External Strategic
3. Discussion a. Goal 1
According to the distributor as the related person, infrastructure like road and warehouse, does not give too much effect to the rice price. Even in two markets located at the different area (Jabung in the eastern area and Sumberpucung in the western area), the price is the same. The effects on infrastructure are the length of the route. If there is an obstacle
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Page | 155 on the way delivering the goods, vehicle should turn to another route and maybe it will be longer route or rougher road.
It will take more fuel, but not too much. The size and the number of warehouse also not give a significant effect to rice price.
b. Goal 2
Survey of ability to pay has done to 30 respondents, and the result can be seen at Table 2.
Table 2. Household Expenditure for Food and Rice
Respondent Total Expenditure
Expenditure for Food
Expenditure for Rice
Percentage Expenditure for Food
Percentage Expenditure for Rice
1 2000 1500 800 75.00 40.00
2 3500 1500 250 42.86 7.14
3 1500 600 85 40.00 5.67
4 1000 700 256 70.00 25.60
5 2500 1000 170 40.00 6.80
6 2500 2000 170 80.00 6.80
7 1500 1000 240 66.67 16.00
8 1400 900 153 64.29 10.93
9 600 450 135 75.00 22.50
10 5000 3000 225 60.00 4.50
11 2000 1500 450 75.00 22.50
12 1000 400 120 40.00 12.00
13 700 510 360 72.86 51.43
14 5500 3000 225 54.55 4.09
15 4000 1000 150 25.00 3.75
16 1750 1120 120 64.00 6.86
17 1000 700 240 70.00 24.00
18 2500 1200 160 48.00 6.40
19 700 500 382.5 71.43 54.64
20 2500 1500 150 60.00 6.00
21 6000 3500 200 58.33 3.33
22 1500 800 200 53.33 13.33
23 1500 500 120 33.33 8.00
24 2000 600 120 30.00 6.00
25 3000 950 180 31.67 6.00
26 1500 600 160 40.00 10.67
27 2000 1500 120 75.00 6.00
28 2500 2000 200 80.00 8.00
29 3000 1000 85 33.33 2.83
30 1500 750 240 50.00 16.00
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Page | 156 Based on the survey to 30 respondents, 20 are higher than the standard of percentage expenditure for food (47.71%) and 15 are higher than the standard of percentage expenditure for rice (7.9 %). We can assume that if the rice price were rising, percentage expenditure for rice would be rising too.
4. Result
The result of this research suggests that infrastructure does not affect food price too much. Rising price could be led by failed distribution. Failed distribution is not only about infrastructure thing, but also the other thing:
a. Inefficient route of distribution, goods (in this case the goods is rice) not well distributed, they could pass the same route because there is no management for route distribution from the upper level such a government or organization. This is just the waste of fuel time to distribute.
b. There is a speculator, a person or body which invests in stocks the goods in the hope of gain. They save the rice when the quantity of supply is high, and then sell it when the supply is low. Because when the supply is low, the price will rise.
c. Some area has rice as its commodity, but the farmers sell it to the market which located out of that area. If farmers sell their product in local market, the price should be lower.
5. Conclusion
Based on the analysis, it is concluded that infrastructure affects the food price, but not that significant, and the rice price could affect people’s ability to pay. The most important part that makes the price is distribution. Failed distribution can lead to the rising price.
References
1. “Persentase Pengeluaran Rata-rata per Kapita Sebulan Menurut Kelompok Barang,” Badan Pusat Statistik Republik Indonesia, accessed August 11, 2013. http://www.bps.go.id/tab_sub/view.php?kat=1&tabel=1&daftar=1&id_subyek=05¬ab=7.
2. Firdaus, Muhammad. 2011. Ekonomika Suatu Pendekatan Aplikatif. Jakarta: Bumi Aksara.
3. Holcomb, R. B., Park , J. L., Capps, O. “Revisiting Engel’s Law: Examining Expenditure
4. Kumar, R. 2005. Research Methodology: A Step by Step Guide for Beginners. New South Wales: Pearson Longman.
5. Patterns for Foof at Home and Away From Home.” Journal of Food Distribution Research (1995): 1 – 8. Accessed August 9, 2013.
http://ageconsearch.umn.edu/bitstream/27224/1/26020001.pdf 6. Morissan, M. A. 2012. Metode Penelitian Survei. Jakarta: Kencana.
7. Roscoe, J. 1975. Fundamental Research Statistics for the Behavioral Sciences (2nd Ed.) New York: Holt, Rinehart & Winston.
8. 2005. Introduction to Poverty Analysis. World Bank Institute.
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4th International Conference on Sustainable Future for Human Security, SustaiN 2013
Impact of AEC Connectivity on Local Communities: Comparative Studies of Dawei Deep Sea Port in Myanmar, the Eastern Seaboard in
Thailand and the Strait of Malacca in Malaysia after the Implementation of the ASEAN Economic Community in 2015:
Challenges and Opportunities
Nattaporn Sittipat
*Lecturer, Faculty of International Studies, Prince of Songkla University, Phuket Campus,
80 Moo 1 Vichit Songkram Rd., Amphur Kathu, Phuket 83120, Thailand
Abstract
In the implementation of ASEAN Economic Community (AEC) in 2015, there have been many efforts to establish the new AEC connectivity. The AEC connectivity denotes the capabilities of transborder transportation that increases the rapidity with which goods, information, capital and technology move between the region and the world. For centuries, the Strait of Malacca in Malaysia, the Sunda Strait and the Lombok Strait in Indonesia have been the center of ASEAN’s connectivity. Ninety percent of the world’s transportation has to pass those straits to transport both commercial and secure products from the United States of America and Europe to East Asia. The countries in Southeast Asia especially coastal states have the significant roles to initiate and manage the ASEAN’s connectivity because of the mutual interest since the Declaration of Independence of each country, for example, ASEAN’s coastal states cooperated to achieve the Regional Maritime Security Initiatives(RMSI) which was initiated by the United States of America in 2004 to operate the maritime security in Southeast Asian sea especially in the Strait of Malacca in Malaysia, the Sunda Strait and the Lombok Strait in Indonesia.
However, in the implementation of ASEAN Economic Community in 2015, the new ASEAN connectivity will be changed from the Deep Sea Port at the Strait of Malacca in Malaysia, the Victoria Point in Myanmar, the Eastern Seaboard in Thailand to Dawei Deep Sea Port in Myanmar. From AEC’s plan in 2015, Dawei Deep Sea Port will be the most significant transborder corridor of the ASEAN connectivity. The port is located in the frontier between Myanmar and Thailand which is connected to Thailand, Greater Mekong Sub-region, China and South China Sea. It will be the center of ASEAN connectivity after 2015. If comparing to the Deep Sea Port at the Strait of Malacca in Malaysia in term of transportation, Dawei Deep Sea Port in Myanmar can decrease the cost of transportation and to increase the high maritime security. The port will encourage many investors to transport their products to Dawei Deep Sea Port. The rise of interconnectedness like the port after the implementation of ASEAN Economic Community in 2015, not only affects to almost every sphere of society from economic term to human security term on local communities of the Strait of Malacca in Malaysia but also local communities near Victoria Point in Myanmar, the Eastern Seaboard in Thailand because the Strait of Malacca in Malaysia is the center of ASEAN’s Connectivity nowadays and Victoria Point is the center of crossing the border between Ranong in Thailand and Myanmar which serves as trading center for local Thai-Burmese commerce.
Moreover, the Eastern Seaboard is located in Rayong and Chonburi province which is also the commercial and industrial center with the Deep Sea Ports. Those are the Connectivity of ASEAN nowadays. However, Dawei Deep Sea Port in Myanmar will be the new AEC Connectivity after the implementation of ASEAN Economic Community in 2015. Therefore, local communities of the Strait of Malacca in Malaysia, the Dawei Deep Sea Port in Myanmar, the Victoria Point in Myanmar and the Eastern Seaboard in Thailand will be affected significantly in political, economic and social terms. The AEC Connectivity will make the advantages and the disadvantages to local communities of the Strait of Malacca in Malaysia, the Dawei Deep Sea Port in Myanmar, the Victoria Point in Myanmar and the Eastern Seaboard in Thailand in the future. It is very significant to study the impact of AEC Connectivity to those local communities of the Strait of Malacca in Malaysia, the Dawei Deep Sea Port in Myanmar, the Victoria Point in Myanmar, the Eastern Seaboard in Thailand on political, economic, ecological and social terms that will affect to local people in each area after the implementation of ASEAN Economic Community in 2015 by using the Linkage theory. The Linkage theory mentioned that policy is made by the internal and external factors. This research will focus on the challenges and opportunities of the impact to local communities on the Strait of Malacca in Malaysia, the Dawei Deep Sea Port in Myanmar and the Eastern Seaboard in Thailand in social, economic, ecological and political terms after the implementation of the ASEAN Economic Community in 2015. There are three parts of the research below:
(i) The principles and history of the ASEAN Economic Community
(ii) Analyzing the politics and political economy of the ASEAN Economic Community(including problems in the way of movements of skilled people and the availability of particular skills in different parts of the Community, and access by the little people to the benefits of integration - and thus the broader question of the distribution of the benefits of the formation of the AEC)
** Corresponding author. Tel.:+66-0837890594
E-mail address: [email protected] , [email protected].
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Page | 158 (iii) Case studies of the likely impact of the AEC on particular industries in particular countries on local communities
of the Strait of Malacca in Malaysia, the Dawei Deep Sea Port in Myanmar and the Eastern Seaboard in Thailand in social, economic, ecological and political terms
© 2013 The Author
Keywords: AEC Connectivity; ASEAN Economic Community; Impact; Dawei Deep Sea Port; Victoria Point in Myanmar; the Eastern Seaboard in Thailand; the Strait of Malacca in Malaysia