APEC Leaders See the Light

Jakarta Globe, Dion Bisara, October 8, 2013

This general view shows leaders attending the “Leaders Retreat” during the
Asia-Pacific Economic Cooperation (APEC) Summit in Nusa Dua, Bali on
October 7, 2013. (AFP Photo/Dita Alangkara)

Nusa Dua, Bali. Optimism reigns among members of the Asia-Pacific Economic Cooperation, as leaders from some of the biggest economies in the region pledge to put more emphasis on cooperation toward sustainable growth.

“Certainly APEC has been a great success so far. I think this will only lead to even greater success,” said Stevan Kosciuszko, managing director at CQS, a London-based asset management firm.

“I’m entirely convinced that there is an entirely bright future for China and bright future for APEC.”

Kosciuszko made his comment after Chinese President Xi Jinping, Russian President Vladimir Putin and US Secretary of State John Kerry delivered their keynote addresses at Monday’s APEC summit.

Xi said that China was focusing on transforming into a modern economy with emphasis on domestic consumption — which currently only accounts for 7 percent of the country’s gross domestic product — shifting away from an export- and investment-led economy. That should provide balance as China moves away from double-digit growth, Xi said.

Such a move by China would in turn benefit the Asia-Pacific region, the country’s main trading partner.

“China cannot develop in isolation from Asia Pacific, and Asia Pacific cannot prosper without China,” Xi said, adding that China would take a more sustainable and efficient path of growth.

“President Xi Jinping’s comments were well-balanced, well-made, and he covered all the points, that people are concerned about China, and more positive points as China transitions to a new modern economy,” Kosciuszko said.

Kerry emphasized the US commitment to engage with the Asia-Pacific region, focusing on business to accelerate growth.

He also said that trade and investment liberalization should be continued, and that the 21 members of APEC should not implement protectionism and make difficult decisions for entrepreneurs.

“The role of the private sector is very important in spurring growth and creating equity. Therefore never make investors or businesspeople frustrated,” Kerry said.

He urged governments and the private sector to work together to improve cooperation, calling for greater transparency, fairness and accountability. Government plays a central role and appropriate government policies would attract investment and encourage more entrepreneurship, Kerry said.

Kerry substituted for President Barack Obama, who was unable to attend because of the US government’s budget impasse. Kerry said he believed the political crisis would be resolved soon, and the fiscal crisis would be overcome in the near future.

The US economy will rise, he said, because through freedom and supporting regulations, the US private sector can innovate, producing high value-added technology products through such companies as Microsoft, Google and Facebook.

Putin said that APEC needed long-term planning in ensuring structural reform, more job creation, providing financing sources for investment, and a fairer distribution of risk.

“G-20 [Group of 20] leaders come to the consensus that growth incentives should be accompanied by fiscal consolidation. This is difficult but G-20 leaders believe it’s possible,” Putin said.

He noted that the US government shutdown was a difficult situation.

“The reason Obama did not come here is a justified one. If I were him, I won’t come either,” he said.

All countries are in interested in the US overcoming the crisis because it is still the world’s biggest economy and the dollar is still the main reserve currency, Putin said.

Lixia Qiu, president of Overseas Zhejiang Merchants, said that the world leaders had assured a more sustainable path of growth for the Asia-Pacific region, against the background of uncertainty in the global economy.

“We are more optimistic now” about future economic growth, Qiu said.

Kosciuszko added, “This gave a solid foundation for future agreement. I expect bigger agreements would be made [at next year’s summit].”

 Indonesia's President Susilo Bambang Yudhoyono delivers his speech during
 the opening of the Asia-Pacific Economic Cooperation (APEC) CEO Summit in
 Nusa Dua, Indonesia resort island of Bali October 6, 2013. REUTERS/Beawiharta

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