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Back to TopCurrency and Stock Market Crisis in Asia:
PBEC’s Call for APEC Leadership
The sharp decline in the value of Asian currencies and stock markets in recent months poses a serious threat to both the regional and world economy. However, if timely and meaningful actions are taken by the APEC economies, the business leaders of PBEC are of the opinion that the medium and long term growth prospects for the region would remain positive. PBEC urges the governments of APEC to work together in defining and implementing the necessary actions to restore confidence among investors and lenders.
Recent events had illustrated graphically and dramatically how truly interdependent the global economy is today.
APEC economies must be further open to imports and foreign investment; implement policies that will ensure healthy domestic demand; and support IMF funding to resolve financial problems. Toward this end, continued U.S. leadership of trade liberalisation efforts depends on early renewal of the President’s fast track negotiation authority.
All governments must resist political pressure to respond to recent events by resorting to protectionism. Losing momentum towards liberalization, or worse yet, sliding backwards towards protectionism, would only exacerbate the already serious problems threatening the region.
Regulatory and financial reform is also essential. Transparency, openness, non-discrimination and deregulation in financial and capital markets are a necessity. Financial institutions need to mature in order to keep pace with the region’s rapid economic growth.
In the midst of crisis, opportunity can be found by those willing to exercise leadership. PBEC members pledge their support for APEC’s efforts to get the economies back on a positive growth track.
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Approved by the Board of Directors 11/21/97
PBEC Mid-term Steering Committee Meeting
Whistler, B.C. Canada