Published on January 4th, 2025
Introduction
In today’s world of economic challenges and rapid technological change, fostering inclusive and sustainable growth is more urgent than ever. The 2023 APEC CEO Summit in Peru brought together experts, business leaders, and policymakers from the Asia-Pacific region to discuss these critical issues. The summit explored how the region can lead global economic growth while meeting the needs of both developed and developing economies. It also examined the role of new technologies, like AI, in driving equity and long-term sustainability.
This article highlights the summit’s key takeaways, focusing on inclusive growth, technology’s role, and the importance of collaboration between governments and businesses.
The Economic Significance of the Asia-Pacific Region
The Asia-Pacific region is home to 2.9 billion people, or about one-third of the world’s population. It contributes 60% of global GDP and 50% of global trade, making it a central player in the global economy. Shinta Kamdani, CEO of Sintesa Group, noted that the region’s economic diversity—ranging from developed nations to emerging markets—positions it as a key driver of global growth.
The region’s importance is also heightened by the presence of both the U.S. and China. However, challenges persist. Diverging trade practices, especially within organizations like ASEAN, can hinder the region’s full potential. Addressing these challenges is critical for unlocking growth opportunities.
Addressing the Complexities of Technology and Climate Transition
At the summit, PwC’s Global Chairman Mohamed Kande discussed the interconnected challenges of geopolitical instability, technological advancement, and climate transition. As he explained, the push for clean energy fuels technological development, but the demand for energy to power these technologies complicates the issue.
Geopolitical instability adds another layer of complexity, making investment decisions and global supply chains more difficult to navigate. Despite these hurdles, the Asia-Pacific region presents numerous opportunities for collaboration, especially in areas like climate change and energy efficiency.
The Role of Collaboration Between Government and Private Sector
Inclusive growth was a key theme at APEC, particularly in addressing the gap between developed and developing nations. Shinta Kamdani stressed the need for policies that promote human capital development, particularly in education, skills training, and technology access. These policies can help bridge the divide and create more equitable growth opportunities.
Small and medium-sized enterprises (SMEs) are essential to the region’s economy, but many struggle to compete on the global stage. As Shinta pointed out, these businesses must be included in discussions to ensure the benefits of inclusive growth reach all sectors.
Governments need to create policies that provide access to resources, knowledge, and technology. This can level the playing field, helping SMEs grow and compete internationally.
Harnessing Technology for Inclusive Growth
Technology, especially artificial intelligence (AI), can play a major role in driving inclusive growth. However, many countries face challenges in accessing these technologies due to underdeveloped infrastructure. Shinta Kamdani highlighted the difficulties in providing digital tools to remote areas, particularly in countries like Indonesia, which has vast islands and remote regions.
Building digital literacy is essential to ensure technology benefits everyone. AI and other digital tools must be accessible and affordable, supported by investments in infrastructure. Governments and businesses must collaborate to make these technologies available to underserved populations, ensuring no one is left behind.
Shaping the Future: A New Era of Inclusive Innovation
Looking ahead, both Shinta and Mohamed expressed optimism about the Asia-Pacific’s potential to lead in sustainable and inclusive growth. Mohamed referred to the start of the “Intelligent Age,” where the cost of technology will decrease, enabling more people to participate in economic growth.
As technologies like AI and renewable energy converge, cross-border collaboration will be crucial. Governments must ensure policies that allow the free flow of capital, talent, and ideas to foster innovation and create new opportunities for all.
Conclusion: Building a Resilient and Inclusive Future
The 2023 APEC CEO Summit emphasized the importance of collaboration, innovation, and inclusion in achieving sustainable growth. By leveraging technologies like AI and investing in human capital, businesses and governments can close gaps in infrastructure and education. Most importantly, they can ensure that the benefits of growth are shared across all sectors of society.
In a rapidly changing world, the Asia-Pacific region has a unique opportunity to lead the way in creating a resilient, inclusive, and sustainable future. Through cooperation, businesses and governments can create a global ecosystem that benefits not only the region but the world.
