According to IDEA's latest copy of Economic Monitor, a regular publication of the Institute for Development and Econometric Analysis, Inc. (IDEA) as previously said, while the country seems to be attracting more investors, there is still the issue of below-par foreign direct investments (FDI). This can be partly attributed to the foreign investment cap set forth in the constitution. Such a cap would ensure that businesses in the Philippines are predominantly Filipino-owned; however, the cap, coupled with the lack of action to amend it, sends the wrong message: that the Philippines is not yet entirely open for foreign investments.
Infrastructure is also key to the integration. In order to meet the free trade goal, goods and services have to be delivered efficiently, and this can be done through efficient road networks, transport systems, and power sources. Unfortunately, the Philippines suffers from poor infrastructure and several delayed implementation of projects, particularly those under the Public-Private Partnership.
According to IDEA, not all the arguments on readiness pertain to the country's economy. There are those that transcend businesses and economic growth. One such argument focuses on culture. In a 2012 conference at the Chulalongkorn University in Thailand, one of the points raised against the readiness of the countries is the lack of an ASEAN mindset, an ASEAN identity. Most countries, the Philippines included, are more bent on interacting with European, American, or other Asian countries, instead of those from Southeast Asia. Moreover, a sense of identity is linked more strongly in favour of the individual countries rather than the whole region. Some may think that such a predicament would be nothing compared to economic hurdles. It is necessary to keep in mind, however, that the AEC also envisions a region that is culturally and socially linked. Thus, this lack of ASEAN identity, together with ever-present territorial disputes within the ASEAN, may become a stumbling block in the region's successful integration.
According to the same published report, although some are apprehensive about the approaching integration, there are those that are optimistic about it. More than anything, the integration would certainly broaden the Philippines' horizons through the introduction of new markets. Similarly, this would enrich exchanges on information, technology, and especially labor, since the country has a surplus of labor.
The ASEAN Economic Community seems to be a utopia of sorts-a community that promises development, prosperity, and unity. Undoubtedly, there would be many hindrances, especially now that time is running short.
Lastly, there is still much to do in order to meet the goals before the launch, but instead of looking at the current situation negatively, it would be better to focus on hastening the implementation of the Blueprint measures, to ensure the successful integration of the Philippines, according to the researchers of IDEA.
IDEA's Economic Monitor is a monthly publication of the Institute for Development and Econometric Analysis. It provides a summary of monitored news and indicators of the economy released in the preceding month.
Editor's Note: For comments, rejoinders and questions related to credit & collection, Mr. Ed F. Limtingco can be reached at elimtingco@yahoo.com.