Chinese Premier Wen Jiabao attributed policies of some economies and a lack of self discipline on the part of financial institutions for the current economic crisis, but proposed international cooperation to resolve the current difficulties.
The Chinese leader made a speech on Wednesday at the World Economic Forum, where leaders from business, politics, non-profits and even religious groups are attending. The theme of this year's event is called Shaping the Post-Crisis World.
In prepared remarks he said among the major factors attributable to the crisis were inappropriate macroeconomic policies of some economies. He also criticized their unsustainable model of development characterized by prolonged low savings and high consumption.
Shifting to financial institutions and ratings agencies, he faulted their lack of self-discipline.
He also attributed the failure of financial supervision and regulation to keep up with financial innovations, which allowed the risks of financial derivatives to build and spread.
To resolve the current difficulties he proposed international economic cooperation, reform of the international financial system, strengthening of international cooperation in financial supervision and regulation, protecting the interest of developing nations, and the need to jointly tackle global challenges.