The IMF and World Bank meeting revealed three big signals: increased Chinese discourse

Xinhua Beijing, April 27 (Qin Xin) The International Monetary Fund (IMF) and the World Bank spring meeting has been the curtain, the meeting in addition to the disclosure of China's share in the world economy and the increase in voice, to achieve the transfer of the developed countries to the developing countries a major breakthrough in the voting power signal,　　It also reveals the importance of Asia leading the economic recovery and the two big signals that countries are working together in the face of uncertain economic prospects. Signal one: The weight of China's discourse has increased. The World Bank Development Committee passed a new phase of voting rights reform on 25th, with developed countries transferring 3.13% of their voting rights to developing countries, raising the overall voting rights of developing countries from 44.06% to 47.19%; China's voting rights at the World Bank are 2.77%　　Up to 4.42%, the voting power jumped from sixth place to third place, after the United States and Japan. The increase in China's discourse has been revealed as early as February this year, when the International Monetary Fund's chief executive, Mr. Strauss-Kahn, appointed the deputy governor of the People's Bank as a special advisor to the President, and many scholars have said that the move follows the 2008 World Bank President Robert Zoellick's appointment as chief economist　　There is no doubt that adding to the voice of the developing countries. In a visit to Washington, China's finance minister, Xuren, said this meeting has achieved the first time in the history of the World Bank to improve the representativeness and governance of developing countries as the goal of the reform, reflecting the economic strength of developing countries and the rise of international status, has a good model effect, will further promote the fund's share reform.　　World Bank President Robert Zoellick also said he was proud of China's increased share of the world economy. Ding Yifan, a renowned scholar, said in an interview with Beijing that China's position in the World Bank has increased not only by voting rights but also by China's greater responsibilities.　　In his view, China has become the third largest shareholder of the World Bank, not only in the World Bank's vote, but also in China's contribution. Li Yiping, a professor of economics at Renmin University, also expressed the same view. "China is rich, has a higher status in the international community, the World Bank has more say in these places, but at the same time, China's responsibilities are heavier, and shareholders mean more money to be invested." "China has been very good in this economic crisis and has won the trust of the world," Li Yiping said. But at the same time, China has put forward a higher demand, china shoulders heavier burden, and the third largest shareholder to match the status. "After China has more voting power, China can represent the interests of developing countries more." "Signal two: Asia will continue to lead the economic recovery on the eve of this spring meeting, the IMF released its latest World Economic Outlook report, which showed that the world economic recovery was better than expected, with a 4.2% and a 4.3% per cent increase in 2010 and 2011, after falling 0.6% in 2009. The Meeting noted that Asia's economy will continue to lead the global economic recovery, China and India are among the highlights.　　However, the meeting stressed that while the recovery was better than expected, it still faced new challenges.　　At the meeting, IMF chief Dominique-Kahn raised five key issues on the world economy, including ensuring recovery, tackling new fiscal challenges, repairing and reforming the financial sector, coping with high unemployment and rebalancing global demand. The communiqué shows that the IMF recognizes that the recovery is at different paces and that there may be spillover effects between countries and regions, and that countries should step back from stimulus policies according to different circumstances. Macroeconomic policies are aimed at achieving a balanced and stable global economy, creating jobs and stabilizing prices, and avoiding all forms of protectionism.　　The meeting called for ensuring sustainable public finances and addressing sovereign debt risks. In addition, with regard to the "exit strategy" affecting sustainable economic recovery, the communiqué concluded that the global economic and financial situation was better than expected with the concerted efforts of the international community to respond to the crisis, but that the economic recovery remained uneven and unemployment was high in many countries. Countries should adopt different policy measures based on their respective national circumstances, including the "exit strategy" for unconventional macroeconomic and financial support measures, while continuing to strengthen policy coordination in order to achieve a sustainable global economic recovery.　　The "exit strategy" must be coordinated with the following five economic elements: first, to ensure the soundness of fiscal expenditure; second, to ensure the stability, effectiveness and resilience of the financial system; Third, to create employment; Signal three: There is still uncertainty about the economy. China's central bank governor Zhou Xiaochuan said at the meeting that the global economy is showing a positive momentum of recovery, but the speed and dynamics of recovery in countries and regions are distinct, the recovery of emerging markets and developing countries is strong and the recovery in developed countries is relatively slow.　　While some of the functions of the financial system have been gradually restored, global financial stability remains fragile and the outlook for the global economy faces many uncertainties. The main risk for the global economy, he says, still comes from developed countries. Sovereign debt risk has become a threat to global financial stability and economic recovery, and its potential systemic impact deserves attention. The extension of the deleveraging process in the banking sector may lead to a lack of financing support for a sustainable economic recovery, which increases the complexity and difficulty of exit strategies. The liquidity injected into financial markets by major developed countries and the uncertainty of their exit policies have increased the volatility of international capital flows and made it more difficult to manage short-term capital flows in emerging market economies.　　The risk of a rise in trade and financial protectionism cannot be overlooked. Before the meeting, some scholars pointed out that the outbreak and spread of the global financial crisis, can be said to fully expose the existing international financial system of many defects and abuses, but also a strong demonstration of the necessity and urgency of the reform of the international financial system.　　An important outcome of this meeting was also a clearer emphasis on the importance of international cooperation and effective multilateral institutions. On the current urgency of the Greek sovereign debt crisis, the meeting revealed that the IMF and the European Union will soon reach a solution, which would help to avoid the GreekThe Sovereign-Debt default has caused a new blow to the world economy. Another signal from the conference is that the financial sector's rehabilitation and reform will be the focus of recent attention. The communiqué also said the financial sector was at the heart of the recent crisis.　　Strengthening financial regulation and enhancing the ability to resist shocks remains a crucial but unfinished task. Xuren, China's finance minister, pointed out that the developed countries should take full account of the possible impact on the world economy, especially the developing countries, when implementing exit strategies.　　In order to consolidate the foundation of global economic recovery, countries should maintain the continuity and stability of macroeconomic policy, prudently implement exit strategy, combine specific national conditions, and rationally grasp the dynamics, mode and rhythm of policy adjustment. It is understood that the communiqué in the reform of international financial institutions, to achieve the equal share of voice and representation between developing and developed countries will take time. The fund's 2008 previous reform plan on share and voting rights has not yet been implemented.　　The Fund's pledge to complete a review of the new share reform plan by January 2011 is still a gap from the call for the IMF share reform, which was recently held in Brazil, to be completed before November this year. News Materials: The International Monetary Fund (IMF) and the World Bank, the two largest international financial institutions, originated in the Bretton Woods Conference held in the United States in 1944.　　At that time, the Second World War came to an end, the establishment of the two institutions not only echoed the world financial and monetary system Bubur needs, but also reflects the international economy in Europe and the United States as the dominant pattern. Over the decades, the international community has and is undergoing profound changes, with emerging markets and developing countries, represented by China, Russia, India and Brazil, beginning to play an increasingly important role in the international arena. The Pittsburg Financial Summit established the 20-nation group as the main platform for negotiating world economic affairs.　　The 20 leaders agreed to shift the share of the IMF and the bank's two largest institutions to developing countries by 5% and 3% respectively. At the spring meeting, the World Bank Development Committee voted to allow developed countries to transfer 3.13% of voting weights to developing countries, raising the overall voting weights of developing countries to 47.19%. The reform has raised China's voting weight in the World Bank from 2.77% to 4.42%, becoming the world's third largest shareholder.