With the support of The Asia Foundation, Human Development Forum Foundation (HDFF) organised a conference at the Rembrandt Hotel on Tuesday, the 29th of October 2013, to discuss the strategic challenges for ASEAN in the coming years. The theme of the forum focused specifically on the 2015 ASEAN Economic Community’s (AEC) potential impact on the local economies of Southeast Asian states. This topic includes special attention to the Small and Medium Enterprises of the region. The keynote speaker for the event was Mr. Kavi Chongkittavorn, a renowned scholar on issues of human rights, democracy, and regionalism. He was joined by a panel of experts consisting of Dr. Supruet Thavornyuthikarn, Dr. Sandro Calvani, and Mr. Kee Beom Kim. Welcome remarks were given by HDFF’s chairman General (ret) Bunchon Chawansin and The Asia Foundation’s country representative Mr. Kim McQuay.
The forum attracted a wide audience of representatives from embassies, International Non-Governmental and Thai organizations. Notable guests were H.E. the Ambassador of the Republic of Indonesia, Deputy Head of Missions from Indonesia, Poland and Timor Leste as well as attachés from the embassies from Australia, the Philippines and Switzerland. Additionally, the National Council on Social Welfare of Thailand, the Thailand Development Research Institute Foundation and the Thailand Mine Action Center were represented. World Vision International, Freedom House, and Plan International as well as others participated from the INGO sector.
Besides interesting presentations and plenty of networking opportunities, the Chairman’s Circle 2013-5 provided a forum for discussion of the role of local development in the up-coming AEC 2015.
The Keynote speaker, Mr. Kavi Chongkittavorn (Senior Fellow of ISIS and columnist for the The Nation newspaper) launched discussions with his perspectives on the limitations and challenges of ASEAN for establishing an ‘ASEAN Community’ in the coming years. A notable point was the problems posed by the different views on non-interference held by the member states. This was set into relation with long-held animosity between certain nations as well as the lack of financial resources or infrastructure to narrow the development gaps.
He implied that institutional changes would be essential for ASEAN’s future as an active, global player.
After the presentation, two questions followed to inquire about the important factors for ASEAN’s future. Firstly, the security pillar within the ASEAN Community was discussed and Mr. Chongkittavorn was asked about his view on practical ways to developed it further. The second question raised the subject of private sector and civil society in Southeast Asia and whether they could influence the ASEAN Community building process. In response, Mr. Chongkittavorn answered that the establishment of a security agency within ASEAN would require the reassurance of a stand-by force and further confidence-building measures. At the moment, fears among member states that humanitarian affairs will affect the political sphere stand in the way of efficient work with the ASEAN Regional Forum (ARF) and the ASEAN Defense Ministers’ Meeting (ADMM). With regards to the external influence by private businesses or civil society on ASEAN, he replied that the private sector and civil society in Southeast Asia were neither confident nor developed enough to enforce regional integration. The region still lacks a sense of belonging or community identity as regards ASEAN.
After Mr. Kavi Chongkittavorn’s discussion panel, General (ret) Bunchon Chawansin thanked the keynote speaker with a small token of appreciation.
After short refreshments, three additional experts on economics and development took to the stage to present their perspectives on the future of ASEAN and the coming AEC 2015. The panel included Dr. Supruet Thavornyuthikarn from Thammasat University in Bangkok who is a specialist on economic analysis; Dr. Sandro Calvani who is a professor in the field of International Relations at Webster University with extensive experience in humanitarian affairs, social development, conflict resolution and more as well as Mr. Kee Beom Kim from the International Labor Organization (ILO) who is a highly experienced specialist on employment and labor issues.
From left to right: Dr. Supruet (Thammasat University),
Mr. Kee Beom Kim (ILO), Dr. Sandro Calvani (Webster University),
Dr. Supruet Thavornyuthikarn offered insight on post-AEC 2015 issues that he divided into five development categories: economic surplus, similar economic foundations of members, institutional change, limited impact, and the role of local development in adjustment.
Dr. Thavornyuthikarn stated that trade liberalization would reduce barriers in Southeast Asia and encourage synergy among the member states. Nevertheless, he emphasized that the important issue redistribution of AEC profits had yet to be discussed within ASEAN. Additionally, he noted that ASEAN’s driving trade force is predominantly fuelled by external transactions instead of intra-regional exchanges. He supported Mr. Chongkittavorn’s statement on the need for institutional changes; highlighting that a bottom-up approach through increased awareness and commitment would be essential.
After Dr. Thavornyuthikarn‘s presentation, Dr. Sandro Calvani provided a presentation centered on regionalism and pro-poor policies, comparing the situation in ASEAN with lessons learned from the European Union (EU). According to Dr. Calvani, the EU’s strength is derived from its shared values such as liberty, democracy, respect for human rights and fundamental freedoms and the rule of law. He argued these are not shared values within ASEAN and that the missing consensus on these basic issues disrupts the organization’s progress. Dr. Calvani also stressed the importance of pro-poor policies in order to fight against poverty and encourage human development. According to him, the greatest lesson that can be learnt from the EU is represented in its vision of a unified region.
Following Dr. Calvani, Mr. Kee Beom Kim (ILO) presented his input on strengthening small- and medium-sized enterprises (SMEs). He highlighted ASEAN’s potential in promoting inclusive growth, decent jobs, and reducing poverty through trade, investment, and migration policies. However, he concurred with Dr. Supruet that the AEC does not guarantee that potential gains will be evenly distributed. An obstacle for the success of SMEs in the regional integration is the informal nature of these enterprises, something that also harms employment quality and state revenue. Furthermore, the concentration on exports and lack of economic diversification within nations will slow the labor market’s development. Mr. Kim stated that labor productivity, which still needs to include better economic policies and financial inclusion of SMEs, could provide the economic backbone for future regional integration.
In the concluding discussion that followed the speakers’ presentations, the main topics of debate were the economic outlook of ASEAN in the future and the potential for integrating pro-poor policies. Mr. Kim further expanded on the consequences of a high percentage of informal enterprises in the region by explaining that the key reason for the large informal sector was the inability of economies to generate jobs in the formal sector. Since the majority of populations in developing countries cannot afford to be unemployed, they enter the informal economy due to lack of choices. The infrastructure for SMEs to create formalized employment opportunities is also often too complex and hard to navigate for small-scale business activities. Furthermore, governments in this region often do not provide social support for families in the form of welfare programs or such. Another question asked Dr. Calvani about the role of pro-poor policies during the development of the EU. He answered that solidarity has been a part of European culture and that this is shown in the continued support of communities through the crisis years, starting in 2008. He also said that EU member nations have a strong emphasis on education and welfare. In a side note, he mentioned that the European public is aware of their rights, which makes it more difficult for governments to behave irresponsibly.
HDFF would like to thank the distinguished speakers and the participants for their attendance and participation in making this Chairman’s Circle a valuable and informative experience. The next Chairman’s Circle will take place in early December and speakers will be announced soon. For more information or to reserve a place, please contact HDFF via email to Mr. Christoph Gassner at gassner@hdff.org.
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