The time is right for a new global settlement that targets growth, addresses crisis conditions in certain parts of the world, and rebalances the global economy to set it back on a path of strong and steady growth.

A Healthy Path to Chinese Consumption Growth

The strong growth of the global economy in 2003 and 2004 was both reflected in and driven by strong growth in world trade.

To ensure a country's firm footing on the sustainable path of growth and prosperity, a strong economic foundation is equally as essential as short term flows of aid and debt cancellation.

Portfolio growth was strong in post conflict transition countries, while among clients, international financial institutions represented the strongest growth trend.

This was due to strong services import growth in Europe, Australia and New Zealand.

The global Internet population (over 712 million in 2003) continues to experience strong growth.

Employment generating growth presupposes a labour intensive growth path, with the emphasis on public works programmes and investment in infrastructure, including public housing schemes.

If you believe that infrastructures are very important for economic growth, then you would argue a strong government is necessary to promote growth.

India, which has one sixth of the world's population, is on a rapid economic growth path.

In general, growth was broadly based, supported by robust export growth and higher commodity prices as well as strong domestic demand driven by low interest rates.

The global economy demonstrated strong growth in 2004, due in part to the performance of developing countries, which experienced the highest growth rates in over 30 years.

Indeed, the vast majority of today s developed countries grew from strong agricultural foundations, where surplus production generated wealth and prosperity. This is what is happening today in Vietnam, and it is the path that China and India took on their way to becoming engines of economic growth.

In sum, because India s existing economic institutions could not cope with strong growth, its political checks and balances started kicking in to prevent further damage, and growth slowed.

Services led growth is, in many ways, the antidote to the unstable, unbalanced, uncoordinated, and ultimately unsustainable growth model that former Premier Wen Jiabao s famously criticized in 2007. Yet services offer more than just a labor intensive growth path.

Owing to strong GDP growth, the debt to GDP ratio decreased from 100.2 per cent to 95.1 per cent.

So the equation is simple 5.5 1.5 3.5 0.5 . That 0.5 is all that is left for job growth, because that's all the job growth required to meet demand given the remarkably strong rate of growth of productivity.

But Mori s arrows were bound together in parallel, whereas Abe s policy arrows are connected through underlying structural relationships. While the first and second arrows aim to transform Japan s actual growth path, the third operates on the economy s potential growth path, which assumes the optimal use of all available resources and technologies.

Outside this group, export strategies relied on low (and in some cases falling) wages or currency depreciation rather than strong productivity growth, and while this stimulated recoveries in some countries, few were able to reach a threshold level of exports consistent with a vibrant industrialization path (UNCTAD, 2003 99 102).

According to preliminary reports, annual investment growth in 2012 reached roughly 14 significantly higher than the GDP growth rate, which accelerated in the fourth quarter as a result of a strong rebound in investment in real estate and infrastructure. In 2013, it can be expected that, barring major disruptions, strong investment growth will push China s GDP more than 8 higher year on year.

And, finally, we know from our own experience that reducing poverty needs strong economic growth and a vibrant private sector.

In emerging markets, slow growth in the advanced economies has shut down a traditional development path export led growth. As a result, emerging markets have had to rely once again on domestic demand.

Beyond 2013, growth must depend on either the elixir of structural reforms, or a strong revival of the global economy. But a revival of economic growth in the short term is unlikely.

This puts a new debate center stage how to reconcile increased action to reduce greenhouse gas emissions with strong economic growth.

It also carries strong complementarities with other elements in the growth process, such as technological progress, skills acquisition and institutional deepening.

But the good news stops right about there. Sustained growth requires a growth strategy, and most developing countries do not yet have one that would put them irrevocably on the path of economic convergence.

Crises are typically associated with a drop not only in actual growth, but also in a country s growth potential, owing to deferred investment. A risk sharing facility could limit the decline in actual growth after a crisis, while prompt EU financed investment would prevent a country from shifting to a lower growth path.

Overall, their 2004 public debt situation improved owing to strong economic growth and the positive impact of regional and global interest rates.

But the prospects for continued rapid growth are strong. In its November 2011 Global Islamic Banking Report, Deutsche Bank projects a 24 compounded annual growth rate in Islamic assets over the coming three years.

Obama s proposal is an important, honest, and politically courageous document. The debate that follows will largely determine whether the US shifts toward a strong, inclusive, and sustainable pattern of growth and employment, and how the burden of moving to such a path will be shared by Americans of various ages, educational levels, incomes, and wealth.

The rate of job growth between 2000 and 2007 slowed to only half its level in the three preceding decades. Productivity growth was strong, but far outpaced wage growth, and workers real hourly compensation declined, on average, even for those with a university education.

China s 4 trillion stimulus package, unveiled in November 2008, restored confidence in global commodity markets. Led by strong Chinese growth, emerging markets stabilized.

Growth was broadly based in most countries, and manufacturing, in particular, benefited from the upturn in the electronics cycle and strong export demand.

Some of the increase in net transfers reflected strong growth in export revenues that had led to current account surpluses in some countries.

The outlook for real economic growth in 2005 remains strong with a preliminary 2005 forecast of 5 per cent (excluding Iraq and Palestine).

As the wave travels into the interior, its path is curved back toward the surface by refraction, caused by the strong increase of temperature with increasing depth.

But the international community must stand ready to help. My view is that strong policies on the African side, with strong support from the international community, offer the best prospects for sustained growth and poverty reduction in Africa.

Both were based on industrial manufacturing. China, which has emerged as the archetype of this growth strategy since the 1970s, traveled a well worn path.

For these, basic entrepreneurial, managerial and technical support can make the difference between continued stagnation or being placed on a path of upgrading and growth.

Due to strong job growth, this trend continued through 2003 and 2004 with year over year declines of 7.9 percent and 7.0 percent respectively.

Most of the equity in the sector is local, and strong growth in this area points to the possibility of exporting to the region.

But many countries are still poor enough to be endowed with strong growth potential, and many others, though rich, have not yet recovered from the global financial crisis. So there must be something else holding growth back.

But a forecast is not fate. With a new economic strategy that nurtures more diversified sources of growth, while reducing the country s excessive reliance on exports and large enterprises, South Korea can reinvigorate and sustain strong growth.

In short, the stimulus will strengthen America s economy, but it is probably not enough to restore robust growth. This is bad news for the rest of the world, too, for a strong global recovery requires a strong American economy.

Second, some financial vulnerabilities are embedded in the economy. Unless they are defused in time, financial shocks may derail the economy from its normal growth path.