Reform of world financial order needs strategic thinking

BEIJING - A new global financial order is essential in the rapidly changing global economy, and strategic dialogues and cooperation are needed to reform the current system, international financial experts said at a forum in Beijing.

"The world today is facing a revolution. It is imperative to construct a new global financial framework and to formulate new rules for global financial market," said Cheng Siwei, chairman of the International Financial Forum (IFF), a Beijing-based think tank, which concluded its three-day 2014 annual meeting on Sunday.

"The new global framework, new global rules, global balance and global governance require us to engage in renewed strategic dialogue and thinking," Cheng added.

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"The global economy and global finance is at the turning point in a way," Jean-Claude Trichet, former president of the European Central Bank, also a co-chairman of the IFF, told the forum via a video link.

"The world has gone through the global financial crisis ... new rules have been discussed not only inside the advanced economies, but with all emerging economies, including the most important emerging economies, namely, China." Trichet said.

Many experts agreed with Trichet and said that China, the world's second-largest economy, is playing a more crucial role in reshaping the world financial order, which was criticized by emerging economies and developing countries as unable to reflect the rapidly changing world economic reality.

Former Australian Prime Minister Kevin Rudd, also a co-chairman of the IFF, echoed Trichet's observation, saying that the current global economy and finance is facing complicated challenges, which need wisdom to deal with.

"The global financial world is changing profoundly," said Yukio Hatoyama, former prime minister of Japan and Chairman of IFF Advisory Committee. "China's role became more important."

Zhu Guangyao, China's vice-minister of finance, said the major economies, including the United States, the euro zone, Japan and China, need to enhance global cooperation to tackle global financial and economic crisis.

At the forum, global financial experts discussed hot topics such as global financial framework, global monetary system and China's economic transition and financial reform, as well the globalization of China's currency.

The IFF is an independent, non-profit and non-governmental international organization and a regular platform for global high-level dialogue and academic research in the financial field.