China pitches for new financial order

New Delhi, Mar 4 (PTI) China Wednesday strongly pitched
for reform of global financial institutions and establishment
of a new financial order with Beijing and New Delhi playing a
greater role in the decision-making process of these bodies.

Chinese Ambassador Zhang Yan said both the countries
should work together to press the developed countries to bear
their responsibility and prevent them from shifting the burden
on to developing countries.

He said India and China should enhance cooperation in the
economic field and join hands in ensuring reform of the
international financial system to meet challenges posed by the
economic downturn.

"China and India should strengthen cooperation and
coordination in the reform of the international financial
system and accelerate the establishment of a new international
financial order," Yan said addressing a conference organised
by the CII here.

"At the same time, we shall push for reform of the
existing international financial institutions with a view to
increase the role of China and India in decision-making
process and empower them with greater say and representation
in the international financial institutions," he said.

Observing that the two economic powers should "go hand in
hand" and enhance bilateral cooperation in the economic field,
Yan said such a move will send out a positive message and help
the world economy to a great extent.

"We must beef up our confidence. At the time of crisis,
confidence is crucial for fighting against the crisis and
achieving early recovery," Yan said.

"When China and India, the two largest developing
countries, run their affairs well, it can help restore
confidence in global economic growth and curb spread of the
international financial crisis," he said.

Noting that both the countries must take effective
measures to tackle the crisis, he said it would help restore
confidence in global economic growth and curb the spread of
the international financial crisis.

"China and India's economies have both the strength and
resilience against the crisis. We have huge domestic markets,
sufficient financial resources and opportunities for
investment, the Chinese Ambassador said.

He also said governments India and China have taken
"decisive actions" by putting in place a series of stimulus
packages with specific steps to counter the negative impact of
the slowdown on the economies of the two countries.

"Both countries should exchange experience and draw
inspirations from each other with a view to achieve better
results."

Expressing confidence that the two countries will be able
to emerge as winners from the crisis, Yan said both India and
China should turn the crisis into opportunity.

"As long as China and India can join their efforts, learn
from each other and compliment each other, the two countries
will surely emerge as winners of this crisis," he said.

While talking about steps taken by China to protect
interest of the underprivileged people, Yan also mentioned
India's effort to ensure inclusive growth for its population.

Addressing the conference, Secretary (Economic Relations)
in the Ministry of External Affairs, H S Puri said both India
and China have a crucial role to play in addressing the
"systemic risks" in the global financial system.

"A frank exchange of views between India and China on how
both sides can cooperate to stabilise and re-launch the global
economy would be a good beginning in this direction," Puri
said.

He said that the new forms of international institutions
are vital to tackle problems in future and that World Bank and
IMF have to change the current form of their operations.

Puri said over the past five years, India has witnessed
high growth rate of 8.8 percent driven by strong industry and
services sector performances as well as high savings and
investment. "Despite the economic downturn, we expect India's
GDP growth for the current year ending March 2009 to remain
over seven per cent." PTI MPB
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