APEC and Inclusive Growth
The recent financial crisis has underlined that continual economic growth is not a given, and that despite APEC's efforts, not all segments of society have benefitted equally from the upturns and some have suffered more in the downturns.
To address these disparities and to position APEC ahead of the curve, APEC has initiated a forward-looking agenda which focuses on inclusive and sustainable growth as new growth paradigms.
In July this year, APEC Trade Ministers agreed on the need to design policies to promote inclusive growth so that the benefits of trade and investment will be spread more broadly within societies.
There is no firm definition of inclusive growth, but essentially it focuses on growth that emphasises the creation of, and equal access to, opportunities for all. However, it is not based on a redistributive approach. Rather, it is anchored in a strategy of sustainable development that enables all parts of society to participate in, contribute to and share the benefits of growth.
To that end, APEC members are now working on developing an inclusive growth agenda that focuses on two key thrusts. First, facilitating structural adjustments that will make APEC economies more resilient and adaptable to the challenges posed by globalisation. And second, strengthening social resilience so that people and businesses can better access opportunities and ride-out any dips.
More clarity as to how inclusive growth will be achieved will come when APEC Leaders and Finance, Trade, and Foreign Affairs Ministers consider the issue this month; and Japan, as host of APEC in 2010, will lead the development of a comprehensive work program.
Priority areas are likely to include labour market reforms, small and medium enterprise development and more effective and inclusive employment policies.
The remaining articles in this Newsletter illustrate what inclusive growth means in these three critical areas, how APEC has already kick-started the necessary work, and what sorts of debates and activities can be expected from APEC fora and members in future.