Jeju Declaration on Enhancing Regional Cooperation against the Challenges of Population Ageing

We, the Finance Ministers of the Asia-Pacific Economic Cooperation (APEC), gathered in Jeju Island for the Twelfth APEC Finance Ministers' Meeting and held a discussion under the theme of "Meet the Challenge of Ageing Economies,"

Acknowledging that population ageing is a serious socio-economic challenge already experienced by some member economies and soon to be encountered by more economies in the near future;

Recognizing that it could have significant implications for labor force growth, productivity, savings and investment, financial markets, and fiscal burdens for social spending, including healthcare;

Aware that challenges brought about by population ageing could be transformed into new opportunities for enhancing productivity and achieving sustainable growth, with timely preparation and joint efforts, by such means as responding to the changes in the demand for financial services, deepening financial markets and implementing necessary policies;

Affirming the commitment of the APEC members to work together and cooperate with the purpose of addressing the common concerns related to population ageing;

HEREBY DECLARE:

1. We recognize the importance of undertaking reforms of domestic markets and regulatory systems in order to achieve resilient, flexible and open economies able to deal with the challenges posed by ageing and demographic change;

2. We underscore the need to reinforce our joint efforts to maintain medium- and long-term fiscal sustainability and to promote sound pension and health care system;

3. We reiterate that member economies need to improve the efficiency of the financial markets and develop the necessary financial infrastructure such as the asset management industry and wider range of financial instruments which above all will enhance the productivity of the APEC region;

4. We encourage the efforts to promote international cooperation among APEC member economies through sharing of knowledge and technical assistances with a view to achieving the aforementioned objectives;

5. We agree to the formation of an Expert Group within the APEC Finance Ministers' Process, consisting of around twenty experts from APEC member economies, to explore ways to cope with the challenges of population ageing and possible policy recommendations, in cooperation with the APEC Business Advisory Council (ABAC) and the international financial institutions, and to report their findings at the next Finance Ministers' Meeting in 2006.