President Nicolas Sarkozy,
I am glad to come to Cannes to attend the sixth G20 Summit and explore with you ways to counter risks and challenges and promote global development. First of all, I wish to express sincere thanks to you, President Sarkozy, and the French government for the active efforts and thoughtful arrangements you have made for the summit.
The current world economic situation deserves our high attention. Some major economies are experiencing economic slowdown, and some countries are facing acute sovereign debt problems. Volatility in the international financial markets persists. High inflationary pressure confronts emerging markets. Protectionism in various forms is mounting. The continuing turbulence in west Asia and north Africa as well as extreme weather conditions and frequent natural disasters have also exerted negative impact on the world economy. As a result, the global economic recovery is fraught with instability and uncertainty and encounters growing risks and challenges.
What has happened since the outbreak of the international financial crisis in 2008 shows that we are facing not just an economic and financial crisis. It is a crisis that has exposed certain deficiencies in the existing institutions and mechanisms, policies and approaches, and ways of development. The world economy is now at a crossroads and global economic governance faces arduous tasks. It is imperative that we stand on a higher plane, transcend differences on specific issues, move beyond short-term considerations, and jointly seek ways to overcome the crisis and sustain development. As the premier forum for international economic cooperation, the G20 must continue to demonstrate the spirit of standing together in times of adversity and pursuing win-win cooperation. At this critical moment, the G20 must work to address the key problems, boost market confidence, defuse risks and meet challenges, and promote global economic growth and financial stability. I wish to make the following proposals in this connection.
First, ensure growth while paying attention to balance. Strong growth is the primary goal in pursuing strong, sustainable and balanced growth. Given the serious risks facing the global economy and continued market volatility, ensuring growth and promoting stability should be the top priority for the G20 Summit. We should introduce new and strong measures to ensure that the fiscal and monetary policies are fully implemented and that funding is channeled into the real economy to boost production and employment. We should make major efforts to support the development of small- and medium-sized enterprises and help them speedily overcome the current difficulties by providing financing and fiscal support and tax incentives, thus laying a solid foundation for promoting economic recovery. We should fully tap into the potential of science and technology, nurture growth drivers and build up the internal dynamism of economic recovery. At the same time, we should speed up the adjustment of our respective economic structures and endeavor to achieve fairly balanced growth of the global economy.
Second, pursue win-win outcome through cooperation. As countries vary in economic situation and have growing differences in terms of interest, there are now rising rifts and frictions among them. There is also acute lack of confidence in the markets. This grave situation shows the urgency of enhancing international coordination and cooperation. We should strengthen unity and send a strong signal of pursuing win-win cooperation to the world so as to boost the confidence of the international community in global economic recovery and development. We should strengthen consultation and coordination, introduce mutually supporting and complementing policy measures, and tackle sovereign debt risks, massive unregulated cross-border flow of capital and other financial risks. We should keep the fluctuation of commodity prices under control, mitigate global inflationary pressure and make sure that the economic policies pursued by various countries do not offset each other.