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Asean 2015

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Submitted By krstlbrndn
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Kristel Bernadine S. Lacapag

The Association of Southeast Asian Nations (ASEAN) is rapidly approaching a new milestone: the implementation of the ASEAN Economic Community (AEC) in 2015. This community is expected to transform South East Asia into a single market for production, distribution, investment and skilled labor movement, thereby paving the way for economic development of the entire region. As a single market and production base, it shall comprise with five core elements: free flow of goods, free flow of services, free flow of investment, freer flow of capital, and free flow of skilled labor. In addition, the single market and production base also include two important components, namely, priority integration sectors, and food, agriculture and forestry.
But the Philippines, ASEAN’s brightest star and fastest growing economy, is nowhere near there yet. Domestic industries almost cry in unison, “We are not ready”. But when shall we be ready? The agriculture sector, for instance, is the most obvious that even those not directly related would easily say this sector is ill-prepared for ASEAN 2015. Farmers fear they cannot compete with products from other Southeast Asian neighbors which benefit from advanced farming technology and generous government support. In contrast, the Philippines, the world’s largest rice importer to feed its over 100 million population, has no proper irrigation infrastructure and relies on imported fertilizer for rice.
Outside of the market for goods, ASEAN also has an opportunity for labor. In an integrated ASEAN, the Philippines will be the second largest in population and, I would think, the most mobile population. Therefore, opening up labor markets is going to be crucial if we are to realize the potential of economic integration. I believe that encouraging trade involves not just participation of national governments, but more

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