The APEC Economic Policy Report (AEPR) 2024: Structural Reform and Financial Inclusion focuses on the imperative of promoting financial inclusion through structural reforms within the Asia-Pacific Economic Cooperation (APEC) region. It identifies the significant barriers faced by marginalized groups, including women, micro, small and medium enterprises (MSMEs), Indigenous Peoples, and individuals with disabilities, which hinder their access to affordable financial services. The report emphasizes that financial inclusion is a crucial driver of economic growth, as it enables individuals and businesses to access essential financial products such as savings accounts, credit, and insurance. This access fosters entrepreneurships, enhances wealth accumulation, and ultimately contributes to economic resilience and stability.
The study delves into the macroeconomic impact of financial inclusion, illustrating how it serves as a key pillar of APEC’s action agenda. It defines financial inclusion as the ability of individuals and businesses to access useful and affordable financial products and services delivered responsibly and sustainably. Empirical findings presented in the report demonstrate a strong correlation between financial inclusion and economic performance, indicating that increased access to financial services can lead to improved economic outcomes, including higher Gross Domestic Product (GDP) growth and reduced poverty levels. The report also highlights the importance of a stable financial sector, supported by prudent macroprudential policies and consumer protection mechanisms, as a foundation for effective financial inclusion.
To address the challenges of financial inclusion, the report outlines various strategies and policies implemented by APEC economies. These include the establishment of credit guarantee schemes that support MSMEs in accessing loans, as well as the promotion of digital payment systems that simplify access to financial services, particularly for low-income individuals. The report underscores the role of technology in enhancing financial inclusion, noting that digital financial services can reach underserved populations more effectively than traditional banking methods. Additionally, it emphasizes the importance of financial literacy programs aimed at empowering individuals to make informed financial decisions, manage their finances responsibly, and protect themselves from financial fraud.
The AEPR 2024 serves as a comprehensive analysis of the current state of financial inclusion in the region and the necessary steps to enhance it. By addressing the specific needs of marginalized groups and implementing targeted policies, APEC economies can unlock untapped economic potential and drive inclusive growth. The report calls on policymakers to prioritize financial inclusion as a critical component of their economic strategies, recognizing that fostering an inclusive financial environment is essential for achieving sustainable economic development and resilience in the APEC region.