AFA and AsiaDHRRA, represented by Esther Penunia, participated in a consultation with the ASEAN Emminent Persons’ Group of the ASEAN last June 28, in ISEAS office, Singapore.

During the consultation, the regional civil society formation Solidarity for People’s Action Advocacy (SAPA), submitted a paper on the group’s recommendations for the economic pillar. The paper was a product of a two-day conference among 20 SAPA organizational members, including both AFA and AsiaDHRRA.

The ASEAN-EPG is tasked to provide the ASEAN leaders with broad policy guidelines on the drafting of the ASEAN charter as well as the direction to take towards the integration and building of the ASEAN community.

SAPA has made an earlier submission to the EPG regarding people’s security.


SAPA Working Group on the ASEAN Submission on the Economic Pillar for the EPG on the ASEAN Charter

28 June 2006, Singapore

Executive Summary

I. Introduction

We are the Working Group on ASEAN of the Solidarity for Asian People’s Advocacy (SAPA), a network of non-governmental organizations (NGOs), civil society organizations, trade unions, and participants in the First ASEAN Civil Society Conference (ACSC I, 2005), engaged in campaigns and advocacy on various issues of public interest at the national and regional levels. SAPA network members have varied competencies in the key pillars of ASEAN cooperation, with many of us working on cross-cutting issues and advocacies.

SAPA WG on the ASEAN thanks the Eminent Persons Group on the ASEAN Charter for continuing the engagement with civil society on the ASEAN Charter process. SAPA WG on ASEAN reaffirms its commitment to engage in the process initiated by the Eminent Persons Group on the ASEAN Charter, and recommits itself to engage in the process beyond the completion of the EPG’s task.

This is a follow-up to our initial submission on people’s security in the last meeting of the EPG on the ASEAN Charter in Ubud, Bali.

II. Perspectives on Economic Regionalism

The SAPA Working Group on the ASEAN reiterates its broad perspectives on regionalism, as articulated in its initial submission.

o Regionalism is a step towards the advancement of ASEAN people’s interest, by stressing mutual benefit and cooperation among states and people.

o Regionalism should go beyond regional integration and incorporate genuine regional solidarity.

o Regionalism is the foundation for ASEAN’s venture into external relations.

Southeast Asia is an economically diverse region, with countries having variable levels of development and capacities to respond to globalization and change, and to the needs of its citizens. The development gap reduces the capability of the region to maximize its potentials and increases social tensions. Many ASEAN countries also face the challenge of unsustainable debts. Moreover, the financial crisis of 1997 showed the vulnerability of even the more prosperous countries to the impacts of the global market.

This is the backdrop against which economic cooperation and integration of ASEAN takes place. It is within this context that SAPA proposes to advance the following perspectives on economic regionalism.

Regionalism is founded on citizen’s rights and the cultivation of democratic processes. An active citizenry that participates in democratic political life promotes dynamic economic development and peaceful diversity. An accountable public leadership and efficient government should take place amidst popular mandate and legitimacy.

Economic regionalism promotes economic justice. The goal of economic cooperation is the pursuit of sustainable development, equity, inclusion, and empowerment. The pursuit of ASEAN economic development shall not be at the expense of labor, environment, and human rights standards. Regional economic initiatives should be open and transparent. It puts people at the center and seeks their participation.

Economic regionalism promotes solidarity. Regional economic cooperation and integration facilitates greater interaction and understanding among citizens of ASEAN, helps define identity and promotes solidarity. It also brings about increased welfare that helps reduce social and border tension. Regional economic integration should prioritize people to people exchange (trade, interaction etc.) as its core principle.

III. Institutions for Regional Policy and Cooperation

ASEAN Economic Community (AEC)

Principle 1: Economic Integration. The ASEAN Charter should recognize a policy mix that is informed by heterodox economic thinking and policy analyses, and integrate a strong social protection element in economic development founded on redistributive justice, poverty eradication and growth with equity and non-discrimination.

The ASEAN Charter should enshrine the values of agrarian reform, justice, and food sovereignty, and uphold every ASEAN citizen’s human right to food, water and livelihood.

Principle 2: Financial and Monetary Stability. The ASEAN Charter should have principles that protect regional currencies from the vagaries of the global dominant currency exchange system, and prepare the region for an independent exchange system. It should uphold principles that increase the capacity to generate capital from within the region, and values that guide the judicious use of such capital.

The ASEAN Charter should have specific provisions for the disciplining and regulation of the financial market, and increase the capacity of the region to monitor fluctuations and impending crises.

The ASEAN Charter should have provisions for the establishment of a workable ASEAN Development Fund for innovative home-grown initiatives, and for assisting Members with unsustainable debts.

Principle 3: Regional Harmonization and Complementation in Industry, Agriculture and Services. The ASEAN Charter should enshrine principles that move away from economic activities based largely on natural resource extraction and anchor growth in sustainable rural industrialization and industrial development, and promote public investment.

On the ASEAN Free Trade Area (AFTA): The ASEAN Charter should have principles that affirm the rights of Member States to implement national/regional measures that regulate/manage trade of sensitive products (e.g. food) and ensure food security.

On the ASEAN Framework Agreement on Services (AFAS): The ASEAN Charter should recognize the different types of labor movements and support full labor rights, and promote equality in the development of human resources.

On ASEAN Investment Area (AIA): The ASEAN Charter should provide for mechanisms that increase Member Countries’ capacity for internal savings generation, investment and job creation. The ASEAN Charter should uphold labor rights especially in relation to inter-ASEAN foreign direct investments, and uphold the “social function of property”.

On Intellectual Property Rights (IPR): The ASEAN Charter should uphold the Convention on Biodiversity; encourage research and manufacture of generic drugs, translate the precautionary principle into concrete pro-people policies and programs; and, promote alternatives to the enclosure of knowledge by promoting Open Standards, Open Access to content, and Free/Open Source Software etc.

Principle 4: Human Resources. The ASEAN Charter should have specific chapters on cooperation in regional human resource development that ensures domestic employment in critical industries and services.

The ASEAN Charter should provide for enhanced cooperation and exchange in science and technology research and development.

Principle 5: Labour Rights. The ASEAN Charter should enshrine international core labor standards and enshrine the principle of equal treatment, and adopt standard employment contracts that protect the rights and well-being of native and migrant labor alike.

Principle 6: Harmonizing Existing Norms and Mechanisms to Address Trans-Boundary Economic Concerns. The ASEAN Charter should have provisions that address cross-border economic and social issues and enshrine the principles for engaging the international trading system. It should recognize the responsibility of the Member States to promote, protect and fulfill human rights, including ensuring that all transnational corporations and other business enterprises operating in the ASEAN region respect human rights. The ASEAN Charter should adopt international declarations on irregular migration, on trafficking of persons, and on acess to information.

Principle 7: Increased Support to Small-Scale Producers to Build their Potential.
The ASEAN Charter should enshrine pro-poor policies ensuring equitable access to and ownership of markets and productive resources and, institutionalize disaster management mechanisms.

Principle 8: Sustainable Production and Consumption, Energy and Development. The ASEAN Charter should enshrine the principle of sustainable development espoused by the Rio Summit and reaffirmed by the WSSD. It should envision an industrial production system that is clean, resource- and energy- efficient and sustainable, and establish mechanisms for the promotion of renewable energy sources. The ASEAN Charter should uphold the concept of sustainable consumption.

Principle 9: Implementation, Monitoring and Mechanisms for Adherence. ASEAN Member Countries have adopted many regional and international agreements to promote socio-economic principles, but they have different capacities to adhere to those agreements.

The ASEAN Charter should provide mechanisms that will help member countries to adhere to the ideals of the Charter.

Principle 10: Social Dialogue. Full and meaningful participation of civil society at all levels of decision-making ensures more effective and equitable benefits sharing, and strengthens economic integration.

The ASEAN Charter should uphold the principle of social dialogue and consultation with civil society and social movements.

IV. Moving Forward

SAPA commits itself to enrich its inputs to a series of national consultations on the ASEAN Charter, and in the Second ASEAN Civil Society Conference to be held in the Philippines, December 2006. It is also committed to further consultation with the EPG members in their upcoming meetings in Brunei Darussalam and Cambodia, and in the follow-up processes leading to the drafting of the ASEAN Charter.

SAPA expresses its continued appeal to the EPG to broaden their consultation process to include other civil society groups at the national and regional levels. SAPA also appeals to ASEAN member governments and the ASEAN Secretariat to assist the EPG to make such a process possible.

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