Saturday, November 26, 2005

APEC 2005

The word APEC ( Asian Pacific Economic Cooperation) maybe is an example of what globalization somehow means,( to make things both comprehensive and accessible for all ),but at the same time, keeping in mind that the real meaning and implications of this phenomenon ,is to acknowledge the importance of alliances . In the global world, associations, strategic alliances ,joint effort and partnership are the key to get the advantage of this process ,, and minimize its adjustment costs . So, it looks like the world economy is moving along toward a global network of commercial, economics, geopolitics and politics links, where everyone loose some autonomy ,but at the same time, everyone share the gains of increasing trade.
Well, probably that is the justification of the recent meeting of APEC in Korea .In other words, how to get the best of globalization with the minimum of its costs. But, there are also another important topics to take into account .
APEC was founded in 1989 by 12 founding members. It represents roughly one third of the world ´s population,47% of global trade, and combined GDP of approx UI$$ 18 trillion(more than half of total world production ).After a decade nearly all Apec economies have doubled their share of trade as a percentage of GDP. From the Chilean perspective,54% of its exports goes to APEC .
Its vision seek to emphasize the notion of a “Strong Asia pacific community”, which implies consensus based model of decision making, cooperation and voluntary commitment to assume obligations.
Its objectives are Free trade, and more investment level in the Asia-pacific area by 2010 for developed members economies, and the year 2020 for developing economies. Since its foundations has made constant progress to promote free trade, investments facilities mechanism ,and sustainable economic growth. Chile became a full member in 1994.
Chile by itself does not get the all benefit of trade with the Apec area, as it would get through higher integration with other Latin America countries like Argentina, Peru , Bolivia ,and Brazil. Why ?, because size matters!. A sample of shoes, to send to the China consumers market ,is equivalent to the annual production of the whole local industry. However, this integration process should be based on stronger private enterprises , capable of pursuing a “growth oriented “strategy, based on solid strategic alliances, along with complementary public policies “business orientated”. Actually, there is some structural gaps between theses economies, which make the whole process more complex .Thus, it is the right time to give the proper weigh to the lessons of the past. The lost decade can not happen again.-
In the seminar “The Asia pacific area and its Latin American projection”, held in Chile, last year ,was stated that to improve its attractiveness for foreign investment, specially that one coming form the Asia Pacific ,this continent should enforce the private –public alliance and integration among Latin American countries. This means that the challenges of opening the domestic economy to the world market ,of the previous 30 years ,are changing to a second stage level where coordination among different countries on key topics such as energy consumption, and higher volume for exporting are also important. The other side of the story, is to allow this economies to get a better access to all of its potential production.-

No comments: