China must recognize that high savings will not provide stable growth over the long run.

This could initiate savings and provide a measure of relief for the already stretched resources.

Most countries have introduced some form of forced savings (such as compulsory contribution to pension and provident funds) and provide tax incentives to stimulate long term household savings.

Foreign participation in the financial sector brings expertise needed to provide more efficient savings instruments, risk management, and allocation of capital.

Savings

Low savings countries cannot easily adjust without an equivalent adjustment in high savings countries, because their low savings rates may have been caused by high savings abroad.

The Yètè Mali Savings Network or savings and loan cooperative.

Moreover, in order to provide much needed finance to local firms, Argentina needs some of the savings that have been sent abroad to return.

Greece is the second largest defense spender, relative to GDP, in the EU clearly, in today s economic climate, savings here could provide hugely welcome budget relief.

Both the savings shortage and savings glut hypotheses confuse accounting outcomes with causes.

Japan s Savings Crisis

Demand savings accounts

Term savings accounts

As individual savings accounts figure increasingly in social protection systems, governments need to provide adequate economic security for those who cannot benefit from such social protection schemes.

Apart from accounting for the global divergence in savings rates, tight credit constraints in China might explain the country s high, and rising, savings rate especially as the large rise in national savings is attributable mostly to household savings.

Balancing China s High Savings

Savings rates shot up.

We have enormous energy savings.

(b) To achieve cost savings

Fadil's life savings were gone.

These are Sami's life savings.

Sami stole Layla's life savings.

Generally speaking, savings are increasing.

Savings on prior period obligations

For nearly a decade, capital from high savings countries like Germany flowed to low savings countries like Spain.

Important benefits of trade and transport facilitation measures relate to time savings, which often outweigh direct cost savings.

Africa needed capital, but lacked savings.

Why Are Savings Patterns So Different?

If those savings stay in the region, they can provide a financial resource for further development, which will be beneficial not only to Asia but also to the rest of the world.

This story is fundamentally different from the savings shortage and savings glut hypotheses, and it leads to dramatically different policies.

The Asia Pacific region has the highest savings rate in the world, although intercountry variations in savings rates have been noticed.

For 2002, there were savings of 473,062 kWh for 2003, average energy savings were of the order of 27.6 per cent.

Savings are, of course, no bad thing.

Domestic savings, however, remain a major constraint.

Meanwhile, China s savings rate remains stubbornly high.

Talk abounds of a global savings glut.

One problem the poor often have in accumulating savings is lack of easy access to savings accounts where they can deposit money.

Government savings have fallen, especially in the United States and Japan, and household savings have virtually disappeared in some countries with housing booms.

Our customers get to enjoy huge CO2 savings.

The potential energy savings is very, very significant.

And savings are particularly good for developing countries.

Indeed, China has a rare problem excessive savings.

But that savings number hides something very critical.

America certainly does not have a savings glut.

America has a savings deficiency, not a glut.