In 2012 I was asked to represent New Zealand at the APEC (Asia-Pacific Economic Cooperation) summit in Vladivostok, Russia.
The summit is the Asia Pacific’s premier business event, with the Asia-Pacific’s political leaders and the regions leading CEOs in attendance. The theme this year was “addressing challenges, expanding possibilities”, and with it being held in the Russian Far East, delegates were shown an impressive country with bold ambitions – many embedded in the Asia-Pacific, that dispelled myths and stereotypes.
Video 1: APEC 2012 Overview
Video 2: Behind the scenes in Vladivostok
One of the biggest highlights of attending APEC was the opportunity to attend the plenary addresses from global leaders, as they outlined their visions, experiences and perspectives on issues of discussion. Leaders included:
- His Excellency Mr. Hu Jintao, President of the People’s Republic of China, who spoke about the challenges and opportunities China has in their relations with Russia. He also outlined the measures and leadership China is aspiring to take on intellectual property, and inward and outward foreign direct investment throughout the APEC economies.
- The Honorable Hillary Rodham Clinton, Secretary of State of the United States of America, addressed the importance APEC plays with members accounting for 54% of world GDP. She spoke about the potential of the platform for economic growth, and the responsibility we have in areas such as security, and assistance for women and minorities in small business in developing countries, so they can also reap these benefits.
- His Excellency Mr. Vladimir Putin, President of the Russian Federation, spoke of opportunities in Russia and outlined measures being taken to ease logistics through upgrades to the Trans-Siberian railway. He fielded questions into Chinese investment in Russia and the on-going negotiations into a New Zealand – Russia/Belarus/Kazakhstan Free Trade Agreement. President Putin acknowledged that developing regions will continue to grow far more quickly than traditional markets, and that the former Soviet-era port of Vladivostok is poised to become a gateway for Russian trade and investment with Asia. Russia has finally joined the World Trade Organisation after an 18 year wait, and having Vladivostok chosen as the APEC venue marked an exciting time as Russia becomes more integrated into the global economy.
I formed part of the Small and Medium Enterprises working group at APEC, and was elected by my working group to present the declaration back to the wider APEC community – which included Russian media and APEC officials.
Meeting with New Zealand Prime Minister John Key
The New Zealand Voices of the Future delegates were fortunate to have twenty minutes with New Zealand Prime Minister John Key. Meeting their leader wasn’t possible for every Voices of the Future delegate, and spoke volumes to the accessibility and transparency of the New Zealand government. The meeting offered a great opportunity to hear more personally about New Zealand’s priorities at the APEC Summit, and openly discuss topics ranging from:
- New Zealand’s place at the APEC table and what is being done to ensure the voices of smaller developing nations are being heard at forums like APEC and at trade agreement negotiations such as the TPP
- recent calls for the strengthening of the Waitangi Tribunal, and where the government thinks the Treaty of Waitangi stands in New Zealand’s future.
- how to best harness business opportunities in Russia, given New Zealand’s limited capacity of SMEs and the current focus on opportunities in China, India and other parts of Asia
- the Prime Ministers upcoming meeting with Russian Federation President Vladimir Putin, and the status of the New Zealand – Russia free trade agreement.
New Zealand Prime Minister John Key, Tim McCready
As well as leaders from the APEC economies, the Summit had addresses and panel discussions into many critical areas of focus for the Asia-Pacific from prominent CEOs and business leaders throughout the region. These sessions included:
- Food: Feeding seven billion people. Speakers including Sergey Polyakov (General Director of United Grain company) and Samuel Allen (Chairman, John Deere & Co), who discussed the challenges we have with a growing global population and depleting resources.
- Health is wealth. Panelists included the CFO of Johnson & Johnson, the Chief Research and Strategy Officer of Microsoft, as well as New Zealander Ian McCrae (CEO, Orion Health). The changing landscape of healthcare was discussed, and it was noted that we have reached a time where medical knowledge has surpassed what healthcare practitioners can know, which creates a discontinuity in how medicine is practised around the world. One of the most inspiring moments was when the panel discussed how investment in health can provide a significant social and economic return to economies. The panel agreed that people should be thought of as an investment, not as a cost – because without people, you won’t have a company.
The theme of APEC this year was “addressing challenges, expanding possibilities”, and the summit did a great job of covering these topics. On a more personal level, having the opportunity to attend APEC as a Voices of the Future delegate has encouraged me to reflect on my own challenges and possibilities within the Asia-Pacific region. I have previously done business with major Asian markets, but my eyes have truly been opened to the opportunities within emerging APEC economies. Business and political leaders from those regions are excited about their potential – and they have good reason to be. That excitement has been infectious, and the experience and insights I have left Russia with will stay with me always.
The recent visit to Japan by a group of young New Zealand farmers is exactly the sort of initiative needed to lay the groundwork for a trade deal between the two countries, says the director of the New Zealand Asia Institute, Professor Hugh Whittaker.
The trip, organised by the Japan East Network of Exchange for Students and Youths (JENESYS), followed bilateral talks between the New Zealand Foreign Affairs Minister, Murray McCully, and his counterpart Hirofumi Nakasone, and included official briefings and visits to dairy factories and livestock centres.
Among the 50-strong group was University of Auckland alumnus Tim McCready, a business development consultant at New Zealand Trade and Enterprise.
“Japan will always play an important role in the global economy. The things I have learned about the country and culture will change the way I think about, and conduct business with Japan forever,” McCready says.
It is the third such visit aimed at introducing a new generation of New Zealanders to the Japanese way of doing business and along with meetings in 2008 and 2009 of the Japan New Zealand Business Partnership Forum is evidence of a reawakening interest in Japan, which in recent years has been overshadowed by the spectacular economic rise of China. Professor Whittaker says the visits are also an effective way of overcoming obstacles to a bilateral trade deal with our third-largest trading partner.
“New Zealand’s position on the proposed free trade deal with Japan is that we are complementary not competitors, and that we are too small to upset things in Japan. If you want to try out the process for FTAs with developed countries and de-bug it, you are best to do that with a country the size of New Zealand. Japan sees it somewhat differently. If it gives ground to New Zealand, there will be pressure to do the same to bigger countries,” Whittaker says.
Nevertheless, with China and South Korea aggressively signing FTAs, pressure is growing for Japan to do the same to avoid becoming more isolated.
“That would necessitate a willingness within Japan to start implementing measures in the agricultural sector which would introduce market forces,” Whittaker says.
“The issue is not merely opening Japan to foreign agricultural goods, but increasing the marketisation of agricultural activity in the country.”
That process has been slowed by the strong presence of agricultural cooperatives, which are useful in upgrading agriculture and redistributing wealth, but which have become less innovative.
Distribution of wealth is a key issue, says Whittaker.
“Electoral boundaries don’t reflect the country’s urbanisation, so the rural vote is overweighted. The political structures have served to redistribute the results of urban activity to rural areas. Japanese politics is often portrayed as ‘immobilist’, and there is structural misallocation of funds, but there is also a legitimate debate about what is a just society and how much (urban-rural) inequality should be tolerated or encouraged through increased marketisation.”
Actually, Japan’s agricultural sector has great potential for reinvigoration without destroying the fabric of rural society, says Whittaker.
“As a ‘grassroots’ exchange, New Zealand’s agricultural mission is an astute move. If we can demonstrate through these visits that the two countries can complement each other rather than being caught up in a zero-sum game, then it can produce a groundswell for change.”
A programme that fuses business and science is showing business-savvy scientists how to commercialise bioscience innovations and create opportunities in the international market.
One of these business-science professionals is Tim McCready, an alumnus of The University of Auckland who now works for New Zealand Trade and Enterprise (NZTE) as a business development consultant.
“I’ve always enjoyed science and seeing the transformative effect it can have on people’s lives. At the same time, a lot of exciting research falls by the wayside because of a lack of business acumen in the industry,” he says.
Deciding to do something about this gap after finishing his Bachelor of Science, McCready joined the inaugural year of the Master of Bioscience Enterprise (MBioEnt) programme in 2006. The bioscience commercialisation degree is taught conjointly by the Business School, the School of Biological Sciences and the Law School.
“I chose a masters degree focused on business because I wanted to have an impact on the innovative science coming from New Zealand, the financial contribution it can give to the New Zealand economy and the difference it makes to lives worldwide,” McCready says.
He did papers on research commercialisation, finance, accounting, marketing, law and intellectual property, followed by a thesis project in the final year.
“I learned that scientists often have little understanding of the steps involved in commercialisation because their interest, understandably, is in research. At the same time, business people with no understanding of science can’t appreciate the length of time, the amount of risk, and the enormous cost involved in commercialising human therapeutics.”
McCready’s comments are echoed by Geoff Whitcher, director of the Business School’s Centre for Entrepreneurial Learning, who believes the MBioEnt is producing scientists with a strong business sense that will be a great help to New Zealand.
“Having an understanding of the science and commercial realities means they can help New Zealand companies to expand their international activities by taking new biotech products into export markets, thus helping New Zealand earn much-needed overseas funds,” Whitcher says.
While working on his thesis, McCready did an internship in the biotechnology team at NZTE. After finishing with first class honours he stayed with the organisation and recently shifted to Investment New Zealand, a division of NZTE focused on attracting investment to New Zealand and helping companies make strategic investments offshore.
This work has taken him to the United States three times in the past year to help New Zealand biotechnology and natural health product companies access the North American market.
Now McCready is working on a project with Living Cell Technologies (LCT), a company that breeds pathogen-free pigs from remote sub-Antarctic islands for its cell-based products to treat insulin-dependent diabetes and neurodegenerative diseases.
The LCT-Investment New Zealand project is looking into global market opportunities for high quality by-products taken from unused pig tissue, which could be used for other medical applications.
“LCT’s pig herds are uniquely free from viruses, bacteria and parasites so they are effectively the cleanest pigs in the world,” says McCready.
“This project is particularly exciting because LCT is one of New Zealand’s premier biotechnology companies making use of the country’s competitive advantage in animal health status.”