Economic reforms can increase multilateralism

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China’s International Economics and Finance Institute is hosting a seminar for leaders from international organizations to discuss the opportunities and challenges in international economic governance reform.

Multilateral cooperation with economic integration and strong partnerships have proven to be the key to crucial reform in the global economy.

The post-war global economic governance system played an important role in promoting global economic growth, reducing global imbalances, maintaining global financial stability, and promoting multilateral trade processes.

But there are still shortcomings. With the overall strength of developing economies rising, the call for further reform and improvement of international economic governance is becoming increasingly stronger.

With new multilateral institutions emerging and new multilateral development banks being founded, such as G20 and AIIB, a more inclusive international system has been established, said Victoria Kwakwa, World Bank's Vice President of East Asia and the Pacific, during the opening speech at the International Economics and Finance Institute seminar.

"Our international economic governance system will need to continue to be shaped by globalization and multilateralism, but it cannot be business as usual," said Ms. Kwakwa.

"To help countries meet rising challenges, we aim to pursue private sector solutions whenever they can help achieve development goals and reserve scarce public finance for where it is most needed - particularly investments in human capital," she said.

Multilateral efforts can only complement the domestic efforts of each individual country, according to Ms. Kwakwa.

Countries themselves can do much to achieve sustainable high growth, such as by raising resources for development domestically, investing widely in infrastructure and in people, and by providing the tools and institutions needed for both people and economies to become more resilient to economic shocks and structural change.

Countries can maximize the benefits of an integrated world by equipping their people with the right education, building the human capital that makes them resilient to change.

China's Vice Minister of Finance Shi Yaobin stressed that China, as an active participant in global economic governance and constructive contributor, will continue to actively participate in the reform and construction of the global governance system.

Source(s): People's Daily