Draft Resolution Sponsored by the Russia Federation

THE SEVENTEENTH ANNUAL MEETING OF THE ASIA PACIFIC PARLIAMENTARY FORUM

Defining today’s world financial crisis as one of the most serious economic challenges which the world community have faced with;

Noting that the global financial crisis had begun as a local event on the domestic market of the United States, whose economy, being tightly linked to the markets in all the developed countries, and also being the most powerful one, pulled financial markets all around the globe with it in its fall, so that the crisis turned to obtain global shape;

Indicating as the main rout causes of emerging of the economic crisis the financial market imbalances and faulty economic policies of certain countries, where market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence;

Acknowledging that most of the world countries governments are taking urgent and extraordinary steps to strengthen global economy and to stabilize the financial sectors;

Welcoming the decisions by the leaders of the Group of Twenty taken at the Summit in Washington on November 15, 2008, as they appear in the Declaration of the Summit on Financial Markets and the World Economy;

Attaching great importance to enhancing international collaboration in establishing a multipolar international financial and economic system;

Welcoming monetary and fiscal stimulation measures already taken by Asia Pacific countries and urging to use all necessary economic and financial means to overcome the crisis;

Expressing firm confidence that Asia Pacific countries’ high human and technological potential shall allow them to become the locomotive of sustainable world economic development in the future;

Supporting Asia Pacific economies’ Leaders determination to overcome this crisis in a period of eighteen months fixed in APEC Leaders’ Statement on the Global Economy made in Lima, Peru, on November 22, 2008;

But for all that bearing in mind a risk that slower world growth could lead to calls for protectionist measures which would only exacerbate the current economic situation;

Resolves to:

1.             Call to continue the efforts to by export credit agencies, international financial institutions (IFIs) and private banks to ensure that adequate finance is available to business, including small and medium-sized enterprises, and to keep trade and investment flowing in the region;

2.             Reiterate firm belief that free market principles and open trade and investment regimes will continue to drive global growth, employment and poverty reduction;

3.             Point out pressing necessity to develop and implement a broad economic policy response to resume world economic growth and to restore stability based on closer macroeconomic cooperation, to eliminate negative side effects of the crisis and to support emerging market economies and developing countries, to reform and strengthen seriously the international financial institutions enabling them to address future challenges in most efficient manner;

4.             Urge the Governments and the Parliaments within the next 12 months to refrain, while seeking for national interests, from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing the World Trade Organization (WTO) inconsistent measures in all areas, including those that stimulate exports;

5.             Recommend the Parliaments of the Asia Pacific countries to give sound legislative support to the efforts aimed on the economic development and stabilization of financial markets, and also to the reforms of the financial markets, regulatory regimes and gears so as to avoid any recurrence of crisis like day’s in future.