China urges voice for developing nations

By Si Tingting (China Daily)
Updated: 2009-07-24 06:58

Discussions about whether developing nations should have more input in global financial decisions should loom large at September's G20 summit in the United States, says China's foreign minister.

"We believe the focus of this meeting is to further revamp the international financial institutions so developing countries have a bigger say and better representation at international financial organizations," Yang Jiechi said Thursday from the sidelines of a regional meeting in the Thai resort of Phuket.

Yang also called for more help, especially in trade financing, for developing countries to assist them in weathering the financial crisis.

International financial institutions expect China to reap trade benefits from a global recovery later this year that they think will be led by emerging economies. A World Trade Organization (WTO) report released on Wednesday projected that China might overtake Germany as the largest goods exporter this year.

"As important players in world trade and other economic activities, China and other developing countries should have more say and more involvement in making international trade rules that can guarantee them liberalized trade and trade-related investment," said He Maochun, director of the Research Center of Economy and Diplomacy at Tsinghua University.

Things are getting better for developing nations, as their voices become louder and they are heard at global summit meetings, He added.

"These countries should know what they want and they should constantly articulate their wishes at high-level international meetings, such as the G20 summit," He added.

China and other developing nations should be able to send more officials to the mid-level management boards of international financial institutions, such as the World Bank, International Monetary Fund, and WTO, He said.

In his keynote speech at the second financial summit of G20 leaders in London in April, Chinese President Hu Jintao expressed the need to improve the governance structures of the IMF and the World Bank and increase the representation of developing countries.

Yang also expressed confidence that China's economy could reach its 8 percent growth target this year.

"We believe that, given the tremendous efforts of the Chinese people and given the impact of our stimulus package and the mutual support between China and the international community, we will be able to reach the 8 point growth target for this year," the foreign minister said.

In contrast, on Wednesday, the IMF issued its review of China's economy, saying economic growth will slow to 7.5 percent this year from 9 percent in 2008.

However, the IMF praised China for its rapid and vigorous fiscal and monetary policy.

"This response has served to mitigate the economic downturn and facilitate an economic recovery during the course of this year and into 2010 and has contributed to broader global stability," it said.

Reuters contributed to the story