AFTER decades of preparation, the Asean Economic Community (AEC) came into being with the prospect of great changes in society and business in the years ahead. With their commitment to integration, the 10 economies in Southeast Asia now aim to take the next step in their rise of prominence on the global stage. From a European perspective, it can be confirmed that the interest in Asean integration is high both among European companies operating in Asean and European small and medium enterprises in Europe, trying to find the right strategy into the Asean market and choosing the right Asean country to use as “entrance” to the integrating market. The European Union (EU)-Philippine Business Network (EPBN), in its missions to Europe and in the response from EU-based business, feels the changed dynamics.
However, we all have to be realistic also; no one involved in the lengthy process of creating the AEC will claim that everything they hoped for has been achieved. One need only look at the experience of the EU, a far more ambitious project, to understand how difficult such attempts at integration are.
If Asean has learned one lesson from the EU, it is to avoid even thinking about a single currency, given the stark differences in levels of economic development in the region. But the other lesson Asean has to learn from the EU is that the economic integration was driven by business leaders and not by politicians. Asean integration is still driven by bureaucrats—that needs to be changed. More stakeholders need to be involved in creating the Asean vision and the Asean Secretariat has to be strengthened so it can drive that common vision.
As the region heads toward a greater glow of people and trade, some of the basics of greater cooperation need to be strengthened. And while the EU is not the best example for a single monetary union, as mentioned above, it has many other virtues when it comes to setting high standards and regulating the way things are done in the member-states. Many of the positive things that have happened in the EU have come about because the European Commission has a mandate to streamline regulations and processes, enforce good governance and break down the barriers nations are always trying to put up. The European Commission also does a great service to consumers in many diverse areas, from food safety to data roaming.
We are looking at a very different game in Asean; many countries in the region continue to have tons of nontariff barriers and try to extract as much as possible from other Asean member-nation’s citizens. This is something that needs to be tackled. This is part of the work the EPBN (described above) does: we are strong in advocacy to create win-win solutions in improving the regulatory environment with the aim to achieve a level-playing field for local and foreign business, driving competition that is good for Juan de la Cruz, as he will benefit by getting better products and services at a better price.