Geneva, 28 July, 2009 

Mr. Chairman,

   It is a pleasure for me to attend the joint workshop on current critical challenges to the South: the global economic crisis and climate change. It is timely for the members of G77 and the South Center to discuss these urgent matters together. It will be helpful to poll wisdom and capabilities of both organizations to address the challenges that developing countries face. I'd like to express my thanks to the South Center and its staff for their efforts in making the workshop happen today.

   The international financial crisis is still unfolding. The developing countries did not cause this crisis, yet, they turn out to be the hardest hit. This is unfair and unjust. They now find themselves in a difficult situation of declining economic growth and revenue, shrinking trade, rising unemployment with more people to return to poverty. It is more difficult for them to access financing from abroad and their external development environment is worsening due to the declining official development assistance (ODA). The developing countries have suffered a serious setback in attaining their Millennium Development Goals (MDGs).

   In this unprecedented crisis, we must regard developing countries as an important force in addressing it and achieving global economic recovery, and take resolving development issues as a key part of the effort to address the financial crisis. The United Nations is the most universal, representative and authoritative inter-governmental organization. We developing countries should be better united to support the UN in playing a more important role in tackling the financial crisis, and in helping developing countries ensure the attainment of the MDGs on schedule. To this end, I want to share with you some of my humble ideas:

   First, when introducing policies in response to the crisis, developed economies shouldn't only care about their own benefits, but rather should go all out to avoid any negative spillover effect on developing countries.

   Second, we should firmly oppose trade protectionism, and demand open markets to developing countries, particularly the least developed. We should increase aid-for-trade and help developing countries enhance capacity building, build on the progress already made in the Doha round negotiations to make vigorous efforts to achieve the goals set for this development round at an early date in accordance with the existing mandate.

   Third, we should call on developed countries to implement the Monterrey Consensus, fulfill the commitment of using 0.7% of their gross national income (GNI) as official development assistance, reduce and cancel the debt of developing countries. International financial institutions should establish financial rescue mechanisms that can provide prompt and effective assistance to developing countries, and use its new resources mainly to assist developing countries.

   Fourth, we developing countries should step up trade and investment cooperation, open markets to each other, and work together to foster new areas of growth. We can of course share development experience, learn from each other and draw on each other's strengths. We should also have innovative ways of working together, as well as upgrade, broaden and deepen South-South cooperation.

  Fifth, continue to improve the governance structure of the IMF and the World Bank, genuinely increase representation and voice of developing countries and promote a diversified and rational international monetary system.

Mr. Chairman.

   China has been calling on the international community to join hands to promote development tackling the crisis since its outbreak, and has vigorously pushed forward and participated in relevant multilateral cooperation.

   ─ We have taken an active part in the trade finance program of the International Finance Corporation (IFC) and provided US $1.5 billion in financing support.

   ─ We have provided assistance to some developing countries to the best of our ability and signed with some countries and regions bilateral currency swap agreements worth  650 billion RMB.

   ─ We have reached agreement with the IMF to help it increase resources by purchasing its bonds and our financing support will be used mainly to help developing countries.

   ─ We have been actively involved in a reserve pooling arrangement under the Chiang Mai Initiative Multilateralization (CMIM). Contribution from China will account for 32% of the total US$120 billion fund.

   ─ We are working hard to follow through on all the measures to assist Africa announced at the Beijing Summit of the Forum on China-Africa Cooperation and implement what China had proposed at the UN High-level Event on Millennium Development Goals to help other developing countries.

   ─We will, within the framework of South-South cooperation, continue to do what we can to assist other developing countries.

 Thank you!