When I came here last year, it was 9 months after the agreement was signed by OPEC members and non-OPEC countries. Now we have been out of 3 years of recession. cooperation between 25 countries has helped bring back stability, having a positive impact on the world economy and trade. In the past 20 months, the change in the situations is like day and night.
However, it’s not the time for us to rest on the success. We should continue to build a healthy and stable market. Despite the recovery, there are still factors that are out of our control: geopolitical crises, disputes between countries and natural disasters. It is important for us to handle these risks and it is crucial to the market in the short term and in the long term.
We are in support of the Paris Agreement, which is the most important document about climate change and sustainable energy. Historically, people think renewable energy is the only choice for the future, but I think this idea is misleading. Actually, we need a diversity of energy sources, rather than just one source.
New renewable energy sources like solar and wind power are developing rapidly and the share of hydroelectric power remains stable. By 2040, renewable energy will account for 19% in the global energy mix. Nuclear power will represent 6%. That means 3/4 of the energy supply will have to be found elsewhere. So oil is still important.
Global energy demand is predicted to increase by 30%, in order to meet the needs of economic development and increased population. 3 billion people need energy for cooking, and there are still 1 billion people lacking electricity. Energy supply can have no holidays. It is a 24h service. Energy supply has to be reliable, stable and sustainable.
human capital index 一種衡量國家對人力資本投資和準備的指數。提高醫療健康和教育，對于國家投資人力資本和提升人才質量，以應對未來經濟競爭的重要性。
What is human resources capital index? It is a statistic tool for measuring how a country prepares its people for the challenges in the future. We can’t wait for any more, though I know some countries may not feel happy about its ranking.
In the past years, many countries have invested much in infrastructures, such as roads, bridges and airports. This is because the social and political benefits of investment in infrastructure are apparent. However, it takes years to see the benefits of investment in human resources, so there is a great gap in countries’ investment in human resources capital, and the gap is likely to widen.
The focus of our index is to ask 3 questions: first, how many children in a country can live to 5 years old? second, after reaching the age of 5, how many children go to school? third, when these young people go to the job market, how many have received sufficient training, which lays a good foundation for life-long learning. If children are provided with nutritious food and good health care, they will then request advanced education. However, in many countries, children face chronic lack of nutritious food, health care and school. If their brains don’t develop fully, later when they enter the job market they will be in a disadvantageous situation.
If a country doesn’t invest in human resources capital, its economic output cannot increase, and it cannot compete with other countries. Most of my life has been spent on investment in human resources capital in developing countries, and I have seen how the lack of investment in human resources capital has brought miseries. We call on donors to contribute more to these developing countries. However, we should also recognize that the huge needs cannot be met just by foreign aid. It is more important that developing countries improve their own ability.
Investment in human resources capital is important. Developing countries should improve air quality, provide clean water, school bus service, health care and social security.
I want to emphasize in particular that we must uphold the basic economic system. There must be no irresolution about working to consolidate and develop the public sector; and there must be no irresolution about working to encourage, support and guide the development of the nonpublic sector.
There are misunderstanding and deviation in implementation Some lenders think that it is safe to provide loans to State-owned enterprises, but politically risky to loan to private businesses. This kind of understanding and practice is completely wrong.
The private sector plays an important role in the economic system, contributing more than 50 percent of tax revenue, 60 percent of GDP, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of new jobs and new firms.
Without private enterprises, the entire economy cannot achieve stable development. The practices of not supporting private businesses for “private safety” are politically problematic and must be rectified.
We must uphold the basic economic system and give full play to micro, small and medium-sized enterprises and the private sector in economic and social development.
We must pay high attention to the difficulties faced by micro, small and medium-sized enterprises and roll out precise and effective measures to help them.
Efforts should be made to intensify research on working out policies aiming for boosting the growth of private businesses in aspects including reducing burdens from taxes and administrative fees, solving financing problems, improving environmental governance, as well as enhancing technological innovation ability.
Efforts should also be made to help private businesses improve their own capability and adapt to market changes, and achieve high-quality development.
The State Council and the All-China Federation of Industry and Commerce will send special groups to inspect the implementation of the basic economic system and the development of micro, small and medium-sized companies.