Views of the Chinese Government on Global Economic Governance - 中欧社会论坛 - China Europa Forum

Views of the Chinese Government on Global Economic Governance

Extract from ” Xinhuanet, L’Aquila, Italy, 9 July, 2009 (Reporter:)“

(The Dialogue Meeting Between the leaders of G8 and Developing Nations opened in L’Aquila, Italy on 9 July to discuss current concerns for the international community such as the global financial crisis and global economic recovery, climate change, energy security, food security, international trade and development. State Councilor Dai Bingguo attended the meeting on behalf of Chinese President Hu Jintao and expressed China’s view on the issues mentioned above.)

Dai Bingguo mentioned that President Hu Jintao made a speech in Hokkaido a year ago saying that the international community should work together to develop a sustainable world economic system, an inclusive and orderly international financial system, a fair and reasonable international trading system and a fair and effective global development system. The outbreak and continuation of the global financial crisis further confirmed the importance and urgency of developing such systems. With the fast development of economic globalisation, what we should learn from the global financial crisis is: first, we need to carry out global cooperation to solve global crisis; and second, we need to strengthen and refine global economic governance to promote a coordinated and sustainable development of the global economy.

“I would like to take this opportunity to give a general account of the Chinese government’s view on the global governance.

━━ The Goal of Governance

The ultimate goal of the global economic governance is to advance economic globalisation in the direction of balanced development, shared benefits and win-win progress. A balanced development is one that is based on overall consideration and seeks a balance among the interests of developed and developing countries. Shared benefits mean laying emphasis on benefiting each country as well as the wellbeing of people in all countries. A win-win progress is one that emphasises the close relationship between the interests and development of each country.

━━ The Subject of Governance

All countries should involve in the global economic governance. Each country, big or small, strong or weak, rich or poor forms the global economic system and should equally participate in the global economic governance and have the equal representation, voice and involvement in decision making. The equality we call for is not just equality in form, but more importantly equality in substance and in the decision making process. This is the only way to ensure the fairness and justice as well as the credibility and effectiveness of the global economic governance.

━━ The Methods of Governance

Global economic governance involves negotiations and cooperation between countries to solve problems derived from the economic globalisation. We should adhere to democratic principles, listen to opinions from all sides and safeguard the interests of each country, especially those of the developing countries. We should adhere to the principle of respecting differences, accommodating different national circumstances and allowing different approaches by developed and developing countries. We should also adhere to the principle of promoting cooperation, encouraging communications and coordination between countries, bringing into full play each country’s respective advantage and working together to solve problems.

━━ The Governance Mechanisms

Global economic governance demands proper mechanism. Due to the rapid development of global economy, some of the current mechanisms cannot fully reflect the requirement of the international society; in order to meet the global challenge the governance mechanisms must be more inclusive. A multifaceted strategy for global governance is required. Various governance mechanisms should contribute to the compilation of international standards and norms based on the principle of consultation, increase relevant experience and practice, promote communications and cooperation between countries and build a framework for effective global economic governance.”

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