AEC inequalities must not be overlooked

[Lite Beer]

EDITORIAL
AEC inequalities must not be overlooked
The Nation

BANGKOK: -- A fresh report on Asean's prospects warns - too casually - of uneven gains

The study report has been dressed up and presented with a positive spin. Entitled "Asean Community 2015: Managing integration for better jobs and shared prosperity", it expresses the researchers' hopes that the Asean Economic Community (AEC) to be introduced late next year could accelerate economic growth and structural change and double productivity in some Southeast Asian economies. The report's authors say the regional free market could create 14 million new jobs as well as fresh opportunities for prosperity for 600 million citizens.

More growth, more jobs and more income contitute the advertising theme of the AEC. But the real context of the study is in the following observations: "The gains will not be distributed evenly among countries, economic sectors or women and men. Unless it is decisively managed, regional integration could increase inequality and worsen existing labour-market deficits, such as vulnerable and informal employment, and working poverty."

In the report on the study undertaken by the International Labour Organisation and Asian Development Bank was released in Jakarta a few days ago, the researchers urge the bloc's 10 member-countries to develop policies and institutions that support inclusive and fair development. They cite "an urgent need to improve the quality, coverage and sustainability of social protection, starting with the establishment of a social-protection floor for all".

The AEC will allow a freer flow of skilled labour, services, investment and goods among member-countries. The positives include increased competitiveness, better niche markets and better education.

The AEC will raise cultural awareness and should benefit the region's rich culture and boost tourism. Next year the number of high-skill jobs is projected to grow by 14 million (41 per cent), medium-skill jobs by 38 million (22 per cent) and low-skill jobs by 12 million (24 per cent).

The region is expected to be far more attractive to foreign investors. Together with its key trade partners, it will form a huge market.

Younger citizens will experience a whole new world when it comes to job seeking, culture and foreign travel.

The downsides include widening gaps in society across the region, the demise of some domestic businesses, and lopsided labour migration as workers from poorer countries seek out better lives.

The researchers also predict that skill shortages and skill mismatches are likely to worsen due to inadequate quality and availability of education and training.

Labour will become a big issue. Investment in labour productivity has always been deemed critically important, but some of the member-countries - including Thailand - have not paid enough attention to this aspect of AEC preparations.

English, for example, will become much more important, but few private firms have sought to improve their employees' English skills. Asean members will soon enter uncharted territory. Some are more excited and better prepared. Risks have been identified, and yet few have been tackled properly.

The research reportpoints out the likelihood of uneven gains too casually - inequality can lead to serious problems, such as crime and ethnic tension. Most of the member-countries experience these problems already. A key warning in the report is that any complacency they've developed about the issue could lead to the problems occurring on a regional scale.

Source: http://www.nationmultimedia.com/opinion/AEC-inequalities-must-not-be-overlooked-30242070.html

-- The Nation 2014-08-30

[kalbo123]

The AEC will allow a freer flow of skilled labour, services, investment and goods among member-countries. The positives include increased competitiveness, better niche markets and better education.

Thailand can never be open for this, a country with the lowest average IQ and worst English language skills in the region..

[NongKhaiKid]

The AEC will allow a freer flow of skilled labour, services, investment and goods among member-countries. The positives include increased competitiveness, better niche markets and better education.

Thailand can never be open for this, a country with the lowest average IQ and worst English language skills in the region..

Throw in too the restrictive attitude to foreign investment / ownership which will HAVE TO change under the AEC rules I would expect whereas only a couple of days ago Thais were been advised to invest overseas.

[Lupatria]

The AEC will allow a freer flow of skilled labour, services, investment and goods among member-countries. The positives include increased competitiveness, better niche markets and better education.

Thailand can never be open for this, a country with the lowest average IQ and worst English language skills in the region..

"The gains will not be distributed evenly among countries, economic sectors or women and men. Unless it is decisively managed, regional integration could increase inequality and worsen existing labour-market deficits, such as vulnerable and informal employment, and working poverty."

Wasn't that the intention of some members from day one?

Labour will become a big issue. Investment in labour productivity has always been deemed critically important, but some of the member-countries - including Thailand - have not paid enough attention to this aspect of AEC preparations.

However, maybe soap operas with more patriotic and nationalistic content will put a blanket over this. We need more bumper stickers: “Thailand No. 1”

[worgeordie]

As usual,with Thailand everything is been left till the last minute,

and i don't think Thais have the skills to compete with the likes

of Malaysia,Singapore,or even Vietnam,where i understand the

learning of English speaking skills is very popular,unlike here,

What will happen when Thailand sees its not Capital of AEC,

as channel 3 likes to keep saying,Thailand is not good at following

rules,so what will happen is anyones guess.

regards Worgeordie

[biggles45]

Thailand announced quite a while ago that under the AEC employment for other ASEAN citizens would be limited to 8 professional categories, such as Doctor, Architect, Lawyer etc and that these people would still need to pass tests to work in Thailand.

They are limiting the damage to the locals as much as they can but not sure how other countries will react to this.

[Just1Voice]

To my way of thinking, a year or so after the implementation of the AEC, Thailand is going to be in a state of shock. They're going to realize their "superiority" is total b.s. and that they are no longer the gleaming diamond in the coal field of S.E. Asia, but have been downgraded to the status of "cubic zirconia". Their university students are going to realize their degrees aren't worth the paper they are written on, that their "technical skills" are nonexistent, and that their lack of English speaking skills has firmly shut the employment door in their faces. And that as a country as a whole, they are falling faster and faster behind their counterparts in ASEAN.

They are going to be forced to give up their "reserved for Thai only" employment crap, or find themselves facing a "no Thai wanted" sign on the other end of the stick. When this happens, Thai unemployment is going to go though the roof, household debt will seriously increase, as will the number of suicides due to loss of income, but more to loss of "face" that they were replaced in their job by a someone from an "inferior" race who is better qualified.

To say the least, interesting times ahead are waiting to be seen.

[whybother]

AEC 2015??? ha ha ha ha

Try 2025. Thailand might have the new laws that are required done by then. They still haven't changed laws for ASEAN agreements from 2008.

[NongKhaiKid]

To my way of thinking, a year or so after the implementation of the AEC, Thailand is going to be in a state of shock. They're going to realize their "superiority" is total b.s. and that they are no longer the gleaming diamond in the coal field of S.E. Asia, but have been downgraded to the status of "cubic zirconia". Their university students are going to realize their degrees aren't worth the paper they are written on, that their "technical skills" are nonexistent, and that their lack of English speaking skills has firmly shut the employment door in their faces. And that as a country as a whole, they are falling faster and faster behind their counterparts in ASEAN.

They are going to be forced to give up their "reserved for Thai only" employment crap, or find themselves facing a "no Thai wanted" sign on the other end of the stick. When this happens, Thai unemployment is going to go though the roof, household debt will seriously increase, as will the number of suicides due to loss of income, but more to loss of "face" that they were replaced in their job by a someone from an "inferior" race who is better qualified.

To say the least, interesting times ahead are waiting to be seen.

You have pretty well nailed it.

This is rhetorical I know but what do most of us think LoS will do when told the Community has rules for all and that Thailand has to play by them not cherry pick the ones it likes while trying to impose its own within the country ?.

Taking the high moral ground for local consumption, spitting the dummy and risk being isolated comes to mind.

[belg]

please explain how millions of low educated thais suddenly will become active as high educted / level jobs ?

and thailand already has a shortage of (any skilled) labour, so how will those millions of new job openings going to be filled ?

[Berkshire]

Wow, the Thai-bashers are out in full-force, yet again predicting the demise of Thailand. Don't you buffoons ever get tired of being wrong pretty much every single time?

[Thai at Heart]

Wow, the Thai-bashers are out in full-force, yet again predicting the demise of Thailand. Don't you buffoons ever get tired of being wrong pretty much every single time?

What was the predicted GDP growth for Thailand this year?

1%

By how much are BOI investments down for the year?

By how.much has unemployment increased this year

By how much are agricultural commodities down this year?

What is the predicted export growth this year?

Yeah

It's just peachy