NEDA: GREATER COLLABORATION, INTERACTION AMONG ASEAN GOVERNMENTS, CHINA & INDIA CRUCIAL IN ACHIEVING ‘GREAT TRANSFORMATION’

Socioeconomic Planning Secretary and NEDA Director General Cayetano W. Paderanga, Jr., during the launching of the book titled ASEAN, the PRC, and India: The Great Transformation? publishedby the Asian Development Bank (ADB) and ADB Institute, said greater collaboration and interaction among the governments of the Association of Southeast Asian Nations (ASEAN) are necessary to be able to achieve ‘great transformation’, sustainable growth and full integration with China and India. ‘Great transformation’ was described in the book as having ASEAN, China and India as integrated economies that shall exceed the gross domestic product (GDP) of the United States and Europe combined and drive the global eonomy

“Things can be talked over and negotiations can be made so that there is both acceptance across and within borders. As we push the book forward, there will be an issue as to how the implications will be accommodated within the region over the next 20 years. This goes beyond sharing of resources and there is a need for greater interaction among governments,” Paderanga said.

He said that the ASEAN, China and India, if integrated fully will have to allow changes in their domestic industries as their economic structures adjust to those of other countries. He added that the ASEAN has its share of challenges in working with each other, for instance in terms of trade.

Further, Paderanga explained that the most challenging part for the ASEAN, of which the Philippines is a member-state, to be able to integrate with greater economies such as China and India is addressing the anticipated growth of demand for the region.

“As stated in the book, trends are being projected forward and the region will have to get a greater share of the total global pie. As we edge out the other parts of the world, the question is are we going to get demand internally from within this region,” he explained.

Paderanga also stressed trade as another issue that would have to be addressed by the ASEAN member states, China and India. He said that addressing this issue would imply rearrangement in the production networks of the said countries.

“As this happens, there will be social and economic transformations within these countries. Economic structures need to change but there will be gainers and losers. The question is how do we spread the pain,” he added.

The NEDA Director General, however, emphasized that the ASEAN has been collaborating with each other. “Up to now, there has always been a lot of conversation and as we always say, we agree in principle and then work out the details.”

“As we have gone forward, we have gained more confidence. There have been difficult periods for ASEAN but we have been able to get through them,” he said.

MR No. 2012-035

07 May 2012