Pacific Perspective
Pacific Perspective
President Bush brought home a triumphant communique last weekend from Shanghai. In a historical first, the Asia Pacific Economic Cooperation (APEC) showed solidarity in a gesture to condemn terrorism and its offense to economic prosperity. This victory is unmatched since it comes from a community diverse in culture, history and economic structures. Shanghai accord a
rare chance for the
U.S. to lead in AsiaOnly a conscious effort to stay away from divisive issues such as religious, political, philosophical and social choices can keep the group united. And it seems to work. China suggested at this ministerial Shanghai summit that North Korea should join APEC, a proposition even received positively by South Korea.
Founded 12 years ago to promote inter-regional free trade, APEC stumbles, however, upon its Achilles' heel. It is known for lacking the genuine authority to address hard economic issues and the real negotiating power to reach trade agreements. Just like the one that ended in China this week with massive and spectacular fireworks, APEC leader summits have always been seen as ceremonial, offering photo opportunities with no major -- or controversial -- decisions.
Yet, with the United States and Japan as the world's two biggest economies and China as a growing trade giant, the 21 APEC economies bordering the Pacific Ocean now account for more than 44 percent of the world economic output. Given this vital trade, APEC should play a more forceful role.
America should immediately get the most out of this painfully-earned opportunity. Despite the fact that U.S.-APEC trade accounts for $700 billion (two-thirds of the nation's trade), America has often been regarded by its APEC counterparts as a super-economic power that does not understand well the economic difficulties of the not-so-wealthy members, nor does it make a serious effort to reach out and cooperate with them.
This on-going reality -- combined with memories of centuries-old unpleasant experiences with colonial powers -- has now given way to the perception that America, even with its economic supremacy, is quite human and vulnerable.
The U.S. should use this rare solidarity to engage in a more vigilant but speedier leadership role to reach out to Asia. In a world of rapid change, capitalizing on a significant political success at a normally inconsequential trade and economic meeting should tremendously help American businesses in Asia where geopolitics, trust and business are inextricably connected. Doing business the Asian way, the sympathy over the Sept. 11 tragedy should psychologically bring Asia-Pacific governments and business people closer to us, leading way to a more trusting partnership.
Tung Bui is the Matson Navigation Co. Distinguished Professor of Global Business at the University of Hawaii College of Business Administration. Reach him at tbui@cba.hawaii.edu