The challenges of the global economy call for a new and honest multilateralism

As the World Economic Forum's five-day "Davos Agenda" talks wrap up on January 29th, the debate about the future of the world economy in a post-epidemic world is not over. While trying to contain the epidemic, restoring world economic growth, and thus rebuilding a more resilient, inclusive and sustainable world economy, is generally seen as an urgent task. During the five-day "Davos Agenda" dialogue, all parties reached broad consensus on the need to uphold the new multilateralism and strengthen multilateral cooperation.

At present, the global economy faces multiple challenges. In the short term, controlling the rapid spread of the global epidemic is a top priority. If the epidemic cannot be brought under control, the economy cannot recover and growth cannot be restored, not only will old problems not be resolved, but new ones will break out. In the medium and long term, a mix of chronic and new diseases, climate change, global debt, geopolitical tensions, the lack of sustainable growth model and other risks are long-term challenges that need to be vigilant and will hamper global economic development for some time to come.

These global challenges can only be addressed at a global level. No single country can fully reverse the difficulties.

Whether it is to meet global challenges or seize new opportunities for future economic development, upholding and practicing multilateralism, strengthening global multilateral dialogue and cooperation, and pooling our efforts will generate greater positive synergy. On the other hand, under the pressure of the epidemic and the economy, we may do our own thing, or advocate ideological bias, divide and decouple, or increase protection, or create constraints in the economic and trade field. All these will slow down the recovery process of the global economy and exert centrifugal force on sustainable development. The practice in the first half of the global response to the epidemic has revealed this fact.

Both the hard realities and the more complex problems call for multilateralism to return to its proper course. The IMF notes that global economic uncertainty reached unprecedented levels at the start of the outbreak, and although it has now fallen about 60 per cent from its peak, it is still about 50 per cent above the historical average from 1996-2010. Even the most advanced economies face an uncertain road to recovery. At this time, it is all the more important for all countries to pull together in times of difficulty.

After the outbreak countries launched a looser monetary policy and an expansionary fiscal policy, make the future more difficult global macroeconomic policy coordination, should mix to achieve more sustainable, the ideal incentive effect, and to put good policy to timing, strength, avoid cause huge spillover effect to the market. This means that in the coming period of time, international economic policy coordination and cooperation are particularly needed to form consensus and synergy.

In the economic and trade field, to restore the role of trade in driving the economy, it is urgent for countries to reverse the tendency of sanctions, cut off supply and protection, and reduce artificial restrictions on international trade. In the field of science and technology, it is necessary to recognize the dangers of decoupling if science and technology are to truly become the driving force of the world economy, strengthen cooperation on innovation and reduce disputes and impasse.

The global landscape is undergoing profound changes at an accelerating pace. The characteristics of our times, which are different from the past, call for an urgent return to the right track. The international community should think about global governance and multilateralism in innovative ways to meet new needs.

In the post-epidemic era, it is urgent to reshape a new multilateral trading system that can cope with the contemporary crisis, which will help deal with international economic and trade frictions, safeguard free trade, reduce trade costs and ensure a rational trade order.

In the post-epidemic era, digitalization and green growth are new opportunities for mankind. In the longer term, the world needs to discuss the formulation of global digital governance rules, the implementation of the Paris Agreement on climate change, the implementation of the UN 2030 Agenda for Sustainable Development, the exploration of a new sustainable growth model, and the reduction of the deep dependence on debt.

In an increasingly interconnected world, it is also possible to explore the use of networked forms to promote multilateralism so that global and regional organizations can interact with each other to address global challenges.

When the world is caught off guard by the Covid-19 epidemic, it is inevitable that we will take detours and make mistakes. Only by upholding the core values and basic principles of multilateralism, keeping in mind the changing world landscape, keeping multilateralism honest and innovating, keeping pace with The Times, and building a new type of international cooperative relations can we truly achieve mutual benefit and accelerate world economic recovery.