Latin America has experienced its ups and downs for centuries. Its development tends to take a long time, even after it is free from colonialism. However, ASEAN is also a region that grew from zero after colonialism and is growing faster even with such a small area. So, where is the problem, and how can Latin America learn from ASEAN?

The following is an analysis and explanation of how the Central American organization, SICA, can learn to improve by studying the dynamics of ASEAN as a region that is experiencing regionalization and decolonization. SICA is one of the most successful organizations in Latin America, specifically Central America, and studying more on how ASEAN has increased its success, might help SICA and other Latin American organizations improve their regionalization strategy to a more holistic concept, especially by utilizing the real concept of decolonization.

In allusion to Hameiri (2012), regionalization is a dynamic process of states adjusting their behavior and structures to find solutions and influence a new set of values and interests, such as state norms, policy-making processes, policy styles, policy content, political opportunity structures, economies and identity at a regional level. By adjusting this, it can later impact various aspects of governance, economy, politics, and identity from within the region. Hence, we are using SICA as an example of how regionalization is truly implemented to create this organization.

SICA is The Central American Integration System. SICA is a regional organization that was formed to promote economic integration and cooperation among its member states. Papageorgiou (2013) mentioned that it was established in 1993, including Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama as they have the same common goals. SICA creates a free trade area, developing a state customs union and the common market. However, there is still a need for increasing investment in infrastructure, especially in tackling external global economic trends. SICA’s cooperation within Central America aimed to deepen economic integration and strengthen regional cooperation, such as climate change and sustainable development. To establish a long-term dynamic, this institution must be improved to hold every country together.

After escaping from the bonds of colonialism, SICA has established various forms of regionalization. It has notable initiatives, such as the Treaty of Integration and Central American Economic, the Central American Free Trade Agreement (CAFTA), and the Central American Integration System Charter. On the other hand, ASEAN is also a decolonizing region, just like SICA. However, ASEAN integration, regionalization, and achievements are more visible and implemented compared to SICA’s dynamic.

Since SICA and ASEAN both have a history of colonization, it is only natural for SICA to warn against the possibility of being colonized again by deepening decolonization. Olufemi Táíwò’s book (2022) says that decolonization is not limited to anything socially progressive but the struggle to be politically and economically self-determined. Decolonization cannot pragmatically reject cultures, intellectuals, and social practices that reject colonialism; instead, it dissects incidents of colonialism and learns what should be done, which has not been implemented holistically by SICA.

Regionalization of SICA still tends to be premature because Stein (2020) mentioned their challenges, such as the withdrawal of Costa Rica during the Cuban Migrant Crisis in 2015. This crisis was due to Cuba’s instability in terms of economy and politics. On the other hand, SICA needed to assist. SICA is still not trusted by Cuba due to historical factors, the absence of trade benefits from SICA, and the unreasonable ambition of SICA to become a supranational organization, and it is about time for SICA to learn more from ASEAN instead of the European Union as it already is shared a different past and starting point.

Based on the Secretaria General Del Sistema De La Integración Centroamericana (2007), SICA does not have the authority to enforce its decisions or impose penalties on member states, which members can choose to ignore SICA’s decision. Next, SICA lacks discipline in setting meeting agendas and decision-making processes; simply put, SICA is inconsistent. Next, The Tegucigalpa Protocol, as the primary instrument for SICA’s integration, does not provide clear mechanisms for implementing decisions, which leads to confusion. Moreover, Lastly, SICA’s members retain control of their internal affairs, which is exemplified in Costa Rica’s decision to suspend political acts. Lastly, SICA is limited in its budget and resources, which is the core of economic integration.

Moving on to the deeper level of regionalization, SICA needs to understand the impacts of decolonization according to Táíwò’s understanding. First, do not oversimplify; SICA countries only maintain the status quo of the existence of this organization. SICA does not have a consistent agenda for discussing their interests. Meanwhile, ASEAN is complete and consistent with regular meetings and special meetings, varied in frequency, and members do participate; for example, the 43rd ASEAN Summit in Jakarta included leaders from ASEAN countries, as well as partner countries such as China, India, South Korea, Japan, New Zealand, Australia, the Russian Federation, and the United States. If SICA is really serious, a meeting like this will definitely be attempted.

The second point is that SICA needs to be more careful when choosing its trading partners. They should strengthen relations between countries in SICA. After all, this organization contains countries that share the same fate and refuse to integrate with the rest of Latin America. Instead, they chose to prioritize cooperation with the European Union by looking at its specific funding allocation with a maximum budget of EUR 27 million, according to the European Commission (2007). This regionalization should free them from the trap of colonization, not the other way around, they could have used the budget to strengthen SICA’s inter-country special tariff program or more partnership with other global south countries or regional organizations.

Latin America as a whole is known for its fragile economy, and it is natural that SICA still needs to learn. On the other hand, ASEAN’s non-intervention policy can be explored to learn how important it is to navigate the colonial legacy and the complexity of the country’s relations with colonizers. ASEAN’s non-intervention boundaries give them an economic shield to warn against the presence of the UK, which is still economically attached to Malaysia. Their closeness is proven by the United Kingdom Government (2024), where British Investment in Malaysia is worth £1.3 billion invested in various sectors, including manufacturing, agriculture, and services, and Malaysia has been increasingly investing in the UK, with a stock of foreign direct investment (FDI) from Malaysia in the UK amounting to £2.4 billion in 2021.

Finally, Táíwò suggests that decolonization must prioritize state-building, not just reject the colonial legacy. SICA exists for this purpose, but again, it just built an organization that paid little attention to its main opponent – ​​the European Union – and ended up on another slippery slope. Herrera & Olaberría (2020) mentioned the budget rigidity within SICA countries due to institutional, legal, contractual, or other constraints that make it difficult to change the size and structure of the public budget. Next, the budget is less flexible – wages, pensions, and debt service are naturally inevitable – and is rooted in the constitution, laws, or decrees that earmark revenues, set minimum spending requirements, or link spending to macroeconomic variables. Furthermore, these countries are prone to corruption and low transparency; the proof is that the SICA corruption index is still large for the countries Nicaragua (17), Honduras (23), Guatemala (23), El Salvador (31), Panama (35), Costa Rica ( 55), Belize (no data), while the median is 40 for the level of corruption, the lower the level of corruption, the greater the corruption (Statista, 2023). In conclusion, Latin America, especially SICA, needs to learn a lot from regional organizations that have backgrounds similar to theirs, such as ASEAN, which was once colonized and is full of culture. However, this regionalization is a good first step in helping countries in Central America and inspiring other Latin American countries. Apart from that, SICA needs to touch more on real decolonization. By implementing decolonization well, SICA can improve its regionalization strategy and start improving directly from the state-building of each country. In contrast, before strengthening regional strength, SICA can start from each country to maintain the credibility and development of its own country even better.