Economy

Markets

Industries

Insights

Reports

Events

China for diversified monetary system

By Li Xing (China Daily)
Updated: 2009-06-17 13:59

Chinese President Hu Jintao (third from left) joins leaders of Shanghai Cooperation Organization member states and observer states for a photo in Yekaterinburg, Russia, on June 16.[Agencies]

China hopes to push for a more diversified international monetary system in a gradual manner while demanding that all major reserve currencies maintain relative stability, President Hu Jintao said during the first official summit of BRIC countries (Brazil, Russia, India and China).

Hu proposed several measures to strengthen the BRIC collaboration in pushing for the reform of international financial institutions.

The four countries should join hands and make sure that the plan for reforming the International Monetary Fund and World Bank will increase the developing countries' representation and give them greater say, he said.

BRIC countries should also ensure that developing countries effectively participate in the Financial Stability Council and other supervision institutions.

Highlighting the fact that BRIC has evolved from a concept in economics into a new platform for international cooperation, Hu said the multifaceted problems the world is facing today make it all the more imperative for the four countries to work together.

Related readings:  BRIC nations urge diverse monetary system  Hu makes proposal to tackle economic crisis at BRIC summit  Building mutual trust, brick by BRIC  BRIC to grow faster after global crisis

The global financial crisis has brought about rising protectionism in various forms and a greater divide between the north and the south, he said.

At the same time, the world is facing increasing challenges in climate change, food security, energy and natural resources, public health, organized trans-border crimes, terrorism as well as the proliferation of mass weapons of destruction, he said.

Although the four countries are different in their development, economic structure and cultures, "they shoulder the mission to maintain world peace and jointly deal with traditional and non-traditional security risks", Hu said.

The BRIC countries also have ample developmental opportunities, he said.

To strengthen cooperation, Hu proposed that BRIC countries to increase political trust to set an example of mutual respect and equality through dialogue and exchanges.

The four economies, with their own advantages in resources, markets, labor, science and technology, compliment each other, which can only help deepen economic cooperation, Hu said.

The four countries should especially establish a partnership in science and technology for research and development of new energy and high technology, he said.

He also proposed to promote people-to-people and cultural exchanges and increase the sharing of information and experience.

He said the four economies should collaborate further to press ahead with the consensus leaders of the Group of 20 reached during the London Summit in April.

The BRIC countries must work to ensure a faster recovery of the world economy, he said.

They should take the opportunity to change the growth model in order to solve long-term developmental problems and help the world economy grow while improving the quality and level of their economic development.

Hu said the four nations should persist in opening their market and resist protectionism, jointly safeguarding the normal international flow of merchandise, services and labor.

They should also help carry out the United Nations' Millennium Development Goals, especially to ensure security in food, energy, natural resources and public health.

He suggested the BRIC countries increase financing in agriculture and develop advanced technologies while suppressing speculations in the grain market.

BRIC should also speed up development in clean and alternative energy, set up a system for research into advanced energy technology and its distribution to promote multiple energy supply, Hu said.

The four nations should also increase cooperation to prevent pandemic diseases.