China's presidency of the Group of Twenty (G20)is timely given the wave of anti-globalization sweeping developed markets, an eminent economist has told Xinhua.[Special Coverage]
The global economic narrative has been slowly moving away from the Group of Twenty leading economies (G20) goal of strong, sustainable and balanced growth, leading to continued feelings of inequality from low global growth and continued slack in the labor market.
Peter Drysdale, emeritus professor of economics and head of the East Asian Bureau of Economic Research at the Australian National University (ANU), told Xinhua that the anti-globalization movement will impact economic outcomes unless "G20 leaders take a clear and unambiguous stance on keeping the world economy open, on pursuing supply orientated growth."
"I think it's very timely that China's presidency of the G20 comes this year," Drysdale said.
Pessimists have been worried that a hard landing in China's transition to a consumption base will reverberate around the global economy, going so far as to suggest economies lessen their reliance on China for growth.
However, the thought that global growth would be easier to manage if there was no reliance on China isn't feasible, Drysdale said, adding that China "appears like an island of stability and growth in the global economy, and not an area of uncertainty."
"If you look at China in the next decade or so, even at a slow growth scenario, (China) will add more to the global economy than India, Japan, the rest of Asia put together," Drysdale said, giving a relative scale to the importance of China in the global economy.
"Economic policy makers are focused on making the most of that opportunity and working with China closely in order to buttress the global economy against the headwinds of anti-globalization in the old industrial world."
"There is the risk however anti-globalization takes hold post the U.S. presidential election in November where both nominees for President of the United States have increased their protectionist rhetoric, echoing sentiment brewing in developed markets."
"Here's where China's (G20) leadership matters, and here's where our collective leadership in Asia matters," Drysdale said.
"This is still the area of the global economy which is pursuing open trade and development strategies, and (that) will protect to some extent to inward looking-ness in North America and Europe.
"It won't protect entirely against (anti-globalization), but if China and the rest of Asia commits to that strategy, reaffirms that strategy, then it will encourage Europe and North America to come along with the ride."
