Exploring ASEAN. A Comprehensive Study on PESTLE Analysis, Gender Variances, UN Income Disparities, and Factors Influencing GDP and HDI

Trabajo Universitario , 2023 , 13 Páginas , Calificación: pass

Política - Región: Asia del Sur

This study presents a comprehensive analysis of the ASEAN region, focusing on various dimensions including PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors, gender variations in key indicators, UN income disparities, and factors influencing GDP and Human Development Index (HDI). The research aims to provide a nuanced understanding of the socio-economic landscape of ASEAN member nations and identify critical areas for policy interventions and strategic planning. Furthermore, the study delves into gender variances across ASEAN countries, exploring indicators such as adult literacy rates, life expectancy, labor force participation, and population demographics. By highlighting gender disparities, the study contributes to discussions on gender equality and social inclusion initiatives within the region. Finally, the study explores the factors influencing GDP growth and HDI improvements in ASEAN, considering economic drivers, social development indicators, technological advancements, policy frameworks, and environmental sustainability practices. Understanding these factors is crucial for formulating evidence-based policies and strategies aimed at promoting sustainable economic growth and human development in the ASEAN region.

ABSTRACT

This study conducts a comprehensive PESTLE analysis spanning the decade from 2011 to 2020, focusing on the ten member nations of the Association of Southeast Asian Nations (ASEAN). Through an examination of political, economic, social, technological, legal, and environmental factors, the research aims to unveil the intricate socio-economic dynamics shaping the ASEAN region during this period. By analyzing key variables within each domain, the study elucidates common trends, unique challenges, and divergent trajectories among ASEAN member nations. The findings contribute to a deeper understanding of the region's evolution, highlighting areas of convergence and opportunities for regional cooperation and development. This study provides valuable insights for policymakers, researchers, and stakeholders invested in fostering sustainable growth and integration within ASEAN.

INTRODUCTION

The ASEAN region's economy is expected to surpass that of Japan by 2030 and rank fourth in terms of its own market size, behind the EU, the US, and China. According to the Asia Development Bank (ADB), South East Asia's middle class will grow from 24% of the population in 2010 to 65% in 2030.

Indonesia, Malaysia, the Philippines, and Thailand are predicted to join the group of Asian countries with a GDP greater than $1 trillion by 2030, making Southeast Asia one of the regions with the fastest-growing economies in the world. Indonesia, Malaysia, the Philippines, and Thailand are also predicted to become trillion-dollar economies by 2030. As a result, ASEAN will have greater geopolitical and economic weight in international diplomacy and the global conversation on trade, investment, and international standards-setting.

The frontier ASEAN markets of Vietnam, Myanmar, Cambodia, and Laos are anticipated to continue expanding quickly. Over the medium term, Vietnam will grow at a rate of about 6.5 percent annually, with fast expansion in the manufacturing exports of electronics and clothing fueling industrial development. By drastically lowering tariff barriers, the new EU-Vietnam Free Trade Agreement and the upcoming TPP agreement will dramatically increase Vietnam's market access to the EU and US for its manufacturing exports.

In the 1990s and the early 2000s, the Philippines' growth lagged behind that of the other ASEAN-6 nations, but in recent years, it has recovered, with good results on a variety of development metrics. Based on this achievement, the Philippines' 2030 aspirational objective is to improve its per capita GDP from 2010 by a factor of 2.5 to reach over $5,300 by 2030 and achieve upper middle-income status by 2020. The manufacturing sector of the Philippine economy is very small, there is little investment, and there are a number of imbalances. To achieve sustained growth over the long term, it is necessary to address uneven productivity across sectors, vast production gaps between major corporations and SMEs, and uneven regional distribution of income.

Any economy must have access to dependable and reasonably priced infrastructure in order to support job security and foster long-term viability. Unfortunately, Southeast Asia's present development spending is significantly below what will be required to achieve global goals by 2030. According to the 2nd ASEAN Economic Integration Brief, the further downside risk is the increased volatility in international financial markets as a result of the advanced countries (US and Eurozone) advanced economies' faster-than-expected normalization of monetary policy.

The policy, regulatory, financial, and market conditions must be ideal in order for the aforementioned infrastructure demands to first reach the trillion-dollar threshold. This suggests that additional work is needed upstream to develop a political environment that encourages commercially viable enterprises. Background papers on individual ASEAN nations' 2030 development views emphasized the significance of policies that improve people's quality of life in addition to setting aspiration targets based on GDP per capita. Although per capita GDP continues to be the most significant and frequently used economic indicator to define long-term development targets, people typically use a far wider set of measures to gauge how their quality of life is improving.

OBJECTIVES OF THE STUDY

This study's main objective is to provide a PESTLE analysis for ASEAN member nations. between 2011 and 2020. This study's focus is on the data from the ten ASEAN nations. The following factors are measured: political, economic, social, technological, legal, and environmental.

The objectives of the study are as follows:

1. To provide a PESTLE study for the ASEAN member nations.

2. In order to determine whether there are gender variations among ASEAN member countries in the following: adult literacy, life expectancy, labor force participation, and population.

3. To ascertain whether there are discrepancies in the UN income status among ASEAN member nations in terms of overall commerce, visitors, foreign direct investments, the human development index, and internet users per 100 people, and

4. To investigate the factors that affect the GDP and the Human Development Index.

Significance of the Study

The researcher determined that the following groups of people and industries would profit from the study's findings in order to justify its undertaking.

National Legislators: The study will help the current national legislators to encourage more women to run in the election in order to have balanced legislation.

Academic Community. By the academic year 2022, the academic community, through the data, can consider including in their learning outcomes the ability of the students to measure PESTLE in the ASEAN country so that when they become business executives in the future they already know the PESTLE condition of our country compared to the other ASEAN country member.

Researchers. The study would help the research in terms of information dissemination about the current situation of the ASEAN country as this study will give the researcher a bird’s eye view of the current situation and the PESTLE status in our country compared to the other ASEAN country members.

Future Researchers. The research study can be a good reference for succeeding researchers who will be conducting a related research study that can be used as a basis to improve future research regarding the ASEAN Community.

Potential Users of the Study:

Policy-makers:This study will help the agency to come up with measures on how to improve our current Philippines PESTLE condition.

MATERIALS AND METHODS

The 10 ASEAN Member Countries served as the study's subjects. The ASEAN Statistical Yearbook 2021, which can be acquired from the ASEAN website at http://asean.org, served as the analysis's primary source and other supporting documentation. The descriptive approach of research was used in the study. To achieve the study's goals, data were obtained, collated, analyzed, and evaluated. The pertinent information of the respondents from 10 ASEAN countries is presented below to wit;

Table 1. Profile of the Study Locale

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Research Design

The study used the quantitative descriptive design to understand an aspect of the situation such that the researcher describes the existing situation of the subject of the study. One of the techniques of descriptive that is applied in this study is the survey technique wherein the researchers use the results of the survey for the interpretation of the study. It also employed a self-analysis survey and evaluation questionnaires to determine the current status of the PESTLE of the ASEAN Members.

Research Instruments

There were two (2) sets of data survey questionnaires used in this study-Questionnaire A. PESTLE Analysis (ASEAN 2011-2020 Worksheet) and Questionnaire B. Socio-demographic Profile of ASEAN Member Countries (ASEAN 2020 Worksheet).

Table 2. Socio-demographic Profile of ASEAN Member Countries, 2020

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The table shows the total population (in thousand) of all ASEAN member countries in 2020 are 1,320,370.6, where the male population holds 50.02% and 49.98% are female, wherein 24.8% are between 5-19 years old and 50.8% of the majority of the population belongs to the 20-54 years old.

Through the documentary analysis, it was gathered that the adult literacy rate for males is 51.23% while for females is 48.76%. The ASEAN population life expectancy rate is 71.14 years (48.28%) for males and 76.2 years (51.71%) for females while the labor force participation rate is 56.83 % for males and 43.16% for females

There are concerns that are prevalent throughout the region even though each country faces unique challenges. All ASEAN economies are experiencing massive demographic changes that are affecting the labor market, healthcare providers, and educational institutions. Education must adapt to these changes and, more broadly, offer the human capital investment required to create a more creative, productive society. More fair employment possibilities for all are supported by a high value-added growth pattern along with an inclusive and peaceful society.

METHODS

This study was conducted using the data consisting of pooled cross-section data from 2011-2020 of the ten ASEAN member countries. They are Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

The data that have been collected and accumulated in this study from the respondents were tallied and tabulated accordingly. The study used a form of computer package data analysis (SPSS) generally used for specific quantitative research for the computation of (1) a T-test for independent samples to know the difference of the variables by gender; (2) ANOVA Test to know the differences in terms of UN income status (3) weighted mean with assigned scales were used in the computation to analyzed the PESTLE of the ASEAN Country Members.

RESULTS AND DISCUSSION

Table 3. PESTLE Analysis for ASEAN Member Countries.

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Taking into account this achievement, the Philippines' 2030 aspirational objective is to raise its per capita GDP from 2010 by a factor of 2.5, bringing it to more than $5,300 by that year and moving into the upper middle class by 2020. In order to meet this goal, average annual GDP growth over the two decades would need to be 6.1%, which is close to the 6% ADB forecast.

A limited industrial sector, low investment levels, and the existence of several imbalances are characteristics of the Philippine economy. To achieve sustained growth over the long term, it is necessary to address uneven productivity across sectors, vast output gaps between major firms and SMEs, and imbalanced regional income distribution.

On the other side, the nation can rely on a significant supply of natural resources, as well as a workforce force that is well-educated, speaks English fluently, and has a thriving service industry. Additionally, recent macroeconomic stability data has been favorable (Yap and Majuca 2013). These elements help the nation achieve its 2030 per capita GDP growth targets.

Table 4. Gender Parity in ASEAN

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Even if the population growth rates of all ASEAN members are down, there are clear regional disparities and underlying, very important, fertility rates. According to experts, the total fertility rates of Brunei Darussalam, Myanmar, Singapore, Thailand, and Viet Nam are under 2.1%, which is the threshold required to achieve long-term population stability. The Philippines has the highest fertility rate in the area, notwithstanding a decline. Despite the fact that population growth rates are drastically slowing down, the absolute number of people added annually is still high due to the steadily expanding base. The population of ASEAN is predicted to increase by 18% between 2010 and 2030, from over 600 million to over 700 million.

While infant mortality and birth rates are declining, ASEAN nations are aging. The aging process is especially noticeable in Singapore and Thailand, where more than 8% of the population was over 65 in 2010. Even if these two nations differ from the rest of ASEAN, the percentage of people over 65 in the region will generally rise quickly in the upcoming years. 10.8% of ASEAN's population is predicted to be over 65 by 2030, a significant increase from 6.8% in 2010. By 2030, Singapore and Thailand will be close to Japan's threshold of roughly one-fourth of the population being over 65, even though no ASEAN member has yet reached that level.

Table 5. Development Status of ASEAN Member Countries

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The ability to harness human capital, through the introduction of appropriate policies that reflect population and labor market dynamics, to provide social gains for the economy as well as benefits for the individual, is a second growth-enabling aspect to attain a "RICH" ASEAN. Avoiding the middle-income trap requires investing in human capital. As was mentioned, there are numerous aspects to raising the quality of life, from providing access to decent health and education to making sure that the infrastructure is in place to supply services like electricity, sanitation, and clean water. All of these human capital development-related factors, which also give individuals access to necessary skills, have a direct impact on the competitiveness and inclusivity of nations.

On the road to achieving the 2030 goals for a "RICH" ASEAN, protecting the environment improves the quality of life. The idea of sustainable, harmonious development relates to five issues that are intimately linked to environmental protection: how to balance rapid growth while ensuring environmental stewardship; (ii) manage energy supply and demand; (iii) deal with urbanization and the rise of the middle class; (iv) design regional cooperation initiatives, as natural resource management in one country has an impact on the environment of its neighbors; and (v) maintain peace and security within a region.

Table 6. Drivers for GDP for ASEAN Member Countries.

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The progressive rise in the region's total GDP is a seemingly advantageous result of ASEAN integration. Using the ASEAN Economic Blueprint 2025 as a guide, a self-certification program has been developed for the entire ASEAN region. By enabling exporters to submit origin declarations that will reduce transaction costs, this program aids in the utilization of the ASEAN Trade in Goods Agreement. The World Bank's Victoria Kwakwa, the Vice President for East Asia and the Pacific, estimates that between 2013 and 2030, ASEAN's infrastructure requirements will total US$3.4 trillion. In order to accomplish its goals of eradicating extreme poverty and fostering shared prosperity, ASEAN will require the aforementioned sum over the course of the next five years in order to stay up with economic growth.

Over the past few decades, ASEAN has experienced rapid urbanization, increasing the difficulty of effective environmental management. Approximately 53% of ASEAN's population would reside in urban areas by 2030, up from 42% in 2010, according to United Nations projections. This will affect both the larger, less developed nations like the Lao PDR and Cambodia as well as the smaller, less developed ones like Indonesia and Malaysia. Urbanization in ASEAN is mostly fueled by rural laborers moving to industries and services.

While many ASEAN nations continue to imitate products and processes, by 2030 the majority of them ought to advance to the technical frontier and be capable of innovation. Looking ahead, ASEAN nations should create regional and national innovation plans based on enhancing current competitive advantages and creating new ones in key industries. Again, the stark diversity of ASEAN is both its strength and its weakness. Long term, the region should be able to capitalize on its diversity as the relevance of multipolar development grows as a result of globalization.

Table 7. Drivers for HDI for ASEAN Member Countries.

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With the exception of the Philippines, the 2012 Human Development Index (HDI) rankings of ASEAN economies closely mirrored per capita GDP rankings. However, global rankings show that, aside from Singapore and Brunei Darussalam, which have high levels of affluence, ASEAN members often score better on the HDI than other nations in the globe — their rankings are higher on average than those in per capita GDP (in purchasing power parity terms). This is partly a result of advancements in some nations' health and education systems.

Although "human development" as assessed by HDI provides a more accurate representation of the quality of life than per capita GDP alone, the index still omits significant elements, particularly the non-financial facets of people's lives. Assessing the resources that are accessible to people is one method of gauging their overall quality of life. This entails using monetary indicators of consumption and income as well as non-monetary indicators to gauge the resources utilized to build infrastructure and provide social services (Fleurbaey 2009). However, it is challenging to utilize these metrics to carry out logical economic analysis and cross-country comparisons because people do not price resources equally and have different personal preferences.

CONCLUSIONS AND POLICY IMPLICATIONS

The goal of having a "RICH" ASEAN by 2030 is a lofty one. In order to achieve this, four major development obstacles must be overcome: improving macroeconomic and financial stability, fostering equitable growth, encouraging innovation and competition, and safeguarding the environment. To ensure that no one is left behind, the revolutionary spirit of the 2030 Agenda asks for widespread ownership and proactive, ongoing communication between citizens and officials. In response to this inclusive and significant call for action, ASEAN 2030 gives individuals the tools they need to speak for and take action on the issues that directly touch their lives.

The criteria for attaining a "RICH" ASEAN by 2030 must be taken into account as ASEAN works to realize its development ambitions. Each of the major development difficulties is impacted more or less directly by these elements, which are intricately linked.

1. Developing Financial Markets Deep and integrated capital markets, along with effective banks and financial institutions, are what make up a developed financial system, which supports a nation's economic development.

2. Utilizing Human Capital A nation's economy often experiences significant social and personal gains when its human capital is at its best. Understanding population dynamics is essential for comprehending how human capital develops since they have an impact on the labor supply, educational institutions, healthcare providers, and ultimately economic growth.

3. As they create a truly borderless economic community, ASEAN nations place a high premium on establishing seamless connectivity, which allows for cross-border travel, transit, and trade.

4. Strengthening Governance Institutions play a significant role in the quality of governance, which roughly speaking has a significant impact on economic development. It is impossible for emerging economies to draw large and consistent levels of investment because of the absence of solid institutions (and competent governance).

Initially formed to address regional security issues, ASEAN has developed into a body dedicated to advancing the economic and social success of the area. There has been obvious success in terms of economic expansion. The incidence of poverty has significantly decreased in low- and middle-income ASEAN countries, whereas Brunei Darussalam and Singapore are now high-income nations. Although these are commendable achievements, equitable and inclusive development must coexist with economic expansion in order to attain true prosperity.

According to the Asian Development Bank, ASEAN will be home to more than 700 million people by 2030, have an economy worth $6.5 trillion, and be in the middle of the world's fastest-growing region.

REFERENCES

ASEAN Statistical Yearbook 2021: ASEAN website http:// asean.org.

Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5, Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan www.adbi.org

THE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT sustainabledevelopment.un.org A/RES/70/1

• Curso: PhD-BA
• Calificación: pass
• Autor: Alan Salmero (Autor)
• Año de publicación: 2023
• Páginas: 13
• No. de catálogo: V1465981
• ISBN (PDF): 9783389012598
• Idioma: Inglés
• Etiqueta: ASEAN, PESTLE analysis, Gender variations, Adult literacy, UN income disparities