Bangkok, 27 April 2009

Mr. Chairman,

Madam Executive Secretary,

Representatives,

It gives me great pleasure to attend the 65th Commission Session of the United Nations Economic and Social Committee for Asia and the Pacific (ESCAP). My thanks go to the Thai government and ESCAP Secretariat for their thoughtful arrangements for this meeting. I particularly wish to thank Prime Minister Abhisit Vejjajiva for coming to this segment and addressing the audience.

Mr. Chairman,

The ongoing international financial crisis has had a serious impact on the economic growth of the Asia-Pacific region. Its growth has slowed down, its trade dropped sharply, unemployment surged all of a sudden and pressure is mounting on social stability. According to the latest Economic and Social Survey of Asia and the Pacific released by ESCAP, the Asia-Pacific region is home to two thirds of the world's poor and half of the natural disasters in the world occur here. Food, energy and natural disasters induced by climate change remain acute issues. For this region, to achieve the Millennium Development Goals (MDGs) and sustainable economic and social development is a severe challenge.

It is our shared responsibility to meet the challenge and overcome the difficulties. To this end, I would like to make the following proposals:

First, our immediate task is to do all we can to restore growth as it is crucial to the whole world now. All countries should enhance coordination in macro-economic policy and, as the situation evolves, take further positive and effective stimulus measures to boost domestic demand and stabilize markets. The Asia-Pacific countries have an immediate interest in upholding open and free trade systems at both global and regional levels, as most of them largely depend on external trade. We should jointly oppose trade protectionism, and push the Doha Round negotiations towards a comprehensive and balanced outcome. We should continue to promote the Asia-Pacific Trade Agreement (APTA) and other regional multilateral trade mechanisms as well as trade and investment liberalization and regional economic integration so as to boost our ability to weather the turbulences arising from markets outside our region.

Second, to achieve sustainable development, we need to adopt a holistic approach to address the long-term issues of energy and grain security as well as climate change that affect people's lives. In the Asia-Pacific region, about 950 million people live below the poverty line and the financial crisis has made the poor poorer. Because of climate change, natural disasters are frequent and agro-productivity decreased. All countries should increase input into and create better conditions for grain production, and improve the environment for grain trade. We must adopt a new thinking on energy security that advocates mutually beneficial cooperation, diversified forms of development and common energy security through coordination. We should also step up our efforts to address climate change under the United Nations Framework Convention on Climate Change and its Kyoto Protocol, as well as the principle of "common but differentiated responsibilities".

Third, the poor population is the most vulnerable to the crisis and deserves our special attention. In the Asia-Pacific region, the basic social security level is low. Only about 30% of the elder people enjoy old-age pension and 20% of the population are covered by medical insurance. The development of the poor is an important factor in the overall sustainable development of the region. We should strengthen social security systems and increase people's income and consumption capability. This will also stimulate economic growth. We should pay high attention to and minimize the damage of the international financial crisis on developing, especially the least developed countries in the region. Parties concerned, developed countries in particular, should honor their responsibilities and obligations and continue to fulfill their commitments to developing countries on assistance and debt reduction.

Fourth, social harmony is the common goal of all Asia-Pacific countries. In the face of various challenges today, it is more important to pursue harmony and promote comprehensive development in an all-round and coordinated way. Development is the top priority and the key to the solution of various issues. And long-term and sustainable development requires coordinated development in different economic and social sectors.

Mr. Chairman,

The financial crisis has brought China unprecedented difficulties and challenges. As the largest developing country, China is working to maintain its steady and rapid economic growth, which is in itself the biggest contribution to the world. To boost growth, we start with the expansion of effective domestic demand, particularly consumer demand. We have swiftly adopted a proactive fiscal policy and a moderately easy monetary policy and launched a systematic and comprehensive package plan. This package plan includes a substantial increase of government spending, and a two-year program involving a total investment of RMB4 trillion, equivalent to 16% of China's GDP in 2007. Our several cuts in interest rates and increases in liquidity in the banking system have released about RMB800 billion of liquidity. We have also launched a large-scale industrial restructuring and rejuvenation program to enhance the competitiveness of our economy. We are trying to substantially raise the level of social security. We will continue to increase basic pension for enterprise retirees and unemployment insurance benefits. With an investment of RMB850 billion, we are working to set up a nationwide basic medical and healthcare system covering both urban and rural areas within three years. We are pursuing a more active employment policy and trying every means to mitigate the impact of the financial crisis on employment. All these measures have achieved initial success, giving us full confidence to meet our major economic and social development goals in 2009.

Mr. Chairman,

China has taken an active part in the international and regional cooperation to tackle the crisis. It has played a constructive role in promoting reform of international financial institutions and improving global coordination in macro-economic policies. China has provided US$1.5 billion as the first portion of its financial support to the Global Trade Finance Program of the International Finance Corporation. China has made utmost effort to offer support and assistance to other countries. It has signed bilateral currency swap agreements worth RMB650 billion with relevant countries and regions, actively participated in the building of the currency reserve pooling under the framework of Chiang Mai Initiative Multilateralization, worked for regional economic and financial stability and promoted regional financial cooperation and trade.

Mr. Chairman,

The global financial crisis, grain and energy security and climate change have all added complexity to the endeavor of meeting the MDGs in our region. Yet, China has become the first developing country to meet the target of poverty reduction of the MDGs ahead of schedule and done its best to contribute to the international efforts to meet the MDGs. To facilitate the implementation of the MDGs, Premier Wen Jiabao of the State Council of China put forward a series of new assistance programs on behalf of the Chinese Government at the UN High-Level Event on MDGs last year. These programs include a donation of US$30 million to the UN Food and Agriculture Organization to establish a trust fund for projects and activities aimed at improving the agricultural productivity of developing countries; an increase of assistance to the construction of agricultural technology demonstration centers in developing countries; sending more Chinese agricultural experts and technicians to developing countries; accepting a greater number of students from developing countries; and giving zero-tariff treatment to 95% of products from relevant least developed countries. And China has already canceled the outstanding interest-free loans due by the end of 2008 extended to least developed countries.

Mr. Chairman,

ESCAP has played an important role in implementing the MDGs and promoting sustainable economic and social development in this region. Under the new world situation, ESCAP can make greater contribution to the common development and prosperity of all Asia-Pacific countries through reform, innovation and improvement of its efficiency. China has always attached importance to its cooperation with ESCAP. In view of the extensive and profound changes in the international and regional situation, we will continue to support ESCAP, strengthen exchanges with other members and make continuous efforts for a better future of the Asia-Pacific region.