Xi: Global ac­tion on growth next

Con­sen­sus in Hangzhou must be­come pol­icy, say eco­nomic lead­ers and ex­perts

China Daily (USA) - - FRONT PAGE - By LI XIANG in Hangzhou lix­i­ang@chi­nadaily.com.cn

The G20 Lead­ers Sum­mit in Hangzhou has in­jected fresh spirit into the ef­fort to ad­dress the chal­lenges of the global econ­omy, and the next task for the lead­ers is to en­sure the im­ple­men­ta­tion of the Hangzhou con­sen­sus, eco­nomic lead­ers and ex­perts said.

The sum­mit, which con­cluded on Mon­day, re­leased a state­ment in which the lead­ers agreed on a series of ac­tion plans to im­ple­ment their growth strate­gies cov­er­ing a wide range of pol­icy ar­eas.

In the state­ment, the lead­ers pledged to work to­gether to pur­sue in­no­va­tion-driven growth, to im­prove pro­duc­tiv­ity, trade and in­vest­ment, and to re­duce over­ca­pac­ity in the steel sec­tor, which it says is a global prob­lem re­quir­ing an ef­fort by all.

The lead­ers also promised to un­leash growth po­ten­tial by sup­port­ing a dig­i­tal econ­omy, en­hanc­ing struc­tural re­forms, im­prov­ing the re­silience of the global fi­nan­cial sys­tem and pro­mot­ing in­clu­sive growth on the ba­sis of mu­tual ben­e­fit.

Chris­tine La­garde, the man­ag­ing di­rec­tor of the In­ter­na­tional Mon­e­tary Fund, urged the lead­ers to de­liver ac­tions, say­ing that Pres­i­dent Xi Jin­ping’s re­marks that ac­tion mat­ters more than dec­la­ra­tion served as an in­spi­ra­tion at the sum­mit.

“We met against the back­drop of a global land­scape char­ac­ter­ized by ma­jor eco­nomic and tech­no­log­i­cal shifts, and by growth that has been too low for too long and which has ben­e­fited too few,” the IMF chief said.

“The con­clu­sions should not

It is im­por­tant to not just re­pair the prob­lems of the past but to lay the foun­da­tions for fu­ture growth.”

An­gel Gur­ria, sec­re­tary-gen­eral of the Or­ga­ni­za­tion for Eco­nomic Co­op­er­a­tion and Devel­op­ment

only be thought about but also be im­ple­mented,” La­garde said, adding that the Hangzhou con­sen­sus showed the G20 lead­ers’ de­ter­mi­na­tion to ad­dress the chal­lenges they face with force­ful pol­icy ac­tions.

An­gel Gur­ria, sec­re­tary-gen­eral of the Or­ga­ni­za­tion for Eco­nomic Co­op­er­a­tion and Devel­op­ment, said China should be con­grat­u­lated for plac­ing in­no­va­tion at the heart of the G20 pres­i­dency.

“It is im­por­tant to not just re­pair the prob­lems of the past but to lay the foun­da­tions for fu­ture growth — growth that will to a large ex­tent be driven by new ideas and tech­nolo­gies,” he said.

While the 2014 G20 com­mit­ment set the goal of rais­ing global GDP by an ad­di­tional 2 per­cent by 2018, Gur­ria said that mea­sures im­ple­mented so far will only add around 1 per­cent.

“We are only half­way there,” he said, call­ing for full im­ple­men­ta­tion of the G20 coun­tries’ growth com­mit­ments.

Dur­ing the sum­mit, Pres­i­dent Xi also called for trans­for­ma­tion of the G20 from a mech­a­nism of cri­sis re­sponse to one of long-term gov­er­nance. An­a­lysts said Xi’s pro­pos­als re­vealed China’s grow­ing con­tri­bu­tion to and in­flu­ence on global eco­nomic gov­er­nance.

Jia Jin­jing, a re­searcher with the Chongyang In­sti­tute for Fi­nan­cial Stud­ies of R en min Univer­sity of China, said the sum­mit re­flects a change of China’s role in global gov­er­nance from a par­tic­i­pa­tor to a lead re­former.

“China has brought many new in­puts to global gov­er­nance, such as pro­mot­ing in­no­va­tion, struc­tural re­form and strength­en­ing devel­op­ment and co­op­er­a­tion among the de­vel­oped and de­vel­op­ing coun­tries, which breaks new ground for achiev­ing global devel­op­ment goals,” Jia said.

David He, a part­ner of Bos­ton Con­sult­ing Group, said Xi’s speech at the Hangzhou sum­mit un­der­scored China’s re­spon­si­bil­i­ties in the global econ­omy.

“Pres­i­dent Xi has pro­posed in­no­va­tion, open­ness, con­nect­ed­ness and in­clu­sive­ness as the key words for global econ­omy, hop­ing this Chi­nese wis­dom could also ben­e­fit the world,” he said.

“In ad­di­tion, I was most im­pressed by his de­ter­mi­na­tion to deepen sup­ply-side struc­tural re­form, to bet­ter co­or­di­nate be­tween mar­ket and gov­ern­ment, and to truly foster in­no­va­tion,” he added.

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