12 Jan, 2011, 10.07PM IST,PTI US cos must cash in on high-growth emerging markets: Geithner

WASHINGTON: The Obama Administration wants American companies to cash in on opportunities arising out of the rapid growth of economies like India , Brazil and China, US Treasury Secretary Timothy Geithner said today.

"As countries like China, India, Brazil and other emerging economies grow and expand, we want the American economy, American workers and American companies to play a major role in and gain substantial benefits from that growth," Geithner said in his speech at a think-tank here.

"We want to see a substantial part of that growing demand outside of the United States met by goods and services that are created and produced in the United States and fuelled by investment in the United States," Geithner said.

"If we are successful in doing that, we will be stronger as a nation. But to be successful in meeting that challenge, there are things we must do. We must invest more in research and development. We must invest more in educational reforms. We must invest more in public infrastructure," he said.

"We must create stronger incentives for investment in the United States, by both American and foreign companies. We must be more forceful and effective in promoting American exports. And we must restore fiscal responsibility," he said.

"This will require the government to spend less and spend more wisely, so that we can afford to make the investments that are critical to future growth. And it will require tax reform that produces a system that is more simple and more fair, that encourages growth and investment and that will help restore fiscal sustainability," Geithner said.

"These are our challenges. And they are not just an economic imperative, they are a national security imperative. Our strength as a nation depends on the ability of our political system to move quickly enough to put in place solutions to our long-term problems," he said.

"Our great strengths as a country have been in our openness to ideas and talent, our capacity to innovate, our excellence in higher education, a willingness to invest public resources strategically in scientific research and discovery and the political will to confront challenges with wisdom and force," Geithner said.

"If we preserve and build on these strengths and if China successfully continues on its path to a more open market economy, then both our countries and the world economy will be in a much stronger position," he said.

"The President recently said, 'We should feel confident about our ability to compete', but we are going to have to step up our game," Geithner warned.

"China's rise offers us the opportunity of dramatic growth in demand for things Americans create and produce. But it also will force us to raise our game," he said.