APEC Peru 2008: “Peru will become the real bridge between Asia and South America”

(David Azócar from Lima) This is how the host of APEC 2008 , President Alan Garcia, opened the 4th meeting of the APEC Business Advisory Council (ABAC) in his home nation of Peru.  His comments were made regarding Peru's potential within APEC and other issues in the region during the 16th session of the Asia-Pacific economic forum.

His statement reverberated throughout all Lima. In fact, most Peruvian hope this is not just another meeting of APEC leaders. Rather, the general impression here is that this year’s summit is nothing less than "the first meeting of the post-crisis era."  Here again, in the words of Alan Garcia, the APEC host who capitalized on the opportunity to invite all the member economies to invest in Peru. Mr Garcia also promised Peru will become the “real bridge between Asia and South America” within a few years.

Hernan Somerville, president of the Chilean Association of Banks and Financial Institutions, is less optimistic. Somerville, who represented Chile at the 4th ABAC meeting, states that while it may be true that Chile and Peru have well-managed economies, they are not islands. In a recent interview with Peru’s La Primera, Mr Somerville cautioned, "It is good to remain optimistic, albeit optimistic in the broader context of a worldwide financial crisis.”

"Peru, in terms of geography and population, is a medium-sized nation. In economic terms, it is small, but has a location that portends better things to come. We are proud that our FDI (foreign direct investment) has more than doubled in the past two years. These are investments that are capable of turning Peru into a haven for international capital and are also backed by a solid national economy,” according to President Garcia.

Garcia’s comments regarding Peru’s leadership on Asia already seem prophetic, whereas the Chile’s neighbour has proposed a major investment plan. According to Mr Garcia, the proposed Callao port will attract Pacific shipping away competitors such as San Antonio and Valparaiso, in Chile, and Buenaventura and Tumaco in Colombia.

The Asia-Pacific portal interviewed Professor Oscar Diaz, head of the Department of Management Sciences (Pontificia Universidad Catolica del Peru), on this topic. "The geographical location has helped to Peru in several respects, in the case of ports, located at the center of the South Pacific, gives a very important advantage, I think that soon will realize the modernization of ports, in particular Callao."

President Garcia also noted that in the medium-term he was going to turn his nation into a natural destination for South American nations on both coasts of the continent. "We are working on a major international highway that will link Brazil to Peru, and the Pacific with the Amazon area."

ABAC 2008 is one of the APEC Leaders Week most important meetings and brings together over 63 delegates from the 21 member economies.