Apr 11, 2012

China - China and ASEAN: Explosive Fertility, Regional Integration


The foreign ministers of China, Japan and South-Korea met this weekend in China to discuss mechanisms to foster regional cooperation and trust.

The newly inaugurated Trilateral Cooperation Secretariat (TCS) aims to expand commercial and cultural intercourse. The forum also wants to provide a platform for debating maritime conflicts, Korean reunification as well as ASEAN integration.

Closely preceding the China-Japan-Korea meeting was the lackluster ASEAN summit earlier this month.

Under the tutelage of Washington DC, ASEAN members deliberated on chronic disputes with China on maritime boundaries in China Sea, but the elephant in the room was the snail like pace of ASEAN integration.

The single greatest problem impeding ASEAN integration is its population explosion.

Population explosion has inflicted an unacceptable premium on the birth of an integrated labor market, common currency and a unified political system governing ASEAN and eventually all East Asia.

Yet, this ominous hydra invited scant attention from policy-makers and powerbrokers guiding ASEAN.

Is TCS, especially China, cognizant of this gathering tsunami of births and the grave implications on natural resource access and regional security in East-Asia and Pacific?

As per capita access to water, food, fuel, housing and healthcare faces enormous extractive stress, comprehensive institutional measures to rapidly curb birth rates are urgently required but sorely missing from TCS and ASEAN summits.

Whereas Korea-Japan have transitioned towards advanced fertility of 1.2-1.3 births/woman, China towards intermediate fertility of 1.6-births/woman, ASEAN is proliferating unsustainably at 2.4-births/woman.

With 12 million annual births, ASEAN might serve as a temporary low cost production base for overseas manufacturing giants clamoring for limitless dirt cheap labor. This might also bring great joy and satisfaction to the ruling class in ASEAN.

But eventually, ASEAN will face the low-middle income trap that Malaysia is grappling with for last 10 years. 

Endemic corruption, unwise policies, lackluster governance are certainly contributing factors, but population explosion perpetuates all of the above as part of a vicious cycle of stagnation and hopelessness.

Population explosion in ASEAN will also put enormous pressures on its natural resources for domestic consumption and exports to resource scarce China will further accelerate resource depletion.

Another grave danger is the unwarranted influence of explosively bulging States such as Indonesia, Philippines and Malaysia on advanced fertility countries such as Singapore and Thailand.

Singapore, Brunei and Thailand will veto any progress towards a free labor market and an integrated political system with a common parliament and Capital.  They will resist the flooding of their labor markets by a tsunami of poorer, less educated and burdensome masses.

It is undeniable that if ASEAN converges towards intermediate fertility like Thailand, or even advanced fertility like Taiwan, in time, the vehement objections of richer members like Singapore and Brunei will be propitiated.

However, fertility convergence will require universal access to basic healthcare and long-term contraception including IUDs and implants; primary education, and sustained mass media campaigns as its three vital ingredients.

If ASEAN’s annual births are rapidly arrested within 6-6.5 million range by 2020, there will be incalculable benefits for its citizens. These include much higher living standards and incomes, dramatically lower investment costs, and a competitive labor market.

China-Japan-Korea trilateral commission should present a clear vision and large investments for rapid fertility transition inside ASEAN. These measures will elevate East Asia’s security and prosperity exponentially, and a genuine and lasting integration might be possible.

A rapidly declining America saddled deeply in debt also ought to encourage this transformative development.

Andy Maheshwari
examiner.com



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