Steps to Overcome Challenges
It was seen that ASEAN Association was facing two most crucial challenges in its formation and meeting of its intention, which it proposed while forming the association among various countries. The two most recognized challenges that the association faced is the increasing demand of low skilled labor and rising income inequality. Further, the association also faced the challenges from the social cultural perspective as the countries that formed part of the association was from various cultures, religion and others. Thus, it is necessary to overcome these challenges in order to take the association a successful move. The first challenge that the association can overcome is by educating the organization about the actual work of skilled labor in their business and other measures they can take to reduce cost (Stroupe and Kimura 2015). This is done to reduce the scenario of inequality in the country. Moreover, the association can form meeting between nations and help them decide the goods in which they have a competitive advantage. This is done to makes each nation realize the type of labor they need for their manufacturing activity. This makes the demand for skilled labor less in some of the countries. This is because countries having competitive advantage in goods that uses capital more that labor will not demand much labor. This will control the demand for labor and companies will realize other methods by which it can reduce their production cost. Instead of using low cost labor companies can use modern technologies which will help them to do various task in one tool. This will reduce their cost of hiring labor. On the other hand, reduction in the demand for low cost labor ill reduce the income inequality in a region as labors will be paid the amount they deserved. Thus, this solves the further problems rising due to increasing income inequalities (Broinowski 2016).
The social cultural challenges that the company faced in relation to cultural gap between different religions can be solved by properly educating the members. The association should educate the ministers of the member nation of ASEAN because they are the major factor in the country that influences their citizen. Education is the best way religious discrimination can be solved between countries. Moreover, the member of ASEAN needs to travel across borders in order to know the diverse culture and tradition of the other countries associated with ASEAN. The association should make sure that the ASEAN nation trade between them and learn about each other’s tradition and languages. This will help ASEAN to cope up with the problems arising from culture and religious diversity. For the purpose, the association has also removed restriction from visa facility so that more and more number of people can travel in their partner company. This will help various ASEAN countries to interact with each other and solve the racial discrimination and religious problems that are arising in ASEAN. However, roads and other transport infrastructure that is missing in these regions need to be developed in order to facilitate the free movement of people and goods (Sukma 2014).
The association has also been criticized of the view of integrating the ten nations. It is near to impossible to integrate these nations due to the political differences they face. This is because there are nations those are politically unstable and it is not possible to integrate these nations with the developed ones. This is because the developed nation would not like to integrate their economy with the unstable economies because it might hit their activities badly. Thus to overcome this challenge ASEAN should clear its objectives that it aims to bring the underdeveloped nation close to developed nation financially by promoting their activities and making them stable (Acharya 2014).
From the above discussion, it can be deduced that ASEAN that was established in 1967 with the aim to create economic development, social protection and cultural expansion was successful in its work and effort. The association took the commitment of building collaboration and trust between nations, which was lacking between nations. Thus, it formed association between five member countries with the aim to crating a better world. The progress of the association can be seen from the economic development that the nation attained after the introduction of ASEAN. The economic development of the member countries has crossed the GDP of rest of the world in context of growth in the year the association was formed. This marked the success of the association since 1970s. Further, there were other improvements as well such as income growth, better standard of living, competitive strength and reduction in poverty. These are the benefit that ASEAN offered to its member nation after they took part and worked according to the structure of the ASEAN. On financial terms, as well the countries have benefitted from the association such an in trade, capital formation and others. This helped the company to form the third largest labor force in the world. From the political end, as well the association has benefitted its member nations by offering facility to settle the dispute between nations peacefully. This has enabled them to grow in a better and fast way. However, the success of the association also met with certain challenges and problems such as high-income inequality due to high demand for low cost skilled labor and cultural differences between member nations. Thus, it is recommended that educating the member nation about their competitive advantage and helping them understand the role of modern machinery in production. Moreover, allowing international movement of people to member nations and learning their culture and languages to develop a liking for all kinds of culture. Thus, all the member nations will get the chance to know each other and reduce the disparity of culture that they face between each other. ASEAN should thus be able to reduce these challenges as well I order to be a successful association in the world.v
Acharya, A., 2014. Constructing a security community in Southeast Asia: ASEAN and the problem of regional order. Routledge.
Broinowski, A. ed., 2016. ASEAN into the 1990s. Springer.
Stroupe, R. and Kimura, K., 2015. Opportunities and challenges across ASEAN: Looking ahead to the ASEAN Economic Community. ASEAN Integration and the role of English language teaching, pp.1-12.
Sukma, R., 2014. ASEAN beyond 2015: The imperatives for further institutional changes. ERIA Discussion Paper Series, 1.