The foundation of the AEC and its implication for South Korea
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. There will be Laotians who will pick up Javanese text books to become cab drivers in Jakarta."
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.
The foundation of the AEC and its implication for South Korea
However, situation would be different if joint efforts of the 10 countries to cope with superpowers is designed and carried out. As the old saying goes, "United we stand, divided we fall", the countries will have their confidence built up step by step.
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 also growing bigger. 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.
The foundation of the AEC and its implication for South Korea
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. 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.
The foundation of the AEC and its implication for South Korea
Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility consist of most parts of the region. This could explain why negative voices concerning the future of the AEC started to be echoed. The question is whether the AEC can evolve itself something beyond a regional agreement body.
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 can't be found. There exists considerable economic gap in the region as well.
The foundation of the AEC and its implication for South Korea
The AEC has been expected to draw huge attention from the international society ever since it came into the world. 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.
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.
