OECD confirms significance of China’s rapid economic growth

The first G20 Finance Ministers and Central Bank Governors' Meeting within Russia’s rotating presidency was held in Moscow on Feb. 15-16. Enhancing financial stability was a key topic at the meeting, and delegates also discussed such matters as implementation of the G20 framework agreement for strong, sustainable, and balanced growth as well as promotion of the international financial system and financial regulation reforms.

Narrowing gap between China and most developed countries

Russian Minister of Finance Anton Siluanov and Secretary-General of Organization for Economic Co-operation and Development (OECD) Angel Gurría co-chaired a press conference for the organization’s 2013 Going for Growth report on Feb. 15 as part of the G20 meeting agenda. Siluanov said that the report offered a comprehensive and objective evaluation of the global economic situation, and the suggestions and measures in the report could help promote the economic development of many countries.

The report described China’s rapid economic growth over the past five years, and confirmed the global significance of China’s economic development through detailed data. During the G20 meeting, the vice finance ministers and deputy central bank governors of BRICS countries (Brazil, Russia, India, China, and South Africa) also convened.

China’s Vice Finance Minister Zhu Guangyao who attended the conference told Chinese media that they convened to discuss the establishment of a BRICS development bank and currency reserve in preparation for the fifth BRICS summit to be held in Durban, South Africa in March. The rising influence of BRICS countries is an objective reflection of the changing global economic landscape. China and other major emerging market countries have adapted to the changes in the global economic landscape. Important fiscal and financial issues will be discussed at the summit in Durban, reflecting the cooperation among BRICS countries since the New Delhi summit last year.

The head of OECD’s Economics Department said in an interview that China has made great contributions to world economic development in recent years thanks to its rapid economic growth. The gap between China and most developed countries is narrowing quickly, and the country has made remarkable achievements in increasing employment, opening the public sector to private capital, reducing companies’ administrative expenses, and many other aspects that can promote its economic development. How China can maintain rapid growth for a long time is an urgent question facing the country. He hopes that related suggestions in the Going for Growth report such as promoting talent liquidity, further improving the legal system, and enhancing educational equity can help Chinese leaders make right decisions.

Basel III likely to be implemented

The international financial system reform remains a major topic at the G20 meeting, including implementation of the international financial system reform agreement reached at the Seoul summit in 2010 and initiation of a new round of negotiations on the reform of the International Monetary Fund (IMF) quotas.

Gurria said that there is no currency war, and warned that the monetary measures certain countries adopted to solve their economic woes could only solve immediate problems. They should pay attention to the long-term development of the entire country.

Zhu believes that the meeting saw breakthroughs in the settlement of some old issues. The United States announced last year indefinite postponement of implementation of Basel III, a global financial regulatory agreement, and the European Union is hesitant about implementing the agreement. China hopes all parties concerned can fulfill their commitments, strengthen financial regulation, and implement Basel III as soon as possible.

Read the Chinese version at: 经合组织肯定中国经济高速增长, Source: People's Daily, Author: Zhang Xiaodong and Lin Xuedan