BEIJING, March 23, 2017 /PRNewswire/ -- On March 8, Neo Talk
jointly organized a Think Forum on "the future of China and India in the changing world" with China's renowned academic magazine
"Comparative Studies". Guests included Kaushik Basu, Chief Economist and Senior Vice
President of the World Bank and former Chief Economic Adviser to
the Government of India;
Lou Ji Wei, President of National
Council for Social Security Fund, former Minister of Ministry of
Finance of China; and Amy Mao, President of Neo Wealth, subsidiary of
Neo Capital. All the guests
exchanged ideas and thoughts on the transformation and development
of China and India's economy.
This was the 8th Neo Talk of the
entire series, as well as the first time that Neo Capital invited
world-renown academic leader to conduct an open dialogue on the
economic development of China and
India. As one of the pioneers in
the fintech industry in China, Neo
Capital has achieved satisfactory market position and brand
recognition. To be well prepared for the policy and market
uncertainty, it's necessary to gain a deep comprehension about the
pattern in economic development in
the future.
During the Think Forum, Kaushik
Basu indicated that China
and India should work together to
push the progress of globalization, in hopes of enhancing the
cooperation between the large economies in the world. Basu served
as an economist and former Chief Economic Adviser to the Government
of India. His view points are not
only valuable for a country, but also beneficial to the strategy
formulation of an enterprise. We cover the most important ideas of
Basu here:
The lack of two-stage thinking is commonly seen in policy
making, and it harms national interests greatly. Take foreign
exchange policy as an example, India had very little foreign-exchange
reserves before 1991, therefore, the government instinctively
formulated the regulation policies. This had led to the obstacle of
the outflow of foreign exchange. What policy makers were not aware
of was, if foreign exchange outflow was prohibited, people wouldn't
be willing to bring capital
into the country. In 1991,
India government had conducted a
transformation on foreign exchange policies. There were some
critics indicated the
pessimistic forecast, believing that the poor level of India's foreign exchange reserves was going to
be consumed very soon. But the truth was on the contrary,
India's foreign exchange level had
gradually increased to 5 billion US
dollars. With the development of the past 20 years, the
foreign exchange reserve level had
increased to 300 billion US
dollars.
In the long run, it is the intellectual minds that
facilitate the economic growth of a country. The ways of
thinking, regions, and patterns have had tremendous impact on our
life more than we are conscious of. Looking back at the history,
it was the innovative ideas
that move the economy forward. Take
ancient Greece as an
example, Greek cities were
intellectual hubs. In
the development of history, when it
comes to huge transformations, there are always new ideas and new
concepts pushing the momentum.
China and India should work together to facilitate
globalization. Compared with the past, China and India have more interaction nowadays. The
population of the two countries make
up 30% of the world's population and are becoming more open and active.
The roles of China and
India are becoming increasingly important on the global stage,
influencing Western economies and further
enhancing economic interaction.
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SOURCE Neo Financial