E

minent opinion leaders and economic experts from throughout the Asia-Pacific region called on countries to begin structural reforms to prevent the re-emergence of the imbalances that characterized the region’s growth in the lead up to the last financial crisis.

The 19th General Meeting of the Pacific Economic Cooperation Council (PECC) concluded in Tokyo on Friday with a statement highlighting concerns over the continued fragility of the global economic recovery.

“The APEC and G20 meetings come at a critical time to restore confidence in international cooperation at a time of rising tensions,” said PECC co-chairperson Jusuf Wanandi in a media release.

PECC is a tripartite network of 26 member committees comprised of individuals and institutions dedicated to the promotion of regional cooperation and dialog. PECC is only non-governmental official observer at the Asia-Pacific Economic Cooperation (APEC) forum.

PECC said a key part of the economic policy equation was the enhancement of social resilience through social safety nets and financial sector reforms.

“The enhancement of social safety nets such as pensions, health care and unemployment insurance will help reduce precautionary savings and increase domestic consumption in surplus economies,” said meeting host and Japan Institute of International Affairs president Yoshiji Nogami.

While there were signs that adjustments were under way, such as higher US household savings and stronger domestic demand in China, persistent high unemployment was a critical issue confronting the region.

Friday’s meeting was attended by over 300 participants from 22 economies.

PECC co-chair and East-West Center president Charles Morrison said, “with global leadership more diffuse and uncertain, Asia-Pacific economies need to enhance their collaboration and cooperation on global issues and agendas.”

Among the areas emphasized as aiding a longer-term balanced, inclusive and sustainable growth agenda were structural reforms on both sides of the Pacific to shrink trans-Pacific imbalances; promotion of regional integration and trade through multiple tracks such as the various ASEAN plus agreements and the Trans-Pacific Partnership; and the continued development of effective social safety nets.