Economy

Adjustment of world economic growth patterns under way

By Zeng Zheng (peopledaily.com.cn)
Updated: 2010-07-08 10:01

A shift in development pattern is the fundamental way to realize balanced and orderly growth of the world economy. Since the start of global financial crisis in 2008, nations around the world and major economies in particular have been exploring their economic development modes, and some countries and regions have adopted their new strategies for economic development, so as to get rid of their predicament within the shortest possible time and retain the long-term sustainable growth. The economic development strategies of the United States, Japan, the Republic of Korea (ROK) and the European Union are typical examples.

As is the case of the U.S., it has implied integrating long-term concern in the short-term policy packages. After the outbreak of financial crisis in August 2008, the United States has carried out the economic growth strategy, which can be summarized into two aspects: One aspect is to "re-industrialization" of America with an objective to return to the substantial economy through efforts to spur the growth of its manufacturing sector, and to effect a shift to the "export-oriented type" model for spurring economic growth. The other aspect is the new energy growth mode aimed to develop renewable energy and to promote the Next Industrial Revolution, which constitutes the core of the new strategy.

The Japanese government has also introduced the new Growth Strategy toward the year 2020 approved at the Cabinet meeting on June 18, which was "stimulating latest demand that would come up to the surface otherwise"…

Following the outbreak of the global economic crisis, Japan's exports to all destinations dropped rapidly and sharply. Japan, however, was slow to respond in a timely manner when its economy drifted into its long-term doldrums in the early 1990s, which is now referred to as the "lost decade". However, if people in Japan can take this opportunity to fundamentally review and redesign its economy, the crisis may turn out to be "a golden opportunity" for Japan to tackle the difficult task.

As for ROK, or South Korea, a New Carbon Point System 3 was introduced on January 14, 2010, as an incentive for energy conservation, which is designed to reduce CO2 emissions, and to achieve higher levels of economic growth and create jobs and add new impetus to economic growth.

On the basis of implementing the reputed "Lisbon Strategy" in the last decade or so, the European Commission on March 3 issued a "new Europe 2020 EU strategy" for the intelligent, sustainable and inclusive growth, which represents a crucial factor to turn EU into a smart, sustainable and inclusive economy.

In the post-crisis era, which would be a fairly long period of time, the world economy is expected to recover gradually and the international financial markets would stabilize steadily. Judging from strategies for economic development in a couple of related countries and regions, it is foreseeable that global economic development patterns are expected to experience major adjustments in the current post-crisis era.

On the one hand, the world economic development will return to focus mainly on the sphere of real economy. Relevant researches show that one of the main factors for the current global financial crisis is that the growth of virtual economy in developed nations and especially in the U.S. has outstripped the scope that real economy can stand; the return of the focus in the entire economic development to real economy will be a great hallmark of global economy in the post-crisis era.

On the other hand, the financial crisis will give rise to a new round of technological changes and the Industrial Revolution. In view of the process of global economic growth, the economic crisis is often followed in its wake by new scientific, technological revolutions. So, the low-carbon technology is most likely the main orientation for new technological revolution in the post-crisis era. At the spur of new technological revolution, the green growth mode with low carbon technology at its core would be most likely the new standardized mode of the global economic development.