February 13, 2008
 
 

What's New

ASEAN Rising : What is in it for the working people of Southeast Asia?

Rene E. Ofreneo
Executive Director, Fair Trade Alliance

Background: In its Summit in Bali, the Heads of the ten member countries of the Association of Southeast Asian Nations (ASEAN) – the original ASEAN 6 (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) and the new ASEAN 4 (Cambodia, Laos, Myanmar and Vietnam) -- adopted a historic declaration called Concord II. In the said Concord, the ASEAN Heads of States declared that like the European Community, the ASEAN territory shall be one contiguous ASEAN Community by the year 2020. This borderless ASEAN Community shall be composed of three communities – the ASEAN Security Community, the ASEAN Socio-Cultural Community and the ASEAN Economic Community or AEC.

Since then, the vision of a robust and rapidly integrating regional ASEAN economy has attracted a lot of media mileage, both within and outside the individual ASEAN countries. Home to over 500 million people, the ASEAN is seen as the core of an even bigger economic community – the East Asia Economic Community (EAEC). The EAEC unite the ASEAN bloc of ten countries with the dragon economies of Japan, China (including Hong Kong), South Korea and Taiwan. Some statistics on the potentials of a bigger East Asia grouping have naturally captured the imagination of economic and political commentators – two billion East Asian consumer market, a collective GDP bigger than the United States or EU, and the world’s largest manufacturing base.

The ASEAN has no clear economic development program: Outside of the existing narrow liberalization program, (the AFTA – CEPT Program) ASEAN records do not contain any major studies and recommendations on complementation of economies, on how those lagging in development can catch up with the more advanced ones and how the social dimension, (for example, issues of inequity and joblessness), can be addressed. There were only some discussions on brand-to-brand complementation, human resources development (for example, on mutual recognition or certification of skills) and sharing of some agricultural technology.

Thus, economic integration is simply seen as one of opening up each other’s economic borders.


Economic integration is proceeding in an equally narrow manner, largely in the hands of a few corporate interests: Transnational corporate interests, have their own regional and global programs, which are outside the control of the working peoples, or of the urban and rural masses of the region. In agriculture for example, one integration instrument is the propagation of GMO/biotechnology, which is in the hands of agribusiness TNCs, that have managed to worm their way the policy corridors of the ASEAN

Will this solve unemployment, inequality, poverty and hunger in the developing countries of the region? Unemployment, inequality, poverty and hunger are rooted in the unequal distribution of resources and access to economic opportunities in society. They are also rooted in the uneven development of the economy, which is partly a legacy of past colonialism, bad economic advice by neo-liberal economists and poor global and regional integration.

Under economic liberalization and globalization, the region has been developing in a very uneven manner. Development has also been very uneven in the individual ASEAN countries, with some benefiting from economic integration and many others, not. In some countries, the number of the excluded constitutes the large majority. Civil societies in Indonesia, Philippines and Thailand have extensive documentation on how liberalization and globalization tend to benefit a few included, mainly the economic partners of transnational corporations and some skilled professionals like IT programmers.

These processes of globalization and liberalization tend to marginalize many others -- the short-term employee hires, the small farmers, communal fisherfolk, small and micro enterprises with no global linkages, domestic industries producing for the home market, indigenous peoples who do not comprehend the meaning of tradeables and exportables, workers displaced by privatization and corporate restructuring, and many others who have no sustainable jobs or business niches under globalization and economic liberalization. Such a situation is not sustainable, politically and economically. Terrorist threat, insurgency and social unrest breed in the fertile ground of social inequality and the exclusion of large sectors of the population from the benefits of growth.

And yet, the ASEAN response to development issues tends to be one-sided – more and more economic liberalization without any clear regulatory framework.

The traumatic lessons from the l997-98 Asian financial crisis have not yet been fully dissected and inputted into the policy-making processes of the ASEAN: Four ASEAN countries were seriously hit by the crisis – Thailand, Malaysia, Indonesia and the Philippines. These countries adopted different approaches to attain recovery and normalcy, with varying levels of success. It appears that those with ultra-liberal economic policies inspired by the IMF-World Bank have fared badly. This is the case of the Philippines and Indonesia. And yet, there seems to be some silent avoidance of this issue, for it raises some fundamentals on the basis of a neo-liberal framework for ASEAN integration.


How can the ASEAN become truly an Economic Community of the ASEAN majority, meaning the working population? The ASEAN leadership should re-think development. The issue is how to make integration balanced, inclusive, equitable and welfare-enhancing for all. Four decades after, the ASEAN is finally talking of the need for an ASEAN Charter and the challenge of developing an ASEAN economic community.

It is time that certain assumptions and approaches on economic integration be subjected to a more rigorous scrutiny. The First ASEAN Civil Society Summit in Kuala Lumpur, January 2005, came up with the following ten demands:

  • Share information with civil societies on the proposed ASEAN Constitution.
  • Set up mechanism for engagement with civil societies on regional concerns.
  • Transform ASEAN Parliamentary Caucus into ASEAN Parliament with peoples’ representation.
  • Translate commitments to rights of workers, women, children, migrants, elderly and refugees into doable instruments.
  • Take decisive action on trans-boundary security/environmental concerns, e.g., haze, bird flu, migration, etc.
  • Seek an end to suppression of civil and political rights.
  • Ensure that global, regional and bilateral trade talks lead to justice and equity.
  • Reverse unsustainable consumption, production and development patterns.
  • Empower youth, women and indigenous peoples through access to education, employment and decision-making processes.
  • Forge people-centered ‘ASEAN identity’ through better understanding of history, culture and diversity as well as shared values of ASEAN peoples.

    Answering the ten demands will be a good beginning for ASEAN Leaders of States, in ensuring that the next four decades of the ASEAN will truly serve the interests of the working population of the region.



 

 

Speeches

Sen. Wigberto Tanada

Dr. Rene E. Ofreneo

Dr. Donna L. Doane