[asia-apec 1216] NZ: APEC needs financial principles: McKinnon

[Gatt Watchdog]

Otago Daily Times, Dunedin, New Zealand
21 July 1999

Apec needs financial principles: McKinnon

Manila: New Zealand, host of this year's Apec summit in September,
will ask leaders of the forum to endorse a set of principles that
will govern financial markets, Foreign Affairs Minister Don
McKinnon said last week.

The Asian financial crisis had shown that while opening up markets
was essential for sustained economic growth, it was necessary
these be governed effectively, he said.

New Zealand hoped the summit would provide a framework to assist
Apec member economies with the process of structural reforms, he
said.

"As the first step, I will be proposing that leaders endorse a set
of competition and regulatory principles when we meet in
September.

"These principles will stress the need for markets to be open,
transparent and well governed."

Speaking to Filipino and New Zealand business executives in
Manila, Mr McKinnon described his proposal as an "economic policy
'toolbox' - a set of policy approaches which economies can use in
developing domestic regulatory policy in what is an increasingly
globalised economic environment".

Thailand's de facto devaluation of the baht currency in July 1997
triggered a tidal wave of currency meltdowns across Asia, exposing
basic structural weaknesses in the financial systems masked by
years of economic growth.

Mr McKinnon said Apec must work collectively to strengthen the
financial markets and contribute to efforts by the Group of Seven
industrialised countries to institute reforms in the global
financial system.

"The critical task here is for Apec members to...strengthen
domestic financial markets including by improving bank supervision
and corporate governance in the region," he said.

He also said New Zealand was "committed to building broader
support" for Apec within a wider group.

Apec groups 21 economies bordering the Pacific Rim, namely
Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia,
Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, the
Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, the
United States and Vietnam. - AFP