As a responsible international stakeholder, China should help
ward off a global slowdown, or even a recession, the World Bank
group president has said.
China will continue to be a growth engine in the global economy
but it faces the challenges of an international slowdown because of
the subprime mortgage crises in both the United States and Europe,
Robert B. Zoellick said.
"China and the world economy are related," Zoellick told
China Daily. "Coming back to the 'stakeholder' concept, we
need to adjust our approach to the new challenges."
In September, the World Bank Beijing office said that the recent
international financial market turmoil may affect China's economy,
but that the country is well placed to absorb the impact.
"The World Bank is in a good position to work with China" to
fight against global economic woes," he said.
Zoellick came up with his "stakeholder concept" in September
2005 when he was the US Deputy Secretary of State, saying in a
speech: "As a responsible stakeholder, China would be more than
just a member; it will work with us to sustain the international
system that has enabled its success.
"The logic behind the concept is that China, after 30 years of
fast development, has interest in the system and so it has reason
to be engaged, and meanwhile, it has responsibility in the
international system."
Zoellick said over the weekend that "China's economy is
healthy", adding that the demand it creates will partly help
sustain the global economy.
The World Bank has said China's domestic economic climate
remains buoyant, with high profit and credit growth, investment
strong and consumption robust.
It forecast 11.3 percent growth for China this year and slightly
below 11 percent the next. It said a strong macroeconomic position
provides room to adjust the domestic policy stance, if necessary,
to maintain high growth.
Gross domestic product grew by 11.5 percent in the first three
quarters of this year from the same period last year.
However, Zoellick predicted that the US economy would certainly
slow down and a recession may emerge.
He spent Friday and Saturday in Guangdong and Sichuan provinces
and Chongqing Municipality to identify the country's development
challenges before meeting Premier Wen Jiabao in Beijing yesterday.
He is scheduled to meet State leaders and Cabinet ministers this
week.
(China Daily December 18, 2007)
