It tops the international agenda in policymaking circles, it absorbs academics and scholars, it generates much interest in the media, and it fascinates people around the world as they debate the impact on their own lives. For China, this topic is anything but theoretical. It could not be more real. In the coming months and years, China must make decisions that will determine how well it integrates further into the global system. There is no longer a question of whether to integrate, but only of how best to do so .
Globalization offers enormous benefits, in the form of higher productivity and living standards.
In the end, China, like all nations, must find its own way, true to its culture and institutions. The IMF, along with the rest of the UN family, can help by providing a safer environment to do so. 1 In my remarks today, I would like to discuss how the international financial institutions, especially the IMF, can help. But first a look at the phenomenon of globalization and how it is shaping China's economic options. The driving forces have been threefold.