Wednesday, April 23, 2014

AEC: From targets to strategies

AS we see, again and again, targets and goals are one thing; strategies to achieving them are definitely another. Given the fact that Asean Economic Community’s (AEC) policy-making is pragmatic and cautious, taking cultural and political differences into consideration, it is important that efforts to strengthen the regional architecture of the AEC are taken into consideration. The regional architecture will have to be based on specific initiatives and objectives that make markets work better and deliver clear incentives for the member-states and the citizens. Measures with a clear payoff are likely to garner most support, involving areas such as expansion of trade, more productive investments, a focus on inclusive growth, and a clear undertaking to increase the per-capita income.

Institutions for regional integration should be lean and carefully structured to achieve results. Formulating a proper strategy to strengthen the economic integration requires political will, leadership, financial resources, and a good interaction between business leaders and government officials.

The required effective high-level political leadership to shape the new institutional architecture was visible in Europe, historically coming from French and German leaders, working together in an effort to preserve the balance of power within the region. As the European integration progressed, politicians from other European countries played a key leadership role at important junctures.

With the AEC rapidly approaching, we are witnessing a growing commitment from the region’s leaders; we are seeing almost daily AEC forums in all parts of the Philippines to convince all stakeholders that the challenges of economic integration have to be met and converted into opportunities to develop strategies to concur a 600-million-people market. In recent weeks, I have outlined key recommendations covering the following sectors:

                Food and beverage
                Health care
                Transport and connectivity
                Financial services
                Information and communications technology
                Automotive

The road maps that the Department of Trade and Industry is developing jointly with the private sector are another way to prepare. The challenge remains: dreams have to be converted into realities.

Within the European Union (EU)–Association of Southeast Asian Nations (Asean) business perspective, we are happy that the European Parliament and European Commission are funding a project in most Asean countries to bring European small and medium enterprise (SME) closer to Asean SMEs.  More specifically, the goal is to identify business opportunities per Asean country and for the Asean region to make these opportunities visible in the 28 EU member-states and then assist the European SMEs into the Asean markets of their choice. Part of the project is also to create a level-playing field for these European SMEs to remove technical and other barriers to trade and investment and to foster B2B (business-to-business) cooperation with Asean SMEs.

In the Philippines we have launched the EU-Philippines Business Network that will implement the project. Involved are all European business organizations in the Philippines. The objective is to match European and Philippines SMEs in partnerships that will allow stronger market positions in this country and, at the same, time provide the basis to successfully benefit from the market opportunities the AEC offers.

All of these efforts have a purpose: to work toward the vision of an AEC. In the end, it is about building a more integrated Asean region, free from poverty and conflict, prosperous and confident, and well-equipped to shape its destiny.

source:  Business Mirror

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