Asia-Pacific vital to global economic growth

Apec’s motto and motive are more than welcome, especially when large parts of the global economy are still struggling with economic downturn and attention is focused on the Asia-Pacific region to put the global economy back on the track of growth.

The Bali theme shows that Apec has the potential and confidence to pull the global economy out of recession. Apec’s theme was also in line with the global pursuit of peace, development and cooperation. Most Apec member economies want cooperation to achieve common prosperity, and are not interested in “taking sides” between confronting groups.

Asia-Pacific economies will play a definitive role in global economic recovery and sustainable development. This is important because quantitative easing measures by the world’s major economies, the US in particular, have been severely felt by emerging economies like Indonesia, India, Brazil and South Africa.

Since China also faces an economic slowdown, many commentators have started forecasting the demise of emerging economies, especially BRICS – Brazil, Russia, India, China and South Africa. Thus it is essential for Apec members, especially China and Southeast Asian countries, to demonstrate the potential of and instill confidence in the Pacific Rim economies. The US, as a member of Apec, should also play its role as a leading contributor to the Asia-Pacific region’s economic growth.

The Apec theme illustrated an essential objective of the forum – the Bogor Goals, or liberalisation of trade and investment in the region. The Bogor Goals, an agreement reached by Apec leaders in 1994, are the biggest strategic achievements of Apec. Apec set the deadline of 2010 for developed member economies and 2020 for developing economies to fulfill their respective requirements to achieve the goals.

The US drew up various road maps and worked out annual evaluations to realise the goals. But three years after the passing of the deadline, it has not fulfilled its responsibilities. Instead, it is trying to cash in on new concepts such as the Trans-Pacific Partnership, which exceeds the demands of the Bogor Goals.

One of the US’ purposes is to impose its value and market standards on other Apec economies for entry into the forum it has created to suit its own interests. Of course, the US proposals can be discussed. But they should be discussed in accordance with the strategic goals of Apec as a whole. After all, Apec is an organisation of 21 members, not just the US. Hopefully, the US has realised that after the Bali meeting.

 

The author is executive director of the Strategy Study Centre, China Foundation for International Studies, and China’s former senior official to Apec.