By Lawrence R. Klein, laureate of Nobel Prize in Economic Sciences, professor of University of Pennsylvania, and Xiao Lian, research fellow of the Institute of World Economics and Politics, Chinese Academy of Social Sciences and director of its American Economic Studies Center
The Declaration on World Economic Development (Zhuhai Declaration) is a programmatic document which was drafted jointly by six winners of Nobel Prize in Economic Sciences and six Chinese economists in more than two years and revised by numerous experts, scholars, entrepreneurs, relevant economic departments and research institutes. It is aimed at acting in the spirit of the Charter of the United Nations, pushing for the establishment of a new international economic order and promoting world peace and development. The draft declaration is as follows:
Peace and development are the common aspiration of the peoples of the countries in the world and the themes of the world today. Peace is the basis for development and development secures peace. It is our common responsibility to abide by the spirit of "equality, honesty, cooperation and development" and preserve world peace.
In order to facilitate the setting up of a new world economic order of equality and mutual benefit, interdependence and common development, in the new millenium, we, relevant winners of Nobel Prize, famous economists from China and other countries, leaders of transnational companies and other world-renowned enterprises and representatives of developing countries, are releasing jointly the Declaration on World Economic Development (Zhuhai Declaration):
1.Interdependence
Under the circumstances of market economy, the countries and economic entities in the world carry on trade in commodities and services and make investment between them. Closed countries and economic entities, however, cannot effectively participate in world economy and their economic development is thus adversely affected. Therefore, all the countries and economic entities should be open to and dependent on each other and enjoy common development in accordance with the rules and regulations formulated by the United Nations and the World Trade Organization.
2.Scientific and Technological Progress
Science and technology exert an important impact on economic development. Science and technology should be conducive to establishing a highly effective and rational economic system. We should push forward scientific ant technological progress and put into rational use scientific and technological achievements, foster the economic development of the countries in the world and improve the livelihood of the people. We should also take feasible measures to boost the transfer of advanced technologies of the economically developed countries to the developing countries and prevent science and technology from becoming the sole profiteering tools of the few monopolists.
3.Effective Utilization of Resources
In compliance with scientific law, various limited natural resources (including human resources, energy and materials) should be effectively utilized so that the global economic resources will be best distributed to the fullest possible extent.
4.Sustainable Development
Harmonious coexistence between humans and nature and the realization of a virtuous cycle in population, resources and the environment will provide a favorable environment for a steady economic development and maintain a sustainable development of world economy.
5.Distribution
The growing income and wealth should be distributed fairly and equally among the countries and within the countries themselves and serve the whole population of the world (irrespective of their gender, ethnicity, culture and religious belief). Assistance offered by the developed countries to the developing countries to build up capabilities is conducive to eliminating poverty, improving South-North relations and facilitating the common prosperity of the peoples of the countries of the world.
6.Competition
Competition is conducive to boosting production, developing economy and effective utilization of limited resources. Fair and rational competition should be encouraged among the interdependent countries of the world and production departments of the society. Monopoly obstructing trade and equal opportunity should be opposed in order to push forward the development of world economy.
7. Funds for Economic Development
To facilitate capital flow, a fairer and more rational financial system which supports the development of world economy should be set up so as to maintain a stable economic environment and make the achievements in international trade benefit all the countries of the world.
8.Economic Development and Education
The development of education and skills of the whole population of the world (regardless of country, region, ethnicity, gender and wealth) should be promoted and ignorance eradicated. Human resources should be vigorously trained to foster economic development of the world.
9. The Human Factor in Economic Development
Harmony among humans and between humans and nature is the ultimate goal of economic development. All economic activities should serve the wellbeing of mankind and its shaking off of poverty. Humans are both producers and consumers. Producers should be encouraged to provide high-quality products and services to all the consumers of mankind to help realize long-term interests of all. And this shall be deemed the eternal norm of all the actions.
May the governments, enterprises and all the walks of life of the society that are devoted to world peace and the common progress and development of mankind make joint efforts and create together a splendid 21st century.
The Declaration on World Economic Development and its series of activities have drawn extensive attention and received enthusiastic response from home and abroad. Kofi Annan, Secretary General of the United Nations, sent a message, expressing his support. Mr. Klaus Schwab, President of the renowned World Economic Forum, will attend the meeting from November 6 to 7 this year in Zhuhai, Guangdong Province, preside over a forum meeting and publish a statement to the world supporting the series of activities of the Declaration on World Economic Development. The other winners of Nobel Prize in economics have also extended their support for the declaration. The Chinese state leaders have set great store by these activities and written down important comments on them. At the meeting, Chinese Party and state leaders, foreign dignitaries, leaders of international organizations and well-known business figures will take part in the meeting. At the meeting the Declaration on World Economic Development (Zhuhai Declaration) will be released.
As drafters of the declaration, we are happy to make public to the world this draft for soliciting comments as part of preparations for the finalization of the text. Prior to this, we solicited comments from numerous specialists, scholars from home and abroad, nearly one hundred foreign envoys and officials, leaders of international organizations and chambers of commerce, executives of nearly ten thousand famous enterprises and representatives of developing countries. In order to fully mirror the main theme of world economic development, we will invite more economists from home and abroad and personages caring about these activities to comment and express their views on the draft declaration.
The theoretical basis of the declaration lies in the fact that it has crystallized and concentrated the collective wisdom and thinking of the economic circles of various countries, business circles, government organs and related international organizations. The nine points in the declaration have deep inherent theoretical logic. It has unfolded around the axis of "peace, development and wellbeing of mankind". Peace is the basis of development whereas development secures peace. Their ultimate goal is the wellbeing of mankind. In point one, interdependence is the prerequisite of development. From point two to point eight, scientific and technological progress, effective utilization of resources, sustainable development, distribution, competition, fund and education are all means of development. The ultimate goal of development boils down to point nine, i.e., all economic activities "should serve the wellbeing of mankind and its shaking off of poverty."
The declaration is a continuation of the United Nations Millenium Declaration in 2000. The above UN declaration emphasized political issues while this declaration will give prominence to issues of world economic development, which are extensively representative. This declaration differs from those of economic forums such as the Bo'ao Forum for Asia, APEC, NAFTA, EU, ASEAN. Those forums consider issues of regional economic cooperation and development whereas this declaration will discuss global economic cooperation and development. A statement of the G-8 summit gives more consideration to the economic cooperation and development between the developed countries, which is different from this declaration. This declaration will give prominence to the principle of interdependence, stress the responsibilities and obligations of the developed countries to help developing countries build capabilities, rooting out poverty, improving north-south relations and promoting common prosperity of the peoples of various countries of the world. This declaration is also different from the declaration released by developing countries at the Bandung Conference, which emphasized south-south cooperation. It will discuss not only south-south cooperation, but also north-south and east-west cooperation that involve the hot spots, doubtful and knotty issues in global economic development.
This declaration has followed the trends in world economic development so it is called "Declaration on World Economic Development". The declaration has taken into full account the aspirations and requests of the numerous developing countries for interdependence, mutual benefit and common development with developed countries. Therefore, the declaration has provided a platform of mutual trust and interaction for the developing and developed countries to have exchanges on the basis of "equality, honesty, cooperation and development". The series of activities related to the Declaration on World Economic Development sponsored by China will have a positive impact on strengthening international cooperation, facilitating peace and development of mankind and pushing forward the setting up of a new international economic order.
In the planning, organizing and preparing phases of these activities, Chinese Party and state leaders have attached great importance and offered support to the series of activities of the declaration. The activities also have had positive response from the economics and business circles, government organs of various countries and relevant international organizations. This indicates that China is integrating itself into the world with a more responsible attitude and making its contributions to fostering world peace and development and the wellbeing of mankind.
(China.org.cn November 6, 2003)
