By Rod Oram
Between the Lines
Apec is long on talk and short on action. Born with enormous ambition to make the entire Asia-Pacific region tariff-free by 2020, its first decade has spawned a plethora of programmes and initiatives which have yet to bear substantial fruit.
On the surface, Apec's two-day Christchurch meeting this week on small and medium scale enterprises was more of the same. Much of the discussion, particularly by the business delegates, was without reference to earlier Apec work.
Thus, they re-discovered a truck load of first principles that nobody would argue against, such as the desirability of efficient capital markets, sound accounting principles and better education.
And several of the proposals debated and adopted by ministers, such as to facilitate e-commerce or reduce impediments to trade, had a familiar ring to them. Apec already had similar initiatives in train, pointed out Tim Hannah, the New Zealand diplomat who is the current executive director of Apec's Singapore-based secretariat.
The deja vu became a bit of a running joke, in which even the chair of the meeting, Enterprise and Commerce Max Bradford, joined in.
But the meeting could go down as a useful one for Apec and for New Zealand if both parties adopt a couple of key lessons.
First, Apec - at least in this forum - achieved an important shift in focus. The emphasis was more on getting the policy environment right for economies and businesses rather than on direct intervention. This shift was thanks to New Zealand's preparation for and efficient chairing of the meeting, driven by a political philosophy reflecting our own experience over the past 15 years. The novel inclusion of business delegates was also a big help.
As Apec meetings get more contentious as the year goes on - notably the trade ministers in June and leaders in September - it will get harder for New Zealand to be so effective a chair. But let's hope it can.
Second and conversely, New Zealand has a chance to learn from Apec. For example, Walt Lastewka, the Canadian industry secretary, said yesterday the private sector is the best supplier of venture capital. But his government provides it where the private sector doesn't.
"We understand the whole economic system and make sure there isn't a break in it. Where there is, we facilitate with our programmes in a way that makes it possible for the private sector to take over later."
If Mr Bradford applied such common sense to the policies he is developing to help foster business by, for example, ending the dearth of venture capital, then New Zealand would set a shining example to Apec that went beyond simply running a slick summit.
Yes, puritan New Zealand has something to teach Apec.
But it also has a lot to learn from its pragmatic members.
