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ASEAN: Ten Nation Moving ASEAN: Ten Nation Moving Forward As One Forward As One
Jose Concepcion, Jr.Jose Concepcion, Jr. Chair, ASEAN-BAC PhilippinesChair, ASEAN-BAC Philippines
Chair, East Asia Business Council (EABC)Chair, East Asia Business Council (EABC)Former Philippine Trade & Industry SecretaryFormer Philippine Trade & Industry SecretaryFormer President of the ASEAN Chambers of Former President of the ASEAN Chambers of
Commerce and IndustryCommerce and Industry
INTRODUCTIONINTRODUCTIONAfter the World War II most of the developing After the World War II most of the developing countries adopted thecountries adopted the State-led development State-led development where the state planned and managed where the state planned and managed economic development, allocation of economic development, allocation of resources, production of goods and services resources, production of goods and services for public and private consumption.for public and private consumption.
In mid 1980’s many developing countries are In mid 1980’s many developing countries are undertaking structural reforms aimed at undertaking structural reforms aimed at encouraging private sectors to play a greater encouraging private sectors to play a greater role in economic arena. Many economic role in economic arena. Many economic policies aimed to strengthen market forces policies aimed to strengthen market forces and increase competition and increase competition
The Association of Southeast Asian Nations (ASEAN) The Association of Southeast Asian Nations (ASEAN) is the largest and oldest organization of its kind in is the largest and oldest organization of its kind in Asia, it was formed on August 8, 1967 by Indonesia, Asia, it was formed on August 8, 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand, when Malaysia, Philippines, Singapore and Thailand, when the foreign ministers of the five countries met at the the foreign ministers of the five countries met at the Thai Department of Foreign Affairs building in Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration commonly known as the Bangkok Declaration
Its aims include the acceleration of economic Its aims include the acceleration of economic growth, social progress and cultural development growth, social progress and cultural development among its members, and the promotion of regional among its members, and the promotion of regional peace and stability by abiding respect for justice peace and stability by abiding respect for justice and the rule of law in the relationship among and the rule of law in the relationship among countries in the region and adherence to the countries in the region and adherence to the principles of the United Nations Charterprinciples of the United Nations Charter
The regional bloc grew when The regional bloc grew when another five Asian Countries another five Asian Countries (Brunei, Cambodia, Laos, (Brunei, Cambodia, Laos, Myanmar and Vietnam) joinedMyanmar and Vietnam) joined
At the height of the global economic At the height of the global economic crisis, in December 1997, the ASEAN crisis, in December 1997, the ASEAN leaders had spelled out their vision of leaders had spelled out their vision of an integrated ASEAN economy in the an integrated ASEAN economy in the first two decades of the new century. first two decades of the new century.
Economic cooperation and integration became Economic cooperation and integration became the key pillar of the entire region’s future the key pillar of the entire region’s future development.development.
The need to move toward a stronger market-The need to move toward a stronger market-driven and export oriented strategies has driven and export oriented strategies has intensified.intensified.
The spheres of economic influence regionally The spheres of economic influence regionally and globally are shifting. China is now expected and globally are shifting. China is now expected to become the world’s third largest economy. to become the world’s third largest economy.
Which make it imperative for Asian countries to Which make it imperative for Asian countries to work together to forge effective and efficient work together to forge effective and efficient integrated regions that can take advantage of integrated regions that can take advantage of the opportunities for increased cooperation. the opportunities for increased cooperation.
Nature of ASEAN as Nature of ASEAN as Regional BlocRegional Bloc
The ASEAN leaders emphasize friendship, The ASEAN leaders emphasize friendship, understanding, consensus, and non-intervention understanding, consensus, and non-intervention to promote regional peace and stability.to promote regional peace and stability.
Consultations and consensus are the most Consultations and consensus are the most enduring features of ASEAN enduring features of ASEAN
The leaders emphasized that the successful The leaders emphasized that the successful building of an ASEAN Community that is truly building of an ASEAN Community that is truly people-oriented by 2015 requires the cooperation people-oriented by 2015 requires the cooperation and contribution of all sectors of ASEAN society and contribution of all sectors of ASEAN society and the participation of ASEAN peoples in all and the participation of ASEAN peoples in all aspects of community-building aspects of community-building
ASEAN Significant ASEAN Significant MilestoneMilestone
ASEAN CharterASEAN Charter – is a constitution – is a constitution for the ASEAN, which will guide the for the ASEAN, which will guide the construction of the ASEAN construction of the ASEAN CommunityCommunity
Roadmap for the ASEAN Community - Roadmap for the ASEAN Community -
From Economic Cooperation From Economic Cooperation To Economic IntegrationTo Economic Integration
The ASEAN Vision 2020 statement The ASEAN Vision 2020 statement declared that “ declared that “ The ASEAN Economic The ASEAN Economic Community shall establish ASEAN as Community shall establish ASEAN as single market and production base” single market and production base”
This the large evolution step that This the large evolution step that ASEAN has taken as it now ASEAN has taken as it now progressed to the most extensive progressed to the most extensive goal, the creation of a single marketgoal, the creation of a single market
Economic Economic Cooperation Cooperation
Economic Economic IntegrationIntegration
is a preferential is a preferential treatment that aims treatment that aims to reduce tariffs and to reduce tariffs and commercial barriers commercial barriers among its member among its member countries countries
Removal of some Removal of some measures that measures that discriminates against discriminates against foreign suppliers of foreign suppliers of goods and services. goods and services. Economies of its Economies of its member nation is member nation is completely completely integrated. Which integrated. Which means establishment means establishment of a single marketof a single market
ASEAN ECONOMIC COMMUNITY ASEAN ECONOMIC COMMUNITY Strategic ScheduleStrategic Schedule
Single Market and Production Single Market and Production BaseBase
10
Free Flow of Goods
Free Flow of Services
Free Flow of Capital
Free Flow of Skilled Labor
Priority Sectors Integration
Food, Agriculture and Forestry
Competitive Economic RegionCompetitive Economic Region
11
Competition Policy
Consumer Protection
Infrastructure Development
Intellectual Property Rights
Taxation
e-Commerce
Equitable Economic Equitable Economic DevelopmentDevelopment
12
SME Development
Initiative for ASEAN Integration (IAI)
Integration into the Global EconomyIntegration into the Global Economy
13
Coherent Approach towards External
Economic Relations
Enhanced Participation In global supply
networks
The ASEAN ChallengesThe ASEAN Challengesand Roadblocksand Roadblocks
Narrowing the development gap within the Narrowing the development gap within the regionregion
Ensuring that the different Regional Trade Ensuring that the different Regional Trade Agreement will be consistent with the Agreement will be consistent with the ASEAN Vision and will not have a ASEAN Vision and will not have a “spaghetti bowl effect”.“spaghetti bowl effect”.
Lack of participation from the Civil Society Lack of participation from the Civil Society Organization – CSO’s could also provide Organization – CSO’s could also provide important insights, feedback to make important insights, feedback to make ASEAN more people orientedASEAN more people oriented
The need to strengthen the Political The need to strengthen the Political and Social Pillar of the ASEAN and Social Pillar of the ASEAN Community so we can create a Community so we can create a cohesive community, since ASEAN is cohesive community, since ASEAN is composed of countries with varying composed of countries with varying naturenature
Making the ASEAN concept Making the ASEAN concept meaningful to all the citizens in the meaningful to all the citizens in the region, this must be understood and region, this must be understood and embraced by all. embraced by all.
ASEAN Prospects and ASEAN Prospects and OpportunitiesOpportunities
The Pan-Asian level, the diversities in the The Pan-Asian level, the diversities in the levels of economic development and levels of economic development and capabilities are quite wide, thus, providing capabilities are quite wide, thus, providing for more extensive and mutually beneficial for more extensive and mutually beneficial linkages. linkages.
The formation of an Asian Economic The formation of an Asian Economic Community (AEC) will also help the region to Community (AEC) will also help the region to play a more effective role in shaping a world play a more effective role in shaping a world trading and financial system that is more trading and financial system that is more responsive to its needs. responsive to its needs.
Taking the Next Big Step Taking the Next Big Step Forward Forward
Even with all the hype about economic Even with all the hype about economic development, through regional development, through regional
integrationintegrationnot all were able to achieve this goal. not all were able to achieve this goal.
ASEAN with its diverse socio –political ASEAN with its diverse socio –political and economic milieu we have a goal and economic milieu we have a goal top materialize, and that is to create a top materialize, and that is to create a single market for the entire region.single market for the entire region.
For the ASEAN to take the next step up, and to For the ASEAN to take the next step up, and to be regarded as the driving force of economic be regarded as the driving force of economic integration, open regionalism should be taken integration, open regionalism should be taken into account.into account.
For ASEAN to truly become an engine of growth For ASEAN to truly become an engine of growth for the entire region, each member countries for the entire region, each member countries must also develop domestic market and must also develop domestic market and upgradeupgrade
Regional economic integration is a necessary Regional economic integration is a necessary but not sufficient, means for ASEAN to join the but not sufficient, means for ASEAN to join the ranks of fully develop economies. ranks of fully develop economies.
We have to combine the international We have to combine the international integration with domestic integration integration with domestic integration and make use of the human talent and make use of the human talent and investment capital to materialize and investment capital to materialize our goalsour goals
We must also embrace and grab the We must also embrace and grab the opportunities that ASEAN Economic opportunities that ASEAN Economic Community offersCommunity offers
Let us all join hands with Let us all join hands with determination to make a determination to make a commitment to penetrate global commitment to penetrate global market and create a dynamic, caring market and create a dynamic, caring and outward looking community. and outward looking community.
THANK YOU !!!!!THANK YOU !!!!!