 First of all, thanks very much for providing this opportunity for me to exchange ideas on the global governance with all the colleagues here. I was actually going to say that given that Vice President Xi, who is also an alumni of Qinghua University, is in town, I could have said that whatever the issues I can't address, I can't respond, we can leave to Vice President Xi. Unfortunately, I just learned that he left about an hour ago or something. So my situation might be the reverse, so that's an unfortunate sign about it. I think I communicate with Cassie about what's going to be the focus. I think that the topic is going to be on the global governance issue, and particularly on the issue of G20. But I'm going to start with China, and to see, because I think there's a lot of discussion about what should be the new forms of global governance. And China has taken a certain position on that. And I have to first confess that I'm not a decision maker in any of those decisions. But I think as somebody who's done public policy issue work in China, I have certain views on why China has taken that position. So I will start with the situation in China, and then move on towards to see what are the determinants in terms of China's role in that system, and also how China views those issues. And then finally, give my own thoughts about the particular form of global mechanism, the G20, and to see how that can become a very effective system for the global economic governance. First of all, I want to give some general background about what's happening in China over the last 30 years. I think that basically China has gone through some major transformations. I summarize that into four major ones, and the economic system reform, industrial structure, society, and governance. Let me go through that. First of all, I think the economic system, China has been making major transitions from a central planning system to a market-based system. The outcome of that is the sustained rapid economic growth. The red bar is the absolute number of GDP, and the blue line is the growth rate. That average is about 10% over the last 30 years. The second major transition is industrial structure. China has over the last 30 years become the global manufacturing hub. But the surprising part, if you look at GDP, before the reform, at the beginning of the reform, agriculture as a percentage of GDP is about 30%, but now it's hovering around 10%. Just picked up in the 1980, it's 21%, now it's just a bit about 40%. Surprisingly manufacturing stayed more or less the same. It's about half of China's GDP. That explains why, because I think if you look at any other countries which have gone through this sort of development period, usually the manufacturing as a percentage of GDP would decline. I've looked at some countries of similar per capita GDP. Usually the manufacturing would be 40% or 30% of the total GDP, but in China it's 40%. And of course the key issue here is more of labor. As you can see that the labor percentage of agriculture in the 1980s are close to 70% and now it's close to 40%. So there's a lot of migrants, migrant laborers moving from rural to urban areas in manufacturing and in service. And the third major transformation is China has been transforming from a largely rural and close society to one increasingly urban and open society. And the rural population, urban population in 1980 is about 20%. And now the most recent data is just a bit over 50%. So this is the first time in China that more than half of the population lives in urban area. And also in terms of international linkage, I won't have to go through the details, but the one number I think in terms of Chinese nationals going overseas, in the year 2000, it's just a bit over 10 million. And now in 2010, it's over 57 million. So many folks have increased. So you won't be surprised if you see increasingly more tourists in Dublin and in other areas in Ireland. And the fourth major transformation is governance structure. And as somebody who studies the public administration, I see from the inside there are actually there are many major changes in China's governance structure. Village elections started in 1992 and has been increasingly moving smoothly. And also China has gone through six major administrative and legal system reforms. And also increasingly there are public participation in the public policy process has been increasing. So there are many changes inside the system. But those are sort of in a way the four major transformations going on in China over the last 30 years. If you put any one of those transformation also in the last 30 years, that would be fine. But I think in China's situation is that all of those four major transformations are happening at the same time in a country of over one billion people. So if you look at in terms of history, that's really unprecedented in terms of the scale and in terms of the speed of the change. Now I think with that as a background, let me look at what are the determinants of China's role in global governance system. In terms of China's role in global governance system, this is some of the principles I observed that China has been following. First of all, I think China has been following quite stable principles based on China's own diplomatic experience since 1949. And this is sort of the equal treatment, respectful sovereignty, non-interference, mutual benefits and co-development. And also, I mean it sounds like rhetoric, but in fact if you look at the behaviors indeed, I think that has been the principle China has to try to follow. The second aspect is that China has a huge respect for official regional and global mechanisms. And so in a way that you can, for example, the UN system and the ASEAN or the EU and the so on. Any issues dealing with regional issues and China always try to respect this sort of more official mechanism. Of course, I think there's also downside of that. I think China may have not in a way made this a good linkage with global and non-governmental mechanisms. The third one is not to lead a major international initiatives. I think this is something that in contrast to the 1960s and 70s when Chairman Mao was really I think making some major initiatives in terms of his proposals. But this was proposed by Deng Xiaoping in the 1980s and has been pretty much followed by all subsequent leaders. And basically China has a huge country to run and also China has a huge agenda in terms of reform and development. So basically China's international posture has been to try to focus on domestic reforms and build friendly relationship with whoever possible. So that has been sort of the basic principles underlying China's international posture. And also I think China has a huge agenda in terms of domestic issues. I think recently there have been talks about China's international emergency and so on. But inside from Chinese leadership, I think China has always been concerned with those unfinished issues that China has to follow. So I put them into three categories. The first one I call them fundamentals, the second so megatrend and third are the key reforms. The fundamentals of course is first is national integrity. This particularly relates to the timeline issue and social stability. And with all those major transformations you can imagine, all the conflicts and the dilemmas and so on. And that has always been a major concern of the government and also maintaining economic growth. Again, every year China has to provide something like seven or eight million jobs for the new labor sets on the market. And also I think there are two other fundamentals, democratic issues and also natural environment and resources I think are also emerging to become key fundamentals. Now the second set of issues are megatrends. The first one is urbanization. I think that China is now going through that very rapid transition to urbanize. And so I think every year now about 1% of Chinese population are moving into urban areas. And so in fact I think that the rural and urban divide is increasingly becoming a major issue and for the people how do you provide the same rights to the people who move from the rural area. And that's a major challenge for government officials at all levels. And also of course the system for all the flow of people and various production factors here in particular is the land. Land has been a major issue in this process. And also how do you create a sustainable urban governance system. For example the public finance system. I think many people say that people who are moving from migrant people from rural to urban then you should provide equal education for the migrant children. I think that's absolutely right. But however for the local government they are always saying that we don't have in a way sustainable public finance system to pay for it. So how do you do that. So those are some of the challenges related to urbanization. And the second issue is the welfare system. China needs to build a comprehensive social security system in terms of pension, health insurance, low income social security and housing and so on. So those are the things again. This China has been making the transition from one that in the central planning system you know I think this is not a problem. But over the last 30 years in the reform into the market based system many of this were pretty much abandoned left to the market. And now I think there is an increasing outcry that you know there's a need to rebuild the system. It's no longer based on the central planning system but on the market based principles. So how do you do that. I think that's also a major challenge. And the next one is globalization. I think China has of course over the last 30 years have been a great deal from foreign investment and trade and also now increasingly there are also outflow of China's investment. And I heard that Vice President Xi brought 150 plus members with him on trade and investment. So I think that that's of course now so it's becoming both ways. And of course in a way people flow also it's both ways. And also energy, food and water security issues, value of cultural traditions and public communications all of those are related to the issues of globalization. I think that often that you see that in the media. I think China has always been you know in a way it's been viewed as sort of some sort in a way I think let me put nicely sort of outliers. So but in reality if you look at the issues the challenge that China is facing is very similar to the ones that faced by other developing countries. So those are some of the major of course of the mega trend. And inside China there are also some key reforms that's still unfinished and there has been a lot of discussion on it but I think the moving forward has been increasingly difficult. And first of all I think there are some unfinished agenda of the structural economic reform. How do you really you know foster an open and fair marketing environment, the balance between state and the private sector? How do you develop an effective economic regulation of the natural monopolies? And also on the social regulation system you know in terms of food safety and other things. So those are the things that China still have to work hard on. And also there are some sectoral reforms that has started years ago but still moving quite slow. For example the upgrade manufacturing. China has to really move the manufacturing sector from one that's dependent on the you know a lot of the raw material imports and a lot of the environmental pollution to one that's increasingly based on knowledge and service. And also China's financial system reform and also in terms of the service economy development and many other issues that have started but still far from complete. And the third is related to the governance system reform. And here again that how do you really sort of restructure the governing institutions? How do you sort of re you know to make sure the constellation of legislation, legal and administrative system that's really in the right balance? And also the relationship between central and local government and also reform in the civil service system and the corruption systems and public participation in the public policy process. So all of those are the key issues that really yet to be put in place. So those are some of the major agenda that China has to work on. So I think because of all those, so I think China's position on global government issues that China will continue to respect the existing global governance mechanism and actually participating in it. And also I think China will join other countries in effort in trying to reform the current system so that embedded bias and other deficiencies can be addressed. And third that China will join other countries in new global initiative that helps to address new global challenges. So I think those are the basic positions that China will follow on the issue of global governance. Now let's look at the G20. Here I think that first of all I think that the current global economic difficulties are quite complex and multifaceted. And I think that at all levels you can find people or institutions to blame. And so I think that's sort of the fact. So this solution would also have to be at all levels. And I think I'm sure that a lot of discussions about the efforts to reform the existing mechanisms, at the same time that I think that there are also emerging new global mechanisms trying to, you know, in some have advocated that to replace the existing ones. But I think in my view that probably they should really try to complement the existing ones. And the G20 is such a mechanism. I think G20 has done a great job in terms of the particular updates, the 2008 global financial crisis. However, I think how to make the transition of it from a crisis management committee to a global steering committee, I think there are still fundamental challenges. And so here are some of the ones that I listed. And the first issue is the geometry of the G20 mechanism. I think the real issue is really sort of the legitimacy issue. I think I was fortunate to be involved in this issue actually before its existence. So I think there's a lot of discussion about the so-called geometry of such a mechanism. Should you have a fixed number of countries? And then you always end up having discussion about why X should be in and X, Y should be in, but not the Z and so on. So I think when you have a fixed number of countries, that's always an issue. And also another discussion is maybe there should be sort of changing membership depending on the issues. Maybe on global financial issues, there should be one group on climate change or be another. Again, so that's another also a set of problems that also would emerge. So I think that's probably the first issue that needs to be addressed. The second issue is how to institutionalize G20 in the long run. I see there's a contrast. I think there's a dilemma in how G20 can move forward. On the one hand, on the one end, you can see G20 as a forum for consultation and coordination. Here, if that's the case, of course, then you'd have to think of that as sort of competing with existing regional and global governance forums such as APEC and many other such mechanisms. And also, of course, there are many semi-official and non-governmental meetings such as World Economic Forum and so on. So I think that's the dilemma that you have to compete with those. And really, if G20 wants to have its standing in those areas of forums, then G20 has to become a unique platform that can inspire and innovate. That really requires the informality and spontaneity. So that's on the one end. However, if you really want G20 to become an important decision-making mechanism as well, then that really requires a whole different set of organizational processes. It really should really require that you have a formal process, you have authorities and the institutions to really implement. So should you have a stable secretariat, then you have to have a location to house it, leadership of staff members, decision processes, and so on. So that whole set of things that you would have to come. Another bureaucracy would have to be created. So in a way, such requirement would be opposite to the ones that we are talking about. The spontaneity, the informality, and so on. All gone, you have to follow the bureaucratic rules. The third issue is the agenda setting. I've been through the modeling some discussions before the G20 meetings. I can always see that there is urgency or there is a need for the G20 to produce some tangible outcome to show that this is a useful mechanism. So every hosting country always tries to do that. But at the same time that if you really want to turn G20 to be a global steering committee, so then instead of like firing fighters, then you have to try to identify long-term risks and try to address them ahead of the time. However, I think that often that takes a long time and takes many efforts. That benefits will not necessarily come in the short term and not necessarily come to the right moment when politicians need to have political credits. So I think whatever the system, no matter whether in China or in other countries, I think it's very hard for people to invest their political capital for something that will benefit later generations. The last one is how to engage with stakeholders of various kinds who are not in the membership but have a legitimate right to have their voice heard. And again here you have a really operational issue of how to make the process manageable versus how to make the process acceptable. So again, I think the challenges are also huge. I think that for people who were involved in climate policy debates and in various locations and people have always complained about the process. So anyway, those are some of the issues that I feel that need to be addressed before G20 can be a real effective mechanism for global economic governance. And I think that the one thing that, as a last comment, I think all of those discussions are often discussed among economists and I'm sure many people here are economists. But at the same time as a non-economist, I would say that also people in public administration should also be involved in this and that's the purpose of my involvement in this discussion. Okay, let me start here. Thank you very much.