PBEC Covenes in Tokyo for 34Th IGM Ore Than 800 Business Leaders, Govern- President Arroyo Special Envoy Fidel V

IGM “firsts” made Four key ingredients Remembering Tokyo IGM a success. to economic success. Dr. Weldon “Hoot” Gibson. Page 4 Page 6 Page 10

NEWSLETTER OF THE PACIFIC BASIN ECONOMIC COUNCIL Pacific Journal

www.pbec.org PBEC Covenes in Tokyo for 34th IGM ore than 800 business leaders, govern- President Arroyo Special Envoy Fidel V. M ment officials, and international Ramos, Korean Deputy Prime Minister and experts from throughout the Pacific Rim con- Minister of Finance and Economy Jin Nyum, verged on Japan’s capital city for PBEC’s 34th Malaysian Minister of International Trade and International General Meeting. Delegates Industry Dato' Seri Rafidah Aziz, and Iwao came together in Tokyo’s burgeoning water- Matsuda, Japan's Senior Vice Minister of front district of Daiba in the midst of cherry Economy, Trade and Industry. blossom season to explore the conference That kicked off two tightly-packed days of theme, "Regional Vitality in the 21st Century." presentations and roundtable discussions in History was made in Tokyo as the open- which more than five dozen of the top corpo- Their Imperial Highnesses, The Crown Prince ing session of the IGM was attended for the rate executives and economic specialists and Princess of Japan, attended the IGM first time by members of Japan’s Royal from around the Asia Pacific addressed press- opening session. Family, the Crown Prince and Princess, as ing issues in the business world, including: well as Japanese Prime Minister Yoshiro Global Economic Issues and the Pursuit of Mori. Sustainable Growth and Regional Vitality, Meeting Today's Management Challenges: His Imperial Higness the Crown Prince Transparency, Environmentalism, and noted how things have changed since PBEC’s Corporate Responsibility, Electronic birth in 1967. "Compared with 34 years ago, Commerce, Strategic Reorganization of the economies of the Asia Pacific region have Global Industries, and Revitalizing the Asian made amazing progress – this is beyond Economies. doubt due to the efforts of local business leaders to pool their knowledge and experi- Delegates were also treated to insightful ence in order to solve the many problems presentations during the meeting’s two lunch- they encountered," he said. "For this reason eons. The Honorable Taro Aso, Japanese The Asia Pacific Leaders Forum featured also, the role of the PBEC is destined to Minister of State for Economic and Fiscal government officials from Japan, Malaysia, become ever more important in the econom- Policy, highlighted the real economic reform Korea, and the Philippines. ic life of this region. " taking place today in Japan, which is laying the groundwork for a future of strong growth. One highlight of this year’s meeting was And Richard Koo, chief economist at the the Asia Pacific Leaders Forum, in which top Nomura Research Institute, examined government officials from the Pacific Rim Japan’s "balance-sheet recession" as he out- shared their view of the region’s economy lined the need for increased government and prospects for the future. On hand was spending and investment. former Philippine President and advisor to continued on page 11 SMEs, Financial Services among issues tackled by PBEC leaders in Tokyo BEC took a number of important P policy actions at its recent International General Meeting concerning developments in the Asia Pacific, the World Trade Organization (WTO), corporate responsibility, and other ongoing areas of interest and concern to the business community.

Specifically, the PBEC Board of Directors adopted the following policy statements:

Statement on Facilitating SMEs in the Global Marketplace: Access to the internet, and the associated elements of a sound e-business infrastructure, can greatly facilitate the participation of small and medi- um enterprises (SMEs) in the global marketplace. PBEC supports APEC's efforts to promote closer collaboration and cooperation The PBEC Steering Committee meeting at the Tokyo IGM. on e-Commerce infrastructure development and capacity building. Statement in Support of a Balanced Statement on Food Safety: To PBEC therefore encourages public-sec- WTO Agenda: PBEC has steadfastly promote the production of safe food, PBEC tor leaders in the Asia-Pacific region to cre- believed that continued expansion of trade recommends that all PBEC economies ate the legal/regulatory frameworks that and investment through the rules-based adopt and enforce laws and regulations to permit competitive offerings of enabling ele- system of the WTO provides important ensure that the production of foodstuffs ments by firms, from the underlying tele- advantages. Rising levels of international including meat be based upon the applica- com infrastructure to Web site design to trade and investment have been a primary tion of sound scientific practices. small-package delivery. engine driving world economic growth, Therefore, PBEC strongly recommends economic development, the creation of that each member economy ban the feeding Statement on Financial Services better jobs, and rising per capita incomes of ruminant meat and bone meal to rumi- Regulation: The GATS Financial Services throughout the world. This economic nants thus preventing the potential spread Agreement reached in the World Trade growth has generated more resources for of bovine spongiform encephalopathy (BSE) Organization (WTO) in 1997 created a improved health care, education and social that threatens the health and safety of framework for increased international com- spending. It has resulted in new opportuni- people throughout the region. petition in financial services. However, ties for employment, higher wages and much broader and deeper commitments to improved working conditions. Statement on Environmental Issues: market access and regulatory reform are PBEC reaffirms the importance of environ- necessary to spur market-driven competi- PBEC urges the commencement of a mental protection and improvement as a tion, to avoid future financial crises, and to new global trade round in the WTO and that means towards sustainable development, raise standards of living. this round reflect the views, concerns, and and declares our resolution to take voluntary priorities of both the developed and devel- actions in support of these goals. To further these goals, PBEC urges par- oping economies. As they engage in the ticular attention to financial services regula- process, contracting parties should consider The full text of each of these and previ- tory reform in the services negotiations the broadest possible range of input and ous PBEC policy statements is available on already underway in the WTO “embedded viewpoints. our website at www.pbec.org. program” pursuant to new market opening commitments.

2 Race To The Top: Recipients of the 3rd PBEC Environmental Award he PBEC Environmental Award show- Tcases projects of members who achieve excellence in environmental stewardship within a sustainable business model. This year, eight finalists were evalu- ated for the 3rd PBEC Environmental Award and the top finalists were recognized at the Tokyo IGM held last month.

Beyond their nominated projects, the member companies from PBEC Korea, U.S., Japan, New Zealand, and Canada (Samsung Electronics, General Motors, Ford, Osaka Gas, Honda, New Zealand Dairy Board, and Placer Dome, respectively) evidence that globalization is not a race to the bottom. Akio Nomura of Osaka Gas, Dennis Schultze of Ford Motor Company, PBEC Chairman Their achievements prove that globalization Kosaku Inaba, Hiroyuki Yoshino of Honda Motor Company, and Tadahiko Ohashi, Chairman can and should be a race to the top – in best of the PBEC Working Committee on the Environment. environmental practices, community-based “We are greatly honored to have been Environmental Award for our development stewardship and economic development, awarded the Gold Level Award, and we take of advanced technologies which are being and in long-term corporate citizenship. special pride in this achievement. It is an used to reduce emissions on new and used official recognition of the environmental vehicles in Asia. I believe the distinction Here is a snapshot of the cor- friendliness of natural gas and the commit- between a good company and a great com- porate commitment of the three PBEC ment of Osaka Gas for its environmental pany is that a good company delivers excel- Environmental Award recipient companies. activities,” stated Osaka Gas President Akio lent products and services and a great com- OSAKA GAS – Gold Award Recipient Nomura, “We will continue our efforts to pany delivers excellent products and servic- further the position of natural gas in the es and strives to make the world a better In addition to innovations in alternative energy market and to contribute to improv- place. We look forward to working with the energy, one of the latest New ing the environment through our R & D PBEC to help make the world a better Environmental Technologies being devel- activities in environmental technologies.” place.” oped by Osaka Gas is an afforestation tech- nique using VAM fungi, an environmentally FORD MOTOR COMPANY – Silver Award Added Dennis Schueltze, Director of sound method of regenerating tropical Recipient Research and Technology and lead on Ford's forests in areas with depleted soil. The proj- Rare Earth Oxide Catalyst program nomi- Ford is perhaps best known for its envi- ect is being conducted in conjunction with nated for the Award, “The Environmental ronmental stewardship through its the Research Institute of Innovative [Statement], developed by the PBEC mem- Chairman William Clay Ford, Jr. who Technology for the Earth and with the ber companies at the Tokyo Annual redesigned the landmark River Rouge facili- Indonesian Science Institute (LIPI), leading Meeting, is aligned with the objectives of ty into a sustainable plant, reduced green- to large-scale cultivation this year. Osaka Ford Motor Company to support environ- house gas emissions and benchmarked cor- Gas has also begun large-scale development mental stewardship and the technical, social porate practices in climate change. Last of reuses of melted sludge in asphalt and and economic development of our interna- year, Ford Motor Company released its first metal recovery from melted sludge fly ash. tional community. This prestigious recogni- Corporate Citizenship Report, highlighting The water-permeable construction blocks tion by the PBEC helps confirm that our corporate standards of conduct in trans- produced in this method are safe and low- company is moving in the right direction.” parency, environmental stewardship, cli- cost building materials that render the mate change, human rights, and merging HONDA MOTOR CO., LTD. – Bronze sludge ash as nonhazardous. The company’s measurements in these areas with estab- Award Recipient production of methane gas using industrial lished measurements of corporate finance. wastewater is another example of the The PBEC Bronze Level Environmental development of new technology to preserve As stated by Chairman William Clay Award went to the Honda Insight hybrid the environment and create affordable alter- Ford, Jr., “We are honored to receive the native sources of energy. Pacific Basin Economic Council's Silver continued on page 10

3 CHAIRMAN’S LETTER

ear PBEC colleagues, ladies and pose and goals in sents both the developed and developing Dgentlemen. order that the format world. Our members are based in every cor- and the principles of ner of our far-flung region, the Canadian I would like to express my sincere appre- our organization Rockies, the warm climates of Latin America, ciation to all PBEC colleagues, distinguished spread the benefits and the booming metropolises of Asia. Our guests, excellent sponsors and all the partici- of our membership companies range from resource extraction to pants and staff members, whose kind support and influence to the high technology, and everything in between. made the 34th International General Meeting Asia-Pacific region. However, it is this diversity of which we are in Tokyo more successful than ever before. Therefore, it is nec- so rightfully proud, that can make it challeng- Under the theme of “Regional Vitality in the essary that our ing for PBEC to be as cohesive as it should. 21st Century,” more than 800 delegates from Kosaku Inaba organization contin- We must endeavor to achieve integration throughout the Asia-Pacific gathered and par- PBEC Chairman ue structural within PBEC by building a sense of belonging ticipated in a series of plenary sessions and reforms, referred to in my closing address at and a sense of solidarity. As all parts of PBEC roundtable discussions with the region's top last year’s IGM in Hawaii. build closer cooperative relationships, I know government and business leaders. that the best days of PBEC lie ahead. At that time, I outlined my intention to On the occasion of the 34th International promote the development of PBEC through a Moreover, as His Excellency Yoshiro General Meeting of the Pacific Basin series of policies that I called the “Three I’s”: Mori, Prime Minister of Japan, told us at the Economic Council, we had many valuable Identity, Influence and Integration. While we last IGM, there is great value in the strong experiences and would like especially look have made progress, there is still much work personal relationships and mutual under- back on the following three ‘first’ achieve- for us to do. I will dedicate my attention dur- standing built through “the human network” ments in the history of PBEC IGMs. ing the upcoming year to pushing PBEC PBEC had developed in the business commu- ahead in each of these areas. nity. These will form the foundation of the First, we were extremely honored by the region's future prosperity and the fundamen- presence of Their Imperial Highnesses: the The “Identity” of PBEC is one of our tal philosophy for building up our organization. Crown Prince and the Crown Princess. This most valuable assets and I sometimes think This is just as important today as it was 34 was the first time that members of the Royal that we lose sight of the incredible treasure years ago when PBEC began. Family have honored PBEC by their presence. we have in our members. PBEC’s member- His Imperial Highness, the Crown Prince, ship includes some of the most influential We have been convening our IGMs in expressed that the role of PBEC is destined to business leaders in the entire world. Many of various places in the region during a critical become even more important in the econom- our members are figures of truly historical period in the world economy. The challenges ic life of the region. proportions: responsible for building our facing all of us today as business leaders and region into one of the strongest economic community leaders are among the greatest of Second, the ‘Asia Pacific Leaders Forum,’ engines in the world. We need to do a better any during our long history. We have been coordinated as a unique plenary session in the job of building upon – and projecting -- this and will be fortunate to be joined by many PBEC IGM, led to deep discussion among the proud identity. It is not an exaggeration to say notable speakers and specialists who share region's sage leaders. In this forum, we dis- that no other organization in the world has their insights and expertise on meeting these cussed the guiding principle of globalization what PBEC has. challenges. These IGMs lay the groundwork and its social prescription. Former Philippine for regional vitality and unification in the 21st President Fidel V. Ramos suggested that glob- The “Influence” of PBEC continues to century. alization generally has had a positive impact, grow. More and more government ministers but that governments have a responsibility to and leading international organizations are Last, I would like to thank you all once protect vulnerable communities from its neg- recognizing and acknowledging the work that again for joining us in Tokyo for the 34th ative effects and to deliver social services. PBEC has done in the area of policy. Our rec- International General Meeting. I would like to ommendations and statements are seriously express my hope that PBEC will continue to Third, a new conference format was considered in all the key capitals in the Asia provide opportunities for the economies in adopted. This was the first conference in the Pacific region. This is a testament to the qual- Asia-Pacific region to make dramatic leaps for- history of the PBEC IGM where a hand- ity and preeminence of our members, as well ward and that it will provide meaningful and held computer was distributed to each as the hard work of our working committees. ground breaking opportunities to further participant, promoting the “Three E’s” Although we should not overlook our signifi- strengthen relationships and business net- approach: electronics, efficiency and environ- cant accomplishments, we must work harder works among the various economies in the ment. It showed that the new format could to further distinguish PBEC in this area. region. I look forward to working with all of both facilitate business networking among you to build a more valuable PBEC. delegates and promote environmentally The third and final “I” stands for friendly meetings by minimizing paper use. “Integration.” Perhaps, this is the area where Thank you. the most work remains yet to be done. One We believe that the Tokyo IGM added a of PBEC’s greatest strengths is the diversity new page to the long history of PBEC. of our membership. Our membership repre- However, we must always consider our pur-

4 SECRETARY GENERAL’S LETTER

t was a pleasure to see so Some view this have been notified to the WTO. If each Imany of you at our recent as a healthy sign WTO country entered into a bilateral with International General Meeting (IGM) in that governments the others members, there would be over Tokyo. Thanks to the host committee in desire to move 8,000. With all the different rules of origin Japan, all the speakers, sponsors, and faster with its for different free trade areas it would participants who made the event such a neighbors to become virtually impossible for all but the great success. For those of you who were remove obstacles largest companies to untangle this unable to join us, other articles in this and impediments to “spaghetti bowl” of regulations. newsletter will provide you with all the cross border trade. This growing interest in bilateral group- details. The IGM Executive Summary, gra- Robert G. Lees But others see a PBEC Secretary ings is something that will affect all PBEC ciously sponsored by KPMG Consulting, will trend towards a General members. For our part, PBEC will continue be on its way to you shortly. world of rigid trade its long history of supporting trade and blocks that work against the goal of global investment liberalization. Whether on a In this letter, I’d like to talk a bit about a free trade. From my point of view, bilateral global, regional or bilateral basis, open mar- developing issue in our Asia Pacific busi- arrangements are a bit of a double-edged kets provide the greatest opportunity to ness environment, something which came sword. up in a number of conversations I had with raise the quality of life for all citizens. Now our members at the IGM, and during my They are useful to the extent they allow is the time for PBEC to redouble its support travels throughout the region. progressive economies to reap further ben- for the WTO and for APEC. efits of rationalization through trade agree- Thank you once again for your support The failure to launch a new round of ments. They are useful to the extent that of PBEC. We will have an interesting road World Trade Organization (WTO) negotia- they provide impetus to the multilateral ahead of us leading towards our Mid-term tions at the Seattle ministerial in 1999, com- process to get moving. As an example, Meeting and CEO Summit this October in pounded by ongoing concerns about the many of the ground breaking elements of Shanghai. Please keep in close contact, and pace of liberalization taking place in the Asia the U.S.-Canada Free Trade Agreement visit our website frequently for all the Pacific Economic Cooperation (APEC) served as a model for the subsequently updates and new activities taking place in forum, seems to have given rise to an inter- concluded Uruguay round of GATT trade PBEC. esting phenomenon. There seems to be an negotiations. In this particular instance, a increased interest in bilateral or smaller bilateral arrangement clearly benefited the regional trade groupings and free trade multilateral process. areas. The should serve as an important wake-up call. Given how important the mul- But bilateral arrangements could poten- tilateral trading system is to PBEC, this is a tially be problematic if they undercut enthu- development which we all must watch very siasm for multilateralism. They are danger- closely. PBEC has been a longstanding ous if they create preferential trading blocks advocate on behalf of both the WTO and which ultimately end up being exclusionary APEC. in nature. Bilateral or regional agreements provide free trade for members, but the flip New Zealand, Singapore, Japan, side of this, some would argue, is that it Canada, Chile, the U.S., and many others as then creates relative discrimination against well are all considering or pursuing bilateral non-members, who are on the outside look- arrangements. The U.S. administration ing in. seems to be more focused on the Western Hemisphere rather than the WTO or APEC. Bilateral arrangements could be prob- This probably reflects a number of factors, lematic if they proliferate too widely, and but undeniably, frustration with the slow create an administratively impossible web pace of multilateral trade liberalization is one of tangled regulations. There are currently of the most compelling motivators. 119 free trade areas or customs unions that

5 Elements for Economic Success in the 21st Century The following is an excerpt from reform is, in many Japan's example. Japan has recognised its remarks presented at PBEC’s 34th cases, a major responsibility to improve the environmental International General Meeting, held April 6- undertaking and impact of its industrial base and Japanese 10 in Tokyo. For the full transcript, please that process will cities are noticeably cleaner than those of visit the PBEC website at www.pbec.org. inevitably take time. many Asian countries. It is important that it ne of the key themes that this region On a global level, capitalism's role in the remains a priority in needs to keep sharply in focus if it is 21st century will be to get capital into the O good times as well to continue to improve the quality of life for hands of those who desperately need it. You as bad. its peoples is the quality of government that Sir John Bond cannot have more than half the world living ultimately determines economic success. Group Chairman Foreign com- on less than two dollars a day and the rest I see four key ingredients for economic HSBC Holdings Plc. panies can play a with significant income. This is not sustain- success in the 21st century. And all four constructive role in able. The same advances in communication are ultimately dependent on quality of bringing capital to the region. Foreign Direct and transport that make globalisation possi- government. Investment is perhaps the best form of ble mean that, ultimately, if people see no investment bringing a long-term commit- chance, they will move and we will face First, human capital. In terms of human ment as well as expertise and know-how mass migration. capital, Asia is, and remains very clearly, a along with capital. Those governments that success story. Educational standards in There will be some eight billion people encourage FDI will benefit their economies. many countries surpass those of OECD on the planet in 25 years, some two billion countries. For Asia, education will remain a In terms of other investment, the inter- more than today. The pressure on cities is key competitive strength. The investments national capital markets will slowly evolve to going to be enormous. For instance, made in primary and secondary education take advantage of Asia's structural advan- Jakarta's population may double to nearly 25 have produced great economic benefits for tages. With some of the highest savings million, and, in total, almost 400 million peo- many Asian countries. And as Asian rates in the world, there exists the potential ple will live in megacities across Asia, treble economies continue to develop, we will see to create financial markets within Asia the number today. the increasing importance of tertiary educa- without needing to recycle the savings The effects on the infrastructure will be tion to the region, particularly in engineering through New York or London and have them profound, and we will need to address the and science. lent back. problems that will result in terms of water The second factor is access to capital. It was noticeable during the Asian supply, pollution, sanitation and so on. If Societies need capital to improve standards downturn that the money needed to support not, we will see movement of people on a of living. In terms of international invest- those economies in difficulty was present in scale never seen before. And they will move ment, we are not just talking about the avail- Asia. Because the world's top five foreign to where they see a better quality of life. ability of capital through the international exchange reserve positions are held in Asia. The final factor is the moral dimension capital markets; we need to consider the What wasn't in place was the mechanism to of capitalism, an issue for us all, including infrastructure - the markets, banks and insti- recycle those savings, nor the political government. Capitalism is not a perfect sys- tutions - that determine whether that capital acceptance of such remedies. The IMF did it tem and we are seeing increasing concern is allocated efficiently. In the long term, sav- because no Asian supranational institution manifesting itself in protests like those at ings provide funds for investment but gov- yet exists. the WTO in Seattle. ernments are responsible for a framework The third factor is quality of life. As to allocate funds successfully. It is the duty of those who are success- work becomes ever more mobile, many ful whether they are individuals, companies In terms of efficient access to capital, workers will have the ability to choose or countries to make sure they devote some we have seen a number of Asian economies where they live. So, quality of life issues in of their time and money to those who are taking steps to improve their regulatory the form of education, the environment, less so. The biggest threat to the world is environments. Few would argue that there security, taxation, art and access to recre- probably uneven development. While it is is not still room for improvement. The ation will become ever more important. unarguable that standards of living across speed of the economic recovery after the I would point to the environment as one the globe are rising as a whole, it is also downturn has left the suspicion that struc- area where many Asian countries have room unarguable that inequality is perhaps the tural reforms of the banking and corporate to improve. Certainly Japan has taken a lead major issue facing us. sectors have slipped as a priority. Economic here and perhaps others could learn from continued on page 11 6 Shanghai to Host APEC Member News

CEO Summit Mr. Javier Prieto de la Fuente, PBEC Vice he APEC CEO Summit, hosted by the Chair and Vice-President - External Affairs TChina Council for the Promotion of New Century, of Cementos Mexicanos, S.A. (CEMEX), International Trade (CCPIT) and supported was recently elected by a great majority of by PBEC, will be held from October 18 to 20 the Industrial Chambers of Mexico as the this year in Shanghai, China. This will be the New Economy: new Chairman of the Confederation of first summit of its kind to be convened in Industrial Chambers of Mexico. Given Mr. China, and is expected to draw 700 CEOs of Developing in Prieto’s involvement in PBEC as well as his the world’s leading businesses, government upcoming responsibilities as 2002 Chair of leaders, and experts in fields ranging from the APEC Business Advisory Council globalization strategies and the reform of the Globalizing (ABAC), this represents a great boost for economic systems in the Asia-Pacific region Asia-Pacific issues within Mexico. to the issue of a fair and equitable interna- World. tional economic order. Also, Mr. Juan Sanchez Navarro Redo, Public Relations Director of Grupo Modelo The theme of the Shanghai APEC CEO The Pudong Shangri-La Hotel is the S.A. de C.V., has been named Chairman of Summit is “New Century, New Economy: primary site of the Summit, located across the PBEC Mexico Member Committee. He Developing in the Globalizing World,” and is from the famous Huangpu River Water succeeds Mr. Prieto, who is now a Vice expected to include addresses by APEC Bund, in the Lujiazui Finance and Trade Zone Chairman of PBEC International. Grupo leaders such as Jiang Zemin, President of of Shanghai. A landmark hotel, the Pudong Modelo is the leader in the production and the People’s Republic of China; Vicente Fox, Shangri-La Hotel is joined by the Grand marketing of beer in Mexico with a 60 per- President of Mexico; George W. Bush, Hyatt Shanghai – the tallest hotel in the cent domestic and export market share. President of the United States; Vladamir world - and the Inter-Continental Pudong Putin, President of Russia; John Howard, Shanghai as the 5-star designated hotels for Mr. Hyun Jae-Hyun, Chairman of the Tong Prime Minister of Australia; and Mahathir the event. All are located within minutes of Yang Group, has been named Chairman of Mohammad, Prime Minister of Malaysia. each other and feature spectacular views of the PBEC Korea Member Committee. He the Bund, Huangpu River, and the city. The Summit will feature a Special succeeds Hyosung Corporation Chairman Session on China, as it prepares for its entry This year’s event promises to be the S.R. Cho, who is now a Vice Chairman of into the World Trade Organization (WTO), largest and most dynamic APEC CEO PBEC International. The Tong Yang Group which outlines China’s 10th Five-Year Summit, given the location and host econo- is comprised of twenty companies in key Development Program and Market my’s dynamic annual growth rate of over industries including cement, confectionery, Economy, Foreign Investment Policies for 8% GNP, and given the significant questions and financial services. Western China, and the role of Macau in the being addressed about globalization, its Mr. Nelson An-Ping Chang, President of New Century. The Shanghai APEC CEO impact, and the role of business in helping Chia Hsin Cement Corporation and a long- Summit will be held less than a month to meet social requirements amidst the time active member of PBEC, has been before the 4th Ministerial Meeting of the rapid technological change. For more infor- named Chairman of the PBEC Chinese WTO, which is anticipated to launch a new mation on the Summit, visit the official web- Taipei Member Committee. Mr. Chang round of negotiations, and as China’s devel- site http://www.apecceo2001.org succeeds Dr. Shi H. Huang, Chairman of opment of Western China and general the Board of Chinfon Global Group. Mr. development, trade, and investment liberal- Chang is also CEO of China Securities, and ization initiatives are building momentum. CEO of Hong Kong-based KG Investments Asia Limited (KGI).

Mr. John Fair, chairman of the PBEC New Zealand Member Committee from 1979 to 1981, died at the age of 82 on May 4. He was also one of PBEC’s International Counsellors (since 1986), and one of New Zealand’s leading businessmen for more than 30 years. With BP (NZ) Ltd.—which

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7 Friends of PBEC International

lthough few people may be aware of it, tions, from the Pacific Journal newsletter to tisements in several publications – the Asia APBEC is fortunate to have considerable the annual Executive Summary and Wall Street Journal, Financial Times, Far help in fulfilling its sweeping mission. Given International Membership Directory. Eastern Economic Review, Fortune, the small size of the International Asiaweek, Time, and Foreign Affairs – Also providing invaluable guidance to Secretariat office in Honolulu – run by a full- adding up to more than $150,000 in pro PBEC is attorney Alex Jampel, who is well- time staff of six and several interns – we bono commercial marketing that we other- versed in corporate and non-profit law as depend on the significant contribution of wise could never afford. well as PBEC’s structure, procedures, and like-minded professionals, partners and formal bylaws. Jampel works with the And PBEC enjoys a strong relationship friends to help move the organization for- Hawaii firm Chun, Kerr, Dodd, Beman & with Communications-Pacific, a Hill & ward. Wong. Knowlton Associate and a leading Hawaii We are especially pleased with our public relations, communications and Another vital contributor to PBEC’s recent partnership with KPMG Consulting, marketing consultancy firm. The company reach and visibility is Simon Dixon, a one of the world’s largest and preeminent has assisted PBEC in crafting and refining Washington, D.C.-based media specialist, consulting firms with a team of 10,000 in its image, from helping to build promotional who has arranged valuable media barters for offices spread around the world. Among pieces to assisting with local and interna- several events. For the recent Tokyo IGM, the latest contributions they have made to tional media relations. as an example, Dixon secured display adver- PBEC is the sponsorship of our key publica-

Race To The Top Member News continued from page 3 continued from page 7 vehicle project, a lightweight and aerody- non-profit groups has been global. In Asia, he joined in 1947 and where he became namic passenger vehicle that was also Honda’s air quality research with the Asian managing director in 1970 – Mr. Fair helped awarded the “Sierra Club Award for Institute of Technology’s Asian Center for steer New Zealand’s oil, gas, and investment Excellence in Environmental Engineering”. Transportation Studies is a benchmark pro- industries through the ‘60s and ‘70s, during Honda Motor has long been developing gram. In the U.S., their work with which time the company greatly expanded its advances in technology that make vehicles TampaBay Watch is being used to educate exploration activities and resources. Mr. Fair more environmentally sound, including low- people about protecting manatees and the also advocated research into alternative fuel fuel consumption vehicles, green factories seagrass estuaries of Tampa Bay. “The sources, and frequently pushed the New that produce no waste products, and (Honda outboard) boat is environmentally Zealand government for trade liberalization innovative vehicle designs with aluminum friendly,” said Tampa BayWatch Director and reform. bodies that utilize recycled aluminum. Their Peter Clark, “There is no propeller to hurt community-based projects in environmental the manatees and the engine is 95% clean- Mr. J. Milton Fair of Canada passed away stewardship are characterized by capacity- er than conventional engines.” The flat bot- May 13 at age 67. Mr. Fair chaired PBEC’s building in the host community. Honda also tom also was designed to reduce danger to 25th International General Meeting, held in funds multidisciplinary approaches to envi- manatee, which are frequently killed or Vancouver in 1992. He was a renowned ronmentalism, ranging from education and injured by powerboats. figure in Canada’s grain industry, whose training programs for at-risk youth that 29-year career with the Saskatchewan Wheat Addressing their receipt of the PBEC emphasizes environmental stewardship to Pool included 12 years as its CEO. He served Environmental Award, Honda CEO Hiroyuki public aquariums and ecosystem protection as a commissioner on the Canada-U.S. Joint Yoshino stated, “We are honored to receive projects to interactive educational centers Commission on grains in 1995, received the this award. We are dedicated continuously on climate change and its causes. Its work 1996 Saskatchewan Co-operative Enterprise to developing products that are environmen- in energy-efficiency and air quality with Award, and in 1999 was a facilitator with the tally friendly with ever-higher objectives.” educational institutions and environmental Kroeger Grain Transportation initiative.

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8 Regional Assessment of Climate Change Unveiled by East-West Center his summer, the East-West Center will be accessed on the web at the address needs and the development of innovative Tissue the final report of the Pacific included at the end of this brief article. new partnerships to improve the use of Islands Regional Assessment of the climate information to support decision- The draft report covers: general back- Consequences of Climate Variability and making. ground on the Assessment and report; an Change (Pacific Assessment). The report is overview of socioeconomic, environmental The Pacific Assessment represents a the product of an 18-month study of how and climate conditions in areas addressed regional contribution of many agencies. The and why climate matters to real people in by the Pacific Assessment along with a Assessment was coordinated by the real places in the Pacific Islands . summary of results of the model-based cli- East-West Center in Honolulu, Hawaii, in Charles Morrison, EWC President, said mate change scenarios used during the collaboration with scientific partners active last November: “…changes in climate Pacific Assessment; a summary of Pacific in climate research and education in the matter to individuals, communities, busi- Assessment discussions on climate-related Pacific. Eileen L. Shea, Climate Project nesses and governments who call islands vulnerability in six key areas: providing Coordinator at the East-West Center, served home. Your valuable natural resources, tra- access to freshwater, protecting human as Principal Investigator for the Pacific ditional ways of life, critical economic health, ensuring public safety in extreme Assessment. sectors, community support infrastructure events and protecting community infrastruc- For further information, please and, to a great extent, your future depend ture, sustaining subsistence and commer- contact Eileen Shea, via e-mail at on developing an effective response to the cial agriculture, sustaining tourism, and pro- [email protected] or by phone challenges presented by climate variability moting wise use of coastal and marine in Hawaii at (808) 944-7253. The draft and change.” resources; and a section on planning for the report is posted on the web at: 21st century, focusing on the development http://www2.eastwestcenter.org/ A draft of the Pacific Assessment report of effective response options, the identifica- climate/assessment is now available for public comment and can tion of critical information gaps and research

9 Dr. Gibson: PBEC loses a founder, friend r. Weldon B. “Hoot” Gibson, a found- Gibson at the 16th International General D ing member of PBEC, passed away on His Meeting in Santiago, Chile. At this same May 6 in his home on the Stanford meeting a resolution of appreciation was University campus. career recorded acknowledging Dr. Gibson’s long and dedicated service to PBEC. Dr. Gibson was an integral member of the PBEC family. His career spanned more spanned At our Millennium Meeting - the 33rd than six decades of tireless effort, and suc- International General Meeting held in cess, in improving relations and fostering Honolulu in March 2000 - Dr. Gibson was greater business contacts between the more presented with a Hawaiian paddle for his nations of the world. Dr. Gibson has been an outstanding service and dedication to PBEC outstanding member of PBEC and indeed than six decades International. Ocean navigation was a focal the world community as a whole. His long point of Hawaiian society, and it was in this list of accomplishments shows his unyield- same manner that Dr. Gibson’s unwavering ing desire to bring the people of the world of tireless effort, dedication and initiative helped all of us nav- together through free trade and mutual igate our way through the turbulent and cooperation. and success, in unclear waters that were the early days of PBEC. Dr. Gibson's role in the early days of PBEC, then known as the Pacific Basin improving relations Dr. Gibson was 84 years old and is sur- Economic Cooperation Committee, began in vived by his wife Helen, son David and 1967, when the late Shigeo Nagano and fostering greater grandson Ruben. The memorial service is approached him to act as an intermediary scheduled for July 10 at the Stanford with prospective U.S. and Canadian compa- Memorial Church. For more information, nies in an effort to encourage their active business contacts contact Kathy Piper at [email protected]. participation in the new organization. Since Contributions in his memory may be sent to: that initial contact, Dr. Gibson has actively between the nations been involved in the development of PBEC The Dr. Weldon B. Gibson Memorial Fund from its initial origins in the 1960s to the Peninsula Community Foundation force that it is today in the Pacific region. of the world. 1700 South El Camino Real, Suite 300 Dr. Gibson was instrumental in having San Mateo, California 94402-3049 the International Secretariat housed at SRI Dr. Gibson was also the first to for its first twenty years, and it was during recognize early on that if PBEC was to this period that Dr. Gibson became the first survive and play an integral role in the Director General from 1974 - 1983. Along Pacific, it was critical to encourage the the way, Dr. Gibson's foresight and critical participation of all the economies in the understanding of the issues of the day were region, not just the five original members. vital to the formation of numerous ground- To further this end, he assisted in the breaking initiatives. creation of PBEC’s “6th” member, the Regional Member Committees, consisting One of these, the Pacific Basin Charter of the Pacific Basin’s developing and least on International Investment, was so far developed economies. This committee had ahead of its time that only in today's climate the dual effect of ending the perception that of rapid globalization are the necessities of PBEC was “a rich nations’ club” and also such an initiative being understood by the allowed the developing countries of the leaders of many countries. Then-Prime world to have a voice in matters that would Minister of Indonesia Suharto was even directly effect them. noted as saying that he used the charter as a blueprint for opening his country to the In 1983, PBEC awarded the special world. honor of Founder - Lifetime Member to Dr.

10 PBEC Convenes in Tokyo The PBEC Environmental Award honors PBEC Ikko Kawai, an awa odori dance troupe, koto continued from page 1 member companies that have made particu- players, and a Cherry Blossom River Boat larly outstanding contributions to global envi- cruise. There was even a surprise appearance All of the sessions were preceded by ronmental protection, and reflects PBEC's (and short dance) by ASIMO, Honda’s three days of productive internal meetings, commitment to promoting environmentally advanced humanoid robot. where PBEC’s international leadership attend- responsible business practices. (See related ed to the policy actions and administrative "This has been an exciting and productive article, page 3.) business of the organization. PBEC's Steering meeting for all those involved," said Committee and Board of Directors ultimately Of course, the IGM offered much more Conference Chairman Minoru Murofushi, adopted policy statements on a number of key than speeches and PowerPoint slides. chairman of Japan’s ITOCHU Corporation. "We areas, including the environment, e-business, Networking and socializing are a central part of have listened to many excellent presentations, financial services, the WTO, and food safety. PBEC, and in Tokyo old friendships were advanced the PBEC agenda through various (See related article, page 2.) renewed and new relationships were forged. internal committees, and further strengthened Interaction was facilitated by handheld com- our mutual beneficial business relationships. The third annual PBEC Environmental puters (manufactured by NEC and NTT Awards were also presented during the IGM. "Looking ahead in the 21st century, the DoCoMo) provided as gifts to all participants, This year’s winners were Osaka Gas Co. Ltd. private sector will undoubtedly play an increas- allowing them to exchange e-mail as well as (Gold), Ford Motor Company (Silver), Honda ingly important role as a driving force for sus- read meeting updates and surf the web. Motor (Bronze), and Samsung Electronics tained growth in Asia Pacific," he added. (Honorable Mention). Finalists included Delegates were treated to both traditional "PBEC's role in promoting regional business General Motors China, New Zealand Dairy and contemporary Japanese culture and enter- relationships will expand accordingly." Board, Hansol Paper, and Placer Dome, Inc. tainment, including noted Japanese violinist

Element for Economic Success the past. In the future it will mean nothing There is not an economy in the world continued from page 6 unless developing nations can gain access that is not dependent on private consump- to international capital by establishing a tion. And private consumption depends on Between 1960 and 1990, the nine most sound institutional framework in their own confidence. People will not spend unless successful Asian economies - Japan, China, countries. they have confidence in their future. Hong Kong, Taiwan, Republic of Korea, Singapore, Indonesia, Malaysia and Thailand Other parts of the world may be more So it is up to government to provide - grew three times faster than Latin affected by this debate than Asia Pacific, but confidence, by putting in place a framework America, three times faster than South Asia the issue of inequality will be a major one for success. For that success to be endur- and five times faster than sub-Saharan for the region if growth rates falter or ing, government must be consistent and it Africa. become uneven. Richer countries have an must put into place the conditions that allow obligation to help the poorer and Japan people to create wealth and a better life for On a global level the problem is this: should be applauded for the scale of its con- themselves. how do you produce wealth if your govern- tribution of overseas aid. ment will not create the preconditions In the final analysis, good government necessary? If capital rewards those with vir- What are my conclusions? is about offering a vision of what the future tuous policies, does this mean abandoning holds. One that people are willing to invest That Asia Pacific has the potential to be those people who, through no fault of their in and build towards. Those governments a powerful engine of world growth. It has own, are victims of their own governments? that succeed in doing this will reward their already been a great success story. But This will be one of the major debates of the peoples with a better life. And those that fail there is more to come. Yes, there are chal- next generation. And there are no simple will punish them. With good government, lenges but there is also a great opportunity. answers. Debt forgiveness may be impor- the prospects for Asia-Pacific economic tant - vital in some cases - but it deals with vitality are very good indeed.

11 CALENDAR OF EVENTS

June 1-3 APEC Senior Officials Meeting (Shenzhen, China) June 6-7 APEC Trade Ministers Meeting (Shanghai, China) June 7-8 Poultry Mission Conference – PBEC Working Committee on Food Products (Bogota, Colombia) Pacific Journal is produced by June 14-15 17th ASEAN-Japan Forum (Tokyo, Japan) the Pacific Basin Economic Council July 6th Asian Neighbors Forum (Seoul, Korea) International Secreteriat. July 10 Services for Dr. Weldon B. "Hoot" Gibson (Stanford, California, U.S.) For more information, contact: July 20-22 G8 Summit (Genoa, Italy) July 23-24 34th ASEAN Ministerial Meeting (Ha Noi, Vietnam) Robert G. Lees July 25 Forum with The Hon. Dr. Michael Cullen, Minister of Finance – Secretary General PBEC New Zealand (Wellington) PBEC International Secretariat August 16-24 APEC Senior Officials Meeting (Dalian, China) 900 Fort Street, Suite 1080 August 27-29 3rd Meeting of ABAC 2001 (Singapore) Honolulu, Hawaii 96813 September 6-9 APEC Finance Ministers Meeting (Suzhou, China) USA September 11-12 Financial Cooperation & Regionalism in East Asia – Tel: (808) 521-9044 World Bank/PECC/HKMF (Hong Kong, China) Fax: (808) 521-8530 October 2-4 WorldBank/IMF Annual Meetings (Washington, D.C., U.S.) E-Mail: [email protected] October 7-11 10th International Anti-Corruption Conference – Web: www.pbec.org Transparency International (Prague, Czech Republic) October 15 Roadmap to the Future: Advancements in Agricultural Technology LEAD EDITOR – PBEC Working Committee on Food Products (Shanghai, China) Ryan Ozawa October 16-18 PBEC Mid-term Meeting (Shanghai, China) October 17-18 APEC Ministerial Meeting (Shanghai, China) CONTRIBUTING EDITORS October 18-20 APEC APEC CEO Summit (Shanghai, China) Bernice Bowers October 18-21 4th Meeting of ABAC 2001 (Shanghai, China) Steve Olson October 20 E-Business Dialogue – PBEC Working Committee on E-Business Doris Lum (Shanghai, China) Sylvia Palmer October 28-30 2nd Asia Pacific Conference on E-Commerce – Elizabeth Struve East West Center (Honolulu, Hawaii, U.S.) November 5-6 7th ASEAN Summit (Bandar Seri Begawan, Brunei Darussalam) To submit items for the Pacific Journal November 9-13 4th WTO Ministerial Conference (Doha, Qatar) Calendar of Events or for lising on the PBEC website, fax all pertinent information to November 16 7th ASEAN-U.S. Dialogue (808) 521-8530 or e-mail it to [email protected] November 28-30 14th PECC General Meeting (Hong Kong, China)

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