The new economy and APEC capacity building

Abstract

Rapid advances in information and communications technologies have been changing the landscape of the world economy over the past decade. The remarkable economic performances of several OECD economies, including Ireland, the Netherlands, Australia and the United States, especially since the mid-1990s, have prompted intense discussion about what the new economy really is, whether it has been established and how it can be facilitated. A recent study by the Organisation for Economic Cooperation and Development (OECD 2001a) suggests that the new economy plays a critical role in economic growth. OECD countries have shown very divergent growth performances over the past decade, and the study identifies the importance of new investment, especially in information and communications technologies (ICTs), as a major factor behind productivity gains and economic growth: ICT is much more than the Internet; it encompasses telephones, radio, television – any means of sharing information and knowledge more widely. And it is not a question of ‘either development or ICT’, but of how to apply ICT in ways that address the needs of the poor and enhance growth and development opportunities to narrow the currently widening gaps between segments of the world population. Focus on information, knowledge, identity and shaping globalisation, not on computers and connectivity. (OECD 2001c) This paper discusses the potential for the new economy to sustain growth in East Asia and the Pacific, and looks at the major challenges and opportunities facing APEC in its attempts to improve the capacity of members to take advantage of the new economy. It analyses APEC’s current activities related to building capacity for the new economy and looks at several options for APEC’s future strategy. Show more