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Would you agree that it is more possible to have negative effects of the AEC (ASEAN Economic Community) to the member countries like Myanmar and Laos than positive benefits? Discuss

Business Dec 27, 2020

Would you agree that it is more possible to have negative effects of the AEC (ASEAN Economic Community) to the member countries like Myanmar and Laos than positive benefits? Discuss.

Expert Solution

In my opinion, the AEC community is more likely to have adverse influences on Laos and Myanmar than positive benefits. This is because there are great disparities between and within countries in the AEC community relating to human capital, legal structures, infrastructure, and technological capability. These factors together impose specific challenges for under-developed countries like Laos and Myanmar.

  • The first and foremost challenge is their relatively unskilled workforce. Even though the AEC community brings more and better employment opportunities, it also imposes a higher standard for the labor force. Since job seekers are free to travel to other countries in AEC, without investing in education and training, countries like Laos and Myanmar will be likely to lose those jobs to workers from other countries.
  • Furthermore, to make the best use of its comparative advantages such as natural resources, abundant labor, and strategic location, countries like Laos and Myanmar will need to transform its legal structure (such as investment law) and infrastructure (including roads, ports, airports, power plants, industrial estates, etc.). These are difficult tasks that require not only Laos and Myanmar to have a strong commitment in a long time but also support from other members of the AEC community.
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