Financial crisis
In September this year, a financial "tsunami" that broke out in Wall Street, quickly turned into the most serious global financial crisis since the Great Depression in the 1930s.
According to the U.S. company Goldman Sachs & Co., global financial institutions would suffer a loss of 1.4 trillion dollars in the U.S. subprime crisis. Global financial crisis had already plunged the United States, the euro zone and Japan into recession, and slowed down the growth of emerging economies.
The International Monetary Fund has predicted a 3.7 percent growth rate for world economy this year, lower than the 2007 figure of 5.0 percent.
The global financial crisis is blamed on the laissez-faire economic policy adopted by the U.S. government and its failure to exercise effective financial regulation amid the dramatic expansion of financial derivative products since early this century.
People expect the international community to draw lessons from the crisis and undertake necessary reform of international financial system in a comprehensive, balanced, incremental and result-oriented way, so as to establish a new international financial order that is fair, just, inclusive and orderly and fostering an institutional environment conducive to sound global economic development.
As long as it joins forces, the international community will be able to tackle all political, security and economic challenges and continue to advance the world further toward justice, peace and prosperity, observers said.
(Xinhua News Agency December 29, 2008)