Correcting a mutual ignorance: rediscovering the Philippines as a gateway to ASEAN

The Elcano Royal Institute is a think-tank for international and strategic studies that analyses world events and trends from a Spanish, European and global perspective.

The Analyses of the Elcano Royal Institute (ARI)are short pieces - of around 3,000 words - on aspects of current international affairs considered to be of relevance to Spain, its foreign policy or its security. In broad terms ARIs are intended to have a predictive bearing on events.When confronted with Spain’s commercial irrelevance in Asia, pundits cite the following as impediments to an expanded Spanish presence: geographical distance, bureaucratic barriers, cultural differences and an abundance of opportunities in Europe. These beliefs continue to guide Spanish managers’ strategic actions, in spite of evidence to the contrary. Consequently, a commercial paradox has resulted whereby post-colonial economic relations have been marked by Spain’s irrelevance.

In this paper we attribute this commercial paradox to the mutual ignorance of Spanish and Filipino managers of their potential to work together. Consequently, managers pursue strategies that are incongruent to market realities and that imperil a venture’s viability. To reverse this sorry state we recommend three lines of action: (1) to focus on complementing strengths that create effective partnerships; (2) to create policy mechanisms that dismantle legal and administrative barriers to trade and investments; and (3) to deepen mutual understanding and capabilities through ASEAN-focused executive education and public-private sector forums.