Asia – Pacific Economic Co-operation:
APEC and Its Primary Aim:
APEC is the premier Asia Pacific economic forum. Its headquarters are in Singapore. Its Executive Director is Muhammad Noor Yacob.
Their primary goal is to support sustainable economic growth and property of Asia Pacific region. It is a forum for 21 Pacific – Rim countries (formally Member Economies). That seeks to promote free trade and economic cooperation throughout the Asia – Pacific region.
Membership of APEC:
APEC currently has 21 members, including most countries with a coast line on the Pacific Ocean .However the criterion for membership is that the member is a separate economy, rather than a state. As a result APEC uses the term ‘member economies’ rather than member countries to refer to its members
Members account for approximately 40%of the world’s population, approximately 54% of the world’s Gross Domestic product and about 44% of world trade.
Reasons for Establishment of APEC:
It was established in 1989 in response to the growing interdependence of Asia – Pacific economies.
APEC works to raise the living standards and education levels through sustainable economic growth and to foster a sense of community and an appreciation of shared interest among Asia – Pacific countries.
An annual APEC Economic Leader’s Meeting is attended by the heads of government of all APEC members except the Republic of China (Taiwan).
During the meeting in 1994 in Bogor in Indonesia, APEC leaders adopted the Bogor Goals that aim for free and open trade and investment in the Asia – Pacific by 2010 for industrialized economies and by 2020 for developing economies.
Establishment of ABAC:
1n 1995, APEC established a business advisory body named the APEC Business Advisory Council(ABAC)composed of three business executives from each member country.
India and APEC:
India has requested membership in APEC and received initial support from the United State, Japan and Australia. Officials have decided not to allow India to join for various reasons. However the decision was made not to admit more members until 2010. Moreover India does not border the Pacific Ocean which all current members do. However India has been invited to be an observer for the first time in November 2011.
APEC’S three pillars:
To meet the Bogor goals APEC carries out work in three main areas:
Trade and investment liberalization
b.Economic and technical cooperation.