High Time for Digital Cooperation between Korea and Indonesia(1)

High Time for Digital Cooperation between Korea and Indonesia

Indonesia, the largest economy in ASEAN (The Association of Southeast Asian Nations), is one of the key counterparts of the New Southern Policy initiated by the Korean government.  

Bilateral relations between Korea and Indonesia have been continuously improved and were finally elevated to a special strategic partnership in 2017. Now the two countries have their 75th Independence Day, Korea on Aug 15th and Indonesia on Aug 17th, come just around the corner.

 

The establishment of the AEC and its implication for South Korea(10)

The establishment of the AEC and its implication for South Korea

Unlike competitors heading forward, South Korea is often regarded encountered with shabby circumstance. Worries are prevailing that South Korea is way behind not only the running Japan but also the flying China. 

Prediction is that the ASEAN may play a crucial role of the last resort to save South Korea suffering from chronic weak growth. Needless to say, systematic approaches on a long-term perspective are desperately needed in the unprecedented era of the AEC.

 

The establishment of the AEC and its implication for South Korea(9)

The establishment of the AEC and its implication for South Korea

For instance, Japan has been striving to enhance its clout on the AEC by devoting itself to heavy investment on the infrastructure and key industries. Korean business people navigating new growth engines have unanimously pointed out that Japanese business presence is dominant in the region. 

Moreover, China is speeding up recently by utilizing its extensive networks across the region. China has maintained robust retail and wholesale channels in most part of the ASEAN since around the 16~17th century when the Western forces first embarked on their rush to Southeast Asia.

 

The establishment of the AEC and its implication for South Korea(8)

The establishment of the AEC and its implication for South Korea

Actually, Singapore has been importing housekeepers from its neighbors, Indonesia and the Philippines in particular. However, it will be highly likely that more human resources in various fields of the region will cross the borders of the ASEAN members with no limitation. 

In doing so, physical barriers will be torn down and regional exchanges and trades will be fairly accelerated. As a matter of fact, a global war without guns has been underway to attract the ASEAN actively stretching itself to the world. 

 

The establishment of the AEC and its implication for South Korea(7)

The establishment of the AEC and its implication for South Korea

The economic clout will be further strengthened if the ASEAN succeeds in actualizing the AEC. Consequently, the influence of the AEC on the regional security issues will be growing bigger, too. 

Against this background, hopes are high that the beginning of the AEC will serve an opportunity to create a new landscape for the 21st century. A local expert in Indonesia pictures potential changes in the region that the AEC may bring in the upcoming days. "People in Vietnam will start to learn the Thai language to drive taxies in Bangkok."

The establishment of the AEC and its implication for South Korea(6)

The establishment of the AEC and its implication for South Korea

In spite of the skepticism raised, the importance of the birth of a sizable single economic community shouldn't be underestimated. Along with Africa and South America, the ASEAN has been called as the symbol of underdeveloped areas. 

Thus, major powers like America, the EU and China would remain invincible if the ASEAN members try to compete with them individually. However, situation would be different if joint efforts of the 10 countries to cope with superpowers is designed and carried out.

The establishment of the AEC and its implication for South Korea(5)

The establishment of the AEC and its implication for South Korea

Doubts are cast upon the significant disparity of the social and cultural environment among the member countries. In addition, neither a single currency nor a central decision-making tower as those in the EU could be found. There exists considerable economic gap in the region as well. 

For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC.

The establishment of the AEC and its implication for South Korea(4)

The establishment of the AEC and its implication for South Korea

In fact, meaningful progress was already achieved since more than 70% of the intra-regional trade has been conducted free from any types of tariff. What will be the ASEAN like in the time of the AEC? It may be too early to forecast the AEC in 10~20 years when the AEC just pulled up its anchor. 

Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility consist of most parts of the region. The question is whether the AEC can evolve itself something beyond a regional agreement body. 

The establishment of the AEC and its implication for South Korea(3)

The establishment of the AEC and its implication for South Korea

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy. 

It isn't too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community.

The establishment of the AEC and its implication for South Korea(2)

The establishment of the AEC and its implication for South Korea

10 ASEAN members are faced with their own weighty political or diplomatic issues. However, all countries may share their uniformed look at the 'AEC(ASEAN Economic Community)'. 

It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. The concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN.

The establishment of the AEC and its implication for South Korea(1)

The establishment of the AEC and its implication for South Korea

The ASEAN(Association of Southeast Asian Nations), the 7th largest economy in the world, seems quite noisy in the wake of the new year. Assassination at the airport of the capital city of Malaysia triggered huge fury from all over the world as the North Korean regime is suspected of the mastermind of the incident. 

While Myanmar is under international criticism for the massacre of its minority group, Indonesia sees social conflict with controversy of the majority religious party's alleged attempt to exercise influence on the political sector. 

 

CAPITALSIM WITH A CONSCIENCE

CAPITALSIM WITH A CONSCIENCE 

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