Islamabad, May 28, 2012 (PPI-OT): In an Interview published in the World Business Magazine May-June 2012 Issue, High Commissioner of Pakistan in Singapore Syed Hasan Javed has stated that the People’s Republic of China cannot be distracted from becoming the World’s largest economy by 2020. He was replying to a question as to whether he saw China as the biggest economy in the next decade.
He quoted a World Bank study which mentions that the Chinese economy may be worth US $ 50 trillion in 2050 if only it can maintain a growth rate of 5-6 percent during 2000-2050. China has already exceeded these projections over the last 12 years with 8.6 percent GDP growth rate expected in 2013, says a press release received here today from Singapore.
In reply to a question on global financial crisis, Mr. Javed stated that it began due to violation of basic laws of accountancy, finance, economics, business and governance in the developed countries. For too long, toxic assets have enjoyed Triple AAA ratings. The IFIs need a paradigm change because the world has changed.
There is an atmosphere of mass delusion, frustration and resignation when it comes to issues of global financial management. The decisions of G-20 and other global bodies around the world to reform these institutions to address GFC have not been implemented. An inequitable international economic order has been perpetuated which goes against the law of economics as well as nature.
Mobility of factors in production is a prerequisite for growth. International trade negotiations everywhere have reached a dead halt, no matter across the Atlantic or Pacific. Developing countries need to be provided ‘development space’.
The leading credit rating agencies have become themselves discredited. Global institutions had never backed leadership and common sense, as much as they do to-day. Lack of integrity is at the core of this crisis. The rules of the game need to be re-drafted, Mr. Javed added.
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