Distinguished guests from home and abroad, professors and students of Peking University, dear friends：
Good afternoon.
On behalf of the School of Economics, I would like to extend my warmest welcome to each and every one of you to attend Beijing forum, economic session.
In the previous two economic sub-forums, useful discussions on imbalances during the global financial crisis and economic recovery have taken place, which involved the observation and analysis of causes of the crisis, the countermeasures recommended and/or undertaken to combat the symptoms of the crisis，as well as to reduce the likelihood of a similar crisis arising in the future. More than two years have past however, the global economy is still facing many problems，some countries are once again entering a period of very minimal economic growth, the debt crisis has hit European Union badly and the whole world is under the great uncertainty.
This has lead people to ask: What happened to this world? What are the theoretical supports of explanations to the current global crisis? What is the effective way to help EU out of the debt crisis? How Should China and the whole East Asia Region go through the Transformational Development? Based on these backdrops, the topic of this year’s Beijing Forum Economic session entitled: ‘Economic Growth and Globalization: Opportunities, Challenges and Future Directions”. it contains specific discussions on ‘management of global liquidity and economic growth’, ‘monetary policy and inflation under the open economy’, ‘regional integration and economic growth’, ‘reform and transition of China’s economy，‘economic growth and the sustainable development of environment and resources’.
As I see it those five topics cover three broad themes: the current financial crisis, the economic growth and the natural environment, and the transition of Chinese economic growth model. In each area China has a unique and different role to play.
In terms of the current crisis, the empirical research shows that after the financial crisis in 2008, global monetary policy has tended to be loose. This has lead to problems of high inflation, rising capital asset prices, and rapid international capital inflows in developing countries. Although there is no consensus on “optimal” liquidity in academic circles at present, there is clearly concern internationally about excess liquidity and inflation in some regions, and the lack of liquidity in other parts of the world. For example in China and other developing countries we worry about excess liquidity, according to a recent World Bank report, East Asia is one of the regions suffering most from serious inflation, while in the West the main concerns are about the lack of liquidity. Under current situation, China must play a partnership role. Its actions, therefore must aid in enhancing economic growth in the west without contributing further to inflationary pressures at home once demand from the West picks up.
Concerning economic growth and the natural environment, China must also be a good partner, but its focus should mainly be at home. The rapid economic growth experienced in China over the past 30 years means that stresses on the local environment are clear and that China, due to the size of its economy and inefficient use of resources, produces a large portion of global emissions. Consequently a domestic focus can provide benefits to the global community as well as to domestic citizens. In my opinion, as we discuss the interplay between economic growth and the natural environment we need to keep in mind the Chinese concept of ‘harmony between human beings and nature.’ In short we should neither destroy the environment for a convenient and comfortable life, nor sacrifice a convenient and comfortable life purely for environmental protection. We must seek a balance between the two. Of course this is not an easy task.
Although the third theme, the transition of China’s economic growth model, may at first appear to have only a local focus, I believe it is global in nature and that China has a leadership role to play as well. The fast economic growth in China over the past thirty years has showed the both positive and negative aspects of this growth. Consequently, as China plays its part to aid global economic growth in the post-crisis era, we must also maintain a focus on correcting the negative aspects of domestic economic growth model that has yet to be solved. Clearly, as markets become more global in nature the need for global cooperation in aiding economic development becomes imperative. As we adapt our policies to deal better with our own growth we should not lose sight of the leadership role we can play in helping other nations manage their own growth better.
Ladies and Gentlemen, The G20 Summit was started yesterday in France. We could see that pessimism on the future economic situation and fear towards the Double Dip is now shrouding the European and global economy. Greek will conduct the referendum for the EU Aid Program, which has resulted in the panic of plan abortion; the borrowing costs in Italy have substantially increased, the misgiving of European debt crisis re-deterioration is heating up again; the U.S financial institution MF Global Corporation has filed for bankruptcy protection due to the European debt crisis, the stock markets of Europe and U.S suffered from the steep fall on Tuesday. There are absolutely no easy solutions for those problems and challenges we face. It needs dialog, communication, wisdom and joint efforts among all countries. This year’s Beijing Forum provides us a good opportunity to explore the problems and challenges before us including how to tailor solutions to specific needs. I believe that through our joint efforts this forum will be able to generate a deeper understanding and better solutions to all those issues.
I wish to extend especial thanks to all the experts from abroad for traveling so far to attend this year’s forum. I hope all participants will benefit from our discussions over the next few days. Enjoy your stay in Beijing. May the forum great success and fruitful. Thank you!
（科研办公室 供稿）
