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Economy

China's efforts in fighting economic crisis hailed

(Xinhua)
Updated: 2010-03-06 11:24
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BRASILIA - A Brazilian economist has spoken highly of the Chinese government's efforts in fighting the global economic crisis, saying they were "successful."

The efforts China has made in dealing with the economic crisis were successful because the Chinese government has carried out corrective action in an organized manner, said Marcio Pochmann, president of the Institute of Applied Economic Research, in a recent interview with Xinhua.

Pochmann praised the Chinese government's ability "to coordinate responses to what represented the crisis in terms of reduced activity, loss of trade and job losses."

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"Countries that were more capable to cope with the crisis and emerged from it were those with public policies adequate to the moment of crisis," he said.

"China had an immediate role, as the country managed to arrange the position of their banks and favorable macro-policies to inject resources into its domestic market," Pochmann said.

The economist said China's policy of stimulating domestic consumption helped compensate the reduction of international trade.

He also stressed that the economic crisis was an opportunity to change the pattern of global economic growth, which should "go from an economy driven by financial gain to the one driven by production, trade and employment."

"We proceed from the assumption that the crisis is not just a problem. The crisis means trouble for many, especially for those who have lost their jobs or for businesses that have to be closed. But on the other hand we think that the crisis is also an opportunity for us to establish a new level of development," he said.

The cycle of global economy, which was based on financing wealth in the form of derivatives -- the main reason that pushed the world into crisis in 2008, needed to be changed, he said.

"Countries like China and Brazil have a recipe for growth that is not the recipe for growth sustained in papers, it is a growth sustained in production, in commerce, in employment," he added.

"Therefore, we have the opportunity for those countries to lead a development that will not repeat the past," he said.

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