What's it all about, Apec?

Here they are - the answers to all those nagging questions about the big event. By Andrew Stone

What does it stand for?

The unlovely acronym means Asia-Pacific Economic Co-operation, a vehicle for promoting free trade among Pacific rim nations. Other versions: Ageing Politicians Enjoying Cocktails or "four adjectives in search of a noun."

Who belongs?

Now a 21-economy squad, from rich little Brunei (pop. 300,000) to China (1.24 billion citizens), from troubled Russia to the Americas. New Zealand joined at the start, 10 years ago. Other members include Australia, Canada, Chile, Indonesia, Japan, Korea, Malaysia, Mexico, Papua New Guinea, The Philippines, Singapore, Taiwan, Thailand, The US and Vietnam.

Can anyone join?

No. It's location, location, location, with Asia-Pacific as the common factor. The entry door is currently closed but Central America and small Pacific island nations may push to have it reopened.

So what does it do?

Holds costly annual summits - $45 million for the Auckland bash, courtesy of the New Zealand taxpayer. Runs scores of meetings for trade, finance and enterprise ministers. Sets agendas for working groups to create trade, investor and business-friendly markets. The goal: a free trade and investment region by 2020.

What got it going?

It filled a market gap. Asia's dynamic growth moved global investment and trade patterns from the North Atlantic to the Pacific. But the post-war institutions were Europe-based, Old Order. Apec gave the tiger economies - Japan, Hong Kong, Korea, Taiwan, Singapore - a platform to assert the rise of Asia.

Does it cost to belong?

Not much. The exact membership formula is a secret but New Zealand pays a yearly fee of $US96,000.

All member economies chip in to meet the $US8.5m annual budget which pays the wages of Apec's 48 Singapore-based staff and funds its work.

How does it work?

Between summits Apec groups try to sweep away obstacles to business and investment. Swags of committees meet on energy, fisheries, transport, trade, conservation, telecommunications, tourism, technology and arcane but vital issues such as customs harmonisation and intellectual property rights.

Does it have points on the board?

A decade on, the jury is divided. Big Apec commitments - free trade and investment by 2020 - have yet to be matched by delivery. Apec fumbled the Asian crisis, undermining its claims as the region's premier forum.

Its voluntary basis permits backsliding and its limited budget - a deliberate strategy - handicaps projects. But the leaders' summit is now an established power event and gives Apec momentum.

What happened last year?

Apec lost its shine in Kuala Lumpur, especially for business. After building expectations that trade reform would proceed on an industry basis, Apec failed its big test, exposing differences among its diverse membership. A gulf emerged between promise and reality, as governments battered by the Asian crisis soft-pedalled on liberalisation.

What can we expect?

Severe traffic disruption downtown, motorcades, reporters poking microphones everywhere, unflattering publicity, endless television shots of unknown VIPs, loads of photo ops, two days of summitry, a demo or two, protest groups attempting to hijack the agenda, a killing for the big hotels.

How come its happening here?

It's "our shout", says Foreign Minister Don McKinnon. New Zealand hastily put its hand up two years back with an eye on some electoral spin-off. Managing the country's biggest ever bunfest - 4000 delegates, 3000 journalists, media crew and others - requires 2400 police, armed foreign bodyguards and every spare bed between the Bombay Hills and Browns Bay. Police have stockpiled pepper spray.

Any upside?

Good chance of an international incident. United States Vice-President Al Gore won the foot-in-mouth award in Kuala Lumpur last year with his "megaphone diplomacy" attack on the hosts for locking up Finance Minister Anwar Ibrahim. Canada still licking wounds after the Mounties waded into students at Vancouver summit in 1997. Exposure for New Zealand from all those journos.

What to wear?

Business suits for leaders, delegates and officials, national dress at the summit banquet, runners and crash helmets for students/protesters/unemployed rights leader Sue Bradford, riot gear for police on demo duty. Suggestions for the leaders' obligatory silly-shirts snap include bristly black shearing singlets or rugby jerseys.

Is it good for New Zealand?

Some say exports would rise by 4 per cent a year and GDP by $1.3 billion if Apec's plans were all adopted over the next 20 years. It gives New Zealand a seat at the power table in the region where our future lies. Apec economies provide 70 per cent of our trade, 70 per cent of tourists and 80 per cent of investment. For a small trading nation Apec is indispensable.

How about Auckland?

One study calculated $30 million would flow into the local economy from the week of frenetic summit activity. Up to 600 temporary jobs in restaurants, hotels, travel firms and tourist attractions. The place will look smarter - Auckland City Council is spending $5 million tidying the town and evicting winos.

Why so much opposition?

Critics say Apec is exclusive, secretive and anti-democratic, serving global capital and business elites at the expense of working people and the poor. Embraces corporate heads but excludes trade unions and community leaders. The annual leaders' jamboree is a costly security nightmare and hugely disruptive for locals.

What's the response?

Host New Zealand is running a hearts and minds campaign. Aimed web site at schools and stuck Apec-friendly flyers in Auckland letterboxes. Television commercials showed lots of busy people charging through airports and stitching up business deals. Bid to draw critics' teeth by inviting non-government groups on board.

What does the future hold?

Largely depends on what happens here. The business agenda needs updating to restore confidence in market and trade reforms along with a serious commitment to spreading benefits as broadly as possible.

The mid-year trade ministers' forum lifted Apec from its Malaysian malady but the Queen City test remains.