President Noynoy in Apec

President Noynoy’s trip to Yokohama for the Apec conference has been billed as an effort to get more investments that would translate to more jobs and opportunities for Filipinos. But what Filipinos were they referring to? I think some re-thinking and a change in attitude need to be done first before participation in the Apec conference can yield better results.

I did not see any mention in stories about President Noynoy’s trip that would give Filipinos the confidence that he or his advisers understand the thrust and thinking of Apec.

Stories were devoted to who he would meet with among them Canadian Prime Minister Stephen Harper, Chilean President Sebastian Piñera, Papua New Guinea Prime Minister Michael Somare, and the APEC host Japanese Prime Minister Naoto Kan. More leaders will be lined up for him according to Presidential Communication Secretary Ricky Carandang.

They are arranging meetings also with his counterparts in the US, China, Indonesia and Russia. Fine. I don’t think we should begrudge these efforts. But I am less confident that he will be able to maximize these meetings without an understanding of what Apec is all about and generating some public debate about the Philippines’ position in Apec. To be fair, previous presidential trips had the same agenda but these seemed more dedicated to a PR exercise to prove that our leaders are capable or that our government has taken steps to “improve the business climate in the country.” These are concerns but not the most important concerns.

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I looked in vain for any statements that would address the objectives of the Apec Conference, especially from Presidential Communication Development and Strategic Planning head Ricky Carandang.

It is good to know that the presidential trip is costing the Filipinos less but do his advisers understand what they are going there for, I mean really appreciate the objectives of Apec instead of harping on the cost of the trip and how Malacanang staff has adjusted to Aquino’s “penny pinching ways.”

The Asia Pacific Economic Cooperation Forum was founded in 1989 as an economic forum to promote a more liberal climate for trade and investments and cooperation among the 21 member countries.

But since then it has also developed other strategies especially for the poor in the region. The theme of the conference, ”Change and Action”, I think is an impatient call to leaders of governments that they do not come to these conferences just to talk and then go home without any plan of action.

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I would expect the members of the Cabinet accompanying the President have done their homework. One of the major discussion points is how the region can achieve its goal of creating a Free Trade Area of the Asia-Pacific. They should have at least read “An APEC Trade Agenda? The Political Economy of a Free Trade Area of the Asia-Pacific which was edited by Charles Morrison and Eduardo Pedrosa of the Pacific Economic Cooperation Council. 

It will be too long for me to write on all the salient points brought out by the book that might have equipped President Noynoy’s team of advisers with a better perspective on Apec and how to meld this with the Aquino government’s economic program for the Philippines. The book is available in paperback from Amazon.com. The most striking feature of the Apec agenda, in my opinion, is how to address poverty in the region including the Philippines.

“Apec members have combined GDP of over $16 trillion and carry out 42% of world trade. Over the past decade, Apec has become the primary vehicle in the region to promote open trade and economic cooperation. Today, Apec’s role has grown in both depth and scope and therefore, without serious involvement from Apec, poverty in this region will remain as one of the crucial issues that embarrass humanity living in the 21st century,” the book concludes.

Apec sees its role of bringing regional economies together “to recognize and act on common interests.” It recognizes that the different economies of the region have different approaches to Free Trade Agreements and it is accompanied by risks. But it also has “attractive elements” particularly if these can be avenues toward global free trade.

“Trade liberalization and facilitation are an essential part of the Apec community-building process; and therefore the authors strongly urge the Apec leaders to extend the Apec agenda into new areas, such as fair trade and poverty reduction, which are of mutual concern and where Apec co-operation can make a significant difference in the region,” adds the report.

President Aquino’s speech at the summit highlighted the need for improving our infrastructure through public-private partnerships. He noted his concern that the travel warnings for the Philippines were unfair and the timing could not be worse and could jeopardize the success of the administration’s public-private partnerships initiative. 

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This brings us to another initiative made famous by C. K. Prahalad. He argued in his book The Bottom of the Pyramid “that companies must revolutionize how they do business in developing countries if both sides of that economic equation are to prosper.” He draws on many examples on “how to fight poverty with profitability and these are not the kind we see in the Philippines.

Bill Gates of Microsoft endorsed the book heartily: “In his book The Bottom of the Pyramid, C. K. Prahalad writes with uncommon insight about consumer needs in poor societies and opportunities for the private sector to serve important public purposes while enhancing its own bottom line.

“If you are looking for fresh thinking about emerging markets, your search is ended. This is the book for you,” Gates said.

While the administration has talked about “microfinance and a continuation of the initiatives started by President Arroyo, I am yet to see some deep thinking about how to make the poorest of our society become a productive part of our economy. Unfortunately, poverty is seen here as a problem not as a vehicle for progress.

“Collectively, the world’s billions of poor people have immense entrepreneurial capabilities and buying power. You can learn how to serve them and help millions of the world’s poorest people escape poverty,” writes Pralahad.  

It is being done — profitably.

That is the grand idea that President Noynoy, as leader of the teeming poor in the Philippines, should talk about if he wishes to make a hit at the Apec conference.