Thu, 23 Oct 2003

'Shift in focus at APEC understandable'

Dadan Wijaksana, The Jakarta Post, Jakarta

Analysts cited as "understandable" the shift in focus at the newly concluded forum of the Asia Pacific Economic Cooperation (APEC) from economic issues to security and terrorism concerns.

"It's been proven that terrorism can cripple the economy of any country. It has become a global issue. What's important for Indonesia is how to make the best out of the situation," Sri Adiningsih told The Jakarta Post.

She was commenting on increasing criticism of the forum, which paid more attention to security affairs than to the numerous economic issues needing to be addressed.

The two-day event ended on Tuesday in Bangkok with only one out of three major points stated on the joint declaration centered on economic issues and trade.

Pacific Rim leaders, consisting of 21 heads of state and government, vowed to find a way to reenergize multilateral trade talks, following the collapse of the recent World Trade Organization (WTO) meeting in Cancun amid dispute over agricultural issues between developed and developing nations.

The other two points contain the leaders' pledges to dismantle terrorist organizations and strive for peace on the Korean peninsula.

They "committed to take all essential actions to dismantle, fully and without delay, translational terrorist groups that threaten the APEC economies", the joint statement said.

When it was established in the early 1990s, the APEC leaders set the promotion of stronger economic cooperation and free trade between member countries as the organization's main goals. APEC aims to launch free trade by 2010 for its developed nations, and 2020 for its developing countries.

The condition has prompted criticism from many over the relevance of the forum nowadays.

Reuters quoted a number of participants voicing disappointment over the little progress the forum had made.

"Unless progress is made, people will go around thinking APEC is just leaders going around in funny shirts once a year ... traveling in cavalcades in tight security and attending huge banquets," one businessman was quoted as saying.

However, Sri was of the opinion that despite the lack of major decisions on economic issues and trade, Indonesia could still take advantage of the forum by engaging in talks on possible bilateral commitments with other members.

"This forum should be beneficial for a small and open economy like Indonesia, which is very dependent on the global economy -- driven mostly by major economies in APEC," she said, adding that Indonesia could boost exports and investment to and from those nations only if it had good relations with them.

Researcher Raden Pardede also said the results were not too bad, as economic issues still managed to take center stage at the forum, although to a lesser degree than at previous forums.

He further said the decision to stress the importance of reviving free trade negotiations as stated on the joint statement was fairly significant progress.

Under the statement, leaders agreed that the Doha round of talks under the WTO was vital for member nations' prosperity.

They "agreed to work towards the abolition of all forms of agricultural export subsidies, unjustifiable export prohibitions and restrictions."