Asean integration won’t cause big changes yet, ex-diplomat says
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Published on Wednesday, 20 March 2013 00:00
By A Web design Company
Constitutional limitations in public utilities, mining and even fisheries are deterrent to foreign investments, according to former Philippine diplomat Rodolfo Severino, now head of Asean Studies Centre based in Singapore.
Speaking before members of the Management Association of the Philippines (MAP), Severino said there would not be a drastic change in the economic landscape once Asean Economic Community (AEC) comes into force in 2015.
“Nothing’s going to happen in 2015,” said Severino, indicating that some of the deadlines set for the agreements integral in AEC would not be met.
Severino, who was Asean secretary-general in 1998 to 2002, said integration in Asean would not happen unless critical mass is attained, noting that the impact of the AEC depends a lot on each individual county.
“Things will change gradually and step by step. People expect automatic change in 2015 because the AEC is supposed to happen. But it’s good to have a benchmark. Let’s not expect things to change immediately,” Severino said.
He said the limits set on operations of utilities only up to 40 percent foreign-owned as well as on the exploration of minerals and the fact that fishing is reserved for Filipinos is a deterrent to investments.
“But it’s easy to be a Filipino citizen here so from whom are we trying to protect ourselves?” Severino asked .
Severino told the businessmen “to look beyond the narrow interests of individual sectors” in preparing for the AEC.
He said business should think long term and more broadly. “Think of the country as a whole.”
Severino said even in an integrated setup under Asean, investments would go to a country in the region where application of law is consistent, repatriation of investments and remittance of profits are guaranteed and where corruption is less.
“Without these (qualities) investments will go elsewhere.”
Severino added that trade in services is a key area for heightened integration in Asean.
But he said liberalization of services is obstructed within individual Asean country by lobbying and special interest as well as bureaucratic foot dragging.
He said business should lead rather than hamper the integration by shedding their individual sectoral interests.
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Asean integration won"t cause big changes yet, ex-diplomat says
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