Economic Cooperation Will Prevail Over the Political Divide
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G20 summit in Seoul will be held in Seoul, Korea, this will be a fierce offensive and defensive meetings. In 2008 the global financial crisis, G20 should be a timely and historic place of G7, to become the main platform for global economic cooperation. At that time, G20 show all the major members of a rare spirit of cooperation, decided to help each other to jointly cope with the hundred years of financial crisis. To this end, States jointly issued a series of economic stimulus plan, to avoid the collapse of the international financial system and the overall economic recession in the world. In promoting global trade issues, G20 member countries have basically reached a consensus majority, made clear that to resist protectionism. G20 members of this spirit of cooperation on the world economic recovery has played a crucial role.
Two years ago, now no longer the world economy to revive. United States and Europe such as the economy remains weak recovery in most developed countries, worsening balance of payments, financial extremely difficult. In contrast, developing countries, particularly emerging countries, the international balance of payments and fiscal position is relatively good, relatively strong economic growth momentum. Situation and the decision task. Since the actual economic situation of countries and the situation facing different issues of concern are different. Political and economic agenda in the world, G20 member states began a tendency to differentiate. This division mainly on two fronts, one area of trade, the second is the financial sector.
According to the WTO, OECD and UNCTAD have jointly released a research report, over the past few months, as countries in terms of exchange rates and current account disputes, protectionist pressures have worsened, world trade has been affected. G20 leaders to draw the report should be to prevent trade between countries due to friction caused by the intense comprehensive "trade war." World Bank President Robert Zoellick recently in the British "Financial Times" article that made an unexpected proposal for the countries of the world consider reviving the gold standard, a new international monetary system to replace the current U.S. system. Zoellick has served as the U.S. Treasury and State Department officials, is sufficient proof of his proposal, has been in the U.S. to seriously consider the institutional arrangements for the "funeral" of the.
Trade protectionism has always been there. In fact, over the past few years, China suffered the anti-dumping and countervailing cases continued to increase. The United States last September on the Chinese-made tires collected 25-35% of the "punitive tariffs." Later, China's steel strand, steel grating and coated paper products such as taxation "punitive tariffs." This year in August, the United States on a range of Chinese products raise tariffs last month, 28, claimed that "should the United Steelworkers union demands," announced the special aluminum products made in China, 59.31% levy "punitive tariffs" to protection of the metal industry in the United States. In addition, the United States has asked China to let the yuan appreciate to reduce trade surplus, the current account surplus "control on a sustainable level."
Protectionism is the essence of "beggar thy neighbor", for the sake of self-protection, the "troubles" to lead his country. Any form of protectionism, with the domestic political and economic situation of a country are closely related. After the outbreak of the financial crisis, weak U.S. economic recovery, unemployment remains high, causing popular discontent. To reduce the political pressure the U.S. government, trying to "stabbing outside" "An inside", put the blame on other countries. U.S. imposed on Chinese products "punitive tariffs", a traditional form of protectionism. Such protectionism is simple and convenient, politically significant, mostly small-scale friction, usually can be controlled, not easily lead to trade war between the two countries.
Trade protectionism trend of integration with the world economy are closely related. As the international division of labor and mutual investment, the interdependence between countries is the formation of a deep interactive new relationship. Some small countries in the world, socio-economic systems are different, each different mode of development, cooperation with each other, learn from each other, is bound to a trade imbalance. This imbalance is itself a result of economic globalization, appropriate correction can be for a complete elimination of the trade imbalance between them, are clearly contrary to common sense. Thus, in the long run, the traditional forms of trade protectionism will gradually withdraw from the modern economy, as in the current international trading system and framework, frequently imposed on his country's products "punitive tariffs", often in violation of the relevant provisions of the WTO, easy incurred in his country's anti-system and the retaliatory measures.
In recent years, the rapid development of international capital flows, is working with commodity trade, among the countries of the world's most important bond. The reason why the world economy in the U.S. "subprime crisis" and in deep trouble, unable to extricate themselves, the reasons are also there. In international trade, there is trade protectionism. In the financial sphere, there have also protectionism.
The United States has launched a new round of quantitative easing monetary policy, is typical of financial protectionism. U.S. junk notes the market with a lot of money, intended to prevent its economy into deflation, and expect these funds into the real sector of the economy, stimulate the economy, create jobs and increase consumption. But this has prompted the U.S. dollar lower, contributing to global liquidity flood. The emerging market countries are forced to take various measures to curb the inflow of international hot money. In addition, many commodities in the international market, priced in U.S. dollars, the U.S. dollar lower, making the international market, gold, oil, copper, lead surge in commodity prices, increasing inflationary pressures in various countries, an increase of the world economic recovery, new difficulties . Only from this point of view, the G20 summit should be a "crush" the U.S. session.
Never in the history of human economic activities, social activities stopped, the world economy is the crystallization of the whole human history and civilization, is extremely complex dynamic system, full of contradictions and struggles. Although there are often conflicts between countries and conflicts, but the general direction of development should be cooperation rather than confrontation, because the world trend of development in the economy, the economy will eventually overcome the politics. |
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Author Resource:-
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By :
Jessie Stone
Submitted
2010-11-13 20:39:22 |
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