The nature of the current crisis has changed, and all countries, regardless of developed ones or developing ones, have to work together to effectively tackle the global economic crisis, which has seriously impacted upon the world economy, Justin Lin Yifu, World Bank Chief Economist and Senior Vice President, said in Singapore on Thursday.

Addressing the Eminent Speakers Series 2009, which was organized by Singapore's Chinese newspaper Lianhe Zaobao and Business China, Lin said that the nature of the crisis has changed from a financial crisis to a crisis in real economy, and countries across the world should continue to take positive measures to rescue their markets.

The recovery of the global economy will be in sight when the financial systems complete the reform, he said.

The excess capacity, namely a surplus of production capacity, has been emerging in many countries such as the United States, Germany and Japan, and this will weaken people's confidence while facing the problems such as the reduction of investment and a rising jobless rate, Lin added.

Lin believes that no country in the world can avoid the negative impact of the current crisis, and it can not be left alone to come out from such an economic tsunami.

Pointing out the ways to deal with the crisis, Lin said that what the countries in the world need is to go beyond Keynesianism, to go beyond national borders, to make cross-border investment, and this will be a win-win outcome for all.

Lin also spoke highly of the measures China has taken to weather the economic storm.

The Chinese economy has maintained a high-speed growth over the past 20 years and it is likely to continue making a fast growth rate amid a prolonged economic crisis, Lin added.

Lin also praised the Singapore government for its excellent performance in dealing with the financial storm.

Asian countries, such as Singapore, have learnt a lot from its way in tackling the SARS, Lin said, adding that he hopes the current influenza will not have significant impacts on global economic performance.


Source: Xinhua