We, the Ministers responsible for human resources development in APEC member economies, met in Kumamoto, Japan, on September 29 and 30, 2001 for the 4^th APEC Human Resources Development (HRD) Ministerial Meeting. We discussed the main theme- "Human resources development for both the advancement of society and economy and the sharing of prosperity with people in the context of globalisation". The APEC Secretariat was present.

We recognize that the new economy provides many opportunities for further growth and development. In developing a human resources strategy for the new economy, we are now facing the challenges of an environment of slower economic growth and higher unemployment, as well as changes in industrial structure, demographics, skill requirements and forms of employment.

We recognize that government must work closely with a variety of partners to achieve effective and sustainable outcomes. This was noted at the APEC Ministerial Meeting in Brunei Darussalam in 2000 and the APEC High Level Meeting on Human Capacity Building in Beijing, China this year. At this meeting, we renew our determination to strengthen cooperative partnerships among stakeholders.

We highly commend the APEC High Level Meeting on Human Capacity Building (HCB) and support the Beijing Initiative as providing opportunities for further work in HCB. The success of the meeting demonstrated the strength of partnership among stakeholders, which provided a deeper understanding of human resources in the new economy and opened up new possibilities for action. We recognize the launching of Ecotech Action Plans on human resources development and welcome the work of the Ad Hoc Task Force for Strengthening Social Safety Net Activities. We call upon the Human Resources Development Working Group (HRDWG) and other relevant fora to take follow-up actions and incorporate the outcomes of these initiatives into their work programs as appropriate.

We commend the HRDWG for its achievements and the wide range of projects that were initiated in response to the priorities highlighted at the 3rd HRD Ministerial Meeting. We also commend the HRDWG for its work since that meeting to improve its operational efficiency, strengthen coordination with other APEC fora and achieve its mission.

We note the Framework for the Integration of Women in APEC and agree to intensify our efforts to foster gender mainstreaming in APEC activities. We reaffirm that gender mainstreaming and human resources development are closely related, cross cutting themes in APEC. We welcome the priority accorded to women's issues by Mexico as host economy in 2002 and commend Mexico's initiative to organize the 2nd APEC Ministerial Meeting on Women.

The new economy is impacting upon all of our economies, albeit in different ways and to varying degrees. We recognize that while the new economy creates unprecedented opportunities, it also presents challenges to businesses, workers, education and training providers and policy makers. Our task is to better understand the forces that shape and drive the new economy, address the challenges that it presents to the workforce of the 21st century, and foster an environment which assures greater access to the opportunities generated, and more widely shared prosperity.

We continue to experience volatility in labour markets, brought about by the rapid shifts in economic conditions, technology, and industrial structure. These shifts can have a devastating effect on certain groups of workers. Labour market policies, employment services, and social safety nets must provide for a smooth transition from school-to-work, from work-to-work, from unemployment-to-work, and from work-to-retirement.

.Labour market policy should be proactive in order to respond to the changing nature of jobs, family structures and workplaces. We affirm our support for policies which respect a work and family balance, and note that achieving this balance can pose particular challenges for women. As opportunities arise in new work arrangements, we will also seek to work with stakeholders, where appropriate, to promote competitiveness while protecting the interests of workers.

A skilled and adaptable labour force is vital for sustained economic growth in the new economy. Collective efforts by all stakeholders are required to promote human resources development by increasing individual participation in lifelong learning and skills upgrading in response to the rising skills demands of the new economy. High levels of skill development will require economies to implement appropriate, comprehensive labour market policies, which must respond, in particular, to the imperative of narrowing the digital divide.

We agree that access to quality basic education and the development of basic literacy and numeracy skills are an essential foundation for further learning and skill acquisition. Individuals must engage in lifelong learning to promote sustained employability. Equally, workers and employers should be encouraged to invest in skill development and skill upgrading. In this connection, we affirm that workers' skills should be recognized fully in the labour market. The development of skills standards within each economy contributes to effective skill development and economic performance. In addition, accurate, relevant labour market information developed in cooperation with employers about actual and prospective demand for skills and occupations can prepare individuals to benefit from the evolving employment environment.

Globalisation, technological change and demographic shifts suggest that investment in the training, retraining and development of employees is a priority for enhanced organizational performance, and to attract and retain workers. All organizations should be encouraged to become learning organizations as the workplace is a key component of lifelong learning systems. In particular, we recognize the need to provide micro enterprises and SMEs with ongoing training and capacity building opportunities. These opportunities should include training in financial and trading practices. This will bring about higher levels of productivity, quality and competitiveness for these enterprises and the community.

Even with globalization, many employment opportunities are often located in the local community. Skill development in the local community should be responsive to local needs and priorities. The community should be a focus in skill development activities.

In the face of the skills demand of the 21^st century workforce, we must draw on the talents of all of our people - including those who may have been excluded from the workforce until now. Mobilizing people with disabilities, women, youth, older workers and indigenous people has become an economic and social imperative.

The new economy and globalization place increased emphasis on strong and productive partnerships between all stakeholders in human resources development. Partnerships must be inclusive and incorporate both traditional HRD stakeholders of business, labour, government and the educational training sector as well as other stakeholders in the community such as workers, families, community and voluntary groups, and other organizations including international organizations, as appropriate. We recognize the importance accorded to stakeholders and partnerships in the Beijing Initiative and the Human Capacity Building Strategy for the New Economy currently being developed.

We hold that values such as mutual trust and responsibility, inclusiveness and respect for each other's perspective and contribution, are important in underpinning human resources development and the advancement of all people.

We recognize that the new economy will present many challenges for the workplace of the future and will require new approaches and levels of cooperation and dialogue between the key stakeholders for economies to remain competitive.

The new economy offers opportunities for raising the standard of living of people throughout the region. Our discussions made clear the importance of knowledge in the new economy as well as the increasing need for adaptability in the organization of work, in the labour market and in our policies. Cooperation and information sharing between economies is critical to bridging the digital divide.

We agree to the following priorities for the HRDWG, as it continues to confront human resources development issues in this context:

Bearing in mind the numerous related activities underway in APEC, we instruct the HRDWG in addressing these priorities to aim to increase the complementarity of the various initiatives, seek to avoid duplication of efforts and enhance the sustainability of stakeholders' partnerships.

We note the ongoing work of the Human Capacity Building Coordinating Group (HCBCG) relating to the Human Capacity Building Strategy for the New Economy and support the continued collaboration with, and participation in the HCBCG by the HRDWG.

The statement of the 4th HRD Ministerial Meeting shall be called "The Kumamoto Statement." We shall report the outcomes of our meeting to APEC Ministers and Leaders at their Meetings in October 2001 in Shanghai, China.

We express our sincere thanks and appreciation to the Government of Japan and the citizens of Kumamoto for their warm hospitality and the excellent arrangements for the meeting.

We look forward to further discussions on HRD issues at the 5^th HRD Ministerial Meeting. We instruct the HRDWG to prepare for the next Ministerial Meeting.