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The ASEAN Economic Community (AEC) shall be the goal of regional economic integration by 2015. AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy.
Patterned after European Union, Would it be beneficial equally amongst Southeast Asian Countries?
Would it be eventually presented as one single unit like the EU?
Would it use a common currency just like the Euro money?
I actually studied about this as part of my homework in my business class on Friday. The proposals would be more similar to NAFTA than the EU. In NAFTA, there is no free movement of labor except for certain classes of workers, and you still need to be approved for a visa unlike the EU where you just show them an EU member passport and you're good to go. We also have our own separate currencies still, and from what I know about ASEAN already, there are no plans for a regional currency in the works.
In my view, more free trade is a bad idea. Free trade works for the corporate class and governments, but not for ordinary people. Lower skilled jobs, like garment making, food processing, etc. in the Philippines might be offshored to lower cost countries like Laos, Cambodia, etc.
The problem is that full integration has massive distribution effects within countries and across ASEAN.
A pre-integration phase is warranted, focused on standards, best practices and transparency. But since countries are intentionally opaque and since many industries are tied to government or to political parties or families, it is hard to see rapid progress on this. But the conversation is healthy. Jut do not expect anything beyond glacial progress from within ASEAN.
More likely, ASEAN integration will be jump started from "requests" (read "demand") from the big four external economies to ASEAN: China, the US, Japan and the EU.
I actually studied about this as part of my homework in my business class on Friday. The proposals would be more similar to NAFTA than the EU. In NAFTA, there is no free movement of labor except for certain classes of workers, and you still need to be approved for a visa unlike the EU where you just show them an EU member passport and you're good to go. We also have our own separate currencies still, and from what I know about ASEAN already, there are no plans for a regional currency in the works.
In my view, more free trade is a bad idea. Free trade works for the corporate class and governments, but not for ordinary people. Lower skilled jobs, like garment making, food processing, etc. in the Philippines might be offshored to lower cost countries like Laos, Cambodia, etc.
Hmmnn.. Nice one sir, very informative.
So given those scenarios you've mentioned, What would be the reason why ASEAN states / leaders are pushing this to happen? What would be the advantage economically or politically?
Could share us more on your lesson please. Thanks a lot.
The problem is that full integration has massive distribution effects within countries and across ASEAN.
A pre-integration phase is warranted, focused on standards, best practices and transparency. But since countries are intentionally opaque and since many industries are tied to government or to political parties or families, it is hard to see rapid progress on this. But the conversation is healthy. Jut do not expect anything beyond glacial progress from within ASEAN.
More likely, ASEAN integration will be jump started from "requests" (read "demand") from the big four external economies to ASEAN: China, the US, Japan and the EU.
S.
Good point sir, so meaning it is intended more for economic clustering first and foremost?
You've mentioned the big 4 as probably the reason behind this effort.. Would it be disadvantageous to China? considering that their industry and economy are heavily based on manufacturing, cheap labor, etc. Somehow ASEAN states - like Myanmar, Cambodia, Timor Leste can also offer cheap labor?
It's a very rough generalisation but the beginning of the EU was basically built on the bloody history of being invaded by Germany,after that,it's the relatively equal wealth and the amicable relations among member states.
ASEAN nations were invaded by Japan,however Japan has never been in the union since day one,and some of the member states are probably more afraid of China nowadays,so the background of "embracing our crazy enemy to prevent another war" didn't exist in the first place.
Secondly,most countries in SE Asia are not in good terms.I'm not saying they hate each other,but the cancellation of border control is almost unthinkable for these countries.
Last but not least,almost every country in this region is pretty poor,or at least has a lot to desired,except for Singapore.For a wealthy continent like Europe,the Euro zone was like being hit by Regina George in 2008 and it was totally not awesome.The Euro zone is still very fragile,countries like Greece and Portugal are in the ****tiest place.A common currency almost failed in Europe,I really don't think it's gonna work in SE Asia.
It's probably not appropriate to say it's never gonna happen though since we'd never know what's gonna happen in the future,but an EU kind of integration in SE Asia is certainly not gonna happen anytime soon.
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