Emerging countries need their own model

The three-day Boao Forum for Asia Annual Conference 2014, which starts in Hainan on Tuesday with the theme "Asia's New Future: Identifying New Growth Drivers", is expected to give answers to such questions as how China can deepen reforms and release new institutional dividends.

In a move to spur economic recovery, developed countries have enforced a series of financial, fiscal, monetary and industrial reforms over the past years since the global financial crisis. A trade and financial cooperation mechanism has also been jointly created to put them in a favorable position in the fierce global competition. Currently, developed countries, particularly the United States, are on the way to a full economic recovery, and a new global economic governance framework led by developed countries and a set of crisis response and economic growth theories have taken shape. Against this backdrop, there is an increasingly prevalent viewpoint in the West that developed countries will soon again act as the locomotives of the world economy.

In contrast, emerging countries have suffered a big setback in their economic development in recent years. Slowed industrial growth, soaring inflation, depreciation of their currencies and accelerated capital outflows have caused a continuous economic deceleration in emerging economies as a whole. Their long-pursued strategy of excessively prioritizing economic growth while ignoring coordinated and balanced development is increasingly unviable and social problems have gradually surfaced that pose major uncertainties to national development. The pressures from the sound recovery of developed economies and their own development bottlenecks make it urgent for emerging countries to push forward sweeping reforms and innovation so that they will not miss a new round of world economic growth.