Pecc the Pacific Economic Cooperation

PECC

The Pacific Economic Cooperation Council held its 18th General Meeting May 12-13, 2009 in Washington, D.C. This meeting was the 18th irregularly scheduled such meeting of the organization that represents several prominent Pacific Rim countries. The group is dedicated to cooperation throughout the region, particularly economic cooperation.

The PECC was founded in 1980 and consists of intellectuals, industry and government officials from each of the 22 member countries, the two associate members and the two institutional members. The PECC membership comprises most major nations of the Pacific Rim, but is exclusive of more minor economic nations such as Papua New Guinea or East Timor. The Pacific Ocean island nations are represented in PECC by the Pacific Island Forum, or by their territorial governments (U.S., France, New Zealand, Chile, etc.).

PECC meets on an irregular schedule, the previous meeting to this being in 2007. The XVIII meeting, held in Washington, brought the groups together to discuss the global financial crisis. Panels discussed the potential length and depth of the financial crisis, and well as the implications the crisis might have. Of particular concern to the participants was the possibility that protectionist sentiment might arise, leading to restrictions of trade among PECC nations.

After offering an assessment of the current situation, delegates discussed the role of the PECC nations in the future, as the world emerges from economic crisis. Talks were undertaken with respect to how the Asia Pacific nations could recover from the crisis, and avoid protectionism and other trade barriers. The countries were in disagreement as to whether or not the worst of the crisis was over but agreed that stimulus packages should be geared more towards building sustainable economic structures, rather than one time infusions.

One of the most significant issues on the table was that the models used to build growth in the last decade were essentially unsustainable. However trade in the region is configured coming out of the crisis, therefore, it was reasoned that this trade should be structured differently, so as to avoid a repeat of this outcome. The major input to a new strategy would be to increase domestic demand in export-heavy nations such as China. This will allow such nations to maintain current levels of production while restoring balance to Pacific Rim trade. It was determined at the meeting that China is already moving in that direction, which is expected to usher in a new era with more sustainable trade.

PECC has historically been a supporter of APEC. PECC is the only non-government official observer of the APEC process, and contributed to its founding. The APEC process is the primary means by which Pacific Rim nations work out trade details, having superceded PECC is that respect and become more dominant than ASEAN due to the inclusion of the Americas. PECC provides intellectual support for the APEC process.

For example, PECC has developed a set of indicators by which economic integration in the APEC era was measured. PECC therefore was able to determine that economic integration in the APEC region has improved since APEC was founded. Indeed, PECC was able to drill down to the countries that had increased their integration the most.

What this means is that the role of PECC within the framework of Pacific Rim trade is as a facilitator. PECC gather and disseminates information, and is a venue by which ideas can be put forth and issues discussed, such as the recent discussion on the economy. At PECC meetings, economic issues are discussed, whereas at APEC meetings trade deals and their terms are the subject of the talks. Yet, neither body has a clear, firm strategy or reason for being. Both are somewhat nebulous in that regard, but APEC is represented by government and PECC by government, academia and business together, free of governmental restraints.

While the latest meeting was concerned with the economic crisis, PECC is also currently working on other initiatives. These include the regional institutional architecture; the Asia-Pacific education market, international labor mobility in the region; and a State of the Region report.