EDITORIAL - A summit against terrorism

The summits of the Asia-Pacific Economic Cooperation forum were often nothing more than an opportunity for APEC leaders to show off the sartorial style of the host country. This weekend in Shanghai the leaders have something unusually heavy on their plate. The battle against terrorism is expected to dominate the two-day summit, which will be attended by leaders of some of the world’s most populous Muslim countries.

There will be discussions on cooperation in securing the region and blunting the global reach of terrorists. President Arroyo may have to reassure her fellow APEC leaders that her administration can neutralize the terrorist threat posed by the Abu Sayyaf, which has links with America’s Public Enemy No. 1, Osama bin Laden.

As pressing as the security threat, however, is its economic fallout. The United States is one of the largest importers of Asian goods, and the US economy has slowed down considerably since last year because of the slump in the information technology sector. Sept. 11 has worsened the situation, with businesses shutting down and thousands of people losing their jobs across America. Amid the plummeting consumer spending there are talks of a US recession.

Combined with a recession in Japan, whose economy has been flatlining for a decade, the US economic downturn spells trouble for Asian economies. Several Asian countries owe their dramatic recovery from the 1997 financial crisis to the dotcom boom. The reverbations are being felt across the globe, and Filipino workers in conflict areas are being sent home. The Philippines has already seen its exports slide this year. Economists see a bad year ahead, although a number of them are predicting some recovery as early as the second half of 2002.

No one is expecting the war on terrorism to be brief. APEC members must prepare for this long period of uncertainty, which could worsen political unrest in some countries. As the crisis in 1997 has shown, political instability in one trouble spot can pull down the rest of the region and even spread to other parts of the world. APEC members have a stake in working together to face the economic costs of terrorism.