A global finance forum was held in Hangzhou, Zhejiang province, to discuss the current world financial situation, with some experts calling for a new monetary and international financial system.

The opening ceremony of the "80 Years after Bretton Woods: Building an International Monetary and Financial System for All" international conference and the 2024 Tsinghua PBCSF Global Finance Forum, in Hangzhou, Zhejiang province, May 27, 2024. [Photo/China.org.cn]

The two-day "80 Years after Bretton Woods: Building an International Monetary and Financial System for All" conference and Tsinghua PBCSF Global Finance Forum were held from May 27-28. The event featured eight panels and four sessions, with over 70 leaders and experts from China and abroad discussing 12 major topics, including global macroeconomic shifts, the resilience of emerging markets, prospects of global climate finance, and financial support for sci-tech innovation.

Yang Bin, vice president of Tsinghua University, said that economic globalization has encountered setbacks in recent years, and the trend toward economic fragmentation has impacted the world's economic growth momentum, adding uncertainty to the recovery. He said, "Improving global economic governance, strengthening institutional safeguards, creating a favorable development environment, and promoting a sustained recovery of the world economy is a common task facing all economies."

Zhu Min, founder of the Global Economic Governance 50 Forum (GEG 50), former deputy managing director of the International Monetary Fund (IMF) and former deputy governor of the People's Bank of China, pointed out that current global socio-economic development has reached a "crossroads." He cited escalating geopolitical tensions, slowing economic growth, further deceleration of globalization and growing financial risks.

"Against this backdrop, we need a new 'Bretton Woods system' that benefits all countries, provides a stable financial system for all of humanity, supports global economic growth and achieves global economic prosperity. Confidence is more important than gold, and we must have strong determination to rebuild the future Bretton Woods system and work together to promote global economic growth and financial stability," he said.

Xuan Changneng, deputy governor of the People's Bank of China, said that as one of the outcomes of the Bretton Woods system, the IMF has played a key role in global crises multiple times, noting that timely quota increases help enhance the IMF's abilities to respond in times of crisis.

"Adjusting the quota shares is an urgent requirement to improve the IMF's governance structure and enhance its performance capability and legitimacy," he said. "All countries should make their utmost efforts to complete domestic approval of the results of the 16th general review of quotas by Nov. 15, 2024, and implement the quota increases. More importantly, the international community should cooperate to promote IMF quota reform and achieve realignment of quota shares as soon as possible."

Xuan also stated that the IMF should continue to firmly uphold multilateralism. He added that it should also help emerging markets and developing countries properly respond to the risks of disorderly capital fluctuations, especially the spillover effects brought about by the rising uncertainty of developed countries' monetary policies, to ensure effective support for developing countries.

Vice Minister of Finance Liao Min affirmed that China will practice multilateralism, unswervingly promote trade liberalization and investment facilitation, adhere to a high level of opening-up, and actively align with international high-standard economic and trade rules, benefiting the globe while achieving its own high-quality development. He pointed out that China contributes to global development and helps maintain the international order, is a beneficiary of the current international economic, financial and trade system, and has always participated deeply in the reform and governance of the World Bank and IMF alongside its own development, while actively supporting existing international institutions to grow and strengthen.

"I hope that under the guidance of the idea of cooperation, we can continue the multilateral spirit of the Bretton Woods system, uphold the global governance concept of joint consultation, development and sharing, and jointly contribute to building a global governance system that is fair in rights, opportunities and rules. This would boost global economic growth and prosperity, and promote global poverty alleviation and development," he said.

Meanwhile, the executive director and founder of the Reinventing Bretton Woods Committee, Marc Uzan, noted that the rise of unilateralism and populism poses significant challenges to global systems, but that globalization has always been an important driver of economic development. He concluded therefore that countries need to promote cooperation and collective action to face these challenges, also stressing the importance of cooperation between China and the United States. Additionally, he highlighted the urgent need to reassemble the fragmented global economy to create a fairer, more equal and more inclusive future.

Gyorgy Matolcsy, governor of Magyar Nemzeti Bank, the central bank of Hungary, expressed his belief that all political leaders worldwide have an obligation to jointly prevent a new world war. Therefore, they need to defend the achievements of the Bretton Woods Agreement, which established a global currency system based on gold and the U.S. dollar, and work to reshape the Bretton Woods system, that is to reshape the world financial order.

"In the face of this obligation, finance should be at the forefront," he said. "Finance is about money, and as we transition from the old world to the new, we need money. Therefore, we should all work together to build this new world; only then can we succeed. Through finance, we can support our peoples, our countries and our entire economies to build a new world, achieving sustainable finance and a sustainable economic order. Also, we need to avoid the world falling back into a scenario of two opposing camps."

Jiao Jie, dean of the PBC School of Finance at Tsinghua University, stated that as China's economy shifts to high-quality development through deep reforms and expanded opening-up, it will create new economic advantages, boost growth, and drive global progress. Building China's strength in finance and promoting high-quality development in finance will not only support China's modernization and national rejuvenation, but also contribute to global economic and financial stability.

"As global governance undergoes a key period of adjustments and changes, China is actively participating in global financial governance and policy coordination, engaging in multilateral cooperation, and steering economic globalization toward greater openness, inclusiveness, balance and win-win results," he said.

Related

Go to Forum >>0 Comment(s)