Chinese President Hu Jintao on Friday called for a “reform of the international financial system” and “a shift in development patterns to avoid a new green divide”.
Addressing the Asia-Pacific Economic Cooperation (APEC) Chief Executive Officers (CEO) summit here, Mr. Hu presented a four-point blueprint for reviving the global economy. His speech, with its focus on China’s economy as well, was the highlight of the day’s proceedings in the ongoing APEC summit.
Emphasising the need for renewed efforts at reform, he said the process should result in “a fair, just, inclusive, and well-managed international financial system”. Specifically, “we should continue to increase the representation and voice of developing countries”. The decision-making process should also be improved, he suggested. Though he did not identify the reform-deficit institutions, the International Monetary Fund (IMF) came into focus when he emphasised the need to “speedily implement the quantitative reform targets set at the Group of 20 Summit in Pittsburgh [recently]”.
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Mr. Hu’s other major proposal was that innovative ideas should drive a transformation of the patterns of economic growth. He told the APEC CEOs to “narrow the technological gap, especially the green technology gap, between the developed and developing members [of the forum] and avoid a new green divide. It is incumbent upon the developed members to help the developing members.”
Terming the current signs of global economic recovery as fragile, Mr. Hu opposed protectionism in all its manifestations. A related aspect of his blueprint was the need to advance the Doha Round on worldwide trade. Another imperative for global recovery now was regional economic integration within such fora as APEC, he said.
Later, responding to question from The Hindu about Mr. Hu’s proposals, IMF Managing Director Dominique Strauss-Kahn said: “The IMF reform is under way for a few years now. On the governance side and the legitimacy of the institution, the first step has been made. And, the second step has been decided in Pittsburgh [on quotas] and will be completed as requested for in January 2011. This is a big shift, and the beneficiary will be partly in Asia, namely China. … It is also a reform in the facilities and a lot has been done. … And, the third part of the reform of the institution is the fact that we don’t believe that there is a one-size-fits-all solution [for financial and liquidity crises in member-countries].”
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