Functions of APEC

Essay by honeyGGB+, August 2008

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Asia Pacific Economic Cooperation (APEC) was established in order to enhance economic and diplomatic understanding between Asian and Pacific nations. In the present context of emerging cooperation between Asian and non Asian nations, it is important to analyze the functions of this organization. This paper will analyze the role of the APEC from its inception till today.

The APEC shows the emergence of economic understanding between the two regions Asia and Pacific. This organization shows the emergence of alliance between countries belonging to Asia and Pacific regions. Since the 1990 decades the Asian countries have showed impressive economic development. In spite of the recent currency crisis problems, Asian economy is expected to grow from medium and long term perspective. Asian economies have gained through their economic alliance with Pacific countries. Therefore, it is important for the Pacific countries to have understanding with the major Asian economic powers. (Drysdale and Vines, p.

4)The APEC, established in 1989, consists of Asian countries such as Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Japan, Korea, China, Hong Kong, Korea, and Taiwan. (Drysdale and Vines, p. 4) Impressed by the performance of this organization, major powers such as the Unites States, Canada, Mexico, Vietnam, and Russia also showed interest to join the APEC. This implies that this organization has showed organic growth over a period of time exhibiting its popularity among various countries of the world. The member countries have realized the need for economic cooperation in order to achieve their economic progress. (Drysdale and Vines, p. 4)Since 1989, the APEC members have pursued the principles of ÃÂtrade liberalizationÃÂ and ÃÂopen regionalismÃÂ. (Drysdale and Vines, p. 6) Asian and Pacific countries have been attempting to liberalize their economies in order to obtain similar response from other countries. This has allowed the Pacific countries to invest...