Apec must prioritise poverty alleviation for its 'forgotten billion'

Much has been written about the new BRICS Development Bank, the latest in a series of global financial institutions set up to challenge the existing Bretton Woods status quo. In their analysis, many commentators justified the genesis of these new bodies by citing the long-standing dissatisfaction held by emerging and developing countries towards the Washington-London consensus that still dominates many of the older financial institutions.

Undoubtedly, by focusing on addressing the immediate fallout of the global financial crisis, institutions like the IMF and the World Bank moved too slowly in addressing the needs of developing countries. International gatherings, including Apec and the G20, run the risk of falling prey to the same indictments.

Take the Asia-Pacific Economic Cooperation forum for instance, now into its 25th year. Of the 21 member states, 10 are developing countries and overall one billion people residing within them still live in rural areas, many in extreme poverty. And yet, development issues affecting Apec's "forgotten billion" have received little to no substantive attention at many of its annual gatherings. This is despite the fact that while by no means a final destination for policy solutions, the annual meeting of world leaders does have the power to create much needed global attention around rural development and poverty alleviation.

Especially with China's own focus on rural development, this year's Apec summit should put the development and social challenges affecting not only many of its people, but also its member economies, front and centre.

An example is the lack of access to sanitation facilities. Costing the global economy US$260 billion in lost productivity a year, of the 2.5 billion people who do not have access to a toilet, two-thirds of them live in Asia. Additionally, nine out of 10 people who defecate in the open live in rural areas, highlighting the need to ensure that the benefits of economic success in the region are shared far more equally.

Critically, for it to remain relevant to the needs of its member economies, Apec - an organisation renowned for its success in advancing regional economic integration - must take on the barriers to trade that still keep a significant number living in poverty.

Unlike European farmers, primary producers in Asia generally do not enjoy the same trade subsidies or reduced tariffs. Without tackling this square on, forums like Apec risk becoming irrelevant to the daily reality of many of its residents.