Joint action vital to battle crisis

By Zhang Xiaoqiang (China Daily)
Updated: 2009-09-11 07:45

Many developing countries, given their low level of development, weak economic capability, heavy export-reliance and insufficiently developed system, suffer the severe impact of the international financial crisis. The World Bank predicts that except for China and India, other developing countries as a whole will see minus 1.6 percent economic growth this year.

The global economic recession has lead to increase of both unemployment and the population of the poor, and decrease in people's income. Therefore, the international community should work together to abate the negative impact of the recession on developing countries by enhancing international cooperation and policy coordination.

First, the world's major economies should maintain continuity and stability of the macro-economic policy. They should steadfastly hold on to the current direction of macroeconomic policy, further expand domestic demand to stimulate economic growth and build up favorable external environment for developing countries. Meanwhile, developing countries should also take proactive and targeted measures, make intensive efforts to boost domestic demand and give full play to their comparative advantages in order to alleviate the negative impact of the recession. Various forms of economic, trade and technological cooperation among developing countries, and between developing and developed countries should be forged so as to tide over the difficulties.

Second, give full play to the active role of the United Nations, the World Bank and the International Monetary Fund in solving the problems of development, achieving the Millennium Development Goals of the United Nations and alleviating poverty; and, raise more resources earmarked for developing countries.

Developed countries should significantly increase their official development assistance, provide support to developing countries for economic and social development unconditionally, increase technological and capital support to developing countries in the field of agriculture, energy conservation, environment protection, renewable energy, transportation infrastructure construction, education and health care, so as to improve their capabilities in agriculture, especially grain production, energy and resource efficiency, infrastructure construction and human resources.

In combating climate change, with the principle of "common but differentiated responsibilities", we should not only deal with challenges posed by climate change, but also provide enough development space for developing countries.

Third, China is the largest developing country with a per capita GDP of only about $3,000, but we are willing to do our utmost to take various measures to help African countries to the extent of our power; and in the framework of South-South cooperation, we will continue to offer assistance to other developing countries to the best of our ability, in the form of grant, trade aid and technology assistance.

Fourth, trade and investment protectionism should be opposed strongly. We should work together to fight against the abuse of trade remedy and combat discriminative measures against alien workers on the excuse of maintaining domestic employment. China calls for a favorable global environment for developing countries to actualize their economic recovery.

Fifth, step up efforts to implement the important consensus reached at the G20 Summit, increase the representation and voice of developing countries and continue to work for a fair, just, inclusive and well-managed international financial order. We should strengthen cooperation in financial regulation, formulate as soon as possible universally accepted international financial regulation and standards, help developing countries to be integrated into the international financial system and to have better access to their resource and information.

The author is vice-minister of the National Development and Reform Commission. This is the speech he delivered at the Summer Davos held in Dalian.