Lower obstacles create huge opportunities for job creation and business prospects
Reforms to reduce excessive export and import procedures in developing APEC economies could raise GDP by USD 1.4 trillion and create over 36.5 million jobs, said an analysis today.
Regulators from around the Asia-Pacific gathered in Moscow on Sunday and Monday to study various approaches to improving the business environment and make progress toward the APEC-wide goal to make it cheaper, quicker and easier to do business across the Asia-Pacific region by 25% by 2015.
According to APEC Policy Support Unit senior analyst, Carlos Kuriyama, APEC is on track to reaching this goal.
“On average, APEC economies have reduced the time it takes to prepare import and export documents,” he explained. These savings have resulted in a 6.8 percent drop in the time it takes to export, or in monetary terms, a reduction of approximately USD13 per container. The cost of importing fell even more to about USD 22 per container.”
“Nonetheless, there is still room for improvement,” Kuriyama continued. “APEC members stand to benefit from additional reforms.”
Using the Trade Facilitation Impact Calculator, developed under the USAID-funded TCBoost project, Olin McGill, an independent consultant for the APEC Technical Assistance and Training Facility, predicted that APEC developing economies would become much more efficient if they minimized document processing and reduced the time it takes to clear customs, handle goods at the ports, and improved inland transportation. McGill benchmarked these potential gains based on the success of ten reforming economies.
“When governments make it cheaper, faster and easier for businesses to operate, transaction values and volumes increase dramatically, growing the economy and providing jobs for citizens,” said Mr. McGill who described reforms conducted in Georgia.
Despite uneven progress among APEC economies, members have seen some positive results.
Improving its ranking in the World Bank’s Ease of Doing Business report, Korea undertook several reforms to make it easier to start a business. These changes lead to greater efficiency.
“Abolishing minimal capital requirements and eliminating notary certifications for small enterprises were just some of the revisions to corporate law that led Korea to advance to the top tier of the rankings,” said Seungmo Koo who is with Korea’s Ministry of Justice.
“Reducing the time it takes to start a business from 14 days to 6 days resulted from the development of an online system for companies to submit applications,” he continued.
Thailand has made dramatic improvements by creating a customer friendly and demand-driven registration environment. This incremental progress is the result of improvements to financial policy and institutions and on regulations affecting SME, according to Wimonkan Kosumas, Deputy Director General in the Office of SMEs Promotion.
Thailand is reforming industry’s understanding by examining successful cases where risk was lowered by combining management guidance and a diversified credit decision with actual financing. It has also made some positive policy adjustments on SME financing, which provides a strong signal to SMEs as they seek access to credit.
Indonesia, Malaysia and Peru also discussed the challenges they have overcome and how the reforms they have undertaken improved the business environment in those economies.
Member economies will continue to meet until 21 February when Senior Officials convene to review the progress towards the eventual Leaders’ Meeting in Vladivostok, which will be held in September.
# # #
For more information, contact Michael Chapnick +7 911 71 4983 (in Moscow) at [email protected] or Augustine Kwan +65 98310717 at [email protected].
For details about media arrangements for the upcoming Moscow meetings, please email [email protected] or visit http://www.apec2012.ru.
Details about APEC meetings, events, projects and publications can be found at www.apec.org. You can update your subscription to news alerts and the APEC Bulletin, follow APEC on Twitter and join us on Facebook.