ISLAMABAD: With a combined GDP of 27.25 trillion that is growing rapidly, Asia-Pacific is on its way to becoming the most important market in the world, opening possibilities for further expansion of trade and investment within the region, a new report of the United Nations says.

This could contribute to job creation, poverty reduction and the boosting of economic growth throughout the region, according to the report, “Enhancing Regional Economic Cooperation and Integration in Asia and the Pacific’ released by the UN Economic and Social Commission for Asia and the Pacific (ESCAP).

The report was released during the second ministerial conference on Regional Economic Cooperation and Integration (RECI) in Asia and the Pacific, co-hosted by ESCAP and Asian Development Bank which opened in Bangkok on Tuesday.

A particularly important initiative that could support further moves towards enhanced RECI in the Asia-Pacific region is China’s Belt and Road Initiative (BRI).

The initiative aims at enhancing seamless connectivity through a multi-modal network that connects road and rail routes with seaports, expands energy networks through oil and gas pipelines and regional power grids, and extends ICT fibre optic links from China to Europe through Central Asia.

Building this infrastructure and establishing economic corridors is essential for the region to make significant progress in other components of RECI, such as promoting trade and investment flows.

The region is a major global destination for investment, which is reflected by the inflows into the region and between countries within the region. More recently, Asia-Pacific countries have quickly gained global prominence as major outward investors as well.

In 2015, investment outflows from developing Asian economies reached $323 billion, representing 30 per cent of global foreign direct investment (FDI) flows.

However, the noodle bowl of multiple investment agreements, which are not always aligned with sustainable development principles, are adversely affecting further increases in FDI flows.

Countries need to promote regional investment regimes in a manner that better balances investors’ rights with the host country’s development needs.

This would enable countries to not only attract more FDI to contribute to sustainable development, but also to achieve better market integration.

The report says that strong regional political will and agreed regional visions among countries are critical for establishing effective, region-wide planning and coordination mechanisms for regional connectivity.

Published in Dawn, November 22nd, 2017