EDITORIAL

Issues On ASEAN Economic Integration 2015

Re-launching of the weekly Kapihan started with a bang on February 28, 2014 with prominent guest, Hon. Luis Arriola, Kazakstan’s representative to the ASEAN and Editor in-Chief of Asian Times magazine. The re-launching was held at Carmen Hotel, the training site of students in Hotel and Restaurant Management, Northwestern Visayan Colleges (NVC), Kalibo, Aklan.

The first Kapihan broadcast after its re-launching was on March 1, 2014. In attendance are panelist: Johnny P. Dayang, lead convenor of Aklan Media Forum, Dr. Ambrosio R. Villorente, former Pres. APCI, Dr. Danilo E. Abayon, Pres. Aklan State University (ASU) and Atty. Allen S. Quimpo, Pres. NVC. The topic is, “Asean Economic Integration in 2015.”

Integration according to English dictionary, New Edition is to make whole or to become complete; to bring parts together into a whole; to remove barriers imposing segregation upon social groups. Economics is the social science concerned with the production, consumption and distribution of goods and services.

BACKGROUND 

ASEAN

Asean was founded in 1967 or 47 years ago. Originally, it was composed of East Asian nations which are: Malaysia, Singapore, Thailand, Indonesia, and the Philippines. Vietnam joined in 1995, Laos and Myanmar in 1997, Brunei and Cambodia in later years. It is an aggrupation of independent states with different ideologies and economic systems yet strong enough to tackle similar problems that persistently hound them-underdevelopment and poverty. Having shed from the dark days of colonialism and feudalism, the ASEAN has evolved into the Asia Pacific region. Today, it is the most successful regional organization in the developing world. Chungyong Rhee, Chief Economist ADB predicted that ASEAN is expected to join the ranks of India and China by 2015.

On their 30th founding anniversary, the members renewed their pledges and commitment towards building a region of peace, freedom and prosperity. Dr. Mahathir Mohamad, former Prime Minister of Malaysia said that we must stand together linking areas and bolstering each other’s strength. Tangible fruits came in dramatic fashion. ASEAN enjoyed the highest GDP growth at 6.9 percent in 1993. Intra ASEAN trade has been growing from $72B in 1992 to $117.6B in 1994. This is buoyed by a highly motivated and professional workforce and traditional values. Common among Asian countries are respect for the old, parents, teachers, the community come before the individual. Family is extended and is responsible for its members, not the government.

The ASEAN Charter was formally signed by all 10 heads of States on November 20, 2007.Alberto G. Romulo, former Secretary, Department of Foreign Affairs said that the mission of ASEAN is to transform the inter-governmental organization into a rules-based concept whose purpose is to meet the challenges and opportunities poised by regional integration, expansion of internal linkages and rapid globalization.

Issues:

Ambassador Cesar B. Bautista, Co-chair Private Sector Competitiveness Center cites hindrances to effect full integration of the Philippines into Asean. One must remember that our country was second to Malaysia in economic development in East Asia during the late 1960’s. Today, we are ranked between 5 and 6. We need to understand our weakness and strength. Reality checks are listed below: 

1. The Philippines is not attracting the same kind of investment as our neighbors. Foreign direct investments from 2000 to 2012 show that – Singapore-$376 B; Thailand-90 B; Indonesia-79 B; Malaysia-74 B; Vietnam-59 B; Philippines-22 B;

The reason is that our business people are lethargic and income tent. In the Philippines, it takes 36 days to register a business, 6 days in Malaysia and 3 days in Singapore. 

Among the Philippines’ underlying weaknesses are:

A. competitive only in 1 or 2 sectors. In most of the other sectors we are in, our products do not sell abroad simply because we are beaten by the competition;

B. there is an imbalance in the distribution of activities in the Philippines’ approach to industry, services and agriculture. Filipinos seem to be looking at and putting industry at a low level at the moment focusing more on services and actually forgetting agriculture;

C. twenty percent of the population holds 80 percent of the wealth, while 40 riches persons in the Philippines have total assets of $44.7B equivalent to 70 percent of Gross Domestic Product, in contrast to Thailand’s 33.7 percent, Malaysia’s 5.6 percent and Japan’s 2.8 percent.

D. Some 2.92 million or 7.2 percent of our workforce is unemployed. And that’s the result of the productivity problem. The country must create 1.5 million jobs each year to address massive poverty and hunger. This can only be rectified by training and development. In contrast, Thailand has only 1 percent, Vietnam and Brunei – 2.7 percent each, Singapore – 2.8 percent, Malaysia – 3.4 percent, Cambodia – 1.4 percent, Laos – 1.8 percent, and Indonesia – 7.0 percent.

E. We have more than 3,000 people leaving the country each day. This translates to lost opportunities for the country to become stronger. Our OFW’s is 8 million. There are 300,000 domestic helpers in Hongkong majority of them Pinays. Although annual remittances is a hefty $22.8 B this also leads to social disorders – family breakdown, insecurity, drugs and crime. 

F. Preponderance of armed conflicts – NPA and Muslim secessionists. For instance a month long military standoff between government forces and MNLF in Zamboanga City in September 2013 cost the government P300 million and lost nearly 200 lives.

Hon. Arriola, a well traveled man in Asia, observed that our native handicraft has not caught the eye of foreigners simply because it is not branded. A branded product reflects taste and sophistication because of quality workmanship and right packaging. Our batek which we love to wear are artfully designed by Filipinos in Indonesia. 

Piña cloth could be used as base material in ladies bags, gift packs, home furnishings aside from being worn as elegant gowns or barongs. A number of famous Pinoy courier have adopted and transformed the gossamer pineapple fibers into a workmanship worthy of praise, said Mr. Arriola. 

Atty. Quimpo believes that current mismatch between college graduates and job requirements is unresearched response to a phenomenon. Many schools open up nursing courses but after a few years, job opportunity is lost. There has to be established guidelines by Commission On Higher Education that certain institutions must adhere to an approved quota say over a 15 year period, turn out quality graduates and automatically stop the nursing course on expiry date because jobs are no longer available. 

Secretary Rosalinda Baldoz of Department of Labor and Employment recently revealed that the country will open its doors to imports whose expertise are in the following fields: Architecture, Chemical Engineering, Chemistry, Environmental Planning, Fisheries, Geology, Guidance Counselling, Librarian, Medical Technology, Sanitary Engineering, Computer Numerical Contractor, Machinist, Assembly Technician, Test Technician, Pilot and Aircraft Mechanic. 

Dr. Villorente said that we cannot compete with Thailand in terms of fruit production for the next 10 years since they are already far advanced than us. 

This is echoed by Dr. Abayon that ordinary fruits like rambutan and mangosteen could be marketed and priced higher because of unique quality of taste, odor and consistency. For instance, through research and multiplication we were successful in developing angel sweet rambutan. Aside from this, this rambutan could be processed into prunes. Mangosteen marketing strategy was to adopt the catchword “healthy” to the product label. 

Juan Dayang, an inveterate journalists and organizer cited rationale of holding regular media forum to discuss areas of interest and concern, be governance, fiscal management, health and safety. Live broadcast from cable TV stations allow televiewers to inter-act with panelists and recommend solutions/suggestions. PAPI, FPPC and APCI have joined forces in coordination with the academe led by ASU and NVC and the Catholic Church. Kapihan is geared to create awareness, needs and actions among our people. Such is the essence of participatory democracy, Dayang concluded. /MP