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Reform of Global Economic Governance System: The Historical Logic and China’s Role
2017-11-16
By Long Guoqiang, DRC
2017-8-28
After the outbreak of the international financial crisis in 2008, the world economic structure witnessed an accelerated adjustment along with global economic governance system changes. To create a fair and reasonable global economic governance model, we need to have a comprehensive understanding of the evolution and status quo of the global economic governance system, and scientifically grasp the development trend and direction of the reform of global economic governance system. China could, based on the above-mentioned judgment, play its due role in pushing forward the global economic governance system.
The characteristics and keynote of today’s global economic governance system. The global economic governance system is a governance system composed of values, international rules and international organizations for the regulation of cross-border economic activities such as international trade, international investment and international finance. Over the past several decades, with the deepening of economic globalization drive, the global economic governance system has, through constant development and evolution, gradually formed the following characteristics. First, the system takes the liberalization of trade and investment as the mainstream values. Second, the governance rules cover a wide range of issues. Third, the governance mechanism has a multi-level system. Fourth, the governance system has diversified entities. Fifth, the enforcement of governance is relatively weak. Sixth, the governance system makes gradual progress as time passes by. Looking through the evolution of global economic governance system after World War II, we can find that open-oriented cooperation is the keynote of today’s global economic governance system, liberalization and facilitation of trade and investment are its basic value orientation, and the international rules are aimed at promoting, maintaining and standardizing the development of cross-border economic and trade activities.
The global economic governance system has entered a critical period of accelerated reform. After the outbreak of the international financial crisis, the global economic governance system has entered a critical period of accelerated reform propelled by the combined effects of various forces. The main reasons are as follows. First, further adjustment of international economic structure requires accelerated reform of global economic governance system. Second, the dramatic widening of global income gap requires the improvement of inclusiveness of global economic governance system. Third, some developed countries have adopted trade protection policy and this has forced the global economic governance system to make relevant adjustment in light of the changes of international environment. Fourth, fragmented global economic governance system with low efficiency has made it difficult to effectively deal with the new problems facing international economic performance. Fifth, global economic governance system has entered a critical period of accelerated changes, calling for new wisdom to boost reform.
China needs to contribute its share to the improvement of global economic governance system. The global economic governance system is experiencing a critical period of accelerated reform, which provides a historic opportunity for China to participate in global economic governance. As a responsible power, China needs to contribute its share for the improvement of global economic governance system and guide the system to advance with a more open, inclusive, fair and effective development manner beneficial to sustainable growth so as to meet the high expectations of the world. First, we need to make cooperation for win-win results and safeguard the swift performance of economic globalization. In recent years, China has strengthened its cooperation with the international community, taken a clear-cut stand to object to all forms of protectionism, and unswervingly maintained liberalization and facilitation of trade and investment. Second, we need to lead the reform of global economic governance system aiming at the establishment of a community with shared future for mankind. We need firstly to make clear the goal of reform, cultivate a new system concept and share with the world China’s development experience. Third, we need to contribute China’s share to improve the global economic governance system and focus on enhancing the ability to lead the reform of global economic governance system. To be specific, we need first of all to make more efforts on the research of global economic governance theory and enhance the ability of coming up with new concepts, new theories and new initiatives. We need to implement the concept of open-oriented development, enhance the international competitiveness of capital- and technology-intensive industries, and strengthen the ability of trade and investment liberalization and facilitation. Besides, we need to cultivate IT-based security notion in an open-minded manner, and properly handle the relations between openness and security. The last but not the least, we need to attach great importance to personnel training for global economic management, forge a mobile system for talented personnel and encourage and support more Chinese citizens to participate in the work of international organizations.
