Bangkok, Thailand hosted on 8 August 1967 the Heads of State/Government of Indonesia,
Malaysia, Philippines, Singapore, and Thailand, who established ASEAN through the ASEAN (Bangkok) Declaration. For these five Southeast Asian Leaders, the creation of ASEAN was the institutionalization of the ties that bound these nation-states. The five countries, aside from sharing geography, share the ties of history, culture and mutual interests, and similar challenges and problems. Given all of these, the Leaders (as heads of states/governments are called in ASEAN) found it fitting to coalesce and share in the responsibility of strengthening the economic and social stability of the region, hence the decision to institutionalize cooperation through the creation of a regional organization. Later on, the founding members of ASEAN were joined by Brunei Darussalam on 7 January 1984, Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999. These ten member-states now comprise todays ASEAN. Timor Leste has indicated its willingness to join the regional association but current members are still holding discussions on this. In the early years of ASEAN, there was skepticism regarding its lifespan, more so if it would be able to achieve its aims and purposes spelled out in the Bangkok Declaration. Despite the challenges that faced the organization and the region as a whole, ASEAN, for all its flaws and limitations, remains as the sole regional organization in Southeast Asia that embodies the interests of the ten member-states. In 2007, the Association adopted a charter that codified regional norms and commitments made by the member-states. The commitment of the organization to keep its relevance, assert its centrality, and remain as the driver is clearly manifested by ASEANs continuing effort to integrate the region through the creation of a regional community by 2015. It was during the 30th anniversary of ASEAN when the ten Heads of State/Government adopted the ASEAN Vision 2020. The ASEAN Vision 2020 agreed on a shared vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. Years later, after the adoption of the Vision, the Leaders, during the 9th ASEAN Summit in 2003, embarked on a grand goal to transform the organization into an ASEAN Community. This Community, as embodied in the document Bali Concord II, is comprised of three pillars: Political-Security Community, Economic Community, and Socio-cultural Community. These three pillars are not mutually exclusive of each other; rather they are closely linked and are mutually reinforcing to ensure a durable, peaceful, stable and prosperous Southeast Asian region, at least according to the governments of each member-state. Each of these pillars is guided by a Blueprint which serves as one of the roadmaps in the realization of an ASEAN Community. The ASEAN Community was originally envisioned by the Leaders to commence in 2020. However, during the 12th ASEAN Summit held in January 2007 in Cebu, Philippines, the Leaders decided to accelerate the regional integration to 2015. One of the primary reasons for the decision to fast track regional integration was to reinforce ASEANs centrality and to ensure that ASEAN remains as the driving force in drawing the continuously evolving regional architecture. In 2003, leaders from the ASEAN bloc of nations agreed to establish an ASEAN Community by 2020, comprising three pillars, namely the ASEAN Political-Security Community, the ASEAN Socio-Cultural Community, and the ASEAN Economic Community (AEC). Subsequently, they decided to hasten the establishment of the AEC to 2015. The AEC is an initiative to transform the region into an area with free movement of goods, services, investment, skilled labor, and a freer flow of capital. Will the AEC live up to the hype? And if so, will it do so by 2015? The vision for AEC 2015 is the partial economic union of 10 ASEAN countries, namely Thailand, Myanmar, Laos, Vietnam, Malaysia, Singapore, Indonesia, the Philippines, Cambodia, and Brunei, to usher in a new era of economic co-operation. The four main goals of the AEC are: 1. A single market and production-base; 2. A competitive economic region; 3. Equitable economic development, as external trade is an integral part of the region; 4. and Integration into the global economy.
The end-goal of ASEAN economic integration is the full realization of an ASEAN Economic Community, wherein the region will be transformed into a single market and production base, a highly competitive region, a region of equitable economic development, and a region fully integrated into the global economy. The AEC has always been compared to that of the EU Single Market but it should be understood that AEC is not a customs union or a full common market. In the Philippines, it is the AEC that is almost always referenced in discussions regarding regional integration. The decision to create the AEC was part of ASEANs strong commitment to deepen and broaden economic integration which requires liberalization and cooperation among the ten member-states. But even before AEC, as early as 1977, ASEAN had already laid down the groundwork for deeper integration. And in 1992, ASEAN created the Common Effective Preferential Tariff for the ASEAN Free Trade Area (AFTA). Through the creation of AFTA, ASEAN member-states are geared towards the attainment of a common goal: that of reducing, eliminating tariffs on trade, with few exemptions, to better facilitate trade. Cutting down the cost of doing business effectively translates into a more competitive and efficient ASEAN. The AEC can bank on ASEANs strengths such as the regions strategic location, its vibrant population which is estimated at 600 million, abundant natural resources, young work force, among others. However, much work still needs to be done especially in closing the development gap between and among the member-states, i.e. ASEAN-6 and CLMV. ASEAN also needs to address the regions poor state of infrastructure which hinders investment and the slow implementation of AEC commitments, to name a few. The creation of an ASEAN Community in 2015 is definitely one thing to look forward to. Integration may have birth pains in the beginning but at the end of the day, there are many opportunities that each member-state can take advantage of that will benefit the people of ASEAN. Positive Effects Will establish a highly competitive single market and production through the integration of different countries economies. This integration of ASEAN economies will provide opportunities for Philippines' skilled workers to work in other ASEAN countries. The free entry of goods and services across economic borders can only mean more economic opportunities for countries in the region and therefore more opportunities for employment and livelihood. Supply of human capital. We are the largest English speaking country in this part of the world, and businesses can take advantage of this through the supply of talented pool of works. This presents huge opportunities for the local business process outsourcing sector which can potentially grow with the opening of the ASEAN economies. Supply of talent to other countries will likewise be a huge potential as companies overseas demand for skilled workers. Access to a bigger market. With a bigger market base of 600 million consumers, the ASEAN market is a huge one that businesses can tap. Access to a bigger market. With a bigger market base of 600 million consumers, the ASEAN market is a huge one that businesses can tap.
Negative Effects Some groups believe that the Philippine may not yet be out of the race to promote integration of our economies, since the country somehow seems unprepared to meet the competitive challenges. Some labor groups consistently find the regional economic integration causing a drag on our growth and development. It will likewise be a signal to repress people who would go against such an exploitative arrangement. This will only enhance the cheap Labor policy of the government, . However, at the Asean level, the preparations are still incomplete: the instruments to enforce the Asean Declaration on the Rights and Protection of Migrant Workers are not yet there; nor will they be there by 2015. Entry of imported products. Since tariff will be reduced to zero by 2015, there will be a deluge of products from consumer goods to industrial products. This will pose a huge threat to local manufacturers as they fight over market share. The credit-rating firm said that Philippine banks might find it difficult to preserve market share with the free entry of foreign competition that would follow the regional integration. With the entry of imported products which can potentially be cheaper with better quality, local businesses are faced with the challenge of becoming more competitive by becoming bigger to take advantage of economies of scale. This will require them to acquire more capital, ramp up hiring and training, as well as engage in more aggressive marketing. Education Sector On the area of education, ASEAN 2015 brings both a possibility of expansion and a limitation at the same time. While it offers an array of opportunities for curricular reforms, there is also this threat that curricular programs might be highly dictated by the demands of ASEAN 2015, thus fashioning an educational paradigm where the economy takes center stage, at the cost of alienating the human community in the process. It is, therefore, a challenge to academic institutions to be able to generate thinking and thoughts that criticize the existing economic apparatus, especially those that do not serve the human community and jeopardize the common good. Education Secretary Armin Luistro admitted: The Philippines is having a bit of a difficulty because there are things that we really are rushing and cramming about which we should have done earlier. But the political landscape at that time was not ready, so those things did not push through, he said in a mix of English and Filipino. It was a kind of landscape where having separate agencies managing the education system basic education (Department of Education or DepEd), technical-vocational (Technical Education and Skills Development Authority or TESDA), and higher education (Commission on Higher Education or CHED) brought division instead of unity to the government's education sector. If ASEAN 2015 really pushes through, the travel of students, even minors, will happen because it should be cheaper...So there should be more access even to physical travel, Luistro said. Because of that, our curriculum should also be ready both ways for students to move to another ASEAN country and not to have difficulty being absorbed, and the other way around...we have to be ready also to accept other international students into the DepEd, he said. Competency Need for students - As a student we can say that we should enhance the quality of our education in our region, because in the topic in the ASEAN 2015 we figured out that the region in South east Asia improved the system in economic, as well we need an equipped and knowledgeable manpower so we can follow the flow of our system, in the Philippines we have a large population, all we need to do is to make sure that our surplus population should respond the needs of globally competitive world, not only in South east Asia, in whole Asia , but also in the whole world. As the time passes by, we should empower our future hope and these are the youth. We should enhance their knowledge, skill, moral, and nationality. know where the strengths and weaknesses of the students Curricular programs responsive to both local and international demands Focusing on developing core competencies (talents, skills, ideas) Creating environment for nurturing talent, skills and ideas are critical in attracting international work Language skills and personal attributes