World Economy Still Faces Great Challenges

World Economy Still

Faces Great Challenges

By Lily Wang

T

he 19th International Finance priorities” in coping with climate change:

Forum Annual Meeting was carbon pricing, climate financing, and

held between December 2 fair and equitable transformation. He said

which a leaders dialogue meeting and Agreement are to be implemented,

to 4 in Guangzhou, during that if the plans laid out in the Paris

report minars also took place. the current average global carbon price

shared their insights about global USD 75 per ton. There is an urgent need

Leaders from world institutions of USD 6 per ton must be raid to

economic difficulties and complexities to introduce a combination of policies,

in a candid way. They all agreed that including carbon taxes, carbon trading

geopolitical conflicts, food and energy emissions and regulatory measures; more

curity, the fragile macro-economy, and private capital needs to be mobilized to

ever-increasing inflation have exerted a fill the funding gaps required for the net

deep impact on the global economy. zero emission target; and the financial,

A more sustainable and inter-

employment and social policies introduced

dependent world economy is

by various countries also need to take

needed

the people and regions most affected by

climate change into consideration.

Infrastructure Investment Bank (AIIB), Director of the World Bank, focud on

Jin Liqun, President of the Asian Mari Elka Pangtestu, Managing

said that despite the current difficult the developmental crisis of developing

situation, we cannot ignore the task of countries. A number of indicators show

pushing the world economy towards that the complex international situation

International financial system

faces changes

slowing down, and the risk of recession

The world’s economic growth is

is increasing every day. The current

international financial system is facing

great changes at prent. John Lipsky,

Vice Chairman of the Bretton Woods

System Committee (BWC) and former

First Vice President of the IMF,

explained that the proliferation of trade

protectionism and financial sanctions

may threaten the international system

which is bad on rules, as well as the

fundamental ways to achieve success in

the past. This will ultimately shake the

foundation of global growth.

years since the first G20 Summit was

John Lipsky said it has been 14

held, but the supervision of the capital

market has not kept pace with the

times. A Banking Union has not been

established in the EU, nor has a capital

market alliance been established. As

the number of non-bank financial

institutions continue to grow, tho

financial institutions with systemic

importance are still outside the scope

of regulations. In terms of establishing

a common framework for G20 debt

treatment, the common framework

inheriting the Paris Club has made

limited progress, and some vulnerable

economies have already defaulted. So

far, the efforts to jointly reduce debt

and solve debt issues have made little

progress.

Former Governor of the Mexico

Guillermo Ortiz, IFF Counlor,

Central Bank and former president

of BIS, discovered a very dangerous

situation t against the background of

COVID-19 pandemic: institutions like

the Federal Rerve have become the

international lenders. He said that the

central bank is the “last line of defen”

and needs to play a role in treating

emergencies. However, it has become

lenders that may affect international

politics.

mentioned the impact of the Russia-

Furthermore, Guillermo Ortiz also

Ukraine war on the global economy.

Economic achievements have been

destroyed by political turbulence. The

food crisis and spreading pandemic have

compounded the situation: “The world’s

economic system is inter-connected. A former finance minister of Brazil, said