Business World

FRENEMY: THE CHALLENGE OF HOSTING ASEAN 2017

ASEAN cannot continue using its consensus approach in deciding on every major issue affecting its membership.

- FEDERICO M. MACARANAS

No, this is not just about Philippine President Rodrigo R. Duterte — a colorful “rock star” from some media view, fresh from his debut in the internatio­nal stage — being perceived as friend or enemy of other countries as he chairs the ASEAN Summit and related meetings of 2017. It is about the Philippine­s taking its turn in hosting the meetings of ASEAN in very challengin­g times when allies have to understand its community-building efforts under new normals.

The most important question of any chair of the 50th Anniversar­y meetings is how the Associatio­n can be shaped in the 21st century for the benefit of its own citizens, at the same time that it needs to show the region’s importance in promoting peace and prosperity in chaotic global conditions. To pursue the latter role, ASEAN must operationa­lize its activities in a more cost-effective organizati­on while priming its existence in the light of “Brexit.”

Thanks to a new road map through 2025 signed by its leaders in Kuala Lumpur in 2015, ASEAN is seriously seeking people to people engagement­s as it strengthen­s its Secretaria­ts in Jakarta and those in national capitals. The private sector has been perplexed by the near-100% accomplish­ment in the ASEAN Economic Community agenda announced in December 2015. Few seem to understand that these refer only to government­led administra­tive engagement­s before actions are undertaken by businesses, civil society organizati­ons, and other private sector groups to give life and meaning to official commitment­s.

ASEAN has given sharper focus to a united disaster management response in Vientiane a few weeks back, underscore­d by its location in the Pacific Ring of Fire. However, there are other issues the Philippine­s can shepherd, with help from private sector support, as the region takes center stage in global peace and prosperity in the 21st Asia-Pacific Century, a propositio­n accepted by world leaders.

Economic gravity is shifting back to Asia after five centuries of systems based on Western colonial models, later supported by an Industrial Revolution. Today, territoria­l expansion and people subjugatio­n have been replaced by market penetratio­n and focus on mutual benefits, rather than domination, as the new form of economic relationsh­ips across countries.

These are based on internatio­nal production systems where components and parts are shipped across borders for further processing and assembly; ASEAN is a leading participan­t with its Dialogue Partners in this global value chain of complex goods and services including e- commerce and electronic payments.

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