APEC Peru

Prepared by Peter Li-Chang Kuo

(Chinese)

Content of “APEC Peru”

I. Preface

II. Our Testimony and Contribution

III. Key Achievements of the 2016 APEC Summit in Peru

IV. APEC 2024 Priorities

V. Specific Recommendations for Collective Action

VI. Conclusion

I. Preface

Peru joined APEC in 1998 and has hosted APEC three times - 2008, 2016 and 2024. In my opinion, the greatest achievement of APEC in Peru is the establishment of the “Lima Anti-Corruption Declaration.”

Fig 1: Peru APEC 2024 Logo

In February this year, APEC Peru opened with the theme "Empower. Include. Grow." It will focus on the social aspects of economic growth through more than 270 meetings to promote "high-quality growth" in the Asia-Pacific region. In recent years, the advancement of "digital technologies" has had a continuous and profound impact, emerging as a common theme among all disruptions, bringing about significant changes and influences on the international system. Therefore, it is crucial for everyone to be prepared, equipping personnel with the necessary skills to enhance their ability to withstand future shocks and achieve prosperous development. The words are still ringing in my ears, and in the blink of an eye, the leaders’ summit in November has arrived.

II. Our Testimony and Contribution

In 1986, we launched the initiative of Social Responsibility Investment (SRI), aiming to address global structural social issues—especially "unemployment." In 1989, when we decided to adopt "radio frequency technology” to develop RF Transmitter, Australian Prime Minister Bob Hawke initiated the establishment of APEC (Asia-Pacific Economic Cooperation). When we presented our research and development achievements at the APEC 1998 in Kuala Lumpur, introducing the emerging “e-commerce industry” for the new century, the APEC also approved the accession of "Peru, Russia, and Vietnam," witnessing APEC's member economies grow to 21, a number that remains today.

Fig 2: Linda Din proposed E-Commerce at APEC 1998

Due to the need for economies affected by the 1997 Asian Financial Crisis to understand why Taiwan was able to stand strong amidst the storm, Linda Din shared the experience of Taiwan’s small and medium-sized enterprises (SMEs) at the "Market Access" forum in Kuala Lumpur. She compared these enterprises to banyan trees, with their roots protecting the main trunk. Later, at the "Task Force" meeting, Linda collaborated with U.S. representative Josh Kights, responsible for the telecommunications working group, and Japanese representative in industrial technology, with Malaysia's Datuk as the chair. Based on her invention of “The Electronic Store System" (TES), she proposed the "Steering the E-Commerce" initiative, which contributed to the implementation of U.S. President Bill Clinton’s "E-Commerce Executive Order," aiming to accelerate the development of innovative industries. This was envisioned to help address the aftermath of the financial crisis, such as business closures and unemployment, and restore regional economic vitality.

As we continued to make efforts for six more years in APEC, we made sure that all economies were aware of "Global Channel-TES," a trade system that allows participation from multiple countries, designed to achieve the "Bogor Goal." As a cross-border e-commerce platform, "Global Channel-TES" provided a solution for unemployment. It enabled seamless integration into the global market, eliminating physical space constraints in many traditional industries, and further promoting job flexibility and dignity. In fact, the contactless and remote technologies involved in this system laid the foundation for the development of "artificial intelligence" (AI) and paved the way for advancements in the semiconductor industry.

However, certain malicious forces eventually realized the vast profits hidden within this initiative. As a result, we experienced unimaginable thefts, robberies, and persecution by public authorities. Linda Din, who had been a speaker at the 1998 and 2003 APEC and dedicated over a decade to social responsibility investment with the goal of ensuring "Jobs for all and Food for every family," she truly collapsed at the attackers' warning, with almost no chance of surviving past 2004.

In 2002, following Merrill Lynch's decision to invest, Linda Din's PCH company reached a market value of "USD 60 billion." Unfortunately, as she was attacked and seriously ill, all these efforts came to nothing.

“Do not withhold good from those who deserve it, when it is in your power to act.” (Proverbs 3:27) Adhering to this truth and by faith, Linda Din miraculously survived and, in a state of complete "powerlessness," lived through 2004 and 2005. In 2006, the Australian government wanted to learn about the progress of "Global Channel-TES," their best practice. Therefore, I carried the Promise and, despite numerous obstacles, reached the APEC CEO Summit in Hanoi.

At the Sofitel Hotel, where the political and economic leaders of various economies were staying, everyone listened to our experiences on the island and unanimously said, "Bizarre!" They defined the attackers as "the Entities of Corruption." The most remarkable moment came when our friends from Peru said, "We will make anti-corruption a part of the 'Anti-Corruption Declaration in Lima.'" Indeed, this became a reality at the 2008 APEC Summit in Peru. At the same time, the world officially entered the "Digital Era."

To address structural social issues, we custom-designed and invented "The Electronic Store System" (TES). TES is a new technological economic system that includes 18 major inventions, such as: "Contactless Tech, Cashless, TranSmart Chip, Power Chip, RF Transmitter, TSCM (Transaction and Transmission Supply Chain Management Software), E-Commerce (EC), 3C Integration, ICT (Information and Communication Technology), Interphone, TRD (Transaction Reading Device), ESD (Entry Security Device), ATM, ETC, VAM, eStore and Shopping System…"—all of which culminated in the key invention of "Global Channel-TES." This Initiative aimed to create new job opportunities through "innovative industry," resolve structural social issues, and simultaneously establish a global public-benefit channel. It contributed the strength of the private sector to the international stage, bringing a ray of hope to regional economic development.

Fig 3: APEC 2003 Best Practice Proposal Presentation

The APEC 2003 Ministerial Joint Statement mentioned the word "Guidance," pointing out that 240 million people in regional economies need entrepreneurship and require good guidance. The best practice policy of the Australian government was exactly the right kind of guidance, with "Global Channel-TES" as an instrumental solution, representing the best practice of these 18 major inventions. Unfortunately, the fierce and ongoing attacks of Taiwan's corruption delayed the mission goal of our social responsibility investment.

Fig 4: A Letter of thanks from the Australian government to Linda Din

III. Key Achievements of the 2016 APEC Summit in Peru

In the 2016 APEC Leaders' Declaration, the leaders reiterated the importance of anti-corruption efforts: "We welcome the 'Lima Anti-Corruption Declaration' and encourage all economies to implement critical anti-corruption actions, with a specific focus on bribery of domestic and foreign public officials, and with the effective participation of all relevant stakeholders, including through the APEC Anti-Corruption Authorities and Law Enforcement Agencies (ACT-NET).”

The island’s corrupt leader once arrogantly told me at the APEC in Hanoi: "APEC is a loose organization, and Taiwan is not even a member of the United Nations..." However, the "Lima Anti-Corruption Declaration" was linked to the "United Nations Convention Against Corruption" (UNCAC), which required Taiwan's authorities to submit anti-corruption progress reports. Since then, apart from sporadic attacks, we finally gained some relief in 2018.

Looking ahead, the leaders of APEC economies called for effective economic, financial and social inclusion of women, elderly, youth and rural communities as well as disadvantaged or vulnerable groups such as Indigenous peoples and persons with disabilities. In order to achieve sustainable growth in the Asia-Pacific region, we must continue working with a renewed sense of urgency and through Asia-Pacific partnership featuring mutual respect and trust, inclusiveness and win-win cooperation to take actions and share best practices in implementing our commitments and achieving our goals. In this context, protecting entrepreneurial women from the persecution of corrupt practices became a key issue.

Anti-corruption efforts not only help maintain a fair and just business environment but also protect the innovation and career development of “entrepreneurial women,” ensuring that they are not unfairly treated due to industry breakthroughs and innovations. Such measures not only enhance women's sense of participation and security but also foster broader economic growth, thereby creating greater value for society. Therefore, from a global perspective, protecting entrepreneurial women and strengthening anti-corruption mechanisms are crucial for achieving gender equality and promoting inclusive economic growth.

IV. APEC 2024 Priorities

The Lima meeting covered a range of topics that underpin Peru’s priorities for APEC 2024, from trade liberalization, facilitation, and inclusivity to improving productivity and the quality of regulatory frameworks. Special focus will also be placed on reducing gaps through inclusive digital transformation, minimizing food loss and waste, and developing and implementing low-carbon hydrocarbons. Additionally, key elements needed to achieve the priorities of APEC 2024 in Peru will be identified, including "the transition of informal actors to the formal economy."

The transition of various economic actors in the "informal economy" (such as sole proprietors, small businesses, or workers in informal employment) to the "formal economy" involves integrating businesses or workers that are not formally registered or do not comply with official legal regulations into the legal economic system, ensuring they follow official tax, labor, and business laws.

Dr. Rebecca Sta Maria, Executive Director of the APEC Secretariat, stated: " Informality occurs around the world, and as part of our efforts in advancing inclusive growth, Peru, for the first time, has brought this topic to the table." According to field surveys, in terms of income, informal workers are about 40-67% lower than regular workers.

Globally, the phenomenon of "informal employment" is becoming increasingly common, particularly in the Asia-Pacific region, where the issue is particularly prominent. According to Peru's Minister of Labor and Employment Promotion, Daniel Maurate Romero, “Of the 3.3 billion people in the world of working age, that is 15 to 64, it is estimated that around 2 billion or 61 percent are informally employed,” he stated. “In APEC, there are more or less 13 economies that represent 44.7 percent of informality. In Peru, we are at 71.1 percent of informality.”

The problem is that many people, unable to find regular jobs or facing unemployment, are forced to take on gig work or set up street vendors to make a living. But how can we formalize their economic activities? The answer to this social issue was provided by Linda Din as early as the 1997 APEC, when she, together with Canadian representative Lois Stevenson, coined the term "Micro Business"—and provided decent work opportunities to those in need through her invention of "The eStore System" (TES).

Linda Din was one of the pioneers of the "gig economy." In her efforts to create more job opportunities for single mothers and unemployed women, she directly proposed an instrumental solution—she invented "TES." This innovative industrial solution was called "A Door to the Global Market" by Canadian Minister of Industry John Manley in 1997 and simultaneously introduced the concept of "Micro Business." TES has the characteristic of being easily replicable, simplifying the process of setting up an "eStore," and enabling women to enter the digital economy with minimal costs, fulfilling their entrepreneurial dreams and helping address issues of unemployment and job instability.

TES is regarded as the best "instrumental solution" to unemployment, as it provides flexible and decent job opportunities. In this business model, women do not need to stay locked in a physical store as "clerks." Instead, they take on the role of "Mobile Store-Keepers," responsible for tasks such as monitoring, managing, and replenishing supplies. This flexibility allows women to find a balance between family responsibilities and work, offering autonomy and adaptability, especially for single mothers or women facing challenges in their lives. This work model provides the necessary flexibility to empower women and enable them to pursue economic independence.

However, despite the opportunities for "economic empowerment" that TES and Micro Businesses offered to many women, this innovation also faced significant challenges. Particularly during the development of digital platforms, TES, with its massive business potential—where "Cashless" transactions alone in APEC amounted to as much as USD22 trillion— unfortunately encountered interference and manipulation by criminal forces. The original creator, Linda Din, and her business were severely impacted as a result. She was persecuted by these illegal entities, losing all her assets, both movable and immovable property. Not only did this prevent her from fulfilling her mission of solving unemployment, but it also put her life in danger.

Fig 5: APEC and its Cashless Transaction

This event serves as a reminder that, in promoting innovation and entrepreneurship, especially for women entrepreneurs, "anti-corruption" and mechanisms for ensuring fair competition are crucial. Corrupt groups, using public resources and colluding with public authorities, can completely crush the confidence and health of female social entrepreneur, depriving women of the opportunities and benefits they rightfully deserve. As emphasized in multiple APEC meetings, establishing a sound legal and regulatory framework to prevent gender discrimination and corruption is of profound importance for protecting the interests of female entrepreneurs, promoting the sustainable development of the gig economy, and ensuring fair participation for all.

As we focus on the impact of digital technologies, we must do everything possible to protect the rights of entrepreneurial women. When the leaders of APEC economies gather in Lima, Peru, will they think about why Linda Din, the advocate who once championed the e-commerce legislation that helped shape the digital economy, has been absent from the scene for the past 20 years? It is hoped that, based on the foundation of the "Lima Anti-Corruption Declaration," the leaders will strengthen anti-corruption measures—linking the enforcement of WTO and UNCAC—to ensure that innovation and entrepreneurial spirit can truly benefit every woman with a dream.

V. Specific Recommendations for Collective Action

"Unemployment is the road to poverty," said Minister Maurate, highlighting the severe global unemployment situation. Among the world’s 3.3 billion working-age population, 2 billion are engaged in "informal employment." Why does this dire situation seem identical to the predictions and actions made by APEC 1998 and 2003 speaker Linda Din over thirty years ago, who advocated for innovative industries to address unemployment? This can be explained from several perspectives:

1. Causes of Global Informal Employment

Currently, over 2 billion people are engaged in informal employment globally, a number that reflects profound changes in the global labor market structure. The fundamental causes of this situation can be broken down into the following factors:

1) Impact of Globalization and Automation: With the deepening of globalization and rapid advancements in technology—especially automation and artificial intelligence—traditional manufacturing and some service industry jobs have significantly decreased. Many businesses opt to outsource work or relocate jobs to countries with lower costs, leading to a large influx of low-skilled labor into the informal employment market.

2) Labor Market Flexibility and Instability: In order to cut costs and improve efficiency, businesses are increasingly inclined to hire temporary, gig, or contract workers. These types of jobs generally lack stability and social security, leaving a large portion of the workforce without the protections that come with formal labor contracts.

3) Structural Reforms and Policy Failures: Many developing countries, in their pursuit of economic growth, often overlook structural issues within the labor market. A lack of sufficient social security systems and labor market reforms has resulted in a significant portion of the workforce being excluded from formal employment.

4) Rise of Digital Platforms and the Sharing Economy: The rise of digital platforms (e.g., Uber, Airbnb) and the sharing economy has brought about more unstable job opportunities. These jobs are not regulated by traditional labor laws and are predominantly in the form of gig work, further increasing the number of people in informal employment.

2. Linda Din's Predictions and Actions

In her speeches at the APEC meetings in 1998 and 2003, Linda Din emphasized the critical role of innovative industries and technological development in "creating jobs" and "solving unemployment." Her concept of a "win-win-win" for people, businesses, and governments remains highly forward-looking and closely aligns with the current global labor market situation:

1) Transformation of Innovative Industries: Linda Din predicted that the development of innovative industries, especially “low-level applications of high technology,” would become the future drivers of economic growth. These industries would be capable of creating a large number of decent job opportunities. However, they would also require retraining and upskilling the workforce. As an international advisory expert, she strongly advocated for the establishment of an "Economic Institute" (EI) to train new skills to meet emerging job demands. This vision aligns closely with the current phenomenon of informal employment, where many workers have not kept up with technological changes and have failed to transition into formal and stable innovative industries.

2) Linking Unemployment and Poverty: Linda Din emphasized the close relationship between unemployment and poverty, and noted that this is not just an issue for individual countries, but a global "human rights-level" challenge. She believed that only by developing innovative industries and creating more stable and dignified jobs could the unemployment problem be effectively solved. This view echoes Minister Maurate’s statement at the APEC meeting in Peru, where he pointed out that unemployment directly leads to poverty, stressing the need to find fundamental solutions to the issue of unemployment.

3) Focus on Structural Reforms in the Labor Market: Linda Din also called for the necessity of innovative policies and structural reforms in the labor market. She emphasized that governments should promote more flexible and inclusive labor market policies while paying attention to the retraining of low-skilled workers to avoid long-term unemployment or poverty. This approach is in line with the current responses of many countries to the challenges posed by informal employment.

3. Challenges Faced by Linda Din and Her Solutions

In her efforts to address unemployment, Linda Din invented the new tech-economic system— "Global Channel-TES," which won the "Best Practice for Addressing the Needs of SME Exporters" award at the APEC 2003. The Ministerial Statement referred to it as the "Best Guidance for Assisting 240 million Entrepreneurs." However, she was subjected to 20 years of corrupt attacks, which led to the loss of all her assets, including her company, house, and financial resources, thereby delaying her mission to "solve unemployment" and provide dignified jobs.

Given the increasing severity of global "informal employment and poverty" issues, we need to reflect on and address two key issues: "Anti-corruption and Entrepreneurial Guidance." As leaders from various economies gather in Lima this week, we remind them to consider why Linda Din, the original creator of the e-commerce initiative, has remained silent for the past 20 years after making significant contributions to solving global unemployment. In fact, collective action from the leaders could reverse this situation. The following specific recommendations are proposed:

1) Strengthen the Implementation of the “Lima Anti-Corruption Declaration” and the “United Nations Convention Against Corruption” (UNCAC): Anti-corruption is the foundation for ensuring a fair global economy. Only by enhancing cross-border anti-corruption cooperation can we create an environment where entrepreneurs and small businesses are free from corruption and can develop steadily. This will not only promote social stability but also combat unfair competition, ensuring innovation and equal opportunities.

2) Acknowledge and Value Linda Din's Contributions to Global Entrepreneurship and the Challenges she faced: Twenty years ago, Linda Din's "Global Channel-TES" initiative successfully helped millions of micro and small businesses, becoming an "APEC 2003 Best Practice." However, she lost all her assets and rights due to corrupt attacks, preventing her from fulfilling her mission of creating dignified work for the needy. This not only undermines the spirit of innovation but also delayed the progress of solving global unemployment. Therefore, we urge the leaders to investigate the reasons behind her disappearance and ensure that entrepreneurs, especially women, can thrive in a fair environment. Collective action should eliminate "non-economic factors" that interfere with social entrepreneurs.

3) Provide Fair Opportunities for Innovators to Address Global Unemployment: Global entrepreneurs, especially micro and small business owners, bear the important responsibility of driving economic growth and creating jobs. We need to ensure that they can flourish in an environment free from corruption and unjust interference, contributing practical, feasible solutions to the global poverty and informal employment problems.

Let us work together to provide fair opportunities for all individuals with dreams and innovative spirits, driving global economic development and social progress.

VI. Conclusion

The APEC dialogues in Peru have already addressed the foundations of connectivity, innovation, and prosperity, as well as issues such as trade fragmentation, digitalization, supply chains, the impact of generative AI, and demographic aging. Importantly, it is crucial to build on the "work already done" and continue striving for growth for all, without further harming the environment, in order to ensure a beautiful tomorrow for the next generation.

Since 1986, Linda Din has dedicated herself to social responsibility investment focused on "innovative industries and solving unemployment." She proposed "Global Channel-TES" program garnered attention in 1997, helped facilitate the e-commerce bill at APEC 1998, and was recognized as a "Best Practice" at APEC 2003. The aim of this program was to provide stable and decent job opportunities for global informal workers, especially women entrepreneurs, through an integrated e-commerce platform that merges “virtual and substantial channels.” This system eliminates the constraints of physical space, breaks down traditional industry barriers, promotes global market access, and provides flexible work opportunities for informal workers.

Fig 6: Schematic & Flow Chart of Global Channel-TES

However, after returning to Taiwan, Linda Din faced corruption attacks that caused her to lose both her career and assets. This not only delayed her mission but also prevented the global impact of this innovative initiative. Had it not been for the corrosive impact of corruption, "Global Channel-TES" would have helped millions of informal workers escape poverty and provided stable job opportunities for women entrepreneurs.

Today, the world still faces challenges of unemployment and the gig economy. Strengthening the implementation of the “Lima Anti-Corruption Declaration” and linking it with the “United Nations Convention Against Corruption” (UNCAC) to combat corruption is critical to promoting economic prosperity, achieving gender equality, and creating a fair entrepreneurial environment. As Peru highlights the issue of unemployment at APEC 2024, the "Global Channel-TES" program, which already contributed a solution as early as APEC 2003, deserves renewed attention.

Disney, the renowned entertainment giant, acknowledged and cited some of Linda Din's innovations and invested “USD 1 billion” and five years to enhance their ticketing and shopping systems in 2013. A comparison of these efforts clearly highlights the scale of Din's social responsibility investment. It is my sincere hope that future female social entrepreneurs will no longer face attacks from corruption or suffer setbacks as Din did.

Fig 7: Linda Din’s Invention (US 6304796) cited by Disney

We call on leaders to strengthen anti-corruption mechanisms and hope that the “Lima Anti-Corruption Declaration” from APEC Peru will continue to resonate in the APEC 2025 in South Korea. This will protect innovators and entrepreneurs from unjust suppression, while promoting the establishment of a stable "Social Responsibility Investment Fund" (SRI Fund) to address current unemployment issues and provide dignified work and a stable livelihood for informal workers around the world. This is not only an economic necessity but also our shared social responsibility.

Peter Lichang Kuo, the author created Taiwan's Precision Industry in his early years. Peter was a representative of the APEC CEO Summit and an expert in the third sector. He advocated "anti-corruption (AC)/cashless/e-commerce (E-Com)/ICT/IPR/IIA-TES / Micro-Business (MB)…and etc." to win the international bills and regulations.