I’VE WRITTEN about the Association of Southeast Asian Nations (ASEAN) before because I am strong advocate for more ASEAN integration (to a certain point). I do this out of geopolitical realities.
In a world where Pax Americana no longer exists, individual countries must seek ways to remain secure and prosperous. For South Asia, strengthening ASEAN is one of the ways to do this, and one of the ways to strengthen ASEAN is by having a common currency.
There are benefits and costs to this. With regards to the benefits, an integrated economy leads to a higher regional Gross Domestic Product (GDP). It also gives member countries a major incentive for further integration.
More importantly, a joint ASEAN currency also gives us a certain amount of economic independence vis-a-vis other regions and major economies. This would not only give Southeast Asia a certain degree of economic security, it would also grant us a certain level of economic prestige.
On the other hand, we must also consider the bad side. More integration means more specialization, and more regional dependence. Some countries may even see some of their local industries die under an ASEAN common currency because of said dependence/specialization. It also means less national control and more diplomatic obligations, specifically regional obligations.
Additionally, larger member-countries will be overrepresented in their control over the hypothetical common currency. This means Indonesia, Vietnam and Malaysia will exercise most of the control, while smaller countries will exercise less of it. As a middling ASEAN member, I think the Philippines’ influence will be secondary.
As far as I can tell, these are the pros and cons of an ASEAN common currency. Consider them for yourself.
My opinions on the matter, however, are based on politics, not economics. I foresee an increasingly unpredictable world, and in such a world, a strong ASEAN may be necessary for a strong Philippines.
If a common currency is one of the costs for that to happen then that may be a price we may have to pay./PN
