APEC leaders call for joint efforts to tackle financial crisis

2008-11-22 10:40:45

LIMA, Nov. 21 (Xinhua) --

Some leaders from the Asia-Pacific Economic Cooperation (APEC) members on Friday called for joint efforts to address the declining market confidence amid the global financial crisis, one day ahead of their summit in Lima, the Peruvian capital.

World economies should take urgent and necessary measures to avert the potential "vicious cycle", Australian Prime Minister Kevin Rudd told an audience of presidents, ministers and entrepreneurs from the Asia-Pacific region.

"As confidence across the world falls, it begins a vicious cycle that leads to further caution on the part of households, leading to further falls in consumer spending, leading to further falls in business investment, leading to lower growth," he said in a speech at the two-day APEC Chief Executive Officers (CEO) summit.

"Governments must step in to take up the slack. This will require further monetary action and it will require fiscal action," Rudd said.

In his speech at the meeting, Chinese President Hu Jintao called on APEC member economies to work together to ensure the sustained economic development of the Asia-Pacific region.

The rich diversity, great interdependence and complementarity among the APEC economies have enabled them to deepen regional cooperation and jointly respond to challenges, he said.

An effective response to the financial crisis and the maintenance of global economic stability are crucial to global growth and the immediate interests of all countries, the Chinese president said.

John Key, the newly-elected New Zealand prime minister, said that economic cooperation between economies and businesses is exactly what is needed in times like these.

"It is no news to anyone that the global economic outlook for 2009 is weak," he said.

He said the implications for the real economy are likely to be profound and widespread. "The early signs of the world's reaction have so far been encouraging, by each of these measures," he added.

Actions by political leaders to address the challenges arising from this financial crisis, including state-supported bank bail-out packages, fiscal-stimulus packages, coordinated reduction in interest rates and the special G20 summit to address the crisis, "are a step in the right direction, although more may be needed," he said.

Peruvian President Alan Garcia called for optimism in the face the financial crisis, noting that the current situation is "absolutely" different from the two financial crises in 1929-1933 and the 1970s.

"I am optimistic about the situation, because it is the birth of a new economy and a different society," said the president.

"This is a wealth crisis and a system expansion crisis and it should not be treated with statism or protectionism," he said.

Garcia listed such factors for optimism as the increasing contribution of technological innovation to world economy and the great potential still enjoyed by the global consumption market.

Indonesian President Susilo Bambang Yudhoyono called for social responsibility and attention to the poor amid the ongoing global financial meltdown.

The crisis emerged as some companies sacrificed their social responsibility for profits, Yudhoyono said.

The lesson that the international community should learn from the crisis, the gravest since the Great Depression, is that "good governance and responsibility matter," he said in a speech during the APEC CEO summit.

He urged increased spending on social welfare, on health and education in particular, during the hard times.

The crisis could become an "opportunity" to make globalization beneficial to the poor if leaders "make the right choice," he said.

Some 1,200 participants were expected to attend the two-day CEO summit, part of the APEC Leaders' Week on Nov. 16-23. The theme of the CEO summit this year is "Growth, Equity and Sustainable Development: Challenge for APEC."

A total of 19 leaders are scheduled to attend the annual APEC summit scheduled for Saturday and Sunday.

Established in 1989, APEC groups Australia, Brunei, Canada, Chile, China, China's Hong Kong, Chinese Taipei, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, South Korea, Thailand, the United States and Vietnam.

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