Inadequate infra, cumbersome procedures stunt ASEAN’s economic integration — experts
Updated November 2, 2017 – 4:50pm
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MANILA, Philippines — Southeast Asian nations may not yet achieve economic integration should they fail to address the region’s nagging problems of inadequate infrastructures and complex procedures, experts in a public symposium in Manila said.
But Banamyong qualified that ASEAN lacks funds to support infrastructure requirements, adding that financial allocation remains to be a national decision and that member-states should align their national thrusts to ASEAN’s priorities.
For his part, Dr. Epictetus Patalinghug, professor emeritus of economics and finance at the University of the Philippines, explained that “infrastructure investment creates a return of 5% to 25% globally.”
Patalinghug also said, “physical connectivity associated with infrastructure affects 7% to 10% of an economy’s overall productivity.”
In terms of trade, Maura D’ecosterd, Senior Trade Law and Policy Officer of the Economic Research Institute for ASEAN and East Asia, cautioned that cumbersome import and export procedures within the region could block economic development.
D’ecosterd also flagged the delays in trade caused by domestic transport, corruption, poor customs procedures, among others, that she said might directly add costs and discourage potential investors.
“Regulation matters because if poorly designed or inadequate, it can adversely affect economic performance,” she said.
“Dollar and time costs are reduced when customs regulations are less restrictive, transport links are more contestable, fewer documents are required, and finance services are better,” she added.
At length, the experts agreed that another issue on ASEAN trade facilitation is the differing standards and policies of member-states on the free flow of goods across international borders.
This refers to those that hinder foreign or domestic access such as quotas, local content requirements, and technical standards that make it difficult to import and export products in a country, they explained.
To address these barriers, the experts proposed the adoption of digital technology in micro, small, and medium enterprises to improve their financial access and the use of open data among ASEAN member-states.
Other recommended strategies include reducing the number of “trade-distorting” nontariff measures across ASEAN nations, as well as diminishing the gap between vocational skills demand and supply in the region.
The Philippines is chair of the ASEAN this year. Members of the 10-nation regional bloc take turns at chairmanship.
The 31st ASEAN Summit—which will be simultaneously held in Manila and Clark, Pampanga from November 11 to 14—will be organized together with ASEAN dialogue partners Australia, Canada, China, the European Union, India, Japan, New Zealand, Russia, South Korea and the United States.
