Structural policies, networked information technologies, and flexible and skilled human resources transform old social and economic activities into new ones, which together increase economic growth in today?s "new economy." In this study Catherine L. Mann and Daniel H. Rosen examine how this new phenomenon is affecting the economies of the member nations of the Asia Pacific Economic Cooperation (APEC) forum and whether APEC policymakers should have an action agenda toward it. The authors use macroeconomic models and distill case studies from selected APEC countries to illustrate both the potential rewards and the challenges faced by policymakers and businesses in enabling and embracing the dynamism of the new economy. The study also highlights the impact of new economy forces on trade competitiveness as well as the relationship between government and civil society. The authors conclude with a set of policy recommendations for APEC members, and for APEC itself to ensure that...

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