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CHINA> National
APEC leaders pledge to keep stimulus policies
(Xinhua)
Updated: 2009-11-15 14:34

SINGAPORE - Leaders of the 21-member Asia- Pacific Economic Cooperation (APEC) Sunday pledged to maintain economic stimulus policies until a durable economic recovery has clearly taken hold, said a joint declaration issued before the group's two-day summit ends.

"A year ago, as the world descended into an economic crisis unprecedented in severity since the Great Depression, we resolved that we would aim to overcome the crisis within eighteen months," the declaration said. "Today, our robust policy responses have helped to set the stage for recovery. But economic recovery is not yet on a solid footing."

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Attending the APEC meetings this week, some of the world's top economists agreed that Asia has first recovered from the worst financial crisis in six decades but they said any abrupt withdrawal of the stimulus measures would undermine the recovery.

Earlier this week, finance ministers of the APEC economies -- which account for 54 percent of the global economic output -- have decided not to pre-maturely roll back the massive fiscal stimulus, estimated at 1 trillion U.S. dollars among APEC members and refrain from taking rush withdrawing measures that might endanger the recovery of other economies.

Leaders were also alert to asset bubbles which World Bank President Robert Zoellick warned of rising in the region following the weak recovery.

Leaders said they will "undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilisation."

While pledging to keep the emergency policies to sustain the current weak growth, APEC leaders decided to implement immediate measures to develop a "new growth paradigm" to foster a balanced and sustainable growth.

Leaders of the 21-member APEC -- including the world's fastest growing economies in East and Southeast Asia over the last decade - - acknowledged that "we cannot go back to 'growth as usual'" and promised concrete structural reforms to reduce the region's export- dependence.

"We will put in place next year a comprehensive long-term growth strategy that supports more balanced growth within and across economies, achieves greater inclusiveness in our societies, sustains our environment, and which seeks to raise our growth potential through innovation and a knowledge-based economy," the declaration said.

The APEC leaders said they would also work together to broaden access to opportunities created by growth and to spread the benefits of growth more widely, especially to individuals and vulnerable groups.

"We will support and develop our small and medium enterprises, which account for more than 90 percent of all businesses in the APEC region and employ between 50 and 80 percent of the workforce, " the declaration said.

"We will put job creation at the heart of our economic strategy and enhance cooperation to address the social implications of globalisation," it added.

 

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