ANALYSIS: APEC projects social dimension at Lima summit

By Veronica Sardon Nov 23, 2008, 19:52 GMT

Lima - The leaders of the 21 economies that make up the Asia-Pacific Economic Cooperation (APEC) forum provided a balanced perspective on development with a careful mix of economic and social angles at their 16th annual summit in Lima.

'We are committed to strengthening the social dimension of globalization,' the group's final declaration said Sunday.

The phrase appeared to hold the two trains of thought that had been at the forefront this week in Lima: the insistence on free trade, on the one hand, and demands that it lead to an improvement in the living standards of citizens across the region.

On Saturday, APEC leaders issued a statement on the ongoing economic and financial crisis that reiterated the the G20's declaration in Washington a week earlier, to insist on free trade and call for a prompt conclusion of the Doha Round of talks at the World Trade Organization (WTO).

On Sunday, the global economy was given a human face, as the Lima Declaration adopted a concern for the poor as a running theme. Not only food prices but also climate change were defined in terms of their effect on the poor.

At a time of severe economic crisis around the world, APEC leaders stressed the need for corporate social responsibility as key to sustainable development.

The success of the Doha Round was presented as a tool to combat volatility in the price of foodstuffs, which would 'deliver substantial improvements in market access and reduce market- distorting measures in global agricultural trade.'

'Reducing poverty is likely to become more difficult in those developing economies most vulnerable to the adverse effects of climate change and related natural disasters,' the final declaration said.

It was evident this weekend in Lima that things are changing a lot as the world seeks to come to terms with the financial crisis.

Asia has gained crucial relevance as a huge market with fresh funds, and its millions of poorer citizens demand consideration.

Asian countries remain potential consumers at a time when the markets in traditional giants the United States and Europe are in deep trouble. But they are also particularly vulnerable to the natural disasters that are linked to climate change and they suffer most when food prices rise.

In this context, leaders gathered in Lima have had to wrap their free-trade project in a social cloak.

At a CEO summit on the sidelines of the formal APEC meeting, US President George W Bush said Saturday in Lima that the governments of industrialized nations 'have to keep their promises to the developing world.'

'Our partners can be confident that the compassion agenda of the United States will continue,' Bush stressed.

It was apparent in Peru that the developed-world-directed globalization of past decades is at least suffering a serious change in course, as emerging countries impose conditions and take the lead.

It remained to be seen, however, whether such modifications would be just a short-lived reaction to a serious economic crisis, as global powers solve their evident problems, or a long-term move in the direction of a more inclusive world order.