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APEC leaders chart roadmap for post-crisis landscape

 
0 CommentsPrint E-mail Xinhua, November 16, 2009
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Leaders of the 21-member Asia-Pacific Economic Cooperation wrapped up their two-day annual meeting in Singapore by issuing a declaration, pledging to pursue a new growth pattern in the post-crisis era.

"We cannot go back to 'growth as usual' or 'trade as usual'," the leaders said in the declaration, noting "the post-crisis landscape will be different."

The leaders said they will pursue growth that is "balanced, inclusive, and sustainable," vowing to put in place next year "a comprehensive long-term growth strategy."

"Our statement expresses our determination to implement a long-term growth strategy," Lee Hsien Loong, prime minister of Singapore, told a news briefing after the summit.

The APEC represents about 55 percent of the world's economic output, 45 percent of global trade and 40 percent of the world's population.

Reshape growth pattern

The APEC leaders' meeting of this year was convened at a time when the world economy began to recover, but the outlook is uncertain.

Economists said that the worst is over, but the recovery is weak mainly due to still dampened demand in the region. A relapse or another dip is possible, they warned.

The main engine of demand in the world over the last dozen years had been consumers in the U.S., said Stephen Roach, chairman of the Morgan Stanley Asia.

"But now you have to forget about that," he said, noting that the consumption model in the U.S. is not on a sustainable basis.

"We will pursue growth which is balanced, inclusive and sustainable, supported by innovation and a knowledge-based economy, ensure a durable recovery," the leaders said in their declaration.

On balanced growth, the leaders said that strong and sustained economic growth will require structural reforms to gradually unwind global imbalances.

The leaders pledged to ensure that their fiscal, monetary, trade and structural policies are consistent with a more sustainable and balanced trajectory of growth.

They also promised to strengthen the environment for private enterprises, investment and innovation.

Inclusive growth is an approach that is anti-protectionist, fueled by market-driven growth and facilitated by government.

Ultimately, inclusive growth empowers individuals so that they are better able to reap the benefits of globalization and to withstand future economic shocks.

"To achieve inclusive growth, we must broaden access to economic opportunities and build the resilience of the most vulnerable against economic shocks," said the APEC leaders.

Sustainable growth mainly focuses on environmental issues. "Future growth must be compatible with global efforts to protect the environment and mitigate climate change," the leaders said.

At the same time, efforts to address climate change must be consistent with each member's international trade obligations, they said.

The leaders reaffirmed their commitment to tackle the threat of climate change and work towards an ambitious outcome in the world climate talks in Copenhagen in December.

"Fixing the economic situation today is like going to the dentist: It hurts a lot, but you know you are investing in the future," said Maria Olivia Recart, Chile's vice finance minister.

And her words were widely echoed by participants to the APEC meetings.

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