G20 has big­ger role in global growth

The G20 should ad­vo­cate an open global econ­omy, main­tain the mul­ti­lat­eral trad­ing sys­tem, and fur­ther vi­tal­ize in­ter­na­tional trade and in­vest­ment to re­vive the two en­gines...

China Daily (USA) - - VIEWS -

Against the back­drop of the weak global eco­nomic re­cov­ery and po­lit­i­cal un­cer­tain­ties world­wide, peo­ple are hop­ing the Group of 20, ac­count­ing for up to 85 per­cent of the world econ­omy, will show lead­er­ship in global gov­er­nance and seek to pro­mote eco­nomic growth.

In July, the In­ter­na­tion­alMone­tary Fund re­vised down its fore­cast for global growth in 2016 and 2017, due to the un­cer­tainty sur­round­ing Bri­tain’s pro­posed exit from the Euro­peanUnion. The IMF stated that it ex­pects the global econ­omy to grow 3.1 per­cent in 2016 and 3.4 per­cent in 2017, both 0.1 per­cent­age points lower than its fore­casts in April.

Mean­while, a re­treat from glob­al­iza­tion is emerg­ing as a dan­ger to the world econ­omy, and a tide of pop­ulism is ris­ing.

It is com­mon sense that eco­nomic devel­op­ment is a pre­con­di­tion for se­cu­rity, and that eco­nomic stag­na­tion would bring un­ex­pected risks and dan­gers. There­fore, high hopes are be­ing pinned on some agree­ment at the G20 sum­mit on united ef­forts to pro­mote eco­nomic devel­op­ment.

The G20 sum­mit to be held in Hangzhou, East China, in Septem­ber of­fers a plat­form for the heads of state and gov­ern­ment as well as cen­tral bankers of the 20 largest economies, to ex­change views on macro-eco­nomic pol­icy. The mem­bers have long rec­og­nized the need to shift their strength to eco­nomic growth to en­hance the base of world se­cu­rity in­stead of falling into “geopo­lit­i­cal trap.”

The po­ten­tial and driv­ing force of the global eco­nomic devel­op­ment are in­no­va­tion, re­form and struc­tural ad­just­ment.

The theme of this year’s sum­mit—“To­ward an In­no­va­tive, In­vig­o­rated, Interconnected and In­clu­siveWorld Econ­omy”— re­flects the im­por­tance of en­cour­ag­ing in­no­va­tion for sus­tain­able eco­nomic growth and over­com­ing struc­tural and in­sti­tu­tional ob­sta­cles.

Ad­vanc­ing with the times, the G20’s agenda has been grad­u­ally shift­ing from deal­ing with the af­ter­math of the global fi­nan­cial cri­sis to long-term gov­er­nance in re­cent years, with trade and in­vest­ment emerg­ing as an­other crit­i­cal as­pect along with fi­nan­cial and fis­cal co­or­di­na­tion.

As economies have still not fully re­cov­ered from the fi­nan­cial cri­sis, many of them have turned against free trade. It is high time for the G20 economies to say no to pro­tec­tion­ism.

From China’s per­spec­tive, the G20 should ad­vo­cate an open global econ­omy, main­tain the mul­ti­lat­eral trad­ing sys­tem, and fur­ther vi­tal­ize in­ter­na­tional trade and in­vest­ment to re­vive the two en­gines so they serve both in­dus­tri­al­ized and de­vel­op­ing coun­tries.

Mean­while, the G20 needs to give de­vel­op­ing coun­tries more say in the global econ­omy so as to nar­row the gap be­tween them and ad­vanced na­tions for the ben­e­fit of all. The au­thor is a writer with Xin­hua News Agency.

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