Shift of world power balance

The "China fever" in Davos reflected the ongoing shift of world power balance, making the reform of global governance necessary, analysts said.

China has replaced Germany as the world's largest exporter, and some people predict that it will replace Japan as the world's second-largest economy. A report by PricewaterhouseCoopers even predicted that China would overtake the United States to be the world's largest economy as early as 2020.

Regardless of whether those projections are too optimistic, it is a matter of fact that developing countries are gaining more economic weight as compared with developed countries. Developing countries now account for nearly half of global output, compared with little more than one-third in 1990.

This shift in power balance gathered pace following the outbreak of the financial crisis, which originated in the developed countries and hit them directly.

In line with the fundamental change, the Group of 20 (G20), comprised of major developed and developing countries, stole the show from the Group of Eight (G8) developed countries to become the major platform for tackling global challenges.

The shift can also be seen from the change of the WEF. Since 2005, the number of participants from Brazil, Russia, India and China, the four major emerging economies known as "BRIC," has more than doubled.

At this year's annual meeting, China called for an improvement of global governance by raising the voice and representation of developing countries.

"It has become a consensus of all parties to improve current structures and develop a more fair and efficient structure of global governance that reflects changes in the global political and economic landscape," said Li, the Chinese vice premier.

"The principle of equal participation and inclusive cooperation should be followed," he added.

(Xinhua News Agency February 2, 2010)