ASEAN: Ten Nation Moving Forward As One Jose Concepcion, Jr. Chair, ASEAN-BAC Philippines Chair, East Asia Business Council (EABC) Former Philippine Trade & Industry Secretary Former President of the ASEAN Chambers of Commerce and Industry

INTRODUCTION After the World War II most of the developing countries adopted the State-led development where the state planned and managed economic development, allocation of resources, production of goods and services for public and private consumption. In mid 1980’s many developing countries are undertaking structural reforms aimed at encouraging private sectors to play a greater role in economic arena. Many economic policies aimed to strengthen market forces and increase competition

The Association of Southeast Asian Nations (ASEAN) is the largest and oldest organization of its kind in Asia, it was formed on August 8, 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand, when the foreign ministers of the five countries met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration Its aims include the acceleration of economic growth, social progress and cultural development among its members, and the promotion of regional peace and stability by abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter

The regional bloc grew when another five Asian Countries (Brunei, Cambodia, Laos, Myanmar and Vietnam) joined At the height of the global economic crisis, in December 1997, the ASEAN leaders had spelled out their vision of an integrated ASEAN economy in the first two decades of the new century.

Economic cooperation and integration became the key pillar of the entire region’s future development. The need to move toward a stronger market-driven and export oriented strategies has intensified. The spheres of economic influence regionally and globally are shifting. China is now expected to become the world’s third largest economy. Which make it imperative for Asian countries to work together to forge effective and efficient integrated regions that can take advantage of the opportunities for increased cooperation.

Nature of ASEAN as Regional Bloc The ASEAN leaders emphasize friendship, understanding, consensus, and non-intervention to promote regional peace and stability. Consultations and consensus are the most enduring features of ASEAN The leaders emphasized that the successful building of an ASEAN Community that is truly people-oriented by 2015 requires the cooperation and contribution of all sectors of ASEAN society and the participation of ASEAN peoples in all aspects of community-building

ASEAN Significant Milestone ASEAN Charter – is a constitution for the ASEAN, which will guide the construction of the ASEAN Community Roadmap for the ASEAN Community -

From Economic Cooperation To Economic Integration The ASEAN Vision 2020 statement declared that “ The ASEAN Economic Community shall establish ASEAN as single market and production base” This the large evolution step that ASEAN has taken as it now progressed to the most extensive goal, the creation of a single market

Economic Cooperation Economic Integration is a preferential treatment that aims to reduce tariffs and commercial barriers among its member countries Removal of some measures that discriminates against foreign suppliers of goods and services. Economies of its member nation is completely integrated. Which means establishment of a single market

ASEAN ECONOMIC COMMUNITY Strategic Schedule Single Market and Production Base Free Flow of Goods Free Flow of Services Free Flow of Capital Free Flow of Skilled Labor Priority Sectors Integration Food, Agriculture and Forestry 10

Competitive Economic Region Competition Policy Consumer Protection Intellectual Property Rights Infrastructure Development Taxation e-Commerce 11

Equitable Economic Development SME Development Initiative for ASEAN Integration (IAI) 12

Integration into the Global Economy Coherent Approach towards External Economic Relations Enhanced Participation In global supply networks 13

The ASEAN Challenges and Roadblocks Narrowing the development gap within the region Ensuring that the different Regional Trade Agreement will be consistent with the ASEAN Vision and will not have a “spaghetti bowl effect”. Lack of participation from the Civil Society Organization – CSO’s could also provide important insights, feedback to make ASEAN more people oriented

The need to strengthen the Political and Social Pillar of the ASEAN Community so we can create a cohesive community, since ASEAN is composed of countries with varying nature Making the ASEAN concept meaningful to all the citizens in the region, this must be understood and embraced by all.

ASEAN Prospects and Opportunities The Pan-Asian level, the diversities in the levels of economic development and capabilities are quite wide, thus, providing for more extensive and mutually beneficial linkages. The formation of an Asian Economic Community (AEC) will also help the region to play a more effective role in shaping a world trading and financial system that is more responsive to its needs.

Taking the Next Big Step Forward Even with all the hype about economic development, through regional integration not all were able to achieve this goal. ASEAN with its diverse socio –political and economic milieu we have a goal top materialize, and that is to create a single market for the entire region.

For the ASEAN to take the next step up, and to be regarded as the driving force of economic integration, open regionalism should be taken into account. For ASEAN to truly become an engine of growth for the entire region, each member countries must also develop domestic market and upgrade Regional economic integration is a necessary but not sufficient, means for ASEAN to join the ranks of fully develop economies.

We have to combine the international integration with domestic integration and make use of the human talent and investment capital to materialize our goals We must also embrace and grab the opportunities that ASEAN Economic Community offers

Let us all join hands with determination to make a commitment to penetrate global market and create a dynamic, caring and outward looking community. THANK YOU !!!!!