How we gain from Apec depends on us

THE year 2018 is an important one where Papua New Guinea has come under global attention.
It will go down in the history books as the year in which PNG hosted one of the important meetings of the world, the Asia-Pacific Economic Cooperation Meeting.
The meeting has been one of the most talked-about subjects, both in public and private circles.
It has drawn both local and international media attention where some of the world’s powerful leaders will convene in this Pacific Islands nation to talk about issues of regional and global importance.
PNG will be the first country in the Pacific to host this important meeting where many member economies are sending their prime ministers, presidents, company executives and delegates.
The series of meetings which started earlier this year in various centres like Madang, Goroka and Kokopo will conclude with the Apec Leaders’ Summit next month in Port Moresby.
The meeting is hosted in PNG at a time when the country is going through some tough economic times. People have mixed feelings and are questioning how PNG, as a member of Apec, will benefit from the meeting and how it has benefited from its membership of Apec.
It is not so clear how PNG has benefited from its membership of the past 25 years.
It is indeed difficult to quantify the benefits of being a member of a global or regional organisation like Apec.
In the Apec meetings, leaders in business and politics convene to exchange information and experiences with each other.
Apec meetings are an avenue where leaders discuss issues of regional and global importance.
Leaders discuss common challenges that need concerted efforts and also discuss opportunities that could be explored.
They draw on their experiences and expertise to tackle some of the region’s pressing issues like climate change, poverty, hunger, food security and denuclearisation. They then pledge their allegiances to address those issues.
The coming together of the different economies enables members to make commitments and work on shared responsibilities on issues of common interest.
Apec members also share their development, social, political, economic and structural challenges to the other member countries.
This includes sharing their experiences on some strategies they have used to overcome those challenges. An important factor behind the formation of the Apec group was the promotion of free trade.
Free trade is when trade barriers and trade distortions are eliminated to enable swift and efficient flow of goods and services among the trading partners.
Also, the meeting brings both big and small economies together where it provides a level playing field for both smaller and bigger economies to voice their concerns and issues pertaining to trade and investment where those discussions form the building blocks for the formulation of trade policies and treaties for member countries.
Such activities promote inclusive and sustainable economic growth where those countries that are left behind are able have the opportunity to catch up with the advancing economies by benefiting from opportunities presented in such meetings by technologically and economically advanced economies.
The gains from Apec will be of two kinds.
The first one will be immediate, with certain sectors of the economy – like the hotels and accommodation – benefiting during the Apec meetings.
The next notable benefit will be the expected inflow of foreign currency into the economy which might ease the foreign exchange currency problem the country is facing.
Most of the FX is expected to flow in next month during the leaders’ summit when thousands of delegates are coming in to the country.
The second benefit is of longer-term after the Apec meeting is over.
The Apec meeting will raise PNG’s investment and business profile by exposing PNG to the international investment and business community.
After the Apec meeting, the countries that have come to PNG will have known about the untapped business and investment potentials this island country holds.
For PNG to gain from the Apec meeting, it has to position itself as an attractive investment and business destination by taking the necessary structural reforms and improving its investment climate.
Experiences from other countries like the Philippines and Australia, who hosted Apec, show that they undertook significant structural reforms which contributed to their economic growth.
Again, if the country is going to benefit from the Apec meeting, the government has an important responsibility to provide necessary conditions that will make PNG an attractive destination for investments. Other Apec member countries will only show us the way and present us with the opportunities but it is up to PNG whether to work towards grabbing the opportunities or wasting millions of kina hosting the Apec and losing out at the end.

Richard Napam
Port Moresby