Structural Reform

  
What it is

Structural policies refer to domestic policies and institutions that affect the operation of markets and the capacity of businesses to access markets and to operate efficiently. For example, structural policy impediments can take the shape of poorly designed domestic regulatory systems, competition frameworks or governance structures. Structural reforms ensure that economic policies support the effectiveness of other policies in attaining overall policy objectives, such as improved economic performance and higher standards of living.

Why it is important to APEC

While APEC's economic focus has traditionally been on trade and investment liberalization and facilitation, "behind-the-border" policies (or "structural policies") are now recognized as significant factors in enabling or impeding regional economic integration. Experience indicates that economies addressing domestic or behind-the-border impediments through structural reform are more resilient to economic shocks, achieve greater macroeconomic stability, and experience increased productivity and higher living standards over time.

The role of Structural Reform in APEC's economic agenda

APEC recognizes the mutually-reinforcing elements of Structural Policies; Trade and Investment Policies; and Macroeconomics and Financial Policies. These three elements broadly represent the responsibilities of APEC's Economic Committee (EC) the Committee on Trade and Investment (CTI), and the Finance Ministers' Process (FMP), respectively:

In 2004, APEC Leaders highlighted the importance of behind-the-border impediments to economic growth and higher living standards by adopting the "Leaders' Agenda to Implement Structural Reform Towards 2010" (LAISR 2010). This addresses five priority areas: Regulatory Reform, Competition Policy; Public Sector Governance; Corporate Governance; and Strengthening Economic and Legal Infrastructure

APEC's agenda for Structural Reform in 2008

• Senior Officials' Meeting (SOM) Policy Dialogue on Structural Reform at SOM 1: will examine key elements of structural reform, exploring the links between "behind the border" microeconomic policies, economic growth and macroeconomic stability.
• E-governance workshop: will consider ICT as an enabler for good pubic sector governance.
• Workshop on government performance and results management: will consider best practices in planning and setting objectives for government agencies, measuring the progress of agencies, and evaluating performance.
• Seminar on Best Practices in Regulation and Promotion of Efficiency in Transport Infrastructure Facilities: will facilitate information sharing on regulatory and competition policy experiences in transport infrastructure among APEC member economies, and consider good regional practices.
• Ministerial Meeting on Structural Reform: (August 3-5, Melbourne) will provide an opportunity for Ministers to share experiences on how to build consensus and community support for reform and those strategies that may be used to support the reform processes, including economic policy review processes, and institutional arrangements and frameworks. Outcomes will be presented at the Lima Summit.
• The 2008 APEC Economic Policy Report: will focus on competition policy.

 
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