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APEC's New Executive Director Takes the Helm in 2008

01 January 2008
For Peruvians, hosting APEC in 2008 begins a new relationship with the Asia-Pacific. In addition to addressing the social dimensions of trade, this year's host will also stick to promoting APEC's core principles by pressing forward on issues such as trade liberalization, structural reform and bridging the development gap through capacity building.

Now at the helm of the APEC Secretariat in Singapore, Ambassador Juan Carlos Capuñay, a senior Peruvian diplomat who has spent his career in Asia and multilateral organizations, has plans for improving the way the APEC Secretariat interacts with member economies and its partners.

Explaining this strategy, Ambassador Capuñay said, "APEC is oriented to promote trade liberalization, investment and economic cooperation. Peru stands firm on the three foundations of APEC and will put special emphasis on the Bogor Goals and the Manila Action Plan for APEC. We believe that trade and investment are the key elements for the promotion of sustainable development.

"Peru will have to see what kind of new relationship it can have with the Asia-Pacific. It is an opportunity for Peru to change the format and structure of its relationship with the Asia-Pacific," he added.

Drawing from his experience at the Organization of American States, the United Nations and as an APEC Senior Official when he honed his skills for building consensus, Ambassador Capuñay plans to continue the work he began with international financial institutions to encourage stronger capacity building among members.

In an interview earlier this year with the APEC E-newsletter, Ambassador Capuñay offered a glimpse at his leadership style.

APEC Newsletter: Much of your experience has been spent in the multilateral environment and you have also spent time in China and the United States. What lessons have you taken with you and how will you apply it to your leadership of the APEC Secretariat?

My participation in APEC is quite different than it was in the Organization of American States and the UN. While I was Peru's Senior Official to APEC, I learned about the real meaning of consensus - the process, the negotiating arrangements and how to accommodate positions - because APEC is a consensus forum. In APEC, I have learned that the whole process of negotiation has to be step-by-step - a process that accommodates the positions of different economies - in order to reflect the opinion of everyone.

Last year I learned how important it is for APEC to have a better understanding about what we want for the Asia-Pacific community. We have to deal with global issues in a forum where the foundations are oriented to the specific issues of trade and investment. Global issues are very important. We have to accommodate them within the APEC process. For example, APEC must examine how such concerns like climate change or natural disasters impact on trade, small and medium enterprises or investment opportunities.

APEC Newsletter: Please describe any ground-breaking initiatives you were involved in during your time as Peru's Senior Official to APEC. What was your role and how has that prepared you for your post at APEC?

I'm very proud about my involvement with APEC's dialogue with international financial institutions. This issue was part of APEC's work plan but at the working level. Chaired by Thailand, I was very enthusiastic when I convened the first roundtable which led to the chairmanship of follow-up meetings. Now, the relationship with IFIs is one of the main issues for APEC. And it is also important for the Peruvian chair's vision for a "New Commitment to Asia-Pacific Development" given that the concept involves the participation of the government, private sector, international financial institutions, and civil society. The relationships with IFIs will be one of the main areas that we will coordinate in 2008.

In Lima last November during the Informal Senior Official Meeting, I explained the two components of the plan I have for 2008 - outreach and relationships with IFIs. Since 2003 I've worked on this and I'm very happy that it is now one of the key issues for APEC, and especially for Peru.

APEC Newsletter: In your view, what challenges lie ahead for the forum and for the Secretariat as a whole?

When I was posted at the Organization of American States I was fortunate to work with very important political leaders of Peru - one of them now is the Speaker of the House. He always used to tell me, "No matter what you do, you can do a very good job but if people don't know what you do, it doesn't matter." That's why I always believe in outreach programs and the importance of relations with the press.

APEC has accomplished many goals, more than any other regional organization. In 2008 we are going to disseminate these success stories to the international community. We have to bring APEC into global news markets.

For the Secretariat as a whole, I think that we need to organize our work in a more intellectual and comprehensive view. Personally, I think the structure of the Secretariat has to be more active and more dynamic. I don't think that cosmetic changes in the Secretariat structure will make a big difference. Change must be made from the heart and in the mind.

APEC Newsletter: Ongoing reform is an important issue for APEC. It's touched the forum as a whole and the Secretariat itself. How will the reform process make APEC a more effective multilateral organization?

We work on a non-binding basis. Indeed the issues on the APEC agenda are the result of a process of consultation.

What we need is real reform - in terms of policy making. For example, whenever we have meetings we invite different organizations to participate. But APEC never participates in the meetings of the other organizations. Things like this have to change. We have to realize that we are equal partners with equal rights, but also with equal responsibilities.

The APEC Secretariat needs to re-examine its performance and its function. We often face questions about how APEC functions and we have to have answers to provide to the media and the international community.

We all want APEC to be a very active global economic forum with positions on different issues. The Secretariat is a mechanism with sufficient knowledge to offer concentrated support to the member economies. It will be much better when the Secretariat's Policy Support Unit is in place. This is how APEC can be improved.

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