Introduction

ASEAN+3 is a network established by ten country members who belong to the ASEAN (Association of Southeast Asians Nations) with other countries such as Japan, china and south Korea. The mail goal of the ASEAN+3 is to foster improvement of business relationships among the ASEAN counties and the world. The ASEAN+3 network helps to bring good relationship which in turn leads to improvement of business among the countries. This also helps in fostering peace among the thirteen Asian countries and the world (Koryŏ 2001). ASEAN+3 help new and current exporters and those seeking to expand into new markets by providing expert advice, professional research and reliable data for an individual’s business.

According to the Asian Development Bank (2006), ASEAN+3 SME Network makes it simple for and easier for an individual seeking to invest in the Asian market by providing current and up-to-date information on the companies that exist in the Asian countries. The main goal is to the provision of marketing and trading information of the Asian market (Kwan 2003). This helps an investor because it enables him to spend less money and time in finding the right business to invest. All this happens while the investor receives accurate information about the Asian market. There are thirteen main Asian countries that are part of the ASEAN+3. These include Thailand, Korea, China, Malaysia, Laos, Myanmar, Philippines, Vietnam, Brunei, Singapore, Indonesia, Japan, and Cambodia.

According to the Asian Development Bank (2008), through the ASEAN+3 networks, the thirteen member states have established a trading block that safeguards the interest of each member state. It ensures that each member state receive benefits such as an effective business environment. An effective business environment leads to good business relationships between the countries. This helps the countries to maximize their profits by venturing into new business environments. The ASEAN+3 also resolve disputes between the member states and, therefore, a peace emerges between the thirteen countries. Without peace, there would be a poor working relationship between the countries because each country would be suspicious of the other.

Overcoming connectivity problem for economic growth

One of the main things that contribute to the success of a business is good distribution of the finished goods to the respective markets. For an effective distribution to take place there should be an effective transport system that will ensure that the goods reach their market in time (Sinha 2007). This leads to the need of a proper and effective transport infrastructure that will ensure safe and quick transportation. The future leaders of ASEAN+3 should ensure that threes an effective transport system between the thirteen member states. The thirteen member states produce many products. Some of these products are best transported with rail, others with water and others with roads. There should, therefore, be an effective transport infrastructure that will ensure that businesses transport their products accordingly. An effective transport infrastructure also ensures that people are able to travel from one country to another in search of new markets for their products (Lobo 1996).

A good transport infrastructure solves the problem of connectivity between the thirteen member states of the ASEAN+3. Infrastructure along all the international borders of the thirteen member countries is crucial because it accelerates cross-border trade all the businesses between the members of ASEAN+3. Future leaders of ASEAN+3 should ensure that connectivity is there at all times. There should be an improvement of the transport system because it holds the key to success of trade of the member countries (Chakraborty 2012). The member states should look for ways to increase connectivity across the international borders. The only way to do this is to invest in transport infrastructure, which will in turn boost productivity among the member state (Barua 2008). Effective connectivity leads to increase in the potential of wealth generation among the countries. Effective connectivity also increases quality of life and personal mobility of business entrepreneurs.

The key benefit of effective connectivity through good transport systems has little to do with job creation in the construction field. The benefit also has little to do with personal income growth of individuals who reside in the geographical areas where roads and railway lines are built. The main benefit with good connectivity among the member states through transport investment is that it makes businesses and business people more productive across all geographical landscapes. This is the task that awaits future ASEAN+3 leaders. Transport investments, be it rail, road and water increases the economy’s productivity. This happens through making individual travel-personal or business-faster and reliable. It also makes freight flows faster and reliable which in turn increases production and delivery of goods across the countries (Konings 2006). The member states should invest in good cargo ships that are able to transport many containers, therefore ensuring that there is transportation of bulky goods in the respective markets.

Future ASEAN+3 leaders should note that any congestion and lack of capacity is a bottleneck to traffic, productivity and economic growth of the member states. When there is investment is public roads, private investment increases which leads to higher rates of return. Private investment also increases with increase in transport infrastructure (Stubbs 2002). All forms of public investment in the transport sector i.e. highway and railway infrastructure provides a direct productive service, which are complementary with personal and private investment. According to the ASEAN Plus Three Corporation (2003), improved connectivity through improvement of transport systems shortens commuting time, therefore increasing and enhancing production and distribution of raw and finished goods. This happens through increase in productivity of workers. According to the Xinhua News Agency (2006), it is evident that an increase in connectivity between the thirteen countries will shift the supply curve to the right. The new equilibrium level of production becomes higher than if there was poor connectivity between the countries.

Efficient transport systems provide social and economic benefits and opportunities, which result in positive multiplier effects for example easy and good accessibility to employment, markets and additional investments. When there is a deficiency of capacity and reliability of transport systems, this hurts the economy because there is a general form of reduced and missed opportunities. Efficient transport systems reduce costs while inefficient transport systems increase costs. Increased costs in conducing businesses leads to the occurrence of loss for the business. This could cripple businesses located in the ASEAN+3 countries which in worst cases could lead to their closure. It is crucial that the ASEAN+3 leaders look for effective ways in which they can ensure effective investment in the transport sector. Effective transport system is one of the crucial elements that decide whether a business will grow or fail.

According the Business ASEAN (2003), there is a direct impact between effective transport system and prices of commodities. When there is effective connectivity between the thirteen member states, an economic multiplier effect emerges where prices of commodities, goods and services drop. Another effect is that the variety of these goods and services increases. Many of the companies located in the thirteen member states require transportation to transport their goods from the point of manufacture to their markets. Indirect value added and employment opportunities result from local purchases made by these companies (Greene 1997). This benefits the thirteen countries because there is an increase in productivity of employees. Japan relies highly in the steel industry for its economic growth. The country assembles cars that need to be transported oversees to their respective markets. It is crucial for Japan to have an effective transport system, especially water transport that will ensure it transports many cars in bulk to reduce transport costs. Retail outlets, manufactures and distribution centers that handle imported cargo rely on efficient seaport operations and transport.

Challenges and solutions

There are certain challenges that can inhibit the establishment of an effective transportation system. One of the main challenges is the availability of resources. For roads, railway and cargo ships to be constructed, there should be the availability of resources. Resources include the raw materials required and the money required to pay workers and buy the raw materials. The ASEAN+3 countries should establish a policy whereby every member country contributes certain amounts of monetary resources that will be used to construct roads and railway lines. This policy would ensure that each member state gets an equal share of the benefits of mutual contribution.

The connectivity problem that the ASEAN+3 countries are experiencing is that there is limited access of goods and people from one country to another. Some of these problems arise from strict immigration laws that prevent the easy movement of people and capital from one country to another. There are also high trade tariffs that make it hard for people to import goods from one another. Huge trade tariffs make cheap commodities to be expensive in the country that they are imported to. The best way to achieve an effective connectivity is to ensure that the transport system is in good order meaning that the roads are in good condition. Roads authority boards should maintain the roads and ensure that they are in good condition for transportation purposes. The ASEAN+3 should pull up resources to ensure that they have an effective water transport system. This would happen if they decide to allow free access of a country’s ship in the waters of another country only if the ships are there for business purposes. There should also be a reduction of trade tariffs to ensure that people import and export commodities from one country to another with ease.

Conclusions

Every country needs an effective and efficient transport system that will enable it to transport finished goods to their respective markets. The transport system forms the backbone to the success of an economy. It is important for the member states of ASEAN+3 to strategize a plan that will help them to improve connectivity between the countries. This will not only foster good international relation between the countries but will also improve the movement of finished goods and raw materials. Connectivity is vital between the ASEAN+3 as it will determine if the member states achieve the set objectives and economic goals.

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