Growth for both developed and emerging economies in the region is significantly lower than before the crisis years, indicating significant structural changes occurring both within regional economies and in the Asia-Pacific region as a whole. Progress on the Bogor Goals and the Free Trade Area of Asia and the Pacific (FTAAP).
INITIATIVES TO BOOST GROWTH
FROM TRADE REFORMS TO TRADE AND STRUCTURAL REFORMS
Further reductions in barriers to trade and FDI are particularly important for the integration of developing economies into global value chains. Foreign direct investment can help developing economies integrate into global value chains and improve productivity through access to technology and inputs.
RAISING PRODUCTIVITY LEVELS
Emerging market economies have prioritized education and labor market policies to build knowledge-based capital and a skilled workforce. In a 2015 survey on the state of the region, 55 percent of respondents from emerging economies said they were "not at all satisfied" or "somewhat satisfied" with primary education, preschool education and childcare, while 54 percent reported the same about secondary and tertiary education. education.
IMPORTANCE OF VOCATIONAL EDUCATION AND TRAINING
Despite progress over the last few decades, human capital policy priorities are still focused on strengthening children's access to basic education. Areas that still need significant improvement include improving physical access to schooling, affordability of schools, including the provision of free secondary education, and higher quality teaching and teacher training.5 Improving tertiary education is also an important ongoing policy priority.
RELIEVING INFRASTRUCTURE BOTTLENECKS
PROMOTING INCLUSIVE GROWTH
INCREASING FORMAL SECTOR EMPLOYMENT
In the 2015 State of the Region Survey, half of respondents from advanced economies reported this to be the case. The reform of the RMB exchange rate formation regime will be continued in the direction of market forces.
VIEWS ON PROMOTING INCLUSIVE GROWTH AND STRUCTURAL REFORM
CHAPTER
PRIORITIES FOR APEC LEADERS
PROGRESS TOWARDS THE BOGOR GOALS AND THE FTAAP
APEC GROWTH STRATEGY
SME PARTICIPATION IN REGIONAL AND GLOBAL MARKETS
ADDRESSING CORRUPTION
CLIMATE CHANGE AND DISASTER RESILIENCE
DIVERGING VIEWS ON PRIORITIES
BY SECTOR
Source: Survey on the State of the Region 2015 (PECC) Question: What do you think is the most important thing to promote inclusive growth. Many more respondents from emerging economies place a high degree of importance on reducing corruption to promote inclusive growth (87 percent) compared to those from advanced economies (60 percent). Improving connectivity for rural areas Improving connectivity for the region's second and third tier cities.
The question included two options on the role of connectivity in promoting inclusive growth: connectivity for rural areas and connectivity for second and third tier cities. A very similar pattern of divergence was observed for the results for improving the connectivity of the second and third tier cities in the region.
VIEWS ON THE ECONOMIC OUTLOOK
Source: Survey on the State of the Region 2015 (PECC) Question: What are your expectations for economic growth over the next 12 months compared to last year for the following economies/regions. The distinction was made because of the significant differences between urban and rural poverty levels, as well as the relatively lower levels of connectivity that exist between large urban centers and second- and third-tier cities in the region. As shown in Figure 2.5, more than 80 percent of respondents from the Pacific, South America, and the Southeast rated improving rural connectivity as important to very important for promoting inclusive growth, compared with 54 to 62 percent of respondents from North America, Northeast Asia, and Oceania.
Looking at the issue from the perspective of income levels, respondents from advanced economies ranked the two connectivity issues 8th and 9th, while those from emerging economies ranked 4th and 7th. Source: 2015 State of the Region Survey (PECC) Question: Select the top five risks to your economy's growth over the next two to three years.
RISKS TO GROWTH
FAILURE TO IMPLEMENT STRUCTURAL REFORMS
ARE WE PREPARED FOR MARKET VOLATILITY?
Source: State of the Region Survey 2015 (PECC) Question: Now looking at the recent volatility in financial markets, please indicate your level of agreement with the following statements. Question: Now looking at the recent volatility in financial markets, please indicate your level of agreement with the following statements.
PRIORITIES FOR STRUCTURAL REFORMS IN THE ASIA-PACIFIC
As shown in Figure 2.18, the most important areas for structural reforms in the region were: innovation and entrepreneurship, education and work; infrastructure; financial sector regulation and policies. The question asked was: "How important do you think the following areas of structural reform are to the future growth of your economy?" In general, respondents from emerging economies attached much greater importance to structural reform in all areas. How important do you think the following areas of structural reform are to the future growth of your economy?
However, there were some sharp differences among respondents over which elements of structural reforms were most important for the growth of their economies. Source: State of the Region Survey 2015 (PECC) Question: How important do you think the following areas of structural reforms are for the future growth of your economy.
LABOR AND EDUCATION
As with the broad categories of structural reform, respondents from developing economies tend to have much lower levels of satisfaction with work and education issues than those from advanced economies. The subjects on which satisfaction levels varied the most were: maths, science and digital education; teacher quality and continuing teacher education; and secondary and higher education. For math, science and digital education, the lowest levels of satisfaction were in South Pacific and North America with 90 and 64 percent of respondents respectively saying they were "not at all satisfied or somewhat satisfied" with their provision in their economies. .
A similar pattern was observed in the level of satisfaction with teacher quality and continuing education. Conversely, satisfaction with secondary and tertiary education tended to be higher among respondents from North America and Oceania than among respondents from the Pacific, South America, and Southeast Asia.
SATISFACTION WITH THE PROVISION OF INFRASTRUCTURE
Across sub-regions and sectors, there was a fairly high degree of convergence of views on the five main issues on work and education. Overall, these findings mirror performance assessments conducted by the OECD through the Program for International Student Assessment (PISA), which found, on average, higher levels of competence in mathematics and science in participating economies in Northeast Asia than in those in North America. However, there was a high degree of convergence in views from both emerging and developed economies regarding their levels of dissatisfaction with 'educational training and the needs and
Question: APEC should focus its trade policy work on achieving a free trade area in the Asia-Pacific region. Source: 2015 State of the Region Survey (PECC) Question: How do you assess the political environment for freer trade in the next five years.
MAKING PROGRESS ON REGIONAL ECONOMIC INTEGRATION
FACTORS AFFECTING ATTITUDES TOWARDS FREER TRADE
PERSPECTIVES ON ASIA-PACIFIC REGIONAL COOPERATION
As shown in Figure 2.26, respondents from North America and Pacific South America had a negative opinion of the importance of APEC, with 63 and 52 percent of respondents from these subregions respectively having a negative opinion and 30 and 46 percent respectively having a positive opinion. or Another positive sign of APEC's continued importance is the interest of potential new members. In 2007, this moratorium was extended until 2010, when APEC leaders stated: "Considering the benefits of APEC membership and the need for efficiency to achieve results, we will continue to review the issue of new APEC membership in the future."
In other words, the moratorium was no longer in effect, but the expansion of membership had to be balanced against the question of efficiency. APEC member PECC members who are not members of APEC. As shown in Figure 2.28, the broadest support for the admission of non-APEC ASEAN members was Cambodia, Laos and Myanmar, followed by India and then the non-APEC PECC members and finally the Pacific Alliance members.
A RENEWED FOCUS ON QUALITY GROWTH
MEASURING ECONOMIC INTEGRATION IN THE ASIA-PACIFIC
For details on the approach, data sources and treatment, see Bo Chen and Yuen Pau Woo (2010), “Measuring Economic Integration in the Asia-Pacific Region: A Principal Components Approach,” Asian Economic Papers, Vol.9(2), pp. The index measures the degree of integration taking place in the Asia-Pacific region based on intra-regional flows of: goods; The index was developed in 2008 as a tool to measure the level of integration taking place in the Asia-Pacific.
It is striking that Singapore and Hong Kong (China) are still the most integrated economies in the region. 17See Bo Chen and Yuen Pau Woo (2010), 'Measuring Economic Integration in the Asia-Pacific Region: A Principal Components Approach', Asian Economic Papers, Vol.9 (2), pp.
ASIA-PACIFIC TRADE FLOWS
Compared to goods flows, intraregional investment flows show a much more irregular pattern as shown in Figure 3.3.
TOURISM FLOWS
CONVERGENCE INDEX
DIVERGING INCOMES
The pace of urbanization in the region has been stable throughout the period, represented by the percentage of the population living in urban areas. As seen in Figure 3.8, this has been a very linear trend with few interruptions in the process unlike the non-agricultural share of GDP, which has been much more volatile and divergent since 2009. As shown in Figure 3.8, the indicator i The share of urban residents is still converging continuously over time thanks to the ambitious process of urbanization in emerging economies such as China and Southeast Asia.
When APEC leaders set out the Bogor Goals in 1994, they set out a vision through which the region would not only maintain high growth rates but also narrow development gaps. While the region has done well in integrating and total incomes have increased at a dramatic pace, the index shows that there is a long way to go in terms of closing the development gap.
STRUCTURAL REFORMS AS DRIVERS OF GROWTH AND INCLUSION
ANNEX
This appendix presents the findings of a survey of 710 opinion leaders from the Asia-Pacific policy community conducted by the Pacific Economic Cooperation Council from 21 September to 16 October 2015. The survey is distributed through PECC member committees, which are asked identify panelists based on their knowledge of the Asia-Pacific region. As this is a multi-stakeholder survey, Council member committees are asked to identify stakeholders – business, government and non-business.
GOVERNMENT
BUSINESS
NON-GOVERNMENT: RESEARCH COMMUNITY/ CIVIL SOCIETY/ MEDIA
RESPONDENT BREAKDOWN
BREAKDOWN OF RESPONDENTS BY SECTOR
BREAKDOWN OF RESPONDENTS BY SUB-REGION
- What are your expectations for economic growth over the next 12 months compared to the last year for the following economies/regions?
- Please select the top five risks to growth for your economy over the next 2-3 years
- Now turning to the recent volatility in financial markets, please indicate your level of agreement with the following statements
- How important do you think the structural reform agenda is to growth for the following economies?
- 5-Very
- How important do you think the following areas of structural reform are for the future growth of your economy?
- 5-Very important
- More specifically on labor and education issues, how satisfied are you with the following in your economy?
- More specifically on infrastructure, how satisfied are you with the following in your economy?
- What do you think are the most important for promoting inclusive growth?
- Please rate each of the following in terms of their importance to realizing the potential of the internet to drive economic growth for your economy
- Please indicate your agreement or disagreement with the following statements
- How do you assess the political environment for freer trade in the coming five years?
- Please rate each of the following from 1 to 5 on the impact they have on attitudes towards freer trade in your economy
- impact
- What do you think should be the top 5 priorities for APEC Leaders to address at their upcoming meeting in Manila?
Please select the five biggest risks to growth for your economy over the next 2-3 years. How important do you think the structural reform agenda is to growth for the following economies. More specifically on work and education issues, how satisfied are you with the following in your finances.
Please rate each of the following in terms of their importance to realizing the potential of the Internet to drive economic growth in your economy. Please rate each of the following on a scale of 1 to 5 regarding the impact it has on attitudes toward freer trade in your economy.
MEMBER COMMITTEES
PECC CO-CHAIRS
AUSTRALIA
BRUNEI DARUSSALAM
CANADA
CHILE
CHINA
COLOMBIA
ECUADOR
HONG KONG, CHINA
INDONESIA
JAPAN
KOREA
MALAYSIA
MEXICO
MONGOLIA
NEW ZEALAND
PHILIPPINES
SINGAPORE
PACIFIC ISLANDS FORUM (PIF)
CHINESE TAIPEI
THAILAND
UNITED STATES
VIETNAM
FRANCE (PACIFIC TERRITORIES)
PACIFIC TRADE AND
DEVELOPMENT CONFERENCE (PAFTAD)
PACIFIC BASIN ECONOMIC COUNCIL (PBEC)
ASSOCIATE
MEMBERS INSTITUTIONAL MEMBERS
