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Beijing calls on G7 to help poor countries
(China Daily)
Updated: 2004-10-04 08:57

WASHINGTON: Chinese Minister of Finance Jin Renqing has called on the world's developed countries to step up their aid provision to poorer nations.

In a written statement presented to the 70th meeting of the Joint Development Committee of the World Bank and the International Monetary Fund (IMF), Jin said developing countries need adequate financial support from developed countries to support their structural reform efforts, and that this is essential to achieve the Millennium Development Goals by 2015, a target set by the United Nations.

He said overall official help from developed countries is only 0.23 per cent of their gross national products, much lower than the 0.7 per cent UN target and even lower than that in the early 1990s. Only a few countries have reached the 0.7 per cent target.

Military expenditure in developed countries currently amounts to US$700 billion per year, with agriculture subsidies reaching US$300 billion, whilst their official development assistance is less than US$60 billion. This must be changed, Jin said.

With only 11 years to meet the deadline, the international community needs to develop a sense of urgency to address the financial gap, which we believe is the centre of the discussion on this topic, Jin said.

He said helping economic growth in poor countries should be the responsibility of all countries. Jin said China had noted that developing countries had made progress in policy reforms and were learning how to use aid more effectively. Donors still need to do their bit, though.

Jin and Zhou Xiaochuan, the governor of the People's Bank of China, the central bank, held informal talks in Washington over the weekend with their counterparts in the Group of Seven industrial countries. These are the first such talks between China and the G7.

During the talks, which were initiated by the G7, the two sides had a frank exchange of views on major issues concerning the global economy, the macroeconomic policies of major developed countries and the economic situation in China.

Both sides said regular talks of this kind will help deepen understanding and increase consensus between countries at different development stages.

The talks will also help promote co-operation between those countries on the basis of equality, and reflect the different demands of those countries in international economic policy co-ordination, they added. "We have no immediate plans to join the G7," Jin said.

"We are here to promote mutual understanding, our ability to participate in the world's economic affairs, and our interests," he said, adding that China was interested in continuing the high-level dialogue.

Jin said Beijing attended the G7 gathering because of its rising economic power, a comment that appeared aimed at dispelling speculation China was invited only because Western powers wanted to lecture it on currency matters.

During meetings in Washington, China reiterated its pledge to move towards a more flexible currency.

Jin and Zhou attended a dinner with their G7 counterparts over the weekend, discussing topics including oil prices, the economic outlook and currency.

"We have long said that we will represent not only ours, but other developing countries' interests," Zhou said.



 
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