Fri, 29 Nov 1996

APEC ignores human needs

Free trade and growth, the mantra of the Asia-Pacific economic miracle, needs to have a human face. That was the message given by the non-governmental organizations (NGOs) to the APEC leaders's summit which ended on Monday in Manila.

The private sector, which has been the vanguard of Asia- Pacific growth, is the reality check for APEC's ambitious goal to lift all barriers to free trade and investment by 2020.

But as the private sector's reach and clout grow, its leaders find that the opportunity for greater profit also opens the doors to more public scrutiny of their operations -- as well as growing demands for accountability and corporate benevolence.

The private sector has to be concerned about more than just business. Increasingly, business issues are connected to cultural and social issues.

There was a time when it was enough to say that trade and investments were good because they create jobs. But growing discussions in Asia-Pacific circles about a sense of community, poverty's flip-side to rich Asia, and the need to sustain the region's growth should force businesses to look beyond dollars and cents.

An inevitable fact is emerging in the region. Communities are becoming more vigilant, organizing against projects they believe will wreck the environment or livelihoods. And as the private sector ventures into areas once reserved for governments, acceptability of their projects is becoming a weightier factor in investment decisions.

The old line touted by businessmen that "we create jobs" is no longer enough. A good corporate citizenship is required to achieve both private profit and public good.

The social agenda of APEC needs to be strengthened and it is rather disturbing to note that vague commitments were made with regard to this in Manila.

Development cooperation cannot be left to the workings of the market and economic and technical cooperation, under which APEC's focus on social responsibility falls. At the moment, it seems, the forum's heavy focus on freeing up trade and investment serves only the interests of stronger global corporations.

The APEC forum must initiate some form of recognition for good corporate behavior. After all, if there are lists of the world's wealthiest people or biggest corporate empires, why can't a similar list be made for companies that prove to be good corporate citizens?

Business should be made aware that the Asia-Pacific region is not just a market for goods and services. Social good can also be served in the pursuit of private gain.

--The Nation, Bangkok