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Emerging economies promising despite slow global recovery

Author  :  Wu Yong     Source  :    Chinese Social Sciences Today     2016-11-21

Though the world economy has been struggling to recover since the 2008 financial crisis, scholars expressed optimism about the development of emerging economies at the 2016 Emerging Economies Forum, which was held on Nov. 5 in Guangzhou.

Led by the BRICS nations, emerging economies still have considerable potential for development, though each may have a different growth rate and they collectively face tremendous pressure, said Yu Hongjun, former deputy director of the International Department of the CPC Central Committee.

China and India, among others, have played a remarkable role in promoting global growth, noted Huo Jianguo, vice-chairman of the China Society for World Trade Organization Studies.

Emerging countries relied heavily on exports or resources in the past, but they are making adjustments, Huo said, adding that they are capable of getting back on track after a period of adaptation.

To say the least, China and India have held up “half the sky” for the emerging markets by means of their “stable growth,” Huo said.

Scholars said that China can only establish itself in global governance when it builds up its strength. Citing related data, Pei Changhong, director of the Institute of Economics at the Chinese Academy of Social Sciences, said that China’s contribution to the world economy accounted for more than 30 percent in 2015, solidifying the country’s status as a powerhouse of global growth.

In the first nine months of 2015, the Chinese economy progressed amid stability and grew beyond expectation. Huo stressed the need to continue to build up the country’s growth momentum or market vitality by advancing domestic reforms in all sectors and opening up even further.

The World Trade Organization has been in limbo since negotiations on the Doha Development Round stalled in July 2008 and new regional trade organizations have materialized. Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics, said that the WTO should not be “absent” from global governance reform. For the sake of reform, the primary goal should be to bring the Doha round of negotiations to a satisfying conclusion.

Tu attributed the breakdown of the negotiations to the lack of leadership in the organization amid a changing global economic power structure. In the 21st century, the rapid rise of developing countries, especially BRICS, has radically altered the power structure within the WTO, he said.

Tu also pointed out the differences of opinion between developing and developed nations over economic development strategy. While developed countries consider opening up to be the prerequisite for growth, developing economies worry that excessive opening up could bring potential harm to their interests. Meanwhile, the unwillingness of developed countries to abandon high agricultural protectionism also leaves doubts about their sincerity, Tu said.

From overall and strategic perspectives, China will exert a far-reaching influence if it can contribute to the conclusion of the Doha negotiations and the development of the WTO, Tu said.

Currently, the organization is leaderless. China’s efforts to improve the situation will be vital to maintaining the vigor of the WTO and will be its most substantive contribution to global economic governance reform, he added.

Editor: Ma Yuhong

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