Fairness for growth
Updated: 2011-11-09 08:03
(China Daily)
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THE HIGH HOPES FOR THE MEETING OF LEADERS of the Asia-Pacific Economic Cooperation (APEC) economies in Hawaii this weekend are well justified.
With Asia-Pacific economies ranking among the fastest growing in the world and the incomes of their 2.5 billion consumers accounting for 60 percent of the global total, it is reasonable to expect some positive and pragmatic results at the summit that will give a much-needed boost to the fragile global recovery.
Under the theme of "Toward a Seamless Regional Economy", China is committed to working closely with other APEC economies at the summit to boost cooperation on a number of key issues.
More importantly, the fundamentally supportive attitude that China and other APEC economies have taken to the US suggestion to cut tariffs on environmental goods and facilitate trade in such goods and services, indicates a strong and shared aspiration to make this region a champion of green growth.
Though there has been much talk about the urgency of stepping up international efforts to deal with global warming, not much has really been done in recent years as the United States has largely been preoccupied with limiting the damage from the 2007-2008 financial crisis and Europe with the ongoing sovereign debt crisis. So some early fruits from such a green initiative would be of great benefit to the global fight against climate change.
However, while applauding the region's determination to go green, APEC leaders should take into full consideration the diversity and different stages of development of their economies to avoid unrealistic expectations for outcomes that are beyond the reach of developing economies.
For instance, the average US tariff on the 153 green products proposed for cuts by the US are 1.4 percent, compared to China's average of nearly 7 percent. So it would hardly be fair to set a tariff target of say 5 percent, as this would require no action from the US, but great endeavors from other economies.
Green growth is a must for the long-term development of each and every economy within and beyond the Asia-Pacific region. But it will not be sustainable if it requires a much greater sacrifice from developing countries than it does from developed ones.
It is reassuring to know that APEC leaders are taking the initiative to build the region into a green growth engine for the world economy, but if APEC economies are to thrive on green growth their leaders should make sure that each step they take in this regard is as fair as possible.