Finance Ministers' Process

The APEC Finance Ministers' Process (FMP) is a forum for APEC member economies to address regional macroeconomic and financial issues as well as domestic and regional financial policy priorities.

APEC Leaders established it during their first meeting in 1993 to consult on broad economic issues and address some of the economic challenges facing the region.

Finance Ministers have met annually since 1994, most recently in October 2017 in Da Nang, Viet Nam. Meetings are also held among finance and central bank deputies and senior finance officials prior to each Finance Ministers’ Meeting, with a view to conducting consultation on the priorities of the year and finalizing the deliverables for Ministers to endorse subsequently.

The strategic goals of the FMP are to promote sound and credible policies for:

  • Sustainable, inclusive and broad-based growth and development in the APEC region;
  • Macroeconomic stability in the APEC region
  • Prudent public finance management
  • Good corporate governance
  • Stable and efficient financial markets
  • Greater economic cooperation, integration and openness among APEC economies
  • Facilitation of economic and technical cooperation within the region in pursuit of these goals

These organizations are key external partners of the FMP:

  • The World Bank Group (WBG)
  • The International Monetary Fund (IMF)
  • The Asian Development Bank (ADB)
  • The Inter-American Development Bank (IADB)
  • Organization for Economic Co-operation and Development (OECD)
  • APEC Business Advisory Council (ABAC)

Last page update: September 2018

Current Activities

In support of Papua New Guinea’s APEC 2018 theme “Harnessing Inclusive Opportunities, Embracing the Digital Future,” the FMP supported four priority areas:

  1. Accelerating infrastructure development and financing
  2. Advancing financial inclusion
  3. Fostering international tax cooperation and transparency
  4. Implementation of the Cebu Action Plan

Several activities have been carried out in line with these priority areas:

Accelerating Infrastructure Development and Financing

In 2018 the FMP explored the use of practical tools to help economies adopt policies and other measures to support infrastructure planning, financing and delivery, with a focus on continuing and extending from the 2017 FMP’s agenda on long-term investment in infrastructure.

Several activities have been carried out in line with this priority:

  • Policy Seminar on Planning, Financing and Delivering Quality Infrastructure held on 13–14 March in Port Moresby, Papua New Guinea. The key issues raised in the seminar included:
    • The importance of robust governance frameworks
    • The need to build institutional capacity
    • The need to expand potential sources of long-term finance
    • Understanding the investment needs of institutional investors
    • Several tools and methodologies are available to assist economies
    • Some APEC economies have introduced new and innovative approaches or mechanisms to accelerate infrastructure development and financing
  • Capacity building package to accelerate infrastructure development and financing. The package will comprise a set of case studies and good practices on selected effective approaches to financing infrastructure in APEC economies, which will build on the FMP’s work from 2017.
  • In collaboration with the Economic Committee, developing the APEC Economic Policy Report (AEPR) on “Structural Reform and Infrastructure.” The report will include case studies from eight economies, a discussion on the impact of infrastructure in growth, productivity and social inclusion, analyzing the role of structural policies focused infrastructure and an annex on digital infrastructure.

Advancing Financial Inclusion

On the priority of advancing financial inclusion, during 2018 the FMP focused on the important role played by financial literacy and the opportunities presented by financial technology, prioritizing also the identification and sharing of good practices.

Several activities have been carried out in line with this priority:

  • Policy Seminar on Financial Inclusion: Financial Capability, Education and Technology held on 5–6 June in Madang, Papua New Guinea. The key topics covered in the seminar were:
    • Insights on financial education strategies
    • Challenges in implementation and effective delivery mechanisms
    • The scope of financial inclusion and the concept of financial “capability”
    • Measuring the impact of financial education strategies
    • Maximizing the use of digital financial services
    • Fostering financial innovation
  • A capacity-building package on advancing financial inclusion, with a focus on enhancing consumer protection. The project has a narrow range of topics and, where appropriate, draws from existing work undertaken by other international organizations or relevant bodies. The aim of the package is to address the important role played by financial literacy and the opportunities presented by financial technology.
  • Australia organized a self-funded two-day workshop titled “Improving Digital Financial Literacy in APEC” with a goal to improve the participants’ capacity to identify actions to improve consumer digital financial literacy and awareness. The aim was to enhance understanding and knowledge of the characteristics, advantages and risks of digital financial services for consumers and a stronger knowledge of activities, channels and content that can be used to improve consumers’ digital financial literacy and awareness. The workshop took place in Port Moresby, Papua New Guinea in June 2018.

International Tax Cooperation and Transparency

Cooperation and transparency play a key role in strengthening the international tax system. During 2018, the FMP tackled multilateral tax avoidance, focusing on Base Erosion and Profit Shifting (BEPS), which has become a global problem. Papua New Guinea’s focus for 2018 represents a continuation and extension of FMP’s 2017 BEPS agenda.

  • Australia organized a self-funded four-day workshop titled “Advancing BEPS and AEOI priorities in APEC.” Member economies shared how they implementation strategies in relation to BEPS, with a specific focus on the minimum standards. Additionally, member economies were invited to discuss transparency issues relating to exchange of information (EOI) and moves towards automatic exchange of information (AEOI). They talked about the Common Reporting Standard (CRS) and about benefits and challenges it presents to developing member economies. The workshop took place in Port Moresby, Papua New Guinea in July 2018.

Cebu Action Plan

Launched by Finance Ministers in 2015, the Cebu Action Plan (CAP) set the goal of building a community that is more financially integrated, transparent, resilient, and connected buy facilitating trade and investment; pursuing good governance and sound fiscal reforms; deepening financial markets and financial resilience; and mobilizing financing for quality infrastructure development.

A CAP checkpoint took place during the 2018 Senior Finance Officials Meeting (SFOM), where volunteer APEC member economies highlighted key achievements under their first package of CAP initiatives, shared experiences, and factors that supported or impeded their implementation.

Additionally, member economies were invited to identify by the end of 2018 one to three additional initiatives for the second package, with a goal of implementation, on a voluntary and non-binding basis, before the end of 2020.

Disaster Risk Financing and Insurance

Disaster risk financing and insurance (DRFI) has been on the FMP agenda for several years, recognizing its importance to the effective mitigation and transfer of natural disaster risk. The DRFI Working Groups’ aim is promote the development of an innovative disaster risks financing and insurance mechanisms to enable APEC economies exposed to natural hazards to increase their financial response to disasters and reduce their fiscal burden.

A workshop on Financial Management of Public Assets against Disaster Risks was held on Tokyo, Japan on 21–22 June 2018. The workshop builds on the 2017 APEC report on Disaster Risk Finance with a focus on public asset database development; damage assessment of public assets; and domestic insurance arrangements.

Key Dates of APEC FMP Meetings in 2018

Dates

Event

Place/Venue

13–14 March 2018

Seminar on Planning, Financing and Delivering Quality Infrastructure

Port Moresby, PNG

15–16 March 2018

1st Finance and Central Bank Deputies’ Meeting (FCBDM)

Port Moresby, PNG

5–6 June 2018

Seminar on Financial Inclusion: Financial Capability, Education and Technology

Madang, PNG

7–8 June 2018

1st Senior Finance Officials’ Meeting (SFOM)

Madang, PNG

18 June 2018

Workshop on Improving Digital Financial Literacy in APEC

Port Moresby, PNG

21–22 June 2018

Workshop on Financial Management of Public Assets against Disaster Risks

Tokyo, Japan

2327 July 2018

Workshop on Advancing BEPS and AEOI priorities in APEC

Port Moresby, PNG

15 October 2018

2nd Senior Finance Officials’ Meeting (Drafting Session)

Port Moresby, PNG

16 October 2018

2nd Finance and Central Bank Deputies’ Meeting (FCBDM)

Port Moresby, PNG

1617 October 2018

Finance Ministers’ Meeting (FMM)

Port Moresby, PNG

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Achievements

Finance Minister Process

The APEC Finance Ministers’ Findings, Kyoto 1996 had identified Policies Contributing to Stable Capital Flows, Policies Fostering Domestic Financial and Capital Market Development, and the importance of developing policies and financing techniques which attract and channel private investment in infrastructure development.

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Events

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15 Oct

Senior Finance Officials’ Meeting (SFOM)

Port Moresby, Papua New Guinea
16 Oct

Finance and Central Banks Deputies Meeting (FCBDM)

Port Moresby, Papua New Guinea
17 Oct

Finance Ministers Meeting (FMM)

Port Moresby, Papua New Guinea

Contact Us

Mr Andrew OAEKE

Chair of the Senior Finance Officials' Meeting 2018
Department of Treasury
Papua New Guinea
Andrew_Oaeke@treasury.gov.pg

Mr PABLO Forastieri Murrieta

Program Director
pfm@apec.org