CBGG Hosts World Finance Forum, Looking Ahead at New World Financial Order

By Zhang Sheng 

Source:Guangming Daily  

Published: 2018-08-02

A few days ago, the first World Finance Forum, co-organized and sponsored by Center for BRICS and Global Governance(CBGG) and Reinventing Bretton Woods Committee(RBWC), was held in Beijing. The forum focused on the fourth industrial revolution, the “Belt and Road” and the future of the new international financial order. At the same time, it has set up Sub-forums such as a “new order of trade, investment, and finance under the ‘Belt and Road’ framework”, “a new era of global fintech, and risk prevention in the international financial system with global governance”, “the prospect of digital currency and the future of the international financial ecology”, “the ‘Belt and Road’ and new impetus for global governance”. Chinese and foreign guests look forward to the future picture of the world financial order.

Keep moving forward in uncertainty

Ousmène Jacques Mandeng, a visiting scholar at the School of International Relations at the London School of Economics and Political Science, said that the current Fed’s domestic policy goals are not in line with world economic trends, and the continued strengthening of the US dollar has increased uncertainty in emerging markets. “Dependence on the US dollar poses risks to neighboring countries. The US approach will expose international finance to more volatility.” He emphasized.

Marc Uzan, Chief Executive Officer and Founder of Reinventing Bretton Woods Committee, said that due to the United States’ unilateralism and trade protection policies, the world financial order that has been led by the United States for more than 70 years is falling apart. All countries should be committed to maintaining an open, inclusive and free world financial order and helping to establish a new world financial order.

Yang Zaiping, Secretary General of the Asian Financial Cooperation Association, believes that in the international currency system centered on the US dollar, imbalances in international trade and the international economy are inevitable. At present, it is urgent to establish a currency system that is compatible with the current trade development and the world situation.

Xu Hongcai, deputy chief economist of the China International Economic Exchange Center, said that the unilateralism and protectionism promoted by the United States are unpopular and unsustainable. Countries should strengthen communication and dialogue among think tanks, academia, former senior officials and the business community, and seek solutions to problems through dialogue and communication.

Feng Xingke, Secretary-General of Center for BRICS and Global Governance(CBGG), emphasized that this World Finance Forum was held precisely because experts from various countries saw the necessity and urgency of discussing the global future financial order. To promote the gradual solution of this problem, it is necessary for important international institutions including the United Nations, G20, the BRICS, the World Bank, IMF, WTO, etc. to conduct in-depth dialogue, strengthen communication and coordination, and jointly contribute wisdom to improve global governance.

Take the “Belt and Road” as an important starting point to better serve global development

The former Prime Minister of Kyrgyzstan, Djoomart Kaipovich Otorbaev, said that China’s “Belt and Road” initiative will make central Asia the most promising economic growth region in the world. “Trust is the key to economic and financial development.” He emphasized that the “Belt and Road” initiative involves civilizations and value systems from different regions, and it is important to take soft power as an important fulcrum to enhance mutual trust and boost construction.

The former deputy Prime Minister of Kazakhstan, Oraz Jandosov, believed that countries and regions along the “Belt and Road” will benefit from the initiative. Through the initiative, China’s development dividends and reform experience will be shared and benefit more developing countries.

Why is the “Belt and Road” initiative so important? Zhu Guangyao, former deputy Minister of Finance of the People’s Republic of China, said that uncertainty in the current world is increasing. Some emerging economies are facing many problems, including new challenges such as currency devaluation and inflationary pressures. Under such circumstances, countries around the world need to strengthen financial cooperation so that more global public goods can serve development.

In the view of Hu Biliang, Dean of the “Belt and Road” Institute of Beijing Normal University, the general direction of economic globalization is correct. In the process of economic globalization, problems such as unbalanced development, governance dilemma, digital divide and equity deficit need to be faced squarely and addressed.

Leandro Rothmuller, chief economist of BBM Bank of Brazil, said that the “Belt and Road” is a new opportunity for Brazil. Nearly 80% of Brazilian local banks are actively helping Chinese companies to seek more cooperation opportunities locally. “I believe that the ‘Belt and Road’ can help Brazil gain many development opportunities in the future.”

Liu Shangxi, president of the Chinese Academy of Finance Sciences, emphasized that, in the context of global public risk expansion, countries around the world should join hands and work together to respond positively.

Fin-tech innovation: helping the world’s financial system develop more effectively.

Dr. Srinivas Yanamandra, chief compliance officer of the BRICS New Development Bank, said that in the context of fin-tech innovation, the question how to make the world financial system continue to develop in a more efficient way requires focused attention and continuous in-depth discussion.

Anwar Nasution, former deputy governor of the Central Bank of Indonesia, said Indonesia is benefiting from China’s development dividend. Asian Infrastructure Investment Bank and BRICS New Development Bank initiated by China are pushing the world’s financial governance towards a more reasonable and fair direction. He suggested that Asian countries should strengthen cooperation with international organizations such as IMF, World Bank, Bank for International Settlements, the emerging international financial institutions such as Asian Infrastructure Investment Bank and New Development Bank of the BRICS countries to jointly promote the reform and improvement of the world financial order.

Zhu Xian, vice president of BRICS New Development Bank, introduced that the New Development Bank is issuing local currency bonds through member countries, providing local currency loans, effectively cultivating member countries’ domestic capital markets, and helping borrowers to reduce excessive reliance on the US dollar in order to better manage exchange rate risk.

Li Aijun, dean of the Internet Finance Law Institute of China University of Political Science and Law, said that financial innovation is to reduce costs and increase revenue, while financial supervision is to prevent financial risks and protect consumers’ rights. No matter what kind of technological innovation is used in the financial field, it must comply with financial laws and ensure liquidity, security and efficiency. Under this premise, we should pay attention to the social value of fin-tech innovation.