Private sector development is identified in the Pacific Plan as an important means of raising living standards through the generation of income.

This was the main focus of the Pacific Islands Forum’s presentation to international delegates at the 14th Asia Pacific Economic Cooperation (APEC) Small and Medium Enterprise (SME) Ministerial Meeting held in Hobart, Australia earlier this month.

The Forum’s statement was delivered by the Honourable Otoichi Besebes, Minister for Trade and Commerce of the Republic of Palau.

“The key challenge Forum Island Countries currently face relates to the need to generate sustainable economic growth to meet the needs of our people, especially the thousands of youth who leave school each year in search of paid employment,” said Hon. Besebes.

“Our region hopes to address this through the Pacific Plan that Forum Leaders endorsed in 2005 to deepen regional cooperation and economic integration.”

Hon. Besebes noted that under the Pacific Plan’s Economic Growth objective, private sector development is identified as an effective means to raise living standards through the generation of income via the production of goods and services, and employment.

“SMEs will certainly play a prominent role in the attainment of that objective.”

Hon Besebes also highlighted the importance of recognising the cross-cutting, or overarching benefits that Pacific countries could gain from successful SMEs.

“They help alleviate poverty, educate our children, empower women and promote gender equality, improve health, enhance environmental sustainability and contribute towards partnerships for development.

“The Pacific Plan is thus consistent with APEC’s Trade and Investment Liberalisation Agenda and is also in agreement with the United Nations Millennium Development Goals.”

Hon Besebes remarked that in line with APEC’s agenda, the imminent implementation of the Pacific Island Countries Trade Agreement (PICTA) will present opportunities to the region’s private sector, especially at the SME level.

The Pacific Islands Forum Secretariat, based in Suva, Fiji, has established a Private Sector Development Unit to coordinate SME policy and capacity building initiatives.

Hon Besebes noted the establishment of links between the APEC Business Advisory Council (ABAC) and Pacific Islands Private Sector Organisation (PIPSO).

“We look forward to deepening this relationship to ensure that our SMEs are actively and meaningfully engaged in policy-related dialogues.”

Participants at the APEC SME Ministerial Meeting were also briefed on the Forum’s support of work on pandemics as currently spearheaded by the United States.

“For optimal productivity, even in the smallest countries, SMEs need to have, among other things, healthy employees,” Hon Besebes said.

“APEC experiences on combating HIV/AIDS have been useful towards our collaboration with UNAIDS on the development of leaflets to better inform our SMEs on how to handle HIV/AIDS.”

Hon Besebes concluded by emphasising that ongoing and closer collaboration with APEC is vital for Pacific economies.

“We would like to benefit from your successful SME experiences, as in incubation, competitiveness enhancement and streamlining of regulations, among others.

“These can all spur our SMEs and overall private sector development, which will in turn fuel sustainable economic growth in our region.

“To bring that vision for growth into reality, we look forward to strengthening our relations with APEC economies and observers.”

The Pacific region has benefited from help provided by APEC economies, including Indonesia in the area of microfinance, New Zealand on entrepreneurship education and Chinese Taipei via the promotion of handicrafts and tourism products through the Internet. Other economies such as Malaysia and the Philippines have also offered to support the region through their respective technical programmes.

The Republic of Palau is one of the 13 non-APEC members of the Pacific Islands Forum able to participate at such international meetings under the Forum’s Official Observership to APEC.

The 14th APEC SME Ministerial Meeting was held in Hobart on March 8-9. The next APEC SME Ministerial Meeting will be held in Chiclayo, Peru, in September 2008.

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Online link to this story: http://www.forumsec.org/pages.cfm/newsroom/press-statements/2007/private-sector-value-regional-growth.html