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APEC ECONOMIC LEADERS MEETING (1998



Subject: APEC ECONOMIC LEADERS MEETING (1998) -- OUTCOMES 

 

21 December 1998 

FACT SHEET: APEC ECONOMIC LEADERS MEETING (1998) -- OUTCOMES 

(APEC finance crisis strategy based on Clinton initiative) (710)

Washington -- When the leaders of the 21 economies that make up the
Asia-Pacific Economic Cooperation (APEC) forum met recently in Kuala
Lumpur they embraced a comprehensive, detailed, broad-based strategy
to overcome the financial crisis and urgently spur renewed and
sustainable growth.

According to a fact sheet released by the Department of State, this
strategy -- based largely on President Clinton's September 14 proposal
before the Council on Foreign Relations -- emphasizes the necessity of
individual economies implementing prudent, growth-oriented
macroeconomic policies and cooperative efforts to strengthen financial
institutions and markets, further liberalize trade and investment, and
build the capacity of developing economies.

Following is the Department of State fact sheet:

(begin text)

APEC ECONOMIC LEADERS MEETING (1998) -- OUTCOMES

Leaders embraced a comprehensive, detailed, broad-based strategy --
based largely on President Clinton's September 14 initiative -- to
overcome the financial crisis and urgently spur renewed and
sustainable growth. This strategy emphasizes the necessity of
individual economies implementing prudent, growth-oriented
macroeconomic policies and cooperative efforts to strengthen financial
institutions and markets, further liberalize trade and investment, and
build the capacity of developing economies. Leaders acknowledged the
many positive steps taken by individual economies (such as the U.S.
lowering of short-term interest rates) and launched additional
concrete action plans and programs.

-- Finance Ministers will develop measures to help improve
transparency and accountability in the international financial system,
strengthen national financial systems and market infrastructure, and
involve the private sector more effectively in the prevention and
orderly resolution of international financial crises. Finance
Ministers will report on implementation of this work and on their
programs to improve economic and corporate governance and strengthen
financial supervisory regimes to Leaders in September 1999.

-- Leaders acknowledged: Japan's commitment of substantial public
resources to strengthen its financial system and stimulate growth;
some economies' provision of additional resources to the IMF; G-7
support for a new contingent, precautionary line of credit anchored in
the IMF; China's maintenance of the renminbi exchange rate,
implementation of growth-oriented macroeconomic policies and pledge to
continue reforms of its banking system and state-owned enterprises;
and implementation of strong reform programs in developing economies,
especially Thailand, the Philippines, and Korea.

-- The U.S. and Japan, with support from the ADB and IBRD, announced a
multilateral initiative to help revitalize private sector growth by
supporting economies' efforts to accelerate the pace of bank and
corporate restructuring, mobilizing new private sector financing, and
promoting the restoration of growth.

-- At Secretary Albright's initiative, APEC will work to develop a
social framework for growth to help the most vulnerable to the
hardships arising from the crisis. Additionally, the World Bank and
the ADB have pledged to triple and double, respectively, their support
for social sector programs.

-- Leaders called for examination of actions on strengthening domestic
financial systems to withstand the potentially destabilizing impact of
short-term flows (including hedge funds) and to ensure allocation of
long-term capital to productive uses. The United States will lead this
examination.

-- We succeeded in gaining APEC endorsement to move the tariff
elements of EVSL into the WTO. APEC is challenging the world trading
system to conclude this broad liberalization package in 1999. It will
be important for all APEC economies, including Japan, to remain
committed to successful conclusion of this package in the WTO. It was
also agreed to begin implementing within APEC an ambitious work
program on the non-tariff aspects of EVSL (e.g. NTMs, services,
economic and technical cooperation).

-- At the initiative of Vice President Gore, PM Shipley agreed to look
at how APEC can advance work on global climate change.

-- Leaders endorsed the recommendations of the Natural Gas Initiative
and the vision of an integrated gas infrastructure for the region. The
private sector is working on how to help governments take the policy
steps necessary to bring this vision to reality.

-- Leaders pushed forward efforts to promote and facilitate the
development of electronic commerce.

-- Leaders renewed their commitment to advance sustainable development
throughout APEC's workplan including programs on sustainable cities,
cleaner production, and protection of the marine environment.

(end text)
Source:Dept. Of State