The recovery of the global economy appears fragile and China’s role remains crucial despite the second largest economy having slowed down, New Development Bank (NDB) president KV Kamath has said.
Structural reforms and innovation driven growth are required to implement the UN 2030 Agenda for Sustainable Development Model and a blueprint for this will be presented by China at the G20 Summit here, he said.
Elaborating on focus areas for the summit, Kamath told Hindustan Times: “The global recovery still looks fragile and there is a need that the next chapter of development unleashes economic growth – not just for the few at the top, but inclusive and sustainable growth that lifts the fortunes of many.”
Kamath, who is NDB’s first president, said China’s role remains crucial for the recovery of the global economy even though its own economy had slowed down. Emerging markets as a whole will play a role in the recovery, he added.
“Emerging markets have spearheaded the global recovery post the financial crisis. China is the world’s second largest economy and remains an important powerhouse for global growth. Even though China’s growth rate is slowing down and (it) is undergoing transition, it still makes a significant contribution to global growth,” Kamath said over email.
China is expected to “seek a stronger voice for developing countries and showcase itself as an important business centre”, he said. He was also confident of growing economic ties between India and China, calling it a “win-win opportunity” for both sides.
“With strengthening of economic relations between the two countries, Indian companies will have better access to the vast Chinese market and will be able to leverage global opportunities out of China,” he said.
China too is looking at economic opportunities in India.
“For China, there will be opportunity to showcase its capabilities and contribute to its economic growth. There is a significant potential for commercial linkages between India and China as well as for boosting knowledge flows between these two countries.”
Kamath also said the G20 has its task cut out. “G20, as a platform, started as a crisis response mechanism and is elevating itself as a platform that supports long-term sustainable global growth,” he said.
“To ensure 2030 SGG aims are achieved and wide spread benefits are delivered, economic consensus and coordinated policy action plan will be presented at this year’s summit.”
The NDB is a multilateral bank established by BRICS countries (Brazil, Russia, India, China and South Africa.)