Small sure steps, better opportunities for Asean

Goodbye 2015. Welcome 2020. This is the saga of Asean’s efforts to reach that dream of a cohesive economy among 10 countries living and breathing adjacent to each other.

The Asean Economic Community (AEC) is an economic master plan that was forged in 2007 on the 40th year of Asean, largely inspired by Europe’s dream of a one-Europe.

While the 10 Asean members are of a less cohesive nature and highly challenged by geographic boundaries defined by huge bodies of water, it is still a dream that is worth nurturing for the simple fact that when truly united, it carries the potential of being a global economic powerhouse.

If the dream is to be attained, a united Asean economy would be the seventh largest in the world with a combined gross domestic product (GDP) of $2.4 trillion in 2013. In 2050, it could become the fourth largest should its progress remains unhampered.

For most of the countries involved, this would mean unparalleled gains for its peoples – some 600 million-strong, and still robustly growing – majority of who continue to live in the poorest of conditions since centuries ago because of deprived opportunities.

The AEC, after all, is founded on the principle that more opportunities will lead to economic growth and stability. As such, Asean members drafted a blueprint in 2007 that would pave the way for the AEC by the first day of 2016.

2020 vision

Ambitious? You bet. But don’t worry because Asean leaders’ eyes were wide open about this. Therefore, in the last and most recent Asean meeting of leaders held in Malaysia, the AEC dream’s completion was moved to 2020. And if this dream would still stand to be a tad ambitious nearing the new deadline date, the target could be moved by another five years or so until a true AEC would emerge.

The AEC is defined by four pillars: first, the creation of a single market and production base; second, increasing competitiveness as a cohesive economy; third, promoting equitable economic development; and fourth, further integration of Asean with the global economy.

These are all big goals indeed given the diverse cultures – not to mention the miles of water that separates five of the 10 member countries – that define and challenge the unification process to becoming a cohesive face to the rest of the world.

If you can’t think or accept calling yourself a citizen of Asean in the near future, at least at this time, that’s alright. Given more time, the concept could become more palatable, especially when the better windfalls become more apparent and accepted.

8 professions

For now, the most apparent achievement that comes with 2016 is the fact that there will be a free flow of eight agreed professional ranks among the 10 members.

Simply, this means that Filipino doctors, dentists, nurses, architects, engineers, accountants, surveyors and tourism professionals will be able to work freely in any Asean entity starting Jan. 1 next year; and the same opportunity is open for professionals from other Asean members.

Of course, no mass migration across borders is seen to happen given the still unfamiliar procedures that are requisite to working outside one’s native country. But over time, concepts like Asean licensure tests can be expected to become standard for graduates of the concerned professions.

For Filipinos who are among the Asean members with a high number of professionals seeking jobs in the global work place, this bodes well when seeking better employment opportunities in the comparatively more advanced economies of Singapores, Malaysia and Brunei.

(Working in Thailand could be a bit tricky because of the stiffer challenges imposed, i.e., licensing tests in the Thai language and collaboration with a local business. But again, with agreements already signed, a significant pathway has already been opened.)

More in the works

Of course, opening employment doors in the eight professions is just a start. We can expect agreements in the next years to encompass other careers and make labor movement among the 10 members more fluid, especially as travel restrictions among member nations ease.

The more important – and meatier – components of the integration drive would be cutting through trade barriers, i.e., a total elimination of tariffs and duties on products that move within the Asean region.

In the last eight years since the blueprint was signed, about 80 percent of the enumerated economic measures have been implemented. Four of the 10 Asean members, on the other hand, are expected to significant bring down tariffs to near-zero levels starting next year following the progress made by the other six members.

Bridging the development divide, of course, is still a major issue among the 10 nations, but the Philippines being part of the acknowledged more advanced Asean members (Asean-6) has a better chance of leveling the playing field than countries like Cambodia, Laos, Myanmar or Viet Nam.

Baby steps

For a truly one-ASEAN to emerge, a lot of work indeed needs to be done. But looking back at progress made in less than a decade, Asean surely has made good stride compared to attempts by Europe to establish a single community that dates back to 1949 on the rubbles of post World War II.

It had helped that Asean is learning a lot from the protracted struggles of the European Union (formally formed in 1992), the most prominent of which was the financial integration of all the 28 member nations respecting and using just one single currency, the euro.

Armed with the knowledge of how the EU had suffered in melding together the diverse economies of its members, it is just prudent that Asean take baby steps in bringing together the financial strictures of a transnational economic body.

The AEC is one of these small steps towards deeper Asean integration. Let’s take our time and find the best policy directions to take. Asean holds a lot of aces that, if managed well, could triple the per capita income of its population by 2030, raising its citizens’ quality of life to levels enjoyed by today’s advanced nations.

Fifteen years from now is not a long time.

National Collegiate Championship Update

Five teams led by UAAP champion, FEU Tamaraws, NCAA champion, Letran Knights, CESAFI-Cebu champion, University of San Carlos Warriors, UAAP runner-up, UST Growling Tigers, and NCAA runner-up, San Beda College Red Lions are in elite eight stage of the 2015 National Collegiate Championship.

Eleven teams from Luzon, Metro Manila, Visayas and Mindanao are competing in Qualifying Games for three remaining seats in the elite eight. One will come from the Visayas-Mindanao qualifying and two will come from Luzon-Metro Manila qualifying games.

The Visayas-Mindanao qualifying games are being held at Ormoc City from Dec. 8-10. The Luzon-Metro Manila Qualifying Games are schedule on Dec. 9-13 at TIP Gym, Manila and at Faith Gym, Tanauan, Batangas. Participating are Mapua Cardinals and JRU Heavy Bombers from NCAA, National U Bulldogs from UAAP, St. Claire College from NAASCU, Technological Institute of the Phils., PATTS, Olivarez College, South Luzon-Bicol champion and Lyceum Northwestern University Dukes, Northern-Central Luzon champion.

Coach Joe Lipa, PCCL executive director, announced the Luzon-Metro Manila games will be covered live by ABS-CBN Sports and Action channel and televised nationwide.

Facebook and Twitter

We are actively using two social networking websites to reach out more often and even interact with and engage our readers, friends and colleagues in the various areas of interest I tackle in my column. Please like us at www.facebook.com and follow us at www.twitter.com/ReyGamboa.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.