49th Session of the APO Governing Body
26–28 June 2007, Ulaanbaatar, Mongolia
49th GBM: A Historic Landmark

Inaugural Session of the Governing Body Meeting

New APO Chairman and Vice Chairmen (L-R): Chino, Dr. Ghanizadeh, Setyoko, and Secretary General Takenaka
The 49th Session of the APO Governing Body, which brought 52 delegates comprising APO Directors, advisers, and observers from 19 member countries to Ulaanbaatar, Mongolia, 26−28 June 2007, was considered a landmark meeting in the annals of the APO because departures were made from past practice to stay abreast with the times and meet the expectations of member countries. Major decisions reached included:
- The biennial budget of the APO will first be determined by the Governing Body. The current practice of pegging the budget to GNI, with automatic increases as member countries’ GNIs grew, can no longer be sustained. Contributions to the budget by member countries will be based on a newly adopted new formula involving a minimum contribution of US$10,000 for least developed countries and US$30,000 for other member countries. The new biennial budget and membership contribution formula both take effect from 2009.
- In conjunction with the introduction of a new personnel performance appraisal system and for greater flexibility in linking annual wage increments with work performance in the Secretariat, the Governing Body decided to: 1) subdivide each incremental wage step in all grade levels for both categories of staff into four without changing the minimum and maximum for each grade level in the Table of Salary Scales; 2) create a special allowance for staff members at the maximum of their grade levels who exhibit good work performance but who do not meet the requirements for promotion to the next higher grade level; and 3) amend the requisite portions of the Staff Regulations and Rules to reflect these changes.
- To facilitate the new budget system, the timing of the Workshop Meeting of Heads of NPOs (WSM) and the Governing Body Meeting (GBM) will be changed. The WSM will be held in October instead of February and the GBM in April instead of June. Because of this change, there will be two WSMs in 2007, the transitional year.
The meeting opened with the Mongolian long song “The Sun Over the Placid World” by Cultural Ambassador of Mongolia Khongorzul Ganbatar. Acting Director for India N.A. Viswanathan delivered the opening address on behalf of APO Chairman Dr. Ajay Dua, who was unable to attend. The meeting received a congratulatory message from President of Mongolia Nambariin Enkhbayar. Mongolia’s Minister of Industry and Commerce Dr. Tseren Davaadorj, the guest of honor, gave the inaugural address, with the welcome address by APO Director for Mongolia Dr. Pagvajav-Un Shurchuluu. APO Secretary-General Shigeo Takenaka introduced the heads of delegations.
The meeting also appointed APO Director for Indonesia Besar Setyoko as the APO Chairman and Acting APO Director for Iran Dr. Mahmood Ghanizadeh and APO Director for Japan Tadao Chino as the APO First Vice Chairman and Second Vice Chairman, respectively. They will serve for one year. The meeting also unanimously reappointed Secretary-General Takenaka to a second three-year term commencing September 2007.
Opening Address
by APO Chairman Dr. Ajay Duak

Delivered by Acting APO Director for India N.A. Viswanathan
His Excellency Minister Dr. Tseren Davaadorj,
Honored Guests, Advisers, and Observers,
Mr. Secretary-General,
Distinguished APO Directors,
Ladies and Gentlemen:
Owing to pressing and sudden official engagement in India, Dr. Ajay Dua, is unable to attend the 49th Session of the Governing Body of APO. Dr. Dua conveys his regret to all of you. I would now read out a statement on behalf of Dr. Dua in his capacity as the Chairman of the Governing Body of the APO.
It gives me great pleasure to welcome you to this inaugural session of the 49th Governing Body Meeting of the Asian Productivity Organization. We are deeply honored to have with us this afternoon your Excellency Minister of Industry and Trade Dr. Tseren Davaadorj, Government of Mongolia. We are also very grateful to the Government of Mongolia for hosting our annual meeting in this great and historic land of beautiful steppes, rich culture, and friendly people.
We are living in challenging times. The world is moving inexorably toward becoming a global village. Trade boundaries are blurring, perhaps to eventually disappear altogether. These changes bring both threats and opportunities to our local enterprises or SMEs. A major threat that we are familiar with is competition. As trade barriers come down and a more level playing field emerges, new opportunities are created for SMEs to be global players. But most of our SMEs still require substantial assistance to grow and develop before they could leverage the opportunities. In this regard, increasing productivity must be one of their strategic thrust areas. But they do not have the luxury of time. As champions and purveyors of productivity, we must make haste to bring them the needed assistance.
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