The UN Conference on Trade and Development
(UNCTAD) said on Thursday that China's renminbi revaluation should continue
gradually rather than abruptly so as to maintain economic stability.
In its annual Trade and Development Report, the agency said China has played
"a vital role" in helping the economic growth of other developing countries.
"Since the beginning of the 1990s, China's domestic demand and its imports
have grown very strongly indeed, and the country has played a vital role in
spreading and sustaining growth momentum throughout the developing world," the
report said.
Such a process should not be derailed, and therefore, renminbi revaluation
should continue gradually rather than abruptly, taking due account of regional
implications, it noted.
The UNCTAD also praised China's sharp economic growth in recent years,
indicating China's characteristic growth, which highlights a government role in
the market, could be a model for poor countries.
The report said governments of developing countries should " take a
pro-active stance in macroeconomic and industrial policies to accelerate private
investment and technological upgrading and to stimulate the creative forces of
markets."
The hands-off policy and total reliance on market forces, as promoted by
international financial organizations and lenders in the 1980s and 1990s, has
proved to be a failure for many developing nations, it said.
According to the report, developing countries could post a high economic
growth rate of 6.2 percent in 2006. While wealthy nations, including the United
States, European Union and Japan, should achieve a growth rate of 2.7 percent
this year.
The global average growth should be 3.6 percent this year, the same with
last.
Excluding China's booming economy, the fastest growth rates this year should
be posted seven percent in Asia and 5.9 percent in Africa, where growth has
accelerated consistently since 2002.
The report highlighted the role of China and India, the two most populous
countries in the world, in boosting the global economic
growth.
