Asia-Pacific Economic Cooperation Leaders' Summit 2023

• 20 Nov 2023

Source: IE 

Why in News? 

Recently, the Asia-Pacific Economic Cooperation (APEC) Leaders' Summit 2023 took place in San Francisco, United States.

What are the Key Highlights of the APEC Leaders' Summit 2023? 

• The APEC 2023 summit's theme is "Creating a Resilient and Sustainable Future for All".
• APEC reaffirmed their commitment to free, fair, and open trade and investment, and to advancing inclusive and sustainable growth in the region.
• The summit concluded with the adoption of the Golden Gate Declaration. 
  • The declaration underscores the commitment to creating a resilient and sustainable future for all member economies.
• The APEC leaders endorsed the APEC Action Agenda on Climate Change and Energy Security, which outlined a set of concrete actions and targets to enhance cooperation and coordination on addressing the climate crisis and ensuring energy security.

What is Asia-Pacific Economic Cooperation?

• About:
  • The APEC is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific. 
  • APEC aims 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.
  • The APEC process is supported by a permanent secretariat based in Singapore.
• Members:
  • Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, Vietnam and the United States.
  • India currently has the  'observer' status. 

• Significance:
  • APEC accounts for approximately 62% of world GDP and 48% of world trade in 2021. 
    • It is one of the oldest and most influential multilateral platforms in the Asia-Pacific region.
  • APEC operates based on no binding commitments or treaty obligations. Commitments are undertaken voluntarily and capacity-building projects help members implement APEC initiatives.
  • APEC’s main goals are to support economic growth and prosperity, enhance regional economic integration, strengthen human security, and address common challenges such as climate change, health, and food security.\
• India- APEC:
  • India wanted to join APEC in 1991, it was the same year when liberalisation was introduced in the Indian economy which opened up its economy and trade more with other countries.
    • Some APEC members liked the idea of having India in the group. But some APEC members did not like the idea, because they thought India still had too many rules and restrictions that made it hard for them to do business with India.
  • Another reason why India could not join APEC was that the group decided to stop accepting new members in 1997, to focus on improving the existing cooperation among the current members.
    • This decision was supposed to last until 2012, but it was not changed after that, so India still could not join APEC.

UPSC Civil Services Examination, Previous Year Question

Prelims

Q1. Consider the following pairs: (2009)

Organization	Location of Headquarters
1. Asian Development Bank	Tokyo
2. Asia-Pacific Economic Cooperation	Singapore
3. Association of SouthEast Asian Nations	Bangkok

Which of the above pairs is/are correctly matched?

(a) 1 and 2 only 

(b) 2 only

(c) 2 and 3 only 

(d) 3 only

Ans: (b)

• The Asian Development Bank (ADB) is a regional development bank established on 19^th December 1966. It has been conceived as a financial institution of Asian character to facilitate faster economic growth and cooperation in one of the poorest regions in the world. It consists of 68 members of which 49 are from within Asia Pacific and 19 outside. It is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. Hence, pair 1 is not correctly matched.
• The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 to leverage the growing interdependence of the AsiaPacific. APEC’s 21 members 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. The APEC has headquarters in Singapore and operates as the core support mechanism for the APEC process. It provides coordination, technical and advisory support as well as information management, communications and public outreach services. Hence, pair 2 is correctly matched.
• The Association of Southeast Asian Nations (ASEAN) is a regional inter-governmental organization comprising ten countries in Southeast Asia, which promotes inter-governmental cooperation and facilitates economic, political, security, military, educational, and socio-cultural integration among its members and other countries in Asia. It is headquartered in Jakarta, Indonesia. Hence, pair 3 is not correctly matched.
• Therefore, option (b) is the correct answer.

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Q2. India is a member of which among the following? (2015)

1. Asia-Pacific Economic Cooperation
2. Association of South-East Asian Nations
3. East Asia Summit

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 only

(c) 1, 2 and 3

(d) India is a member of none of them

Ans: (b)