ILO chief praises Beijing's handling of financial crisis

China has played an extremely important role in lifting the global economy since the 2008 financial crisis, according to Guy Ryder, director-general of the International Labor Organization, based in Geneva.

In an exclusive interview before flying to Hangzhou to attend the G20 Leaders Summit, he endorsed China's growing role and said it would be "hard to imagine" the world attempting to improve inter-national economic policy coordination" without China and other major emerging economies at the table".

It is important that China participates with other large economies to improve the coordination of policy responses to global challenges, he said. "It's not an easy process for any country, and China has engaged with increasing commitment to the process as demonstrated by its hosting of the G20 this year."

Looking back, Ryder said, no other country responded as decisively as China to the call by G20 leaders in Washington in 2008 to "use fiscal measures to stimulate domestic demand to rapid effect".

Within months of the crisis, China launched a 4-trillion yuan ($600 billion) stimulus package that saved tens of millions of jobs and set the economy on a high-growth trajectory that supported demand and created employment in the rest of the region and the world.

Ryder said China also provided strong support for the Global Jobs Pact adopted by his organization in 2009, taking the position that the crisis did not provide an excuse to disregard or weaken internationally recognized labor standards.

In addition, he said, China is playing an increasingly active role in the broader multilateral system of the United Nations, of which the ILO is part, as well as in the G20.

He added that the universal framework for cooperation in the UN system is important and that China is demonstrating this by, for example, fully supporting the 2030 Agenda for Sustainable Development, which states that global institutions must be strengthened to make the G20 effective.

"I like to think the ILO has contributed to facilitating this two-way channel of learning in our areas of expertise," he said.

Ryder said he is impressed that China has made great efforts in job creation.

Citing official figures, he said that from 2003 to 2014, 137 million jobs were created in urban areas, and between 1978 and 2014, the per capita disposable income of urban and rural residents increased 13 and 14 times respectively when adjusted for inflation.

"Now, employment policy is becoming more complex," he said.

In a sense, Ryder said, China is now digesting the effects of its stimulus package, which has fostered an employment structure suited to an export-oriented development strategy relying on an abundant labor supply, and served up with a hefty environmental bill.

China's rapidly aging society also has significant implications for the employment structure, he added.

The Belt and Road Initiative makes the case that other countries stand to benefit from much needed infrastructure development and the resurrection of ancient trading routes.

"China's leadership is keen to revitalize the international trade and investment regime as part of a coordinated effort to stimulate growth," Ryder added.

fujing@chinadaily.com.cn

(China Daily 09/04/2016 page26)