Three Bridges to a Prosperous Future
IMF News, November 5, 2018
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- Authors: Christine Lagarde
- Published: November 5, 2018
Bridge number one — “bridge to the world”
- China began building this bridge 40 years ago by opening its economy and initiating reforms that transformed the lives and prospects of hundreds of millions of people.
- China's integration through trade, hard work, and learning from others has contributed significantly to global productivity, innovation, and living standards.
- Policy emphasis:
- Further increase openness in China’s domestic market to strengthen the global trade system.
- Continue reforms to unlock the full potential of private-sector firms.
- Key observation:
- Avoid “traffic jams” on these bridges — i.e., prevent barriers that hinder openness and market access.
Bridge number two — “bridge to prosperity” (rebalancing toward consumption)
- China is rebalancing toward consumption-led growth rather than export- and investment-led growth.
- Evidence of progress:
- In the first three quarters of this year, consumption contributed 78 percent to China’s GDP growth, up from 50 percent only 5 years ago.
- China’s current account surplus is projected to be less than 1 percent of GDP this year, compared with about 10 percent in 2007.
- Benefits:
- Higher standards of living for the Chinese people.
- Expanded opportunities for foreign exporters and service providers as China becomes a more vibrant market.
- Policy emphasis:
- Support the ongoing transition to consumption-led growth to sustain domestic prosperity and global market demand.
Bridge number three — “bridge to the future” (international cooperation and trade)
- China is harnessing international cooperation, especially on trade, to build a bridge to the future.
- The IMF calls on all countries to:
- De-escalate and resolve current trade disputes.
- Fix the global trade system rather than destroy it.
- Broader point:
- More international cooperation is needed across and beyond economics to achieve stable, prosperous global outcomes.
- Philosophical note:
- Montesquieu quoted to emphasize trade’s role in fostering good citizenship, prosperity, and peace.
Closing appeal and symbolic context
- The speech uses Shanghai — “the city of 12 bridges” — as a symbol and a call to work together to build bridges to peace and a prosperous future.
- Closing words: “Thank you. Xièxiè.”
Christine Lagarde, IMF Managing Director; China International Import Expo, Shanghai; November 5, 2018