Today is the most interesting day for the " Think Sustainable , Act Responsible "an independent evaluation presentation and high talks organized by ADB Asian Development Bank, Manila Philippines ( 15-17, 2015) regarding , Innovative approaches to sustaining progress, Environmental sustainability, Institutions and governance, Fiscal Sustainability and Project Sustainability.
For , Fiscal and Macroeconomics Sustainability , speakers were Mr. Peter Petri , from Carl J. Shapiro Professor of International Finance, Brandeis International Business School ( IBS), Mr. Rintaro Tamaki , Deputy Secretary General, Organization for Economic Co-operation and development ( OECD), Marilou Uy , Director , G-24 Secretariat , Intergovernmental Group of Twenty -Four on International Monetary Affairs and development ( G-24), and Mr. Shang -Jin Wei, Chief Economist and Director General, Economic Research and Regional Cooperation Department , ADB
" for medium tern growth rate strategy, the best thing to consider is " avoidance of debt , the key to sustainable growth, perhaps by the delaying the interest rate implementation by the Federal Government of USA would be better for the world economy, thus it causes to maintain the market price stability , promote employment in the immediate course of time, but it poses risk to the world economy at large", said by Mr. Shang -Jin Wei.
" the harder we wait for the corrective interest rate adjustment , might causes us for a mighty hard fall", furtherance of the chief.
Thus the chief , raises three major points for today's today's talk on Fiscal and Macroeconomics Sustainability live panelist talk and open forum .
" Foreign Direct Investments -over capital flows ( inflow and outflow), for debt and , banks and mutual funds each countries should have resilient foreign monetary policy as a buffer against the monetary shock, for its ultimately the FDI flows will be the most to suffer to with.
Adopt a Foreign Capital flow management monetary autonomy , in anticipation for the USA , Federal banks interest rate adjustments which will lead to other countries hegemony of price and interest rate adjustments too.
The interest rate adjustments is expected for a local currency exchange differential pegging it to the volatile exchange rate of the US Dollar. Imagine the large currency exchange rate depreciation , the servicing cost of the currency on the part of the export oriented countries , lost of the confidence in the market place would in effect be real scenario given with the consequences of the adjustment.
Mr. Rintaro Tamaki of OECD , Deputy secretary general emphasized for the global financial players to "implement well design micro and macro monetary prudential regulation , thus easing the business cycle , speed up the business of lending and borrowing activities , encourage more money and capital leveraging, adequate foreign exchange reserves , support the competitive exports , sufficient servicing needs for the foreign currency debts .
Thus, today's world financial turbulence , started with the easing value of Yuan toUS Dollar , and the intentional strategy of China to be more consumer lead rather than be export oriented economy to cope up the growth desired the China economy , and so with the expected driving force of the global trade, investment and economy as a whole.
Understanding CHINA economy:
Structure - the China market structure despite of the voluminous demographic market , due to government mandatory population policy is now on a rapid decline , shrinking for about 3 % on annual bases. For now the country is only attaining .8 % capital to GDP ratio on a year to year bases considering the labor cost that is pegged to US Dollar and Euro . The traditional engine growth of manufacturing is narrower , and the China economy is banking its growth on " Innovation" for its future bright prospect.
Irreversible Path- the China economy from its mass trade oriented / investments economy to an open market based ( interest rate ) economy is major decisions yet with a profound effect in the local China perhaps world economy .
Natural progress for world growth miracle- labor market regulations and collective future reforms as China is banking for growth for Infrastructure , the sustainable financing needs and the Investible projects should be clearly at disclose at hand and available in the playing field of PPP Private , Public Partnership.
Mr. Peter A. Petri, of Brandeis University, raises the issue for the need of Insurance Company to work and hand in hand with the climate change and sustainable advocates for if Insurance Co is not equated for today's financial turbulence then there will be a world financial disaster . Fund managers , instructive industries ( natural gas) which are hoping for right standards assets for their balance sheets should " need to adopt with the ever changing situations for today's equating the effect of climate change.
Ms Marilou Uy , concluding words for today's financial sustainability forum" emerging and developing world economy growth would a lot of promises but they need to be adoptive , resilient to stand the world economic risk brought by natural and man made risk.
Shang- Jin Wei , Chief economist of ADB, conclusion for his world economic views on sustainable fiscal policy " dynamic dimension , and sound structural reforms is the engine for the world economic growth ".
henry estipona
philippines
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