Economic growth in Southeast Asia slowed down in 2011 after the sharp recovery in 2010 from the global financial and economic crisis of 2008–9. A cooling down was particularly evident in the second half of the year. There was considerable uncertainty about how the European crisis would unfold, the prospects of a U.S. recovery, how much China would decelerate, and the future of oil prices.

In the political arena, the changes in Myanmar were the most striking. Reforms enacted during the elected government's first year in office under the new constitution exceeded the expectations of most observers. Less media grabbing, but still important, was the Singapore general election in May. It signified a more open and competitive political environment and more vigorous debate of government policies. There was little change in the political openness (or lack of it) in other countries in the region. The general election in Thailand made no difference to the continuing political polarization in the country. Indonesia was generally stable and attracted more attention as an investment destination. However, good growth rates masked continuing economic weaknesses and failure to protect religious minorities was also a troubling blemish. Democracy is not yet entrenched in strong institutions.

In Southeast Asia's interstate relations, the border conflict between Thailand and Cambodia stood out, demonstrating the role of narrow nationalism over wider ASEAN interests. Elsewhere interstate relations were generally amicable, though often not problem free. There are still many unresolved boundary disputes and border problems — both land and maritime — between Southeast Asian countries. Though mostly quiet for the moment, there is the risk of flare-ups if they are politicized within countries as happened in the case of the Thai-Cambodia border conflict.

The year also saw the United States announcing a shift of strategic focus from the Atlantic to the Pacific, or more precisely to the “Indo-Pacific” region, which includes both the Asia Pacific and India/Indian Ocean. This reflected the shift in global economic power towards Asia where America would want continued commercial access to sustain its own growth.