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G20 Finance, Bank Chiefs Meet in Beijing

 

 

Chinese President Hu Jintao urged all countries to intensify dialogue and coordination in macro-economic policy to jointly promote the balanced and orderly development of the world economy.

Hu made the remarks while delivering a speech at the opening ceremony of the Seventh G20 Finance Ministers and Central Bank Governors Meeting, which was held in Beijing on Saturday.

Hu said with growing economic links and interdependence among all countries, the economic performance of individual countries, especially of major economies, has a profound impact on the world economy while the world economic situation will also significantly affect the development of each economy.

"Hence, to jointly promote balanced and orderly development of the world economy, all countries, major economies in particular, should not only adopt responsible economic policies to introduce necessary economic restructuring, keep major currencies reasonably stable and prevent trade protectionism, but also intensify dialogues on macro-economic policies and, most importantly, coordination on major issues that bear on the overall development of the world economy and the common interest of all countries," Hu said.

(By Xinhua News Agency)

 

Full text of President Hu's speech

 

Distinguished Guests, Ladies and Gentlemen,

I wish to express, on behalf of the Chinese government and people, warm congratulations on the convocation of the Seventh G20 Finance Ministers and Central Bank Governors Meeting in this beautiful season in China. I warmly welcome all the participating finance ministers, central bank governors and representatives of international financial institutions.

It is of great significance for this meeting to take "Global Cooperation: Promoting Balanced and Orderly World Economic Development" as its theme. I believe your deep-going discussions and common understanding on this theme will have a positive influence on the growth of the world economy and common development of all countries.

At present, governments and people of all countries follow closely the development of the world economy. This is because the world today is undergoing profound and complicated changes and we are faced with both opportunities and challenges. On the one hand, peace and development remain the theme of our times. Economic globalization is going to greater depth. At an amazing speed, modern science and technology have been making continuous progress that is marked by the advancement of information technology and bio-technology. And international industrial transfer as well as the flow of production factors have accelerated. All this offers countries in the world rare opportunities for development. On the other hand, however, the global problem of uneven development is increasingly salient as the gap between the North and South is further widening. There are financial turbulences from time to time and new manifestations of trade barriers and protectionism. Facing all this, we must strengthen international cooperation to seize opportunities and meet challenges together so as to promote balanced and orderly development of the world economy. This is the common aspiration of the world people and the inevitable demand of our times. In this connection, I wish to put forward the following four suggestions.

First, respect the diversity of development models. The development of the world economy, in its final analysis, comes from development of all countries. And the key to their sustainable development is the right choice of development models that suit their national realities and the demand of our times and the formation of economic systems and mechanisms that fit those models. It is very important to keep the diversity of development models and encourage different models to complement each other if we expect the world economy to move forward with full dynamism. We should support all countries to choose development paths that suit their own conditions and improve their development models in the light of their respective national realities. At the same time, we should make full use of the favorable conditions and precious opportunities brought about by economic globalization to promote complementarity among competing development models and common development in the spirit of seeking common ground while putting aside differences. In this way, we will inject new vitality to the world economy.

Second, intensify dialogue and coordination in macro-economic policy. With growing economic links and interdependence among all countries, the economic performance of individual countries, especially of major economies, has a profound impact on the world economy while the world economic situation will also significantly affect the development of each economy. Hence, to jointly promote balanced and orderly development of the world economy, all countries, major economies in particular, should not only adopt responsible economic policies to introduce necessary economic restructuring, keep major currencies reasonably stable and prevent trade protectionism, but also intensify dialogues on macro-economic policies and, most importantly, coordination on major issues that bear on the overall development of the world economy and the common interest of all countries.

Third, improve international economic and trading regimes and rules. To establish a fair and reasonable international economic order as well as sound international economic and trading regimes and rules is an important guarantee for the promotion of balanced and orderly development of the world economy. We should give vigorous support to efforts to improve the international financial system, increase the voice of developing countries in international financial institutions, build up international communities capacity to prevent and cope with crisis and to maintain financial stability and promote development and create a fair, stable, and efficient financial environment for the growth of world economy. We need to make concerted efforts to stabilize the global energy market so as to forge an environment for adequate supply and safe, economical and clean use of energy to fuel world economic growth. And we should also energetically support the establishment of an open, fair, reasonable and non-discriminative multilateral trading system so as to create a sound trading environment for global economic growth to the benefit of all countries, developing countries in particular. The development of the multilateral trading system is now at a crucial stage. The outcome of the Doha Round will have a direct impact on promoting the balanced and orderly world economic development. Parties concerned should display greater political sincerity and demonstrate necessary flexibility to vigorously push forward the Doha Round and work for substantive results at the Ministerial Meeting of the WTO at the end of the year. China is ready to continue its consultation and cooperation with all parties concerned and work hard for the conclusion of the Doha Round in 2006 with comprehensive and balanced outcome.

Fourth, help developing countries accelerate development. For developing countries as a whole, economic development and the improvement of people's livelihood are the most pressing issues top on their agenda. Supporting the developing countries in accelerating development is also instrumental for sustaining balanced and orderly world economic development. It is, therefore, imperative for us to enhance the North-South dialogue, proceed with the gradual establishment of a new type of long-term and all-inclusive North-South partnership, and achieve a win-win result through securing mutual benefits and reciprocity and drawing on one another's successful experience. We also need to improve the development assistance mechanism and encourage more development resources to be diverted into developing countries. The developed countries should earnestly honor their commitments in poverty reduction, financial assistance and debt relief, and work out and put into practice new financing mechanisms to accelerate the development of developing countries, the least developed ones in particular. The developing countries, on their part, must work even harder to improve their domestic economic climate, use development assistance more effectively and build up competitiveness through their own efforts and cooperation with others. The international community must set up an effective oversight regime, implement the agreements and achievements reached on development issues at the recent UN Summit celebrating its 60th anniversary, and ensure the fulfillment of the Millennium Development Goals. In a recent announcement, China has pledged new assistance measures in five areas including taxation, debt relief, concessional loans, public health and human resources development with a view to supporting more rapid growth of developing countries. China will make vigorous efforts to ensure the delivery of its commitments.

Ladies and Gentlemen,

The G20 mechanism has included in its members the primary players of both the developed and developing countries as well as those in transition. Measured by population size, they account for 2/3 of the world total; by GDP, over 90 percent and by foreign trade, 80 percent. All this has made it a widely representative and influential international economic forum.

In light of the current international context, G20 members must engage in flexible and pragmatic dialogues on the basis of equality and mutual benefits, seeking common grounds while shelving differences. Meanwhile, they must also increase exchanges and cooperation with other regional and international economic institutions to build trust, expand consensus and coordinate actions, All this will give them bigger and more active roles that can have a real impact on ameliorating the international trading systems and rules, improving the international economic and financial structures, enhancing North-South dialogue and cooperation and facilitating global efforts in poverty reduction and development.

Ladies and Gentlemen,

Since its reform and opening-up 27 years ago, China has put in place an initial system of socialist market economy and a basic structure of all-dimensional openness. Its economy has sustained a rapid growth and its people now live a comfortable life, a historic breakthrough from a period of having only their basic needs met. Nevertheless, we are also clearly aware that China remains the biggest developing country in the world that features a huge population, weak economic basis, uneven development, and heavy environmental pressure and that its people's living standards are still not so high. Hence, modernization in China remains a long and uphill journey that will entail many years of hard work.

China has set the goal of building a moderately prosperous society in an all-round way. We intend to bring our GDP up to around US$4 trillion and per capita GDP to around US$3,000 within the next 15 years. so that we will be able to further develop the economy, improve democracy, advance science and education, enrich culture, foster greater social harmony and upgrade the texture of life for the people. To achieve this goal, we must maintain the steady and rapid growth of our economy. Ample labor resources, huge demand of the domestic market, a high household savings rate and social and political stability are the favorable elements that will secure China's sustained and rapid economic growth. A sustained momentum of sound development of China's economy will not only benefit the 1.3 billion Chinese people, but also generate tremendous business opportunities and market potentials for all the countries in the world.

The 2006-2010 Program for National Economic and Social Development is being drawn up. We will continue to pursue economic and social development under the concept of scientific development, which calls on us to adhere to the policy of expanding domestic demand and blaze a new trail to industrialization featuring high scientific and technological content, good economic returns, low resources consumption, little environmental pollution and a full

display of advantages in human resources. We will also need to accelerate economic restructuring and the transformation of the mode of economic growth, enhance our own innovative ability, make further progress in reform and openness, facilitate a balanced development between rural and urban areas and among different regions, and concentrate more on building a harmonious society, with the view to bringing our economic and social development to the track of sustainable development that is people-centered, balanced and all-dimensional.

A long-time lover of peace, the Chinese nation always cherishes such beliefs that one should be kind and trustworthy to his neighbors and endeavors to build a harmonious neighborhood, The Chinese people are keenly aware that only the development achieved through peaceful means can be the one that is sustainable and solid and the one that serves the interests of people in China and across the world. Therefore, China will proceed along the path of peaceful development to achieve a peaceful, open and cooperative development. Peaceful development means that China is to develop itself through working for a peaceful international environment and in return, promote world peace through its own development. Open development means, while relying largely on its own development efforts, China is to persist with its opening-up strategy; play a more active role in international economic and technological cooperation and competition, continue to improve the investment environment and open up its market with a higher level of openness on all fronts. Cooperative development means China is to broaden its exchanges and cooperation with the rest of the world, actively participate in the formulation of international economic and trade rules, work with others to resolve difficulties and differences that arise in cooperation and try its best to achieve mutual benefits and a win-win result.

Ladies and Gentlemen,

As a response to the wishes of the people and the trend of our times, let us join hands to build a new international economic order, promote balanced and orderly world economic development and shape a harmonious world featuring enduring peace and common prosperity.

Finally, I sincerely wish this meeting a complete success.

Thank you. 



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