reducing poverty supported by technology, and efforts have been made to help farmers locate good investment projects and learn skills before the extension of loans. in this regard, the experience in granting micro credit to promote extensive application of the greenhouse techniques in agricultural production and the development of the agricultural industry based on the production structure called ‘ leading enterprises plus farmers ’ has been quite rewarding. in 2004, the people ’ s bank of china launched a micro credit scheme named ‘ skills training plus self - employment loan ’ jointly with the ministry of labor and social security in more than 100 cities where laid - off workers are concentrated, so as to provide credit support on the basis of enhanced quality of the workers. ii. financial knowledge will be promoted across the whole society to foster the development of credit culture and the building of credit community so as to create a favorable environment for the extension of micro credit. low - income people often find themselves trapped in illegal financial activities and hence suffer great loss of their hard - earned income due to the lack of financial knowledge. and for the same reason, they don ’ t know how to approach the financial institutions and how to benefit from the financial services offered. they often fail to secure loans from the financial institutions due to lack of credit record and proper collateral or guarantee. to solve these problems, starting from 2000, the people ’ s bank of china has instructed the rccs to promote credit households and credit villages in the rural area and the concept of integrity and creditworthiness among the farmers, aimed at creating favorable conditions for micro credit extension. this experience will be introduced in the cities this year, with credit communities to be fostered jointly by the people ’ s bank of china and the ministry of labor and social security to publicize financial knowledge and policies related to the extension of re - employment micro credit, in the hope that more low - income people could benefit from the micro credit support to grow business and improve living standard. iii. favorable conditions will be created for the sustainable development of micro credit business, including giving a full play to the role of fiscal leverage in the course of loan extension. based on international experiences over the past twenty years, pricing loans appropriately to cover the underlining risks is the precondition for the sustainable development of micro credit business. people used to have a misperception about the loans issued to targeted low - income groups, i. e. they should only bear low interest rates, which has produced negative consequences in mainland china. first, many borrowers take the

global systemic crisis. how to react to that? if the crisis is “ imported ” and the country cannot meet its financing needs, the imf should provide liquidity and contribute to any kind of anti - cyclical adjustment. in that regard, the authorities of leading economies should usefully consider to allow the imf to issue bonds. in a moment of de - leveraging, when we are talking about re - leveraging, a leveraged imf would have increased ability to meet its rising challenges. in regard to the world bank, it should focus on poor countries, the ones that not only require liquidity or loans, but effectively need financial support. and for both the imf and the world bank, a critical question today is legitimacy. and the way emerging market economies are playing a more important role in the global economy – not only they are representing a larger share of world output as compared to before, but also represent at this point a solution for the crisis – it is imperative that these countries have a proportional weight in the governance structure of the two bretton woods institutions. another fundamental development these days is the increasing role played by the g20, for the very same reason of the growing participation of emerging markets economies in global output. it is clear today that the g7 alone or even the g10 are not able to address all relevant issues that affect the world economy, which are better dealt by a larger group as the g20. evidently there is always a trade - off, the larger the group, the more difficult its effectiveness. but that is a challenge that we have to face. the first meeting of heads of states of the g20 was an essential step towards making the g20 a more effective decision - making forum. the next topic is a global supervisory authority. the g20 suggested the creation of a college of supervisors, following a financial stability forum recommendation. president kohler raised here the idea of having the imf playing this role. we are in the very preliminary phase of this discussion and many challenges lay ahead in that regard, particularly deciding what should be subject to international supervision and what should be subject to national or regional supervisory entities. much of the discussion today evolves around crisis prevention. in terms of crisis resolution, the recommendation is for every country to take all the necessary actions to restore the regular working of its financial system, consumer and investor confidence and the level of economic activity. but every country must act according to its needs and resources. countries were financial institutions faced