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Asia-Pacific Economic Cooperation (APEC)

Topics Covered: Important International institutions, agencies and fora, their structure, mandate.

Asia-Pacific Economic Cooperation (APEC)

What to study?

For Prelims: Compilation, objectives, functions and geographical locations of member countries.

For Mains: Relevance and significance of the group for India.

Context: The Asia-Pacific Economic Cooperation (APEC) region is expected to post a 2.7 per cent economic decline in 2020 due to the impact of Covid-19.

This will be the most significant fall since the near-zero growth rate logged in 2009 during the global financial crisis.
The region’s unemployment rate is projected to rise to 5.4 per cent in 2020 from 3.8 per cent in 2019, or an additional 23.5 million workers being unemployed in 2020.

APEC

Economic rebound:

An economic rebound is a forecast for 2021, with the anticipated growth of 6.3 per cent, higher than the projected global economic growth of 5.8 per cent.

This rebound, however, depends on the effectiveness of containment mechanisms to avoid a second wave of the Covid-19 pandemic as well as measures to stimulate the economy.

APEC:

The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific.

Aim: to create greater prosperity for the people of the region by promoting balanced, inclusive, sustainable, innovative and secure growth and by accelerating regional economic integration.

Functions:

  • APEC works to help all residents of the Asia-Pacific participate in the growing economy. APEC projects provide digital skills training for rural communities and help indigenous women export their products abroad.
  • Recognizing the impacts of climate change, APEC members also implement initiatives to increase energy efficiency and promote sustainable management of forest and marine resources.
  • The forum adapts to allow members to deal with important new challenges to the region’s economic well-being. This includes ensuring disaster resilience, planning for pandemics, and addressing terrorism.

Members:

APEC’s 21 member economies are Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam.

Insta Links:

Prelims Link:

  1. Geographical locations of APEC members.
  2. Regional groups to which India is not a member.

Sources: Business Standard.