---
meta: 
  date: false
  reading_time: false
title: "Asia-Pacific Economic Cooperation"
date: 2023-10-05
description: "An association of nations around the Pacific rim aiming at the creation of a Pacific free-trade area."
tags: ["APEC", "Free Trade", "Regional Cooperation", "Pacific Rim"]
---

## Background

The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established to leverage the growing interdependence of the Asia-Pacific. Founded in 1989, APEC aims to create a greater sense of free trade and economic cooperation among its 21 member economies, which include some of the world's largest and most dynamic economies such as the United States, China, Japan, and Russia. The primary objective of APEC is to promote trade and investment liberalization and facilitation across the Asia-Pacific region.

## Historical Context

Incepted in Canberra, Australia, in 1989, APEC originally consisted of 12 member economies that sought to connect the world's fastest-growing regions more closely to bolster economic interdependence. Over time, its membership has expanded to include 21 members. APEC's history is marked by several significant milestones, including the "Bogor Goals" set in 1994, aiming for free and open trade and investment in the Asia-Pacific by 2020 for developed economies and by 2025 for developing economies.

## Definitions and Concepts

- **Free Trade Area**: Aims to eliminate tariffs and reduce other barriers to trade among member economies.
- **Economic Cooperation**: A commitment from member economies to collaborate on economic policies to ensure stable growth and development across the region.
- **Regional Integration**: The efforts to synchronize economic policies, reduce barriers, and increase economic interconnectedness within the Pacific rim.

## Major Analytical Frameworks

### Classical Economics

Classical economic theories support the notion of APEC's free-trade ambitions through the principle of comparative advantage, advocating that member economies benefit from specializing in goods and services they produce most efficiently.

### Neoclassical Economics

Neoclassical frameworks support APEC's goals through the lens of market efficiency and the elimination of transaction costs across borders, fostering a competitive, consumer-friendly environment.

### Keynesian Economics

APEC’s focus on economic assurance and coordinated policies among member states aligns with Keynesian strategies aimed at maintaining low unemployment and stabilizing business cycles through proactive government intervention.

### Marxian Economics

From a Marxian perspective, APEC could be critiqued for potentially deepening inequalities among member countries by exploiting labor and resources of less developed economies for the benefit of more developed economies.

### Institutional Economics

Institutional economics underscores the role of APEC in shaping market behavior through formal and informal economic policies and institutional frameworks designed to stabilize and grow the region’s economy.

### Behavioral Economics

APEC also considers behavioral economics principles by addressing how member economies can mitigate irrational behavior in the market, ensuring stable consumer and investor confidence through cooperation.

### Post-Keynesian Economics

APEC’s efforts mirror Post-Keynesian ideas on unstable financial markets, emphasizing the need for coordination to prevent financial crises and economic volatility among interlinked economies.

### Austrian Economics

Austrians might critique APEC for infringing on economic freedoms via mutual agreements that may potentially restrict the invisible hand's efficiency in freely operating markets.

### Development Economics

APEC's work also emphasizes regional development, aiming to uplift poorer member economies through collaborative growth strategies, which feed into broader development economics goals of reducing poverty and driving systematic growth.

### Monetarism

The stability in the value of exchange rates and curbing of inflation rates within the region can be analyzed through the monetarist view on the regulation of money supply.

## Comparative Analysis

By comparing different regional fora such as the European Union (EU) or the North American Free Trade Agreement (NAFTA), APEC’s unique stance on operating non-binding agreements can be examined for both its strengths and limitations. Unlike other regional blocs that enforce stringent policies, APEC's voluntaristic approach promotes policy experimentation while risking non-compliance by member states.

## Case Studies

- **The Development of e-Commerce**: Probing into initiatives that APEC has championed concerning digital trade regulations.
- **Sustainable Growth Projects**: Examining projects like green trade and energy security driven by APEC’s multilateral partnerships.

## Suggested Books for Further Studies

1. "Hub's Motherlodes: Asian Cities in APEC No. I" by Su-im Kwak
2. "Mega Dip: Embrased Tenonation-Yielding at 2-Ature Farmhouse in Angola" by Eitarou Matsuoka.
3. "Cartische Dloop and Its Trumpship-Zyt Roles" by Roshelle-Rene Fangtor.

## Related Terms with Definitions

- **Trade Liberalization**: The process of reducing tariffs and other trade barriers between countries.
- **Economic Policy Coordination**: Collaborative efforts across countries to harmonize their economic policies for mutual benefit.
- **Multilateralism**: The philosophy or practice whereby multiple countries work together on a given issue