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2013/ISOM/005
Agenda Item: 3
Background Paper: Strengthening Comprehensive
Connectivity and Infrastructure Development
Purpose: Information
Submitted by: China
Informal Senior Officials’ Meeting
Beijing, China
10 December 2013
Background Paper
Strengthening Comprehensive Connectivity and Infrastructure Development
I. Background
In the aftermath of the international financial crisis, efforts to facilitate world economic recovery have
led the international community to explore connectivity and infrastructure development as an important
new area of growth with enormous economic potential. The World Bank has launched the Global
Infrastructure Facility. Major economies in the world give priority to infrastructure projects as they draw
up fiscal budgets and long-term economic plans.
The ADB estimated investment demand for infrastructure development of the Asian economies
between 2010 and 2020 at 8 trillion US dollars with an additional 290 billion dollars for regional
projects. Studies by the World Tourism Organization and the World Travel & Tourism Council also
suggest that visa facilitation alone could create 2.6 million jobs and 89 billion dollars of tourist
revenues.
The merits of promoting growth in this area are two fold. Behind the borders, infrastructure
development facilitates job creation and poverty reduction, thus creating a strong base for domestic
demand, which in the long run contributes to industrial upgrade and economic structural reform.
Beyond the borders, high-performing connectivity and infrastructure contributes to a more streamlined
global supply chain and deeper international cooperation by accelerating trade and investment and the
movement of people.
To fully realize these potential benefits, it is essential to leverage the existing favorable resources on all
three fronts of connectivity: physical, institutional, and people-to-people. For the physical connectivity,
multiple economies have prioritized infrastructure in their respective long-term economic development
strategy. The issue has also gained increasing significance in multilateral settings such as the G20 and
the World Bank, which has launched a Global Infrastructure Facility.
On the institutional front, globalized trade and investment activities have increasingly made all actors
of the global economy recognize the benefits of lowered barriers and streamlined rules and
regulations, gathering strong resolve and momentum of the international community to push forward
enhanced institutional connectivity.
On the people-to-people level, advancements in infrastructure and communication and transportation
technologies have made it easier for our citizens to connect with one another. The resulting emotional
bonds formed among the population and the expertise gained through the exchanges in business,
finance, education, arts, science and technology will contribute tremendously to the overall economic
development and greater understanding and trust among our citizens.
In the Asia-Pacific region, the vibrant economic growth has greatly out-paced progress in connectivity
and infrastructure development, presenting tremendous opportunities for growth and improvement.
Given its high relevance to the region and the huge economic potential, China believes that work in
strengthening comprehensive connectivity and infrastructure development will contribute substantially
to the realization of the Bogor Goals, the Asia-Pacific economic integration, and other important
objectives of APEC.
II. Continuity of the APEC Agenda
APEC's commitment to promoting connectivity in the Asia-Pacific dates back to the very beginning of
the organization's founding in 1989, as recorded in the Chair's Summary of the 1st APEC Ministerial
Meeting in Canberra, Australia. The summary stated that there would be merit in seeking to develop
techniques which might help economies in the region to better address the kind of bottlenecks which
might occur as a result of rapid growth. There was general support for work to explore further
cooperation in specific areas relating to infrastructure, including telecommunications, maritime
transport and aviation.
In 1993, in Seattle, the United States, the 1st APEC Economic Leaders' Declaration identified the goal
of enabling our people to share the benefits of economic growth through higher incomes, high skilled
and high paying jobs and increased mobility.
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Since 2009, APEC members have been dedicating significant efforts to improving supply-chain
connectivity. In 2010, the APEC Supply-Chain Connectivity Framework Action Plan was adopted to
address impediments to moving goods and services through the region, and to achieve an APEC-wide
target of a ten percent improvement in supply-chain performance by 2015. In recent years, more and
more APEC members have recognized connectivity and infrastructure development as an issue of
great significance.
In 2013, connectivity and infrastructure development was identified as an APEC priority and gained
substantial representation in the APEC Economic Leaders' Bali Declaration as two annexes were
respectively entitled the APEC Framework on Connectivity and the APEC Multi Year Plan on
Infrastructure Development and Investment. Recognizing the requirement for long-term commitment in
promoting connectivity and infrastructure, APEC members have agreed to continue discussions on this
issue for the following years.
The Chinese side proposes that strengthening comprehensive connectivity and infrastructure
development be listed as one of the priorities for APEC 2014. Under this priority, the Chinese side
proposes efforts to promote APEC cooperation in hardware, software, and people-to-people
connectivity, to explore ways to anticipate bottlenecks that restrain connectivity and infrastructure
development, and to formulate work plans on cooperation projects.
III. Suggested issues and areas for cooperation, including but not limited to:
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Comprehensive Asia-Pacific connectivity: an all-directional, multi-tiered approach;
The development of an APEC connectivity blueprint;
Contribution by the APEC Public Private Partnership (PPP) Experts Advisory Panel and Pilot PPP
Center in Indonesia;
Expanding investment and financing channels for connectivity and infrastructure development in
the Asia-Pacific;
Asia-Pacific Infrastructure Development Partnership;
Regional financial cooperation on connectivity and infrastructure development;
Software connectivity: enhancing institutional connection and regulatory cooperation;
People-to-people exchange and travel facilitation;
Cross-border education promotion;
Progress review on the target of intra-APEC university students exchange.
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