The World Economic Forum on East Asia 2012

Thinkers & Doers, Movers & Shakers will gather from the 30th of May until the 1^st of June in Bangkok for the annual World Economic Forum on East Asia 2012. The World Economic Forum is an independent international organization committed to improving the state of the world by shaping global, regional and industry agendas. In the past the event proofed to combine economics with social aspects. Thus the interactive and outcome-oriented session of discussions will be interesting to follow no matter whether one is particular attracted by economic topics or not. As the meeting is considered to be among the highest ranking economic discussions world-wide it will draw a great deal of attention and his outcome has the ability to influence the world economy in the foreseeable future.

This year’s event will engage business, political, academic and other leaders of society to have a lively debate. Doubtless the participant who will attract the most attention will be Burma’s pro-democracy icon Aung San Suu Kyi. This will mark her first overseas trip in over 20 years, in which she didn’t left Burma out of fear she wouldn’t be allowed back into the country by the military regime. Her international journey follows months of dramatic change in Burma, including a historic election in April that won her a seat in a parliament that replaces nearly five decades of oppressive military rule. As well attending will be Burmese President Thein Sein and other leaders from the Association of Southeast Asian Nations (ASEAN) as the ASEAN Economic Community 2015 will be the major point of discussion throughout the event.

According to the summit’s website the event will be under the theme “Shaping the Region’s Future through Connectivity”. Thus the debates will be about how to ensure a competitive and connected region, as well as to reinforce ongoing integration efforts toward the proposed ASEAN Economic Community 2015. To achieve this major milestone in only three years, stronger linkages across Southeast Asia are urgently needed. Therefore the program objectives include:

• How will leaders from ASEAN better link the region’s transportation infrastructure, health systems and institutions to maximize convergence of people, goods, services and economic-hubs?

• How will governments and institutions develop the financial policies to manage inflation, capital outflows, commodity price volatility and balanced growth towards greater domestic and regional demand?

• How will the region leverage its demographic dividend and technology base to develop the models to increase growth through innovation, improve talent mobility, entrepreneurship and skill building?

• How can the high economic growth economies of ASEAN help to rebalance both the global and the regional overall economic outlook?

Whether the ASEAN Economic Community 2015 will be a success is still doubted by many critics who say that the region is still too diverse for such integration. For that reason the World Economic Forum on East Asia 2012 will be a good indicator on the readiness for ASEAN. Check Asianowblog next week for a follow up on the World Economic Forum 2012.

The Philippines, how well is it prepared for ASEAN Economic integration?

The big day for the ASEAN countries is approaching more and more. The Philippines was one of the founding fathers of ASEAN in 1967. Yet, how well are they prepared to enter this economic integration, and, should they enter it? This snapshot analysis will give an insight into these questions.
The Philippines is a democratic republic, with a multi-party bi-cameral system of governance with Benigno Aquino as the President. After its independence from the US in 1946, the Philippines had different Presidents. Most of these Presidents have been corrupt or part of an elite family. The Aquino administration aims to change this history of corruption and have only ethical, honest and true public servants by his side . In addition to his fight against corruption, Aquino’s also wants to create jobs and invest heavily into infrastructure to make the country more competitive (Aquino,2010).

Besides corruption, another political challenge that the country is facing is the territorial dispute between Philippines and China. Both countries claim to have the territory in the Scarborough Shoal (The South China Sea; Shoal mates, 2012). This area is rich for fishery and contains oil reserves. Therefore, it is attractive to both countries. Apart from this dispute, China and Philippines have had good alliances and China is the biggest trading partner of the Philippines. Read the rest of this entry »

The economic burden of military expenditure

As the issue has been brought up in my previous blog, (India; one of the big boys), the current topic will further question the issue of military expenditure.

An illustration suggesting that military spending negatively affects the economy.

Victor Davis Hanson, writer for the National Review, has stated that in times of economic crisis, there are two general rules of budgetary reform, first, to scale back expenditures rather than raise taxes, and, second, to look at defence for some of the deepest cuts. The question is when nations decide not to reduce but further increase military spending during an economic crisis, what will be the impact on economic growth and development or other economic areas such as international debt and corruption?

Could the money invested in to military expenses be better off spent on other priorities? What are and should be the priorities in this time and day? These questions should concern everyone around the world. As the34th US President, Dwight David Eisenhower, former five-star General in the United States Army during World War II, mentioned in 1953, “This world in arms is not spending money alone. It is spending the sweat of its labourers, the genius of its scientists, and the hopes of its children”. Read the rest of this entry »