Time running out to address problems ahead of AEC

[webfact]

Time running out to address problems ahead of AEC
Supalak Ganjanakhundee
The Nation

BANGKOK: -- LOOKING AT THE potential downside of things can be useful - and now would be a good time for countries in Asean to consider and prepare for any problems relating to the Asean Economic Community they could face in the not-too-distant future.

Countries in Southeast Asia are seeking ways to come together under the name of the AEC, scheduled for launch by the end of 2015. The 10 countries in the region will integrate themselves politically, economically and socially.

It is very logical for them to get together when the world order is changing, as countries are matching up and grouping together to improve economies of scale and competitiveness.

With a population of over 600 million, ASEAN has pledged to merge their economies into a single market promoting liberalisation in trade, investment and services as well as the free movement of professional workers. Import duties and non-tariff barriers are coming down and will be eliminated eventually.

Politically, the 10 countries created their association as a legal entity and tried to adopt a common stance, if not a single policy, toward many international issues.

Socially and culturally, they are preparing to promote people-to-people linkages, cultural exchanges and even consideration of a more harmonised view of history.

Time is running out fast. There are only two years left. Many countries say they are preparing in a rushed manner to usher their economies and people into the community.

Former Malaysian prime minister Mahathir Mohamad shouted a loud warning recently that nine of the 10 ASEAN countries are not ready for integration. Many countries, notably the new emerging economies, would face difficulties if they hurried to join the ASEAN Community.

The European Union, which was an inspiration for ASEAN integration, had a very long history in building a common community but failed due to inequality, he said.

Singaporean Prime Minister Lee Hsien Loong, whose country is regarded as the most ready ASEAN member, agreed, saying the poor countries might need to bite the bullet if the group really wants to deepen the integration.

The two senior ASEAN politicians might be right. There are differences among ASEAN members in term of economic development, policy and strategy. The gap between the rich and poor members is very wide. Singapore's per-capita GDP is US$50,130 (Bt1.56 million), while it is only $879 in Cambodia and $875 in Myanmar.

Even among the mid-ranked countries, their gaps vary yawningly. |Per-capita GDP in Malaysia is $9,941, |in Thailand $5,116, Indonesia $3,563, the Philippines $2,341, Vietnam $1,403 and Laos $1,279. This might make ASEAN an unequal community.

Trade and investment within other regional groupings are very high but they are relatively low within Asean. Of the combined $2.3 trillion in trade done by ASEAN members, only 25 per cent is among the 10 members. Intra-Asean investment was only 23 per cent of the $114 billion foreign direct investment in the region.

People in ASEAN are relatively poor. They don't travel much to see each other. Most visitors to ASEAN countries come from outside the region. This means ASEAN people have a weak sense of community.


-- The Nation 2013-09-25

[Thait Spot]

Fail to plan

Plan to fail

[expat888]

They have been saying the same thing for years now. Doesn't make it so, but it really sounds nice.

Instead of implementing and preparing, Thailand and other countries are making excuses on why it won't work and how the AEC needs exceptions. I don't think the "one community" of coming together is working very well.

[Bakseeda]

It makes one laugh.. .. This country that all us ex-pats living here just love to bits.. We know itself cannot heal the huge differences within its own borders. Problems and murders that go unreported in the south, red-shirts in the north and east threatening everything they don't agree with. Corruption in every office of government, and every department of police and army.. Rich and elite peoples easily evading the law. Why would any other country want to be part of this circus..! Aha, no condom sir.. that will be 200bahts fine , if you don't mind...! AEC..... It makes one laugh..

[seminomadic]

"People in ASEAN are relatively poor. They don't travel much to see each other. Most visitors to ASEAN countries come from outside the region. This means ASEAN people have a weak sense of community."

Along with the stats on GDP per capita, the article could have gotten the point across with only this and been just as valid.

Singapore to become the Germany of AEC - will carry the weaker (ie 'lazy') countries on its back, only to be later villainized by the ungrateful beneficiaries.

[seminomadic]

Similar to how Mr. Obama's presidency is actually worsening racism in America, dollars to donuts the AEC will accelerate animosities between and nationalism within ASEAN countries.

There's going to be a LOT of face-losing and finger-pointing of the international stripe in the latter half of this decade.

[Baerboxer]

"People in ASEAN are relatively poor. They don't travel much to see each other. Most visitors to ASEAN countries come from outside the region. This means ASEAN people have a weak sense of community."

Along with the stats on GDP per capita, the article could have gotten the point across with only this and been just as valid.

Singapore to become the Germany of AEC - will carry the weaker (ie 'lazy') countries on its back, only to be later villainized by the ungrateful beneficiaries.

You've been reading too much German propaganda and whinging. Remember Germany wrecked most of Europe, and then benefited substantially from other countries rebuilding and protecting them.

Singapore and AEC do not compare to Germany and Europe - very different histories.

[Spare]

Thailand is the only country that promote AEC.

In the other 9 countries, no one have a clue what AEC is about. I swear.

[Mampara]

Never try, never know!

[schondie]

"People in ASEAN are relatively poor. They don't travel much to see each other. Most visitors to ASEAN countries come from outside the region. This means ASEAN people have a weak sense of community."

Along with the stats on GDP per capita, the article could have gotten the point across with only this and been just as valid.

Singapore to become the Germany of AEC - will carry the weaker (ie 'lazy') countries on its back, only to be later villainized by the ungrateful beneficiaries.

Very true. There's going to be a nasty backlash against the other ASEAN (read Singaporean businesses) that will eventually control vast amounts of land and commerce.

I'm not a fan of the EU and can see this ending far quicker and messier than when the EU implodes in on itself.

[IsaanUSA]

Thailand is the only country that promote AEC.

In the other 9 countries, no one have a clue what AEC is about. I swear.

Have you been to the other countries? I have seen more about ASEAN and the AEC in other countries than I have in Thailand. When I was in Vietnam (HCMC) they had an ASEAN parade one day. (BTW, love the username and avatar)