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Thursday, September 13, 2012

PH unprepared for Asean integration?

Editorial

At first blush, it would appear that the Philippines with its steadily improving economy is prepared to maintain its role as a pillar of the Association of Southeast Asian Nations (Asean). After all, the Philippines is a founding member of the Association, a concept that has its roots in the MaPhilIndo organization of the early ‘60s.

Malaysia, the Philippines, and Indonesia – united by their shared roots in the Malay race – can be considered the core of today’s Asean and the three countries have formed a brotherhood, more than a mere partnership, where the organization is concerned. What few political differences the trio has had among themselves in the past were almost always settled quickly and amicably.

With the Asean scheduled to evolve into an integrated market similar to the European Union in the near future, one would expect that the Philippines would be one step ahead of the other member-countries, quite possibly in tandem with old partners Indonesia and Malaysia. Unfortunately, this does not seem to be the case.

The regional economic integration is expected to be in place by 2015, or a little more than two years from now. And herein lies the problem.

Dr. Romulo Virola, retired secretary general of the National Statistical Coordination Board (NSCB), says that the country may be among the least prepared among the Asean nations in the area of readiness and preparation for the coming integration. In his view, the Philippines “appears to be even more wobbly” than the other countries in the region for the unification.

Virola should know of what he speaks. The NSCB is the country’s policy making and coordinating body on statistical matters. Benchmarks cited by the former NSCB official do not paint a very bright picture. In fact, some seem downright dismal.

As of this year, the Philippines is fifth in terms of Gross Domestic Product, above Vietnam, Myanmar, Brunei Darussalam, Cambodia and Laos, but below Indonesia, Thailand, Malaysia and Singapore.

It gets worse.

The Philippines’ annual growth rate for merchandise exports placed it dead last among the 10 Asean member-countries for the period starting 2005 and ending in 2010. This, after occupying the seventh slot in the years 2002 to 2004. In foreign direct investments inflows, the Philippines was at a poor ninth spot from 2002 to 2010, the last year of available statistics.

The employment picture was just as bad. Having suffered from chronic unemployment and underemployment for the past few decades, the Philippines either had the highest or second highest joblessness figures in recent years.

Also of concern for the country is its population growth rate, the third highest in the region. Further, the Philippines maternal mortality ratio and under-5 mortality ratio remains the fifth lowest.

About the only area where the country stands above the rest is in literacy rate, where it remains number one.

Very clearly, the Philippines is not as prepared as it should be for the 2015 integration date. Between now and that time, there is not much that can be done to improve the total picture. But this does not have to mean that the situation will forever be bleak.

The government can build on the current strength of the economy to set higher targets for the various benchmarks. Strategies need to be designed and implemented to turn the country’s weaknesses into strengths, according to Virola.

Indeed, with the Philippines steadily rising to respectability in global competitiveness, there is much upon which the country can build on. The situation may not be all that great, but it is not that bad either.

An integrated Asean can even be the springboard for the country to move up in every possible benchmark.

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