Written by: Oong Li Yin
Edited by: Dominic Koek
Photos by: Deborah Lee
During the STEP Youth Regional Affairs Dialogue 2019, young, passionate leaders from 20 different economies came together to investigate the role of regional cooperation in an increasingly polarised world. In the session on Economies and Economics, Mr Eduardo Pedrosa, Secretary-General of the Pacific Economic Cooperation Council (PECC), called for youths to join hands in the face of emerging economic trends. “We have achieved a great deal of economic development and rising income through trade”, Mr Pedrosa emphasised. The way forward is collaboration, not protectionism.
Interestingly, Mr Pedrosa highlighted that the top concern of international bodies around the world today is rising trade tensions and the future of multilateral trading. This concern is not unfounded, given that growth in the region has primarily been driven by export growth. Mr Pedrosa went on to explain the increasing complexity of today’s supply chains – a factor that has fuelled rising trade. “Where do you think your phones are manufactured? Where is the chip made? How about your phone screen?” he probed his audience, shedding light on how supply chains today actually cut across multiple borders to bring products from the manufacturers to the end consumers. With the onset of technological disruption, he made us realise the importance of recognising the interconnectivity of national economies across the globe and together with it, its potential.
Yet, despite the increasing interconnectivity of economies, the push against globalisation continues to gain traction. As seen from the populist sentiments in the West, rising inequality that comes with global competition can impede and even create a backlash against free trade. Instead of finding the trends towards protectionism incomprehensible, Mr Pedrosa urged youths to adopt a sense of empathy for those lagging behind. It is natural that people deeply entrenched in sunset industries would feel a sense of helplessness, and the inequality that arises from rapid growth and trade actually lies close to heart. In the Southeast Asian region, we see huge disparity between those who have rode on the waves of globalisation, and those who have drowned in it. “I had no idea that the inequality divide was so wide in [the Philippines],” said Jan Bertel Ong Ngo, a Computer Science student and dialogue participant from the De La Salle University, Philippines. “It is quite distressing”, he added.
However, at the same time, we should recognise the inevitability of the structural shift away from manufacturing industries to higher-skill economic sectors. The worst-case scenario, Mr Pedrosa cautioned, would be the “balkanisation” of the Southeast Asian region in view of these trends. This was with reference to the fragmentation of the Balkan region under the Ottoman Empire, where the states became hostile and uncooperative. Instead of seeing globalisation and technology as a threat, we should harness these trends to our advantage. This can be done through investments in human capital and greater mobility of people, knowledge and ideas. We must also start to rethink our economic models, as international bodies actually have a large role to play in this process. Not only do they provide a platform for high level discourse and greater understanding amongst nations, the international laws implemented also act as restraining forces to prevent any world or regional strongman from dominating a weaker nation.
It was immediately apparent that the youths in the room were deeply concerned about the topic. Questions were raised regarding how inequality can be addressed and the role that we as youths have to play. “I am a firm believer of collaboration”, Mr Pedrosa emphasised. He also listed three key factors that the future generation has to consider during its time – climate change, increased automation and inequality. Meanwhile, as participants broke off into small group discussions to consolidate their thoughts, Suryaveer Alias Smarthveer Sidna, a Chemical Engineering student and dialogue participant from the Indian Institute of Technology Delhi, shared his idea of a three-step solution to address the problem of inequality, and it comprises of increasing awareness, extending support, and providing assurance to those who lose out.
“I thought it was really interesting to see how the priorities of different international bodies differed,” commented Gracelyn Tan, an Economics & Public Policy and Global Affairs student and dialogue participant from Nanyang Technological University, Singapore
The conversations that followed the talk were just as eye opening. As participants shared their thoughts and ideas, they peppered their speeches with innovative ideas and anecdotes from their own individual economies. Although not all opinions were aligned, one thing was certain – the youths of today are not just concerned about their own jobs or societies, but also about the global trends that affect the entire region as a whole. Behind each passionate sharing, the shared sense of hope and determination in the room was both touching and immensely empowering.
About the Author
Li Yin (right) is a second year Accountancy and Business student, and a scholar of the NTU-University Scholars Programme (NTU-USP).
About STEP Youth Regional Affairs Dialogue 2019
The inaugural STEP Youth Regional Affairs Dialogue 2019 was organised by NTU-USP and supported by Temasek Foundation. The 8-day programme was a platform for university students in Asia to enhance their leadership skills and broaden their understanding of geopolitics. Aspiring youth leaders also had the opportunity to develop an appreciation of Asia’s interwoven geopolitical structure through discussions on economics, politics and society and foster an understanding of governance and policies across Asia as they build friendships through cross-cultural exchanges.
