Today the
International Labor Organization and the Asian Development Bank released a
report on labor issues in the ASEAN Economic Community (AEC). The report noted the major economic gains
that could be achieved through the community, through the 14 million new jobs
created through economic integration.
However, it does note that only a small portion of the labor force will
be affected by labor mobility by the immediate onset of the AEC:
On labour
migration, the report found that migration within ASEAN currently focuses on
low and medium skilled workers, a flow which is likely to increase in response
to demand, particularly in the construction, agricultural and domestic work
sectors. The report also notes that the
free flow of skilled workers that will come in with the AEC affects less than 1
per cent of total employment on average and will not satisfy demand. To attract
and retain their skilled workers businesses will need to compete on the basis
of productivity and develop institutions to better link wages to productivity.
The
report also notes that the resulting economic gains will not be evenly
distributed unless there are policy changes in the region:
Unless decisively
managed this could increase inequality and worsen existing labour market
deficits - such as vulnerable and informal employment, and working poverty. To
counter this Member States need to develop policies and institutions that
support inclusive and fair development. In particular, there is an urgent need
to improve the quality, coverage and sustainability of social protection,
starting with the establishment of a social protection floor for all.
The report goes on to
propose binding commitments by the ASEAN member states that would protect labor
rights:
Migrant
protection and migration management are among other key issues for ASEAN. If
countries are to reap the benefits of labour mobility they will need to
prioritize three critical areas: ratifying, implementing and enforcing
international Conventions; extending the coverage and portability of social
security; and implementing the ASEAN Declaration on the Protection and
Promotion of the Rights of Migrant Workers.
As
I have posted earlier, these
types of policies related to services may eventually become the most controversial
aspects of the AEC. If ASEAN workers
obtain these rights under international and ASEAN agreements, what mechanisms
will be established to protect those rights under domestic laws and ASEAN
agreements? Will ASEAN workers be
satisfied with those mechanisms, and if not, will they seek additional protections
and other rights? Most importantly, are
the ASEAN member states and the ASEAN institutions prepared to do any of
this? In all likelihood, not in the
immediate future.
Thus, the aims of the
ILO/ADB report are noble, but achieving them will have to wait until ASEAN
develops stronger institutions to deal with these issues, as I noted earlier:
Because it touches so many key issues for regional
integration and development, the movement of natural persons will be the last
major hurdle for the AEC and other regional economic integration
projects. However, because of the less mature political and social development
within ASEAN, it will take that much longer to achieve in Southeast Asia.
The labor mobility issue is therefore
something to consider for the post-2015 AEC agenda, but given the political and
social sensitivities involved, may take years to address.
