Global Biz

Emerging economies, ballast of global recovery

(Xinhua)
Updated: 2010-10-27 11:27

WASHINGTON - China and other emerging economies have performed remarkably well to serve as a stabilizing force in global economic recovery, and multilateral solutions are critical for overcoming current global challenges, head of the Institute of International Finance (IIF) said here Tuesday.

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"Had it not been (due to)the strong growth of China, India and Brazil over the past year and half, the world economy would be in greater trouble than it is today," IIF Managing Director Charles Dallara told Xinhua in an exclusive interview.

The Washington-based IIF represents more than 420 world leading financial institutions headquartered in more than 70 countries, including 18 Chinese top lenders like the Industrial and Commercial Bank of China, China Construction Bank, the People's Bank of China, Agricultural Bank of China, among others.

Dallara said the process of globalization had let us all appreciate how pivotal the roles China, India, Brazil and other important emerging markets are playing in the global economic arena.

"China performed remarkably well in terms of economic growth over the past years, and I think we all owe a debt to China for achieving a fast economic growth," said Dallara, former assistant secretary of the US Treasury for International Affairs.

He noted that China had begun to move out of the exceptional period of government stimulus, with logical moves taken in recent weeks including raising the interest rate, in a bid to "avoid overheating, minimize inflationary pressures and try to put China on a sustainable pattern of growth."

Dallara pointed out that nations worldwide, especially those key economies including the United States, China, Japan and Europe, should find "multilateral solutions towards multilateral problems" for the interests of global growth and prosperity.

The decade ahead is not going to be one that solves problems by unilateral actions, he added.

He said the agency is scheduled to organize a symposium next month in China on an array of topics including global financial supervision and reforms, which will be attended by top-notch Chinese and foreign officials and bankers in the banking and financial sectors.

"We are deepening our commitment in China in particular, and in Asia in general," to ensure the voices of bankers from emerging markets are heard in global debates on economic and regulatory policies, he added.