ASEAN, economic integration, and human rights protection

Patriani P. MuliaUtrecht University2015

Objective: Looking at how economic

integration under ASEAN Community may impact and change the lives of the people in the region. Not only economically

but also social standard- welfare wise.

Basic concept: ASEAN Community is not

merely an FTA. It is a model of regional integration scheme, which is bigger than FTA.

ASEAN Community allows for freer cross border trade among the region.

ASEAN has an idealistic concept that is to cater for the livelihood of the people of the region = social welfare goal.

Question: How would a balance be created

between having successful free market/regional integration and achieving well-being and livelihood (social welfare of the people?

What it is about…

ASEAN Community

Enlarged scope of issues with regional economic integration The issue with ASEAN Community is that it encourages cross-

border business activities which is enlarging the risk from local to global.

The link between economy and human rights protection already exist – various reports showing abuse of workers, undue payment, occasional cross-border individual dispute, etc.

What used to be isolated or sporadic problems will have a higher change to become usual day-to-day problems, raising in numbers and categories of issues.

Example: non-payment of salary to cross border worker? How should it be

settled? Abuse of cross-border female domestic workers? Different working standards from one country to another?

Pre-existing problem to be exacerbated

Reciprocal relationship argument Economic integration may affect human rights protection in the

same way as the level of human rights protection may affect the course of economic integration.

economic activities: involve actors in various tiers: government – companies –

individuals.

Economic activities do NOT always be in favor of the well-being of the people, it follows economic interest, i.e. profits and benefits driven. Child labour Indecent pay/salary Enforced labour, ++

Recent concept on ‘business and human rights’: government has to make sure than businesses have corporate

responsibility towards human rights. States to ensure that there is available legal remedies for relief.

Reciprocal rltn: ASEAN Economic integration affect human rights protection Single market and production base: free(er)movement of

skilled labor, investment, capital, business establishment. Less or non-existence of barriers to cross border. No more

national protection system –> driven by pure economic interest.

Is economic interest evil? ≠ Look for the most benefits and profits, will look at gaps in

protection that can benefit the business. E.g.: lower labour protection, lower salary, easier or more

relaxed legal system, etc. Risks of: misuse of existence of gap in development

level and protection among ASEAN MS. Example of NAFTA = Mexico. More sub-regional trade but

welfare wise, NAFTA does not improve national interest of Mexico.

NAFTA FTA with no regard to socio-political and

national welfare of the country. No common values to be created. After NAFTA, more factories established in

Mexico, but wages rate drops by 11%. American and Canadian businesses

established in Mexico but not vice versa. Rise in Mexican sub-regional trade, but

national welfare of Mexico is not improved.

Exacerbated: in zones, and in number , and in contents

Before AEC After AEC

Exacerbated problems… In zones: bilateral problems becomes

regional problems: more probabilities

In contents: what used to be dominated by unskilled labor issues can be enlarged to include skilled labor issues.

Domestic workers’ abuse to… Disparity in salary, women’s rights in employment,

discrimination.

In number: bigger are + bigger scope of problems = more cases

Reciprocal rltn: Human rights affect economic integration Central idea: interest of human – human nature – to find

better condition. Movement of skilled labor (+unskilled), people will look for

the best place to live and earn their living – mostly protected.

There will be a specific trend in the movement of people within ASEAN. (There is already a trend in the labour sending countries and receiving countries, but expect to have modifications with AEC in place).

Extending the development gap == movement of skilled labour to certain countries only.

Surplus of skilled labour in particular country(ies), center of ASEAN. Shortage of interest in the rest of the countries.

=> in contrary to NDG as ASEAN goals. Regional prosperity with in fact be prosperity for some but not for all countries.

Summary of impacts NDG fails: AEC results in prosperity of some but

not all countries.

Even if, assume there is macroeconomic growth for each MS, still open question on national microeconomic growth and welfare. == looking back at NAFTA.

Equals = toFailure to achieve ASEAN goals through

AEC.Non-effectivity.

Additional ProblemsSTARTS FROM: ASEAN wants to create common values and norms.No standard-setting body = relying on national body of law (interpretation and enforcement system). No cross-border complaint-mechanism to handle claims; mostly relying on ad hoc or diplomatic negotiation

Can this work systematically? Pick and choose of case: high profile/not, injustice and uncertainly of law.

POLITICAL MATTERS

ConclusionASEAN is unlike typical FTA, it has social welfare (wellbeing of the people, not only the rise in trade and regional/national income per capita)

ASEAN is built over diversity in so many aspects, AEC without certain level of uniformity in levels of life will be ineffective. why have other pillars?

APSC includes common values and norms including in HR standards. should be highlighted

Economic activities affect social welfare, including human rights protection.

More open and cross border economic activities will add more impacts to social welfare, and HR protection.

In turn, HR protections will direct people to move across border that is beneficial. Thus, creating imbalance in labor market supply.

People who have choices (skilled labor) will go on to places that are beneficial and safe. People who does not have choices (unskilled labor) will go where demands are present.

Create the same scenario where: the educated/advantaged gets more opportunities while the disadvantaged stays the same.

Development gaps persist, no betterment of social welfare.