Op-Ed Contributors

Respect development rights

By Guo Jiping (China Daily)
Updated: 2010-07-30 07:54

The chief causes of the global financial crisis lie in the unfair and unreasonable economic and financial order, and the irresponsible fiscal and financial policies followed by some countries.

The international financial system, which was tailored to the needs of the developed countries post World War II, is undergoing a transition.

Although several G20 summits have indicated the need for reform of the international economic governance framework, the interest distribution pattern has not yet been fundamentally overhauled.

By abusing the dollar's hegemony in cross-border financial transactions, the US economy has been effectively virtualized. This virtual economy became bloated and created large bubbles.

Massive over consumption, a debt-ridden fiscal policy and excessively loose financial supervision in the US meant the financial crisis finally spread beyond Wall Street.

The institutional flaws and systemic risks inherent in the international economic and financial framework haven't been removed.

It is the shared responsibility of both developed and developing nations to establish an impartial international economic system and promote a more balanced global economy.

China's development has brought numerous opportunities for the world, especially in the form of profits for enterprises in developed nations and greater global economic progress.

Those who enjoy the dividends from China's development, even as they criticize its perceived lack of effort, are in fact disregarding the development rights of its 1.3 billion populace.

The world must respect China's development rights, and take an objective and reasonable view regarding the accountability that China must assume for global economic failures. It must also seek to understand the difficulties faced by the nation. The Chinese economy too suffered during the financial crisis, so it is irresponsible to simply describe it as the "biggest winner" from the crisis.

Even though China took the lead in recovering from the recession, the achievements are due to the government's timely and capable responses and the collective effort of the Chinese people.

During the hard days, China never complained, nor did it shift the blame on to other nations, or set up trade barriers.

By closely cooperating with other major economies, China has made an important contribution to world economic stability and recovery, and projected the image of a responsible global power.

The countries that have a lead role in the reconstruction of the international economic and financial system must seriously reflect upon and take concrete action rather than dodge their rightful responsibilities.

The foundations of the ongoing economic recovery is not solid as yet, and greater cooperation among all the key powers is needed to push for a sustainable and balanced development of the global economy.

The author is an editorial writer with People's Daily. It was originally published in People's Daily.

(China Daily 07/30/2010 page8)