Fiscal Policy .......................................................................................................................50 Financial Deepening...........................................................................................................52 Trade and Investment Policy..............................................................................................54 Competition and Legal.......................................................................................................54 The Place of Human Resource Policy....................................................................................56 National E-Commerce Promotion Strategies .........................................................................57 V.
Implications of New Economy Divergence:
Digital Divide ........................59 Introduction............................................................................................................................59 Initial conditions and Predisposition to Policy Reform.........................................................60 Productivity and Growth ....................................................................................................60 Digital Measures.................................................................................................................62 KBE Status Indicators ........................................................................................................64 Challenges to and Predisposition to Reform......................................................................65 Policy Conditions, Sectoral Transformation and Trade Competitiveness in the New Economy ................................................................................................................................66 Measuring Overall Policy Conditions in APEC Economies ..............................................67 Measuring Sectoral Transformation In the New Economy ................................................71 Putting These Together with Trade Patterns:
Competitive Pressures and Opportunities ..73 Other Aspects of Differential Progress..................................................................................79 Brain drain:.........................................................................................................................80 Reactions from civil society:..............................................................................................81 International relations and new alliances?..........................................................................81 VI. Analytical Conclusions............................................................................83 Challenge to Reforms:
Spanning the Four Policy Domains..................................................83 “Stove-pipe” government bureaucracy and public-private alliances: ................................83 Poor domestic and global economic and political environments:......................................84 Resource transfers and liberalization:
................................................................................84 Challenges for Trade and Cross-Border Investment Liberalization ......................................84 Absence of on-going multilateral trade round:...................................................................85 Incomplete fulfillment of existing commitments:..............................................................85 Challenges for Banking and Financial Market Policies.........................................................85 Poor Supervisory Oversight:..............................................................................................86 Lack of Financial Skills:.....................................................................................................86 Thin non-bank financial markets:.......................................................................................87 Challenges for Fiscal Policy and Reform of Fiscal Activities...............................................87 Redirecting internal operations and external activities:.....................................................88 Transforming inner workings of government:...................................................................88 Challenges for Pro-competitive Market Policies and Legal Regime.....................................89 Sophistication and rapid evolution of competitive environment:.......................................89 Difficulty of scope and nature of legal reforms:
................................................................89 Lack of a trusted environment:...........................................................................................89 Command and control will speed adjustments right now: .................................................90 A Final Word.........................................................................................................................90 - ii -