On Sunday, Sept. 4, Chinese President Xi Jinping kicked off the G-20 heads of state summit in Hangzhou, China. The opening ceremony included a stirring performance of the Ode to Joy, which set the inspiring tone for the entire summit. President Xi, in his opening remarks, reiterated his call from the previous day at the B-20 business leaders forum, that the entire global financial system must be overhauled to reverse the current global crisis, and that the G-20 must take the lead in bringing about the needed changes, driven by innovation and cooperation among nations.
President Xi’s B-20 speech on Saturday was a strong echo of the policies developed over decades by Lyndon and Helga LaRouche, including her most recent call for the G-20 meeting to move to fully realize the World Landbridge. The significance of the performance of the Ode to Joy, poem by Friedrich Schiller and music by Ludwig von Beethoven, was a further indication of Xi’s commitment to the principles of scientific and technological progress and “win win” cooperation among all of the nations of the world.
Chinese President Xi Jinping delivers a keynote speech on the opening ceremony of the Business 20 (B20) summit.
The G-20 meeting was preceded by an informal meeting of the heads of state of the BRICS nations, where further preparations were made for the Oct. 15-16 BRICS summit, hosted by Indian Prime Minister Modi in Goa. The BRICS and G-20 events began immediately after the conclusion of the East Economic Forum in Vladivostok, Russia, hosted by President Vladimir Putin, where the same agenda of Eurasian development and a spirit of cooperation among leading nations of the world was promoted. The two guests of honor at the Vladivostok forum were Japan’s Prime Minister Abe and South Korea’s President Park, thus broadening the alliance for cooperation.
In stark contrast, US President Barack Obama used the occasion of his bilateral meeting with President Xi to press all of the areas of conflict dividing the United States and China, including the illegal ruling by the Permanent Court of Arbitration on the South China Sea, the allegations that China is dumping steel on the world market, and other frictions. Obama showed up in Hangzhou to attempt to revive the dead—his Trans-Pacific Partnership swindle—as well as to provoke conflict. Obama could not even resist the opportunity to throw cold water on the efforts by his own Secretary of State, John Kerry, to finalize a deal with Russia for joint military operations against the Islamic State and Al Qaeda.
The G-20 summit will continue through Monday, followed by another Asian economic summit in Laos, Sept. 6-9, followed by a meeting of the 10+1—the ten ASEAN nations with China.
While President Obama continues to isolate himself from the growing majority of nations who are attempting to come up with solutions to the onrushing collapse of the trans-Atlantic region and the drive for war coming from the dying British Empire system, this week will conclude on a profound high-note, with the series of four performances of Mozart’s Requiem in the New York City area, in commemoration of the fifteenth anniversary of the Sept. 11, 2001 attacks on the World Trade Center and the Pentagon, in which 3,000 innocent people were killed. The Schiller Institute Chorus and Orchestra will participate in those concerts.
With the Washington, D.C. press conference last Wednesday by former Sen. Bob Graham, and with a vote on the Justice Against Sponsors of Terrorism Act (JASTA) pending in the House of Representatives when Congress resumes work on Sept. 6, the issue of justice will be dominant this week. As Sen. Graham told the media in Washington last week, with the July 15 release of the 28 page chapter from his original Joint Congressional Inquiry into 9/11, the cork has been popped from the bottle, and now the full truth about the role of Saudi Arabia in the worst terrorist attack on U.S. soil in history, must come out. That means the entire Anglo-Saudi apparatus can be brought down, and that, in turn, means that the primary forces out to obstruct the realization of the World Landbridge and a new paradigm of relations among the nations of the Earth can be defeated once and for all.
In his comments opening up the meeting of the G20, President Xi Jinping reiterated some of the significant comments he had addressed the day before to the meeting of business leaders attending the Business 20, underlining the fact that the world is facing an important juncture in which the decisions taken by the Hangzhou Summit will be absolutely crucial in the direction the world will take. In spite of efforts made at global financial reform, the situation was becoming critical, Xi said, pointing to the decline of international trade, the growth of protectionism, to the aging of the populations, and the decline in the growth of populations. “In spite of the reforms, there are multiple risks,” he said. “The risk of excessive leverage and bubbles continues to build.” “The G20 represents the world’s major economies and therefore the world places great hope in the solutions Hangzhou will provide.” He then reiterated the four points he had previously outlined to the business leaders. “We must strengthen policy coordination and uphold financial stability. We must coordinate fiscal policy and structural reform.” Secondly, “we should break a new path for growth,” he said. “The G20 must change its policy approach and place equal importance on both short-term and long-term management. We have decided to break a new path through innovation, structural reform, a new industrial revolution, and the development of the digital economy,” Xi said.
“Thirdly, we should improve global economic governance and strengthen traditional safeguards. We must continue to improve the international monetary and financial system and the governance system of the international financial institutions, and fully leverage the role of the IMFs Special Drawing Rights. We have to strengthen the global financial safety net and enhance cooperation in financial regulation and combat corruption in order to boost the resilience of the economy against risks.
“Fourthly, we must build an open global economy and continue the facilitation of and liberalization of trade and investment. Infrastructure connectivity should be enhanced so as to bring developing countries and small- and medium-sized countries into the value chain.
“Fifthly we should implement the 2030 Sustainable Agenda.” Xi then referred again to the rise in the Gini coefficient [of income inequality], saying that this must be seen as a warning sign, and underlined the continued need for the support to Africa and to the less developed countries.
Xi then outlined his proposal for reform of the G20. He said it had to be transformed from “a crisis response mechanism to a mechanism of long-term governance,” and that “it must play a leading role in dealing with any ensuing economic crises.” Secondly, the G20 should “honor its commitments. The G20 should be an action team instead of a talk shop,” and has to develop an action plan. “The G20 should be a platform of cooperation,” he said. “We should sustain and deepen our commitment and become more inclusive.” “We should act as partners, and as we stick together we can navigate the world crisis,” Xi said. “We must steer the giant ship on a new voyage from the shore of the Qiantang River [in Hangzhou] to the vast ocean,” he said.
A meeting of the BRICS heads of state Sunday, just prior to the official opening of the G-20 meeting, was a demonstration of the continuity of the policy of economic development, especially from Chinese President Xi Jinping and Russian President Vladimir Putin, of the series of meetings over the past week: the Eastern Economic Forum (EEF) in Vladivostock, Russia (Sept. 1-2), followed by the Business-20 (B-20) in Hangzhou, China (Sept. 3-4), and the G20 meeting that opened on Sunday. The BRICS session seized a major role in setting the stage for the next two days.
Xi, host of the G20, opened the meeting calling on BRICS members to promote the reform of the governance structure of the IMF and World Bank and to “implement the first batch of projects” that BRICS had defined.
Indian Prime Minister Narenda Modi, who will host the 8th Summit meeting of BRICS in Gao, India in mid-October stressed that the bloc has the “shared responsibility to shape the international agenda in a manner that helps developing nations achieve their objectives.”
Putin’s pointed policy speech was immediately posted in English on the Kremlin website. He started with reference to last year’s BRICS summit in Ufa, Russia, stressing that in addition to launching the “new large-scale joint projects” in technology, industrial cooperation, energy, and agribusiness, BRICS will expand into “science, education, culture, on issues of social policy, healthcare and sport.”
On Syria and Middle East/North Africa crises, Putin put the blame squarely on the West’s instigation of chaos. “Civil wars instigated from abroad, the disintegration of government structures in Iraq, Libya (which President Zuma spoke about with concern) and Yemen, have turned this region into a place of chaos and a foothold for international terrorism which troubles all of us, causing an uncontrollable wave of migration….
“The most dangerous situation is in Syria,” Putin said. “This is why we responded to the request of the legitimate, let me stress, the legitimate government (emphasis added) of that country for assistance in the fight against terrorist groups.
“The Russian Aerospace Forces have dealt a heavy blow to the terrorists and their infrastructure, and have preserved Syrian statehood, which I think is absolutely vital.”
“Together with other partners we managed to enforce a ceasefire in some regions of Syria and to launch inter-Syrian talks,” Putin stated, and said that now other countries of the world must take initiatives on the global economic situation.
On the economy, Putin again took a swipe at Obama, citing the TPP and TTIP as two “private organizations” that are trying to usurp the negotiated terms of the World Trade Organization (WTO).
The global economy “has still not overcome the effects of 2008-2009 financial crisis,” Putin asserted. “According to forecasts, growth is unlikely to reach the pre-crisis level before 2019 …. Among the limiting factors is the volatility on foreign exchange and commodity markets, the lack of coordination of monetary policies, and the high debt levels in developed economies.”
As an alternative, Putin cited President Xi’s planning of the G20 this year, and called on the BRICS nations “to strengthen our countries positions in the global financial system.
“I would like to congratulate our Chinese partners on the Special Drawing Right basket being expanded to include the Chinese yuan from October 1, 2016,” Putin added.
“The BRICS states have already increased their total share in the IMF capital to 14.89 percent, [which is] very close to the blocking threshold of 15 percent. And they certainly need to continue in this direction, advancing the reform of the IMF.
“We need to make the BRICS Pool contingent of foreign exchange reserves and the New Development Bank fully operational …. to adopt the bank’s strategy, to provide loans in local currencies, and to begin financing specific projects.”
Putin was especially harsh about the West’s efforts to create “various private associations, such as the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP), [that] are gaining momentum; [and] seek to replace the WTO rather than complement it.” They are doing this because the WTO has stalled out.
Citing the next step, Putin concluded by congratulating Prime Minister Modi on the upcoming BRICS meeting in India—looking forward to advancing the BRICS agenda.
Addressing the B20, the gathering of businessmen from the G20 countries one day before the opening of the G20 Leaders Summit in Hangzhou, China, President Xi Jinping presented a comprehensive program for pulling the world out of the present economic crisis. Xi stressed that bringing a country of over 1 billion people into a reasonable standard of living was “an endeavor never undertaken in the history of mankind. And economic development was key.” He continued, “We have taken bold initiatives and have lifted over 700 million people out of poverty. And this is the course that China and the world should take. For this purpose, we have introduced large-scale investment overseas.” He then said that many were skeptical that China could continue moving in that direction and not fall into the ostensible “middle-income trap.”
China’s response to the “new normal” with the collapse of the world export markets was to push for innovation, invigoration, interconnectedness and inclusiveness as “the new drivers of economic growth,” Xi explained. “We have a new means of integrating China in the world and in maintaining medium-high rates of growth. In this way, we can deliver more to the world and maintain China’s growth at the same time.”
“China’s growth had hitherto depended on resources, capital and the labor force, but that old model is no longer sustainable. Now we need an innovation-directed strategy. Scientific and technological development holds the key to economic development…. We’ll take the lead in science and technology and conduct fundamental research to resolve the scientific and technological problems holding back economic and industrial development. We will speed up commercialization of R&D and foster strategic emerging industries and move industries up to a medium-high level of the value chain.”
The President then outlined the real motivating forces behind these changes. “People are the foundation of the country. We have to be oriented to the needs of the people and raise their living standards and the quality of their lives. We will lift over 57 million people out of poverty and poverty will be alleviated in all poor counties by 2020. This is a solemn promise to the Chinese people. We have lifted over 70% of the population out of poverty. We will make the pie bigger and continue the global fight against poverty,” he said.
Xi went on to say that the policy of opening up to the outside world will continue. “We will continue to make the RMB an international currency and will continue opening up our capital accounts. There will be a further internationalization of China’s financial sector,” he said. “China’s development … will provide more goods to the international community. The Silk Road Economic Belt is progressing rapidly and the Maritime Silk Road is well under way,” he said. “But this is not China creating a sphere of influence but rather a means of supporting the development of all countries. We are not building China’s ‘backyard garden’, but we’re building a garden to be shared by all countries….
“The world economy is now in a period of profound adjustment. We’re standing at a crucial juncture. Renewed growth drivers are replacing the old ones. The dynamic of the old scientific revolution is waning while the new impetus for growth is still in the making,” Xi said. “We need an innovative world economy … in order to unleash the potential. A new scientific revolution with the internet at its core is gaining momentum. Artificial intelligence and virtual reality is developing by leaps and bounds. A combination of the virtual economy with the real economy will bring changes to our way of work and our way of life. But this will not happen overnight nor will it be problem-free….
“China made breaking new paths of growth the goal of this year’s summit,” Xi reminded the B20 leaders. “We must seize the historical opportunity to begin the process of innovation, of new scientific and technological revolutions, and industrial transformation in order to create new growth. This is the first time that the G20 has taken action on the issue of innovation.”
Xi then issued a series of four points which are now on the table. “We must combine fiscal policies with structural reform policies and build an open world economy in order to increase the scope of the economy.” There should be no “beggar thy neighbor policy,” he said. And with regard to interconnectivity one of the four “I’s” that are the theme of this year’s summit, he said that “countries all fall or rise together. We have to promote the common development of the world economy,” he said. “China proposed a Global Infrastructure Connectivity Alliance initiative, and is encouraging all the multinational development banks to adopt a joint declaration of aspiration and give greater funds and intellectual support to infrastructure projects in order to speed up the process of global infrastructure connectivity,” Xi said. “We have to create a chain of win-win global growth.”
And fourthly, the issue of global Inclusiveness. “We must abolish poverty and hunger,” Xi said. “This is not just a moral imperative, but it will also unleash effective demand.” Xi pointed to the increase of the inequality quotient which had gone from .6 to .7. “We must pay close attention to this,” Xi said. “The G20 should work not just for the benefit of its own countries, but for all the world.” [One of a number of statements that was met with great applause.]
Xi then concluded with some well-timed remarks on the political environment. “We must work to build a peaceful and stable environment. We have to reject out-dated Cold War mentality and build a new concept of common, cooperative, comprehensive and sustainable security. We should uphold the principles of the UN Charter and adhere to multilateralism and dialogue…. We must seek common ground in resolving our problems. The world is a better place when everyone is better off. We must steadily improve our macro-economic cooperation and enable people from different backgrounds to work together toward our common destiny. We must work together to improve global governance and adapt to changes in the world economy on the basis of equality. We should adopt a mechanism of sharing and not a `winner take all’ mentality. At this crucial juncture of development, we must transform the G20 from a crisis-response mechanism to a mechanism of long-term governance and enhance the G20 as the premier forum for international governance.”