeast Asian Nations (ASEAN) first came into being on 8 August 1967, it comprised of five founding nations – Indonesia, Malaysia, the Philippines, Singapore and Thailand. In 1984, Brunei Darussalam joined ASEAN, followed by Viet Nam in 1995, Lao PDR and Myanmar in 1997 and Cambodia in 1999.
The entry of the latter four member states into ASEAN raised concerns over the possible emergence of a “two-tier ASEAN”. This created a development gap, evident not only in the disparity between the average per capita income of the six older ASEAN Member States (AMS) and that of the newer four, but also in terms of human resources, institutional capacity, the state of the infrastructure and the level of competitiveness.
Against this backdrop, the ASEAN Heads of State/Government, at their Summit meeting in November 2000 in Singapore, adopted a special programme for narrowing the development gap, calling it the “Initiative for ASEAN Integration” or “IAI”. The initiative aims to provide a framework for regional cooperation through which the more developed AMS could help those that are most in need, with the view of narrowing the development gap and enhancing ASEAN’s competitiveness as a region. Following through on the Leaders’ decision, in July 2001, the ASEAN Foreign Ministers adopted the Ha Noi Declaration on Narrowing the Development Gap for Closer ASEAN Integration.
Since then, the IAI Work Plan I (2002-2008), IAI Work Plan II (2009-2015), IAI Work Plan III (2016-2020) and IAI Work Plan IV (2021-2025) have laid down measures and actions through which the more developed AMS – supported by ASEAN Partners and international organisations – provide the necessary support and technical assistance to Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV) to enhance their capacity in meeting regional commitments and obligations.
Guided by the ASEAN Leaders’ Statement on the Application of Timor-Leste for ASEAN Membership adopted at the 40th and 41st ASEAN Summits held on 11 November 2022 in Cambodia, the IAI Task Force, as the governing body for IAI and NDG initiatives, had reached a consensus to allow Timor-Leste to become a full beneficiary of IAI projects since May 2024, alongside the existing beneficiary of Member States.
The IAI Work Plan II (2009-2015) was endorsed at the 14th ASEAN Summit in 2009 with the vision to assist the CLMV countries to meet ASEAN-wide targets and commitments towards realising the ASEAN Community. The work plan was formulated based on the key areas in each of the ASEAN Community Blueprints, namely the ASEAN Political-Security Community Blueprint, ASEAN Economic Community Blueprint and ASEAN Socio-Cultural Community Blueprint. The IAI Work Plan II comprised 182 prescribed actions, out of which 19 are studies, 78 policies and implementation support and 85 training programmes/apprenticeships/other capacity building initiatives. The implementation of the IAI Work Plan II (2009-2015) was extended until the adoption of the IAI Work Plan III (2016-2020) on 6 September 2016. A total of 383 projects valued at approximately of USD 49.8 million were implemented during the period of this Work Plan.
The IAI Work Plan III (2016-2020) was adopted at the 28th ASEAN Summit in September 2016 as an integral part of the ASEAN 2025: Forging Ahead Together to support the implementation of the three Community Blueprints. The Work Plan was designed to assist CLMV countries to meet ASEAN-wide targets and commitments towards realising the goals of the ASEAN Community. It consisted of five strategic areas, namely food and agriculture, trade facilitation, micro, small and medium enterprises (MSMEs), education, and health and well-being. The actions were closely aligned with the ASEAN Community Blueprints 2025 and relevant ASEAN sectoral work plans. A total of 133 projects valued at approximately USD 42.87 million were implemented during the period of this Work Plan.
The IAI Work Plan IV (2021-2025) was adopted at the 37th ASEAN Summit in November 2020. It maintains the five strategic areas of the IAI Work Plan III with revised and new actions, and has considered new challenges and emerging issues, such as Industry 4.0, Gender and Social Inclusion, Environmental Sustainability, as well as the impact of COVID-19 pandemic. The implementation of the IAI Work Plan IV (2021-2025) commenced on 1 January 2021 and is currently ongoing.
a. IAI Task Force
The IAI Task Force comprising the ten Permanent Representatives to ASEAN provides policy guidance and directions in the development and implementation of the IAI Work Plan. The Chair of the IAI Task Force serves a term of one year and rotates according to alphabetical order among the CLMV countries. The IAI Task Force reports to the ASEAN Coordinating Council.
b. National Coordinators and Focal Points
At the national level, National Coordinators comprising officials from the Ministry of Foreign Affairs in CLMV and Timor-Leste will be responsible for all IAI planning and activities in their respective countries. They are supported by Focal Points to ensure successful implementation of the strategic areas of the IAI Work Plan.
c. Secretariat
The IAI & NDG Division of the ASEAN Secretariat serves as the secretariat to the IAI Task Force as well as supports the monitoring and coordination of the IAI Work Plan’s implementation.
d. IAI Task Force Meeting
The IAI Task Force meet at least three times a year. Additional meetings can be convened as and when necessary.
e. IAI Task Force Consultation Meeting with ASEAN Partners
The Consultation Meeting of IAI Task Force and ASEAN Partners provides a platform for the IAI Task Force to update the Partners and receive feedback on the implementation of the IAI Work Plan. The Meeting also provides opportunities for ASEAN Partners to present their priority areas of funding and interests relevant to IAI. The Consultation Meeting of IAI Task Force and ASEAN Partners is held once a year.
f. Guidelines for IAI Projects
Mobilising resources, which includes skills and financing, is the major focus of implementation efforts at both the national and regional levels. To ensure effective resource mobilisation, IAI projects follows the Standard Operating Procedure on Projects Appraisal and Approval of the ASEAN Secretariat to ensure that the project proposal is well-developed and the resource mobilisation is channeled through the appropriate mechanism.
A consistent project recognition process for all initiatives contributing to the IAI ensures transparency, enhances coordination of IAI investments, and facilitates effective monitoring of project inputs and outputs. The IAI Task Force accredits projects that support the implementation of the IAI Work Plan in accordance with the Guidelines for IAI Projects. These Guidelines are aimed to inform project proponents about the procedures for identifying, developing, and securing approval for projects aligned with the IAI Work Plan. They apply to projects funded by AMS as well as ASEAN Partners.
The Guidelines for IAI Projects can be found as Annex C of the IAI Work Plan IV (2021-2025). In light of the decision of the IAI Task Force to allow Timor-Leste to become a full beneficiary of IAI projects, amendments to the Guidelines for IAI projects have been made and endorsed ad-referendum by the IAI Task Force on 11 October 2024. The amended Guidelines for IAI Projects can be downloaded here.
There has been significant progress since the launch of the IAI in 2000. From 2000 to 2024, Gross domestic product (GDP) per capita, a measure of income gap among countries, CLMV countries rose faster with annual average growth rate of 10%, compared with 6.3% in ASEAN-6. Despite the economic hardships and challenges brought about by the COVID-19 pandemic, the average GDP growth of the CLMV countries between 2020 and 2024 was nearly on par with that of the ASEAN-6, with Viet Nam recording the highest average growth during the period . The Foreign Direct Investment (FDI) in the CLMV countries has also shown robust growth since 2000, with Viet Nam surpassing some of the ASEAN-6 in average FDI inflows over the period 2000–2024.
From 2000 to 2023, the Human Development Index (HDI) in ASEAN grew at an average annual rate of 0.8%, rising from 0.62 to 0.74. Over the same period, the human development gap between ASEAN-6 and CLMV narrowed, although the pace of convergence has been relatively slow since 2000. According to the Narrowing the Development Gap: Follow-Up Monitor of the ASEAN Framework for Equitable Economic Development (AFEED) report, the human development in ASEAN has steadily improved over time, with the gap among member states gradually narrowing. The increased proportion of births attended by skilled health personnel in the region contributes to the declined of maternal mortality rate. On the education sector, there is an increased rate in literacy and school participation, reflecting greater investments in education and learning environments. While quality of infrastructure in CLMV countries lags behind that of the ASEAN-6, the internet penetration and 4G mobile network coverage in the CLMV countries have made notable progress. Access to electricity is now nearly universal across ASEAN, with most member states reaching above 95% coverage, except for Cambodia (86.4%) and Myanmar (70.4%), based on the latest available data.
At the same time, regional integration gathers pace, and the scale and complexity of ASEAN commitments and agreements are growing substantially. The ASEAN Community Vision 2025 reiterated the commitment to equitable development and narrowing development gap. Furthermore, alignment to the ASEAN Community Vision (ACV) 2045 and its respective Strategic Plans will ensure that the region’s efforts to narrow the development gap remain integrated into the ASEAN’s broader community-building agenda to enable contribute meaningfully to building a more inclusive, resilient, and competitive region.
ASEAN Secretariat, GDP July 2025 and IMF WEO, April 2025
ASEAN Secretariat, FDI data as of 1 July 2025
UNDP (https://hdr.undp.org/data-center/documentation-and-downloads)
Sub-regional cooperation within ASEAN includes the Indonesia–Malaysia–Thailand Growth Triangle (IMT-GT), Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), CLMV Summit and Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS). While the IAI & NDG Division of the ASEAN Secretariat is not the secretariat to these sub-regional cooperation mechanisms, it has been regularly invited to participate in their meetings.
- Ha Noi Declaration on The Adoption of the Initiative for ASEAN Integration (IAI) Work Plan IV (2021-2025)
- Review of IAI Work Plan III and the MRE System
- Kuala Lumpur Declaration on ASEAN 2025: Forging Ahead Together
- Mid-Term Review of the Implementation of IAI Work Plan II
- Mid-Term Review of the IAI Work Plan I
- Vientiane Action Programme 2004-2010
- Declaration of ASEAN Concord II (Bali Concord II) 2003
- Hanoi Declaration on Narrowing Development Gap for Closer ASEAN Integration 2001
- Narrowing the Development Gap: Follow-Up Monitor of the ASEAN Framework for Equitable Economic Development
- ASEAN Equitable Development Monitor 2014
- Increasing the Competitiveness of the Agriculture, Food & Forestry Sectors to Close the Development Gap for the CLMV Economies
- Needs Analysis for Narrowing Development Gaps in the Cosmetic Sector of Cambodia, Lao PDR, Myanmar & Viet Nam – Implementing the ASEAN Cosmetics Directive
- NDG Policy Briefs – accompanying policy briefs to the book “Narrowing the Development Gap in ASEAN: Drivers and Policy Options” (2013)
- Study to Determine the Impact of Accelerating the AEC from 2020 to 2015 on CLMV
| Completed | Projects that have been completed with the submission of the completion report. |
| Implemented | Projects that have been implemented but the implementing agency is yet to submit the completion report. |
| On-going | Projects that are currently being implemented. |
