Michael Spence

Proposals raised by China, including the “Belt and Road” initiative and the establishment of Asian Infrastructure Investment Bank (AIIB), have benefited the world’s economic growth, Michael Spence, a Nobel laureate in economics told the People’s Daily in a recent interview.

Michael SpenceThe economist noted that the “Belt and Road” initiative and the AIIB will give a boost to economic development of Central Asia, East Europe, East Africa, especially the countries in Asia.

China’s investment to developing nations will speed up the latters’ economic growth, Spence said, adding that China’s demands will also provide growth opportunities for those nations of primary development.

He also praised China’s idea to pursue innovative, coordinated, green, open and shared development, saying that as the right pathway to transform economic growth architecture, it has created benefits in many fields.

China also made progress in green economy thanks to its increased efforts in managing financial, food safety and drug standardization sectors, he said.

Hailing China’s economic structural reform as fruitful, the economist added that though challenges remain, the reform is moving towards a right direction, which can be verified by the increasing consumption and innovation momentum of the private companies.

Meanwhile, Spence also expressed his concerns towards the current world economy. According to him, an optimistic forecast based on predicable policy changes showed that the US economy will step out of woods because a rise in private investment will improve the country’s productivity.

The European economy, though better than before, also needs more efforts to stimulate growth, he added. In addition to the downward pressure faced by world economy, the rising tide of populism hindered the economic, financial and political development.

He predicted that despite the possible downward risks caused by US trade policies, China’s economy will be in a good shape and its economic growth will be maintained at above 6 percent. Most developing economies will see progress as well.

Commenting on China-US ties, he said that officials and consultants of the Donald Trump administration hold different opinions on trade, environment and diplomatic policies, but after all, the public hope that both sides can develop a mutually beneficial relationship.

By Wang Rujun from People’s Daily/NewsGhana.com.gh

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