Prof Sung new HKCPEC Chair
Prof. Sung Yun-wing is the new HKCPEC Chair. He is Chairman of the Economics Department of the Chinese University of Hong Kong. He is also Director of the Institute of Economics, Associate Director of the Hong Kong Institute of Asia-Pacific Studies.

(Singapore) Inflation in the Asia Pacific is set to rise sharply this year in the face of increased oil and commodity prices. Headline consumer prices will increase this year by 3.6% compared with a 2.7% increase in 2007.

The aggregate numbers mask much sharper price spikes in certain Asian economies.  China, for example, will see an increase in the CPI of about 6.0% for 2008 as a whole, with year-on-year increases in the second half of the year in excess of 8.0%.  In Indonesia, the consumer price index is expected to jump 11.7%. 

“The period of strong growth with very low inflation has come to an end.  Even with appreciating currencies, Asia Pacific economies are starting to feel the pinch of higher energy and commodity prices.  The recent spike in food prices has not helped.  Indeed, it has exacerbated the adverse impact on vulnerable groups who spend a high proportion of their incomes on rice and other staples,” said Yuen Pau Woo, coordinator of the Pacific Economic Cooperation Council’s (PECC’s)  State of the Region Report and President of the Asia Pacific Foundation of Canada, based in Vancouver.

PECC’s first quarter economic outlook update projects 3.7% real GDP growth for the Asia Pacific region in 2008, a substantial downward revision from the 4.9% forecast in November 2007, due to growing pessimism about the United States economy.

The region is expected as a whole to bounce back in 2009 with growth at 4.4%.

“In the context rising inflation and an uncertain end to the US credit crunch, policymakers around the region will have less policy space to reflate their economies,” added Woo. The PECC forecast downgraded significantly the forecast for the US economy from 2.9% growth to just 1% for 2008. However, the forecast notes that growth in the region is coming mostly from developing economies, in particular China, which is expected to contribute almost half of the region’s growth this year.

“The across-the-board slowdown, although affecting some economies more than others, highlights the continued inter-dependence of the Asia Pacific and the importance of regional cooperation,” said Charles Morrison, chair of PECC and President of the East West Center.

“Trade and the freer flow of capital have been driving forces for high rates of growth in the Asia-Pacific region, in a time of slowdown, it is critical that these drivers not be lost.   Instead we have seen the opposite with policy actions such as the imposition of exports restrains and financial protectionism. APEC has a chance this week to prove its worth and show leadership and restore confidence in the system,” he added. (see report)

The PECC Chair, writing on behalf of all the membership expressed sympathy and condolences to those affected by the earthquake that struck Sichuan Province on 12 May.

PECC's message of sympathy was conveyed to China PECC chair, Ambassador Mei Ping.

Dr Morrison's message noted that tragic events such as this remind us that the region shares a common vulnerability to the forces of nature by virtue of its geology and dense population base.

"While our work in PECC is on policy development, our common vision of a regional community is ultimately to foster an environment in which all our people can thrive and prosper. As we watch events unfold in Sichuan province and understand the challenges that the people face, I believe that this can strengthen our resolve to work together for a better future, " he added.

Sichuan Province is one of eight provincial or municipalities in China that has established a sub-committee for Pacific Economic Cooperation under the auspices of CNCPEC. (read full text of message)

WASHINGTON, D.C. (April 11) – Today’s stable and prosperous Asia can – and should – take a stronger global leadership role in confronting major international challenges such as global warming, terrorism and the spread of dangerous weapons, a top State Department official told a gathering of distinguished Asia-focused Americans here Friday.

Deputy Secretary of State John Negroponte, who has decades of experience in Asia, said there are now “great expectations” that Asian nations will “expand their global role as responsible stewards of the very international order that made possible their success.”

He spoke at the fifth annual Washington conference of the East-West Center-sponsored U.S. Asia Pacific Council.

“With global influence and power comes responsibility. Now is the time, as beneficiaries of the global trading system, for Asian powers to take the lead in trade liberalization under the World Trade Organization's Doha Round,” he said. “The world needs and expects today's global winners to be tomorrow's pacesetters, not to lag behind the pack.”

(L-R) US Deputy Secretary of State John Negroponte, USAPC Chair Stapleton Roy and PECC Chair Dr Charles Morrison at the annual meeting of the US Asia Pacific Council

The annual Washington Conference of the US Asia Pacific Council was held on 11 April. Also speaking at the event were expects on the Asia Pacific including Dr Stephen Roach, Chair, Morgan Stanley Asia, Prof Michael Green, Senior Advisor CSIS, Hon William Reinch, President National Foreign Trade Council, Dr Charles Morrison, President East West Center and PECC Chair.

The US Asia Pacific Council is a program of the East West Center and acts as the USA's committee for PECC. Dr Charles Morrison has been the chair of PECC since September 2005. (more...)

Rapid income growth and urbanization is having profound impacts on the food system in the developing member economies of the region, creating opportunities to enhance farm-sector profitability and encourage vibrant rural areas.

To achieve that potential, private and public decision makers must work to streamline and modernize the food system, embracing new approaches to link rural areas with expanding urban markets, according to PECC’s 2007-2008 Pacific Food System Outlook (PFSO) report.

To economically uplift poor rural areas, agricultural producers will need to adapt to changing market dynamics. This includes producing food products compatible with changes in the nation’s dietary habits, encompassing increases in demand for animal protein, fruits and vegetables, and processed products. Today’s consumers also demand higher quality and safety standards.

Private and public decision makers have significant roles in the process of integration:

• More attention must be focused on lagging inland infrastructure in developing economies. Expansion and upgrade is needed of roads, railways and waterways—a crucial linkage of rural and urban markets that provides producers with timely access to markets.

• Incentives are needed for modern supermarket chains to better connect with rural areas and domestic producers

• Policy makers can help small- and medium-sized participants in the food supply chain to better respond to changes in the food system.

• Policy makers may need to help traditional markets identify and maximize their niche in the evolving food system.

(view report)

The 5th PECC Trade and Investment Fair concluded on 11 November with close to RMB400 million (US$53 million) worth of deals signed at the event.

The event was opened by Madam Gu Shoulian, Vice Chair, Standing Committee of the National People’s Congress, Mr Zhang Gaoli, Secretary of the Tianjin Communist Party, Hon Mayor Dai Xianglong, Mr Wei Jiangui, Vice Minister of Commerce and Mr Xu Zuyuan, Vice Minister of Communications

This year's fair on "Modern Ports and Logistics showcased the latest technology and service of international ports.

Madam Gu Shoulian and Hon Mayor Dai Xianglong open the fair

This year's fair featured six different thmeed areas: the Tianjin Binhai New Area; the sea ports and airports; storage and packing equipment; logistics services; logistics and propety mangement for port areas.

Globalization and economic integration are changing the face of tertiary education in the world today. Students are now exploring an ever increasing range of options for university degrees -both in where and how they study.

Traditional hubs like the United States (565,000 foreign students), the United Kingdom (270,000) and Austrlaia (280,000) are vying with emerging centers like China (140,000), Japan (100,000), Singapore (50,000) and Malaysia (45,000).

The project will examine developments in the education sector and the opportunities and challenges they present for regional economic integration and community building in the Asia Pacific. 

The project will be a joint undertaking between PECC and the Association of Pacific Rim Universities (www.apru.org)

The expert group will examine trends in the various modes of supply of education services across international borders and identify impediments to efficient international cooperation in this sector. 

See www.pecc.org/education for more details

MEETINGS

PECC Standing Committee
The PECC Standing Committee will meet in Bangkok, Thailand, on 25-26 July. contact PECC Secretariat

Food Crisis
PECC will organize a special session on the food crisis facing the region on 25 July alongside the Standing Committee meeting (contact PECC Secretariat for details) and see www.pecc.org/food for research on developments in the food and agri-business sector

Climate Change and Green Opportunities
The theme of the 23rd Pacific Community Seminar organized by CTPECC will be “Climate Change and Green Opportunities: Business, Society, and Cooperation. The event will be held on 7 October 2008.

APEC Studies Centers Consortium
The annual meeting of the APEC Studies Centers Consortium was held in Piura/Tumbes Peru on 19-21 June. PECC is a co-organizer of sessions on regional architecture and education (see program)

State of the Region and PEO Forecast Panel
The PEO Forecast Panel met in Osaka on 18-19 March 2008. For more details, contact Mr Hiroshi Isono

Demographic Change and Labor Mobility
A conference organized by the PECC-ABAC group working on international labor mobility was held on 25-26 March in Seoul. more...

Supply Chains and Logistics Fair
The 5th Tianjin Trade and Investment Fair was be held in Tianjin on 8-11 November, this year's theme "Ports and Logistics (contact CNCPEC)

Competition among Financial Centers in the Asia Pacific
"Stumbling Blocks or Building Blocks towards a Regional Financial Community?"(more...)

STATEMENTS & REPORTS

PECC Statement to APEC Trade Ministers
PECC's statement to APEC trade ministers highlighted the need for the region to take leadership to restore confidence in the global trade system (read statement)

Draft Conclusions from Noumea Water Seminar
The Noumea seminar on water management in islands, coastal and isolated territories confronted issues related to water quality or water scarcity. (more...)

Pacific Food System
The 2007-2008 Pacific Food System Outlook on Linkages to Growing Urban Markets Spur Economic Development was released on February 5. (view report)

Statement to APEC Ministers
Dr Charles Morrison delivered PECC's statement to APEC ministers at their meeting in Sydney on 6 September. Download statement

Energy Security and Efficiency
A report by the Center for International Economics for ABAC and the AUSPECC committee highlighted the need for continued reform in energy markets to ensure energy security Download report

Emissions trading: options for post-Kyoto
A report by the Australian Emissions Trading Forum was on managing the environmental impact of energy presented at the PECC GM has been updated for recent developments Download report

Broadening the Horizon for Pacific Economic Cooperation
KOPEC has published the report from the 2006 KOPEC Conference held on 21 September 2006.
Click here

Guidelines for Effective Public Private Partnerships
Based on case studies conducted by PECC over a two-year period, the guidelines present best practices for effective PPPs. (download)

Seoul Declaration adopted at the 16th PECC General Meeting. See media release. 

RESOURCES

PECC XVII Papers
Papers from the GM can be downloaded from PECC XVII website

FTAAP Rational and Feasibility
Presentation by Rob Scollay on the Free Trade Area of the Asia Pacific at a seminar organized by ISEAS, Singapore on 19 March 2007. (more...)

PECC GM Papers
Papers from the GM can be downloaded from PECC XVI website (more...)

The Evolution of PECC: The First 25 years
In celebration of PECC's 25th anniversary, PECC has released a commemorative book titled "The Evolution of PECC: The First 25 years". (order from the PECC Secretariat)

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