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Scientific idea that pushes forward the interconnected development of world economy (Belt and Road Forum for International Cooperation)

Submit Time:15-06-2017 | Zoom In | Zoom Out

Author:Wang Zhan Quan Heng | Source:People’s Daily

Abstract:

  In his key-note speech at the opening ceremony of Belt and Road Forum for International Cooperation, President Xi Jinping pointed out that development holds the master key to solving all problems. In pursuing the “Belt and Road” Initiative, we should focus on the fundamental issue of development, release the growth potential of various countries and achieve economic integration and interconnected development and deliver benefits to all. Such an important exposition further affirms the direction and path of pursuing the Belt and Road Initiative. Against the background of the weak recovery of world economy, the rise of economic de-globalization thought and the profound changes in international geo-politics, the pursuance of “Belt and Road” Initiative has very important realistic significance. Facts have proven and will continue to prove the “Belt and Road” Initiative proposed by President Xi Jinping is a scientific idea that guides the in-depth development of economic globalization, promotes the interconnected development of world economy, reflects the pragmatic attitude of global vision, forward looking and win-win cooperation. We must proceed with confidence, push forward the steady walking to reach the distance of the “Belt and Road” construction, making it an important engine that guides the in-depth development of economic globalization, promotes balanced development and inclusive growth of world economy.

  The impact of “Belt and Road” Initiative is extensive and far-reaching

  Guide the in-depth development of economic globalization. Economic globalization promotes the development of social productivity and science and technology progress. It is an irresistible trend of time. But it should be foreseen that economic globalization is a “two-edged sword” that has some shortcomings. It is distinctively reflected in the development imbalance between developed countries and developing countries. The achievements enjoyed by different groups in some countries are different. Comrade Xi Jinping pointed out, “In the face of both opportunities and challenges of economic globalization, the right thing to do is to seize every opportunity, jointly meet challenges and chart the right course for economic globalization.” The “Belt and Road” construction follows the principle of achieving shared growth through discussion and collaboration, advocates win-win cooperation. It may start with work in individual areas and link them up over time to cover the whole region. Efforts will be made to realize policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds to push forward the process of economic globalization to be more energetic, more inclusive and more sustainable so as to push forward the common prosperity of different countries.

  Provide new impetus for international trade investment growth. At present, the world economy is at the stage of a sluggish recovery and lacks of growth momentum. Since the international financial crisis broke out in 2008, the world economic growth has not shown any distinctive recovery. The economy has not returned to the level before the crisis, appeared a series of internal “paradox”, namely, the co-existence of the global monetary policy of quantitative easing and low-growth, the co-existence of income distribution deterioration and economic low growth, the co-existence of the “coldness” of the real economy and the “hotness” of the fictitious economy. To solve these issues, we need to get out of the difficult structural positions that restrict world economic recovery, guide the world economy to step into a new growth long period. The “Belt and Road” construction will be helpful for enhancing the global investment growth, promote global trade growth, push forward global financial opening and cooperation, innovate global economic development pattern, enhance the vitality of global economic growth so as to provide new opportunity and impetus for the world economy to get out of the weakness and step into a new development period.

  Help the developing countries to bolster weak spots. Currently, the process of economic globalization is impeded and the economic recovery is weak. This reflects, to a great extent, the internal defect in the governance mechanism of the global economy. First, it is the means of global economic governance and governance subject have deviations. The global economic governance pays attention to the short-term demand management and monetary stimulation after the outbreak of the international financial crisis. It failed to place its main target on eliminating and solving the structural contradiction. At the same time, the internal structure of global economic governance also has defects. It did not give full consideration to the role, rights, interest and demand of the emerging market countries and developing countries. In particular, it ignored their important positions and roles in global trade and investment, leading to a more imbalanced world economic development and a more differential recovery situation. In addition, the existing global economic governance mechanism is unable to tackle and solve many new common problems, such as the worldwide imbalance and poverty-reduction, capital mobility supervision, monetary policy coordination, etc. “Belt and Road” construction should target at solving the structural imbalance of the global economic development. It strengthens macro-management and guidance from the perspective of supply-side, which is helpful for solving major issues in global economic governance; by promoting the development of surrounding countries, regions and countries along the route, pushing forward the infrastructure connectivity, investment and trade system and mechanism innovation, investment convenience, and liberal trade of the countries and regions along the route, help developing countries to bolster the development weak spots, cultivate and enhance the “supplying capacity” of developing countries.

  Provide more Chinese opportunity for the world’s development. At present, the opening economic development of China has entered an important new stage. No matter it is from the international environmental changes or it is from the new stage of domestic development, China must turn to the all-dimensional, wide-ranging and high-level opening-up from the traditional one that mainly relied on attracting business and introducing investment, and construct an opening economic new system. “Belt and Road” construction upholds the new concept of cooperative win-win development, coordinates the two markets and two resources in the international and domestic arena, makes efforts to realize opening and innovative interaction and forcefully pushes forward China to construct an overall opening layout that lays equal strength on introducing into and going abroad, create fair competition and law-based, international and convenient business environment. “Belt and Road” construction will accelerate the process for China to construct opening economic new system, turn Chinese opportunity to world opportunity and promote the common development of China and the world while creating more Chinese opportunity.

  “Belt and Road” construction shows bright prospects

  The fruitful achievements gained during the past four years of the “Belt and Road” construction are showing bright prospects.

    For the past four years, more than 100 countries and international organizations have actively supported and participated in the “Belt and Road” construction. More than 40 countries and international organizations have signed cooperation agreements and action plans with China. “Belt and Road” construction has played an active role in promoting global investment growth and trade cooperation. From 2014 to 2016, 56 economic and trade cooperation zones set by the Chinese enterprises in more than 20 countries along the route of “Belt and Road” took shape, creating tax revenue of nearly $1.1 billion and 180,000 employment opportunities for related countries. The accumulated investment from Chinese enterprises to the countries along the route has exceeded $50 billion.

  The effect of park cooperation mode is expanding, making it a new spot of light of cooperation. China actively explores industrial park cooperation mode with countries and regions along the “Belt and Road” and gains distinctive effect. There industrial parks are mainly in the neighboring countries such as Russia, Vietnam, Thailand and the Philippines. The type of industrial park falls into the categories of processing and manufacturing park such as China-Laos Saysettha Development Zone; agriculture processing park such as China-Tajikistan New Silk Road Agriculture and Textile Industrial Park; commercial and trade logistics cooperation park such as China-Hungarian China-Europe Commercial Trade Logistics Park, etc. These parks have greatly pushed forward the local economic and social development.

  From the aspect of future development, the “Belt and Road” construction will continue to promote global supply-side management level and global governance capacity. China takes lead to propose the supply-side structural reform and facilitates the G20 “Hangzhou Consensus”, and guides the improvement and development of the global economic governance system. We believe the “Belt and Road” construction will continue to guide global economy to strengthen supply-side management, optimize global supply-side structure and better satisfy the new demand brought by the change in global consumption structure and trade growth. Along with the proceeding of the “Belt and Road” construction, global supply-side management level and governance capacity will be enhanced significantly. The “Belt and Road” construction will also promote the world economic development to gradually reach a new balance. The “Belt and Road” construction will be helpful for correcting the issue of imbalance of the economic globalization process. By means of the “five connectivity”, it will guide and promote inclusive economic globalization and push forward the transformation and upgrading of economic globalization with the new concept of opening and win-win cooperation.

  Pushing forward the “Belt and Road” construction to walk steady to reach the distance

  The “Belt and Road” construction both pays attention to depicting the blueprint so as to make people full of hope for future, and to the practical work to implement feasible platform and project to make countries and people along the route have a sense of gain. To continue to orderly and effectively push forward the “Belt and Road” construction, attentions should be paid to the following aspects.

  To further tell good stories of “Belt and Road”. Targeting the misunderstanding and prejudice to the “Belt and Road” construction in the international arena, we should actively express views, cohering people’s feeling, increase common consensus and create a sound atmosphere for opinions. We should strengthen the cooperation and exchanges with the national think tank between China and countries along the “Belt and Road”, clearly explain the connotation and essence of the “Belt and Road” construction with languages that are easy to understand, clearly elaborate the equality, openness, inclusiveness of the “Belt and Road” construction and its feature of co-construction and co-sharing, take effective measures and methods to eliminate various misunderstandings.

  To further affirm the correct direction of the “Belt and Road” construction. At present, local governments in China are very active in participation in the “Belt and Road” construction. However, some areas are still at the stage of attracting and introducing investment and even striving for preferential policies. They have not realized that they should participate in the construction from the perspective of constructing China’s opening economic new system. Therefore, we should guide the initiatives of different areas and departments to enhance the overall opening level, promote deeper and higher level opening so as to avoid swarming and blindly following out of partial interests and form resultant force for constructing an open economic new system.

  To accelerate the implementation of related projects and plans. The top-level design system of the “Belt and Road” construction is complete. Yet the implementation mechanism and the lowering platform require improvement. Considering the development imbalance and the differentiation of the countries along the route, “Belt and Road” construction should be implemented and pushed forward in different stages with measured strokes and be selective. Take the construction of economic and trade cooperation zone as an example, at present, we should pay attention to the selection and settlement of industrial project in the key pivot countries and economic and trade cooperation zones and gradually form the development path of “pivot country – pivot city – industrial park – project settlement”.

  To improve the service quality and level of economic and trade cooperation zone. By virtue of China’s experience in industrial park construction, we should pay more attention to and improve the platform function of “Belt and Road” industrial park, vigorously enhance the park management efficiency, optimize the infrastructure of the park and create convenient conditions for enterprises that may just “move in and operate”. The construction and operation of the park should follow the laws, culture, belief and customs of the host country and carry out social responsibilities. We should promote the cohesion and radiation function of the industrial park, and promote the transformation and upgrading of the economic and trade cooperation zone with the new mode of city-industry integration. The construction of industrial park should reflect the people-centered concept, which has both a complete industrial chain and the function of element concentration; which has both production and service facilities and the function of living service so as to truly promote city-industry integration and enlarge the effect of promoting economic and social development through industrial park.

  (Author: Wang Zhan, Shanghai Academy of Social Sciences; Quan Heng, the World Economy Research Institute)


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