ASEAN ECONOMIC INTERGRATION IN 2015 AND UNEMPLOYMENT RATE IN THE PHILIPPINES Elah Czarina C. Andal, CPA IR 204
A little over a year ago, the author attended a forum entitled “The Road to ASEAN Economic Community: Maximizing Opportunities and Facing Challenges.” The introduction in the forum’s invite included the following: “The 10 ASEAN member nations are moving towards integration, with the goal of forming an ASEAN Economic Community (AEC) by 2015. Designed to boost regional resilience, the AEC will create a single market and production base characterized by the free flow of goods, services, investments, capital and skilled labor.”1 With much optimism, the author takes ...view middle of the document...
Specifically, this study will try to answer the following questions: a. What is the ASEAN Economic Community and what is its purpose? b. What is the Philippines’ unemployment rate and how does it compare with the other ASEAN countries? c. Is the 2015 ASEAN economic integration the answer to the Philippines’ unemployment issue? Does the Filipino worker have what it takes to fit in the new jobs opened by the integration?
SCOPE AND LIMITATION The scope of the study covers ASEAN economic integration and its benefits, specifically those which relate to unlocking of greater job opportunities. It also covers review of unemployment rate in the Philippines and its standing in contrast with the other ASEAN countries. The author, however, wishes to disclose certain limitations as follows: • • • The study does not conclude on whether the Philippines is ready for the ASEAN economic integration. The study did not consider the mid-term review of the AEC Blueprint. The paper does not aim to resolve the issue on high unemployment rate nor define its cause, but limits its objective to the stated objectives above.
DEFINITION OF TERMS ASEAN Unemployment rate Association of Southeast Asian Nation defined as the number of people actively looking for a job divided by the labour force. Changes in unemployment depend mostly on inflows made up of non-employed people starting to look for jobs, of employed people who lose their jobs and look for new ones and of people who stop looking for employment.2 ASEAN Economic Community; is the result of the ASEAN economic integration in 2015. serves as a coherent master plan guiding the establishment of the ASEAN Economic Community 2015.3
http://www.tradingeconomics.com/philippines/unemployment-rate [Accessed October 15, 2013] http://www.asean.org/communities/asean-economic-community# [Accessed October 15, 2013]
METHODS In analyzing the impact of the ASEAN economic integration to the countries unemployment rate, descriptive research4 method was performed. Data were gathered to answer the questions through observations and documentary analysis. For the most part, the author’s researches of publications relating to the topic were made through the internet.
RESULTS AND DISCUSSION AND REVIEW OF RELATED LITERATURE On AEC and its Purpose To quote from a publication of Local Government Academy (with stress on the underlined phrases), “The AEC shall be the goal of regional economic integration by 2015. AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. The AEC areas of cooperation include human resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and...