La­garde urges bal­ance be­tween growth, trade

China Daily (USA) - - FRONT PAGE - By CHEN WEIHUA in Wash­ing­ton chen­wei­hua@chi­nadai­lyusa.com

In­ter­na­tional Mon­e­tary Fund (IMF) Man­ag­ing Di­rec­tor Chris­tine La­garde called for global ef­forts to boost growth while guard­ing against pro­tec­tion­ism.

She was speak­ing on Wednes­day morn­ing at the Kel­logg School of Man­age­ment at the North­west­ern Univer­sity out­side Chicago on the health of the global econ­omy.

The fifth most pow­er­ful woman in the world, ac­cord­ing to Forbes mag­a­zine, talked about the fast change in the world over the past two decades, cit­ing the fact that the emerg­ing and de­vel­op­ing coun­tries, home to 85 per­cent of the world’s pop­u­la­tion, have wit­nessed more progress for more peo­ple than at any time in his­tory, from life ex­pectancy to school en­roll­ment.

“A good deal of this de­vel­op­ment is due to the suc­cess of China, but there has been a broader trend of eco­nomic con­ver­gence be­tween the poor and the rich na­tions — not as fast as it should be, but a trend nev­er­the­less,” she said.

La­garde de­scribed the prospects of the emerg­ing and de­vel­op­ing economies as mer­it­ing some “guarded op­ti­mism”, say­ing these coun­tries will con­tinue to con­trib­ute more than three-quar­ters of to­tal global growth this year and next af­ter driv­ing the global re­cov­ery since the 2008 fi­nan­cial cri­sis.

“China is rightly re­bal­anc­ing from man­u­fac­tur­ing to ser­vices, from in­vest­ment to con­sump­tion, and from ex­ports to do­mes­tic ser­vices — which should pro­duce a more sus­tain­able, al­beit slower grow­ing eco­nomic model. Even so, it will con­tinue to grow at a ro­bust rate of about 6 per­cent,” she said.

The words are likely to of­fer some as­sur­ance about the Chi­nese econ­omy, where the Bank for In­ter­na­tional Set­tle­ments, an in­ter­na­tional watch­dog, warned last week about a cri­sis in the bank­ing sys­tem due to the ex­cesses in credit.

La­garde said the US econ­omy has been re­cov­er­ing for some time but had a set­back in the first half of 2016, which will lead to a down­grade in the IMF’s US fore­cast.

She said there are good rea­sons to be op­ti­mistic about the fu­ture. “And yet, the mood in an im­por­tant part of the world — the one we call the ad­vanced economies — has shifted in the op­po­site di­rec­tion,” said La­garde, who started her sec­ond five-year term in July.

She ac­knowl­edged the ris­ing eco­nomic in­equal­ity in many coun­tries and the fact that real in­comes for many in the ad­vanced world have been de­clin­ing, say­ing it means that gov­ern­ments must work harder to make growth in­clu­sive.

“Of course, the so­lu­tion to mak­ing peo­ple bet­ter off is not to fall back on pro­tec­tion­ism or other failed eco­nomic recipes of the past,” she said. with­out say­ing if she means the strong pro­tec­tion­ism and anti-trade sen­ti­ment in the US and some Euro­pean coun­tries.

US pres­i­den­tial can­di­dates Don­ald Trump and Hil­lary Clin­ton both re­it­er­ated their op­po­si­tion to the Trans-Pa­cific Part­ner­ship (TPP) among the US and 11 Pa­cific Rim na­tions dur­ing their first de­bate on Mon­day.

China is rightly re­bal­anc­ing from man­u­fac­tur­ing to ser­vices, from in­vest­ment to con­sump­tion.” Chris­tine La­garde, IMF man­ag­ing di­rec­tor

US Sec­re­tary of State John Liu Qi, Kerry for­mer ar­guedParty chi­ef­for theof Ningbo,TPP on Zhe­jiang Wednes­day prov­ince, at the was Wil­son elected Cen­ter. gov­er­norHis ar­gu­mentof Jiangxi fo­cused prov­ince mostly on on Wed­nes­daythe geopo­lit­i­calafter the for­merand na­tional gov­er­nor, se­cu­ri­tyLu Xin­she, as­pects was rather ap­pointed than the ad­dress­ing prov­ince’s the Party widespread­chief in June. con­cerns about Liu, how57, was the elected fed­eral gov­er­nor­gov­ern­ment dur­ing willa ple­nary­help work­ers meet­ing and of com­mu­ni­ti­es­the provin­cial hurt peo­ple’sby trade congress deals. on Wednes­day,Kerry’s talk was one of the ac­cord­ing­many givento by top US of­fi­cial­s­the provin­cialthese days to make a gov­ern­ment’slast-ditch ef­fort to lobby the web­site. Congress to rat­ify the TPPA dur­ing­na­tive of the lame-duck ses­sionYishui, Shan­donglater this year. The prospect prov­ince,for pas­sage has beenLiu re­gard­ed­was by most trade ap­pointed ex­perts as a long shot. deputy Party chief The of Coun­cilJiangxi on For­eign Re­la­tion­sin Fe­bru­ary. (CFR) pub­lished a re­portHe was ti­tled ap­point­edA Win­ning deputy Trade gov­er­nor Pol­icy and­for act­ingthe United gov­er­nor States of on the Tues­day. prov­ince by the stand­ing Ed­ward com­mit­teeAlden, se­nio­rof the fel­low provin­cialat the peo­ple’sCFR and con­gress­coau­thor on of July the 8. pa­per, said the Liu re­port grad­u­ated rec­om­mends from that Zhe­jiang Congress Univer­si­ty­put in with place a a bach­e­lor’s pro­gram de­greeof “liveli­hoodin en­gi­neer­ing in­sur­ance” andto help poly­mer­estab­lished ma­te­ri­als work­ersin 1980. who have lost Af­ter their jobs grad­u­a­tion,or suf­fered hea se­ri­ous be­came lossa in dis­patcher­in­come due at to Quzhou changes Chem­i­cal brought In­dus­tryabout by Co trade,and tech­nol­ogy,in 1992 be­cameor sim­ply gen­er­alby chang­ing man­ager con­sumerof the pref­er­ences.com­pany.

La­gardeHe was called ap­pointe­don na­tions the to deputy main­tain head eco­nomi­cof the provin­cialopen­ness de­part­men­tand to do noof petro­chem­i­cal­harm to the still frag­ile in­dus­try global in econ­omy.Zhe­jiang in Jan­uary 1996.

“Restrict­ingHe be­came trade mayor and of lim­it­ing Wen­zhou eco­nomicin 2003 open­ness and is di­rec­tor­sure to wors­enof the the provin­cial­growth out­lookre­form for and the de­vel­op­ment­world and es­pe­cially com­mis­sion its in weak­est2006. ci­ti­zens. In But 2008, we he need was to re­think elected fun­da­men­tal­ly­deputy chief of how the growth Stand­ing can Com­mit­teebe made moreof the in­clu­sive, Zhe­jiang and provin­cialact ac­cord­ingly,” peo­ple’s she congress.said.

SheHe also was urged named na­tions Party to chief use of mon­e­tary,Ningbo, a fis­cal ma­jor and port struc­tural­city in Zhe­jiang, poli­cies in in con­cert.2013.

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