Do we benefit?

 

As the country gears up for hosting the Asia-Pacific Economic Cooperation (APEC) summit next week, there's plenty of initiatives and suggestions on how to promote economic integration and remove barriers to free trade.

Since micro, small, and medium enterprises (MSMEs) are the backbone of most of the APEC economies, accounting for over 97 percent of enterprises and contributing 60 to 90 percent of employment in APEC, the member-economies should really implement measures that would help MSMEs adopt innovation, gain access to finance, enhance participation in the global market, and make them more resilient. The region's economic vitality, after all, depends on the well-being of MSMEs.

Governments must also develop policies that support trade and investment linkages between MSMEs and big business.  

Another significant development is the recent launching of the Financial Infrastructure Development Network (FIDN) by the Philippines, World Bank and business groups. This is a multisectoral platform for promoting initiatives to make financial services in the region more accessible especially to MSMEs.

The FIDN aims to expand the reach of credit and other financial services for a more inclusive regional economy. By pooling together the vast knowledge and resources within governments, business and multilateral agencies, the FIDN can more effectively accelerate reforms to create an enabling environment for expanding MSMEs’ access to finance.

The establishment of the FIDN is one of the deliverables under the Cebu Action Plan (CAP) agreed upon by finance ministers in the Asia-Pacific region. The CAP has four pillars: promoting financial integration; advancing fiscal reforms and transparency; enhancing financial resilience; and accelerating infrastructure development and financing.

All in all, we can expect more vibrant economic cooperation in the Pacific Rim in the years ahead, if all these measures bear fruit. 

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