Boon or Bane?

Editorial

The Philippines is not ready for the Initiative for ASEAN Integration (IAI) in 2015. The Initiative for ASEAN Integration refers to reducing various forms of disparities among and within member States where some pockets of underdevelopment persist, which could narrow the development gap in the region.

With the integration, people would be allowed to purchase, sell products and services, work and invest in any of the member countries of the ASEAN with lesser restrictions unlike strict protectionism. This would be enjoyed by all ASEAN member countries.

But according to Asian Development Bank, the economic integration of the Association of Southeast Asian Nations (ASEAN) will likely not be attained by 2015. Although various reasons were cited for the continued difficulties of attaining the AEC targets, what stands out is the unawareness of the private sector.

Since 2010 when this integration was first hatched, the Philippine government failed to prepare for it. In trade relations alone, where products are supposed to be exported to a less-restricted environment, the recipient chooses which products to accept or to reject.   Naturally the more superior product in terms of quality and price are allowed into the member country. How can we export cheaper products when the cost of production is high? Electricity and labor costs, which are factors to production, are high.

Also, promoting greater mobility of skilled workers and better regulation and management of unskilled labor movements are to be addressed. In the Philippines, unemployment and underemployment are pervasive. Skills do not commensurate with job requirements. Can we compete with our ASEAN neighbors in the labor market?

What about our infrastructure?

There are so many things that we have to prepare for in order to be competitive. If we are not competitive, what benefit can the Initiative for ASEAN Integration do for us? Nada.