On the afternoon of April 19, 2023, China-IMF Capacity Development Center (CICDC) and IMF China Resident Representative Office (RRO) cohosted the World Economic Outlook (WEO) seminar in School of Economics at Peking University (SOEPKU). Dr. Prachi Mishra, Chief of Systemic Issues Division in IMF’s Research Department, and Dr. Ashique Habib, Economist of Multilateral Surveillance Division in IMF's research department, presented the key content of the recent World Economic Outlook report released by the IMF. Dr. Han Han, Tenured Associate Professor of SOEPKU, and Dr. Changhua Yu, Tenured Associate Professor of National School of Development at Peking University, served as commentators.

Before the seminar, Professor Xuezheng Qin, the Vice Dean of the SOEPKU, and Tenured Associate Professor Zenan Wu, Assistant Dean of the SOEPKU, held a short welcome reception with Dr. Hui He, Director of the CICDC, Dr. Xin Li, Deputy Resident Representative of IMF in China, Dr. Prachi Mishra, Dr. Ashique Habib, Dr. Han Han, Dr. Changhua Yu and other guests.

Welcome Reception

Dr. He delivered a formal opening speech. Dr. He introduced the CICDC to the audience and briefed them about the CICDC’s operation in China. As a alumni and former faculty of SOEPKU, Dr. He encouraged students of the PKU to get engaged in the state capacity development in China and welcomed them to work for the IMF in future. Dr. Li also delivered an informal speech.

Dr. He and Dr. Li Delivering Opening Speeches

Dr. Mishra gave a presentation on the third chapter of the World Economic Outlook Report, titled "Coming Down to Earth: How to Tackle Soaring Public Debt". She summarized the following three policy implications: firstly, countries aiming for a moderate and gradual reduction in debt ratios should implement well-designed fiscal consolidations; Secondly, countries at risk of debt distress and aiming for more substantial/rapid debt reduction need bold, deep enough and comprehensive policy actions such as debt restructuring, policy packages including IMF programs, and creditors coordination; Thirdly, sustainable debt ratio reductions hinge on strong institutional frameworks to ensure good times translate into debt reductions and buffer building, to prevent below the line operations that undermine debt reduction efforts, and to benefit from global forces pushing down the natural interest rate. Dr. Han then gave comments on Dr. Mishra's report.

Dr. Prachi Mishra Giving Presentation

Next, Dr. Habib gave a presentation on the fourth chapter of the World Economic Outlook Report, titled "Geoeconomic Fragmentation and Foreign Direct Investment". He pointed out that closer geopolitical alignment between countries is associated with greater FDI flows, particularly for emerging markets and developing economies (EMDEs) and for strategic sectors. FDI fragmentation could lead to a poorer world, with larger output losses for EMDEs. He suggests that preserving a multilateral dialogue between countries is needed to avoid increasing FDI fragmentation; Developing a framework for international consultations, for example on the use of subsidies, could reduce uncertainty and mitigate cross border spillovers; Individual countries can promote private sector development to reduce vulnerability to FDI relocation; Some countries could attract FDI by undertaking structural reforms, establishing investment promotion agencies, and improving infrastructure. Dr. Yu then gave comments on Dr. Habib's report.

Dr. Ashique Habib Giving Presentation

After the lecture, the participating experts had a Q&A session with attending professors and students on how to resolve public debt and address the existing geopolitical fragmentation of FDI. In the meanwhile, the experts welcomed and encouraged students from SOEPKU to apply internship and work opportunity at the IMF, and to actively participate in the governance of international affairs.

The seminar was well received and SOEPKU posted the IMF and CICDC’s visit on their WeChat (a dominating Chinese social media platform) Public Account: 北大经院“国际组织与全球经济治理系列讲坛” | 国际货币基金组织专家展望世界经济 (qq.com)

Q&A Session with Professors and Students from SOEPKU