OECD SG Gurria to EuroFora: China's Growth=sustainable, but Political Action needed, as in the West

*Strasbourg/CoE/Angelo Marcopolo/- China is a positive "exception", even among BRICS Countries, and its big Growth looks Sustainable, said OECD's Secretary General, Angel Gurria, to "EuroFora", shortly after having denounced an Insufficient yet "Moderate Recovery" in Advanced Countries, but also a recent aggravatrion of Inequalities, and other such facts which clearly indicate the importance of an also Political dimension in the way out of the Global Crisis.

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Growth in BRICS' Countries can contribute to advance towards a Global Recovery of the World Economy out of the recent Crisis

In general, BRICS Countruies go quite well, even if, recently, there was a Deceleration, particularly in some of them.

In fact, it looks like a Paradox : While, until now, it was the BRICS and other emergung Countries which were the main Driving force, even during the Global Crisis, nevertheless, now, the tendency is for the Economic situation to start ameliorating in developed areas including Europe, etc., while, on the contrary, some BRICS Countries face problems :

F.ex., in South Africa, Growth's development was Negative recently, for the first time after any years, and something similar seems to looms ove India, perhaps Brazil, etc, he pointed out.

However, in Russia, growth looks rather stable, and, in fact, China is the only Exception, with a big and steady Growth of + 7,5%.

And it really appears to be a Sustainable Growth, that we should all try to contribute to maintain, (for an obvious Global Interest), the experienced Head of the International Economic Organisatio optimistically prognosticated.

But there is no Secret, about the possible causes of this Chinese Growth : In order to ensure that it will be really Sustainable, China should advance in its Reforms, particularly by passing from an Investment-driven model, into a Consumption-driven one, Gurria advised, i.e. practically endorsing the Official Policy currently promoted by China's New Political Leadership.

+ Another characteristic of the new Chinese Leadership's anounced intentions notoriously is also to Curb and Reduce the recently aggravated Economic Inequalities between various Groups of the Population, and this is even more true in Advanced Ecoonomies of Western and other Coutries :

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- it's not only China, but also many Western and other Countries which must also pay Attention to Aggravating Inequalities, OECD's Head warned in his Speech, earlier Today, at CoE's Parliamentary Assembly :

Even if, in general, "the economic outlook is a little brighter", with a "Moderate Recovery in the major Advanced economies of North America, Japan and the UK", while "the Euro area as a whole is Out of Recession, although output remains weak in a number of countries", nevertheless, Revenue Gaps are growing :

- F.ex., "Today in OECD countries the average income of the richest 10% of the population is approximately 9 times higher than that of the poorest 10%; while it was just 7 times higher 25 years ago. So inequality has grown by about 30% in one generation !"

Even in economies like Germany, Denmark and Sweden the income gap between rich and poor is expanding, from five to one in the 1980s, to six or seven to one today. In Chile and Mexico the rate is 27 to one, in Brazil it is 50 to one, and in South Africa it is maybe triple digits"...

+ In addition, the factors of inequality stretch beyond income., affecting even "Health and Education" : less educated and lower-income individuals live Shorter Lives, are less politically active, and have Children with Lower School performance, so this tends to perpetuate itself, he denounced.

=> This inevitably raises questions on the Democratic Legitimacy to various Governments, some of whom risk to lose the "Trust of the People", Angel Gurria warned, stressing particularly this point.

+ At the same time, Today, ...we wake up to the idea that USA does not have funding for its government, and that we may or not have a government in Italy, and there is also the formation of a government in Germany, (etc). So "the Political superstructure is affecting this recovery picture" in Economy, OECD's Chief concluded.

By a "coincidence", it was also the 1st time that OECD's Economic Report to CoE's PanEUropean Parliamentary Assembly was prepared in the framework of its ..Political affairs Committee, instead of the Economic affairs' one, a CoE's Official observed to "EuroFora".

(../..)

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(NDLR : "DraftNews", as already sent, earlier, to "EuroFora"s Subscribers/Donors. A more accurate, full Final Version, might be published asap).

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