Integrated economy to affect business, ordinary citizens

CEBU, Philippines - While various sectors in society have thought about the benefits and challenges of an integrated economy, it is also crucial to note how the target realization of ASEAN Economic Community next year would trickle down to ordinary Filipinos.

This is according to a development strategist who emphasized the business community is not the only affected sector but every “Juan” has to care about this regional issue.

In an interview with The FREEMAN, Jenny Lind Cardenas, executive director of SPARK, Inc., said the consequences of an integrated economy which implies a free-trade zone like the European Union will surely be felt by all citizens.

SPARK (Samahan ng mga Pilipina para sa Reporma at Kaunlaran) is a non-government organization that is composed of empowered women and committed to women development in the nation.

“Bisan ako ordinary nga tawo maapektuhan akong paggasto o purchasing power sa unsa ako mapalit sa usa ka adlaw,” Elmaco said on the sidelines of a forum on Philippines’ preparedness for economic integration done in Cebu Wednesday. The talk was organized by University of San Jose – Recoletos with the Cebu Market Vendors Development Cooperative (Cemvedco).

The governance specialist noted that the transformation of 10 ASEAN economies into a single market and production base would mean that consumers will have more choices.

While on the other hand, the free flow of goods and resources of the Southeast Asian nations will mean stiffer competition among manufacturers of goods and services.

In the case of the Philippines, the problem greatly lies on the preparation of the government to get the country and its people ready for the integration, said Elmaco, who used to be researcher of European integration.

She warned the country might experience democratic deficit that says the government in some way lacks democratic legitimacy. This was already experienced by European Union before when the transfer of legislative powers from national governments to the Board of ministers of EU was criticized.

“Di pa man gyod ta competitive,” she readily noted when asked on where is the country now in terms of preparation. She added there is a need to recognize that the country still lacks preparation in order to move the government and private sector quicker and with focus.

She suggested the country needs to have a performance based framework that would help identify the desired outputs in areas of economic integration, security and socio-cultural which are the three pillars of ASEAN community.

In general, she added, the integrated economy will bring both benefits and setbacks to many sectors especially to small and medium enterprises and to the small market vendors as well.

However, Chairman of the Board Erwin Gok-ong of Cemvedco, the largest cooperative in Cebu City’s Carbon Market, said they, market vendors, do not take the integration as “big fear” because their group was born during a crisis.

The businessman, who also spoke during the forum, said although the buy and sell business of market vendors will not largely be affected by the integration, their cooperative will continue to support the marginalized sector.

“Ang advantage man gud namo kay cooperative mi,” he said. A cooperative is an independent union of people who voluntarily cooperate for their mutual social, economic and cultural benefit. It is a business group that gives channel to bridge market values and human values.

For instance, Cemvedco was formed with the aim to stop the move to phase out the Carbon Market due to plans to make Cebu more urbanized. And until now, the fast-paced business environment in Carbon has survived for years.

Despite the looming integration, Gok-ong said the concept of cooperative is a tool to help small vendors survive and flourish in a more competitive environment. (FREEMAN)