(VOVworld)- The APEC Summit took place on November 18 and 19 in Manila drawing leaders of 21 member economies. APEC countries are facing the challenges of global climate change, terrorism, epidemics, and development gaps.
Asia Pacific is the world’s most dynamic region. The Asia Pacific Economic Cooperation has proved its effectiveness. Thanks to the development of APEC economies over the past 20 years, millions of people have escaped poverty and the middle class has grown rapidly. The Asia Pacific region has several Free Trade Agreements which are an effective tool to unify the region and create a sustainable and safe environment for regional prosperity.
Imminent challenges
Asia Pacific’s increasing role in the world poses a need to unify economies in the region. But APEC is facing numerous challenges. Over the past few years, global economic growth has fallen sharply and so has APEC’s development. This year, for the third consecutive year, APEC’s trade growth was lower than its GDP growth. Each member economy has problems that include high unemployment, a shortage of skilled labor, gender inequality, and social instability. Economic growth in the region has been uneven. Some economies have receded. Some have become unsustainable. Others are growing steadily. The region’s integration has been hampered by a lack of infrastructure and a high dependence on exports. Many countries in the region depend too much on their natural resources and are suffering from climate change. Geo-political tensions in the Middle East, the East Sea and the East China Sea, and the emergence of terrorism are threatening peace and stability in the region. All of these things pose great challenges for the unification of APEC’s economies.
APEC achieves progress in Manila
APEC summit 2015 in the Philippines set an agenda with a priority on cooperation. APEC leaders vowed to reduce imbalance between member economies to boost integration and economic development. They promised to create favorable conditions for SMEs to obtain preferential loans, to promote e-commerce, and to approach major enterprises to make use of the global value chain. APEC leaders agreed that all FTAs need to comply with the regulations of the World Trade Organization and be transparent. They agreed to set up an information sharing mechanism to make sure that signed FTAs and FTAs being negotiated are not contradictory.
They agreed to find a newer and better growth model and worked out a strategy to improve the quality of growth and prioritize the development of mechanisms, social connectivity, and environmental protection. By endorsing the Boracay Action Plan on Globalizing micro, small and medium -sized enterprises, APEC leaders hope to include these enterprises in the global supply chain.
The process of unifying Asian Pacific economies is difficult and will require further efforts by member economies. But the achievements APEC leaders obtained at their summit in Manila will create a new momentum.