Posted on 23 Jan 2015
The Philippines has called on Asia-Pacific countries to strengthen their financial system to ensure their economic stability and resilience and reduce their vulnerability to financial contagion.
The country, through the Department of Finance, is pitching for greater financial integration within Asia-Pacific Economic Cooperation (APEC) members to help create a more stable financial market and help rebalance the global economy.
During the Asian currency crisis in 1997, many APEC economic economies experienced an abrupt reversal of capital flows which put substantial pressure on their currencies and stock markets.
Finance officials from APEC nations are now in Cebu for a two day forum to discuss the proposal of the Philippines for a medium- to long-term roadmap toward a more financially integrated, transparent, and resilient Asia-Pacific region.
Dubbed as the "Cebu Action Plan," the roadmap provides a framework for financial integration, financial transparency and financial resiliency.
Economic cooperation has become increasingly more important given the growing intensity of goods, services and investments in the region.
The Philippines reiterated the need for APEC members to work together to reduce barriers to trade and ease investment flows.
To ensure financial transparency, APEC members must undertake measures to improve openness and efficiency in the use of government resources.
The "financial resiliency" pillar, on the other hand, calls for measures that will help make financial systems of member economies resilient to withstand risks, including natural disasters and external shocks.
"We see that these pillars will bring about, in the coming decade, a community of APEC economies with coordinated policies, rules and practices that enable and/or facilitate free trade and free flow of cross-border investments, good governance that result in sustainable and inclusive economic growth and the development of rapidly growing and robust financial markets that offer diversified financial instruments, which cater to the growing needs of its population," Finance Undersecretary Gil Beltran said in his welcome remarks.
Once firmed up, all proposed measures will be taken up during the year, leading up to the APEC Finance Minsters Meeting in Cebu this September.
