ABAC calls for more action - APEC/ABAC - APEC Business Advisory Council looks at global economy

Business Asia, April, 2003

Asia Pacific's business leaders have called on the region's governments to address the worsening global economic situation, citing a growing and "deep concern" about the global outlook.

The APEC Business Advisory Council (ABAC), meeting for the first time for 2003 in Lima, Peru, at the start of last month, has expressed strong views about the state of the world. ABAC believes that the global economic situation is more daunting now than when it last met in Mexico in October 2002. "Growth prospects have slipped, business confidence has fallen, and investment has slowed throughout the Asia Pacific region and beyond," ABAC members said in a statement.

Australian ABAC member and First Charlton Communications chairman Peter Charlton said the mood of the Peru ABAC meeting was sombre, with the business leaders there "highly conscious of the enormous volatility in the world".

"It (the mood) was a bit downbeat, with people mindful of the enormous problems that need to be reconciled within the region--what was back then the impending war in Iraq, currency volatilities, the near recession in many economies and property deflation in some--it's a serious cocktail. And this was before SARS hit the region as well," he said.

ABAC has once again called for the region's leaders to open themselves up to free and fair trade as a way of addressing the situation. The group has also called for governments to enhance security in ways that continue to allow the free flow of goods and people, as well as confront the challenges in corporate governance and transparency.

ABAC's deliberations in Lima were opened by strong remarks by Alejandro Toledo, President of Peru, who asserted his commitment to attracting investment, promoting economic growth and reducing poverty. President Toledo also hosted ABAC members, legislators, diplomats and business leaders at a gala dinner at the Presidential Palace.

ABAC's work during the year is to draft and finalise the text of its Report to APEC Economic Leaders. The five bodies set up within ABAC this year to develop the priorities are working groups on financial stability, trade and investment liberalisation, trade and business facilitation, capacity building as well as an Action Plan Monitoring Committee.