Challenges and New Roles of Private Sector in the Asia-Pacific Region

YONEKURA Isao
Vice Chairman
KEIDANREN

At their first 1993 APEC Economic Leaders meeting in Blake Island, President Bill Clinton called for an aggressive evolution of APEC into a Free Trade Area. He had expressed his vision of "an Asia-Pacific Community." Although other APEC leaders did not necessarily agree with his vision of APEC moving towards an institutional entity, they have at least agreed to give the impetus for developing initiatives to the goal of free trade and investment. The Meeting was first of its kind and had provided the leaders of the member economies with a venue for free discussion on the region's economic issues without any prior agenda settings or obligations. In that sense, the annual APEC Economic Leaders Meeting may give more important implication to the world economy than that of the G-7 Summit.

Last year, the Pacific Business Forum, a business advisory body membered by two representatives from the business sector of each member economy, submitted a Report entitled "a Business Blueprint for APEC" to the APEC Economic Leaders Meeting, and provided a comprehensive list of issues that APEC has to address over next decades to come for better regional business environment. The Leaders expressed, in the Bogor Declaration, their appreciation for the "important and thoughtful" recommendations" by the PBF. The Leaders wished to hear further the views of the APEC business community, and asked the PBF to continue its work for one more year. We are confident that the Leaders are strongly expecting the roles and activities of private sector in order to encourage the economic development of the Asia-Pacific region. Indeed, the business sector has been and is the principal driving force behind the dynamic growth and development of the region.

For that growth and development to continue, there needs to be rapid and decisive movement toward removing the existing trade barriers, opening up investment opportunities, and lowering the costs of doing business. With this business expansion comes the development and training of the region's human resources, technology transfer. Greater economic activity will also stimulate more opportunities for APEC's small and medium enterprises, which form the backbone of the region's domestic economies.

This year, at the Osaka meeting, APEC member economies are expected to adopt an action agenda for the implementation of the Bogor Declaration for achieving the goal of "free and open trade and investment in the region." In addition, the sub-committees and the working groups of APEC will recommend collective and individual action plans for concerted unilateral approach.

Osaka will also host many other international economic events attended by private sector including Business Congress (APB-Net II) by Keidanren and the PBEC/PECC joint meeting.

Business communications and an expansion of business network within the region may be necessary for the enforcement of liberalization and facilitation based on the economic development and cooperation.

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