VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
“In effect, our proposal implies that the audit, accounting, and ratings system reform must be based on a return to the fundamental asset value concept. In other words, assessments of each individual business must be based on its ability to generate added value, rather than on subjective concepts. In our opinion, the economy of the future must become an economy of real values. How to achieve this is not so clear-cut. I have no explicit answer. Let us think about it together. After all, this is what such forums as this are convened for.”
“Excessive intervention in economic activity and blind faith in the state's omnipotence is a possible mistake. True, the state's increased role in times of crisis is a natural reaction to market regulation setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent. The concentration of surplus assets in the hands of the state is a negative aspect of anti-crisis measures in virtually every nation.”
“In our opinion, the crisis was brought about by a combination of several factors. The existing financial system has failed. Insufficient regulation has contributed to the crisis, with failures to duly heed tremendous risks. Add to this the colossal disproportions that have accumulated over the last few years - primarily, disproportions between the scale of financial operations and the fundamental value of assets, as well as those between the increased burden on international loans and the sources of their collateral. The entire economic growth system, where one regional centre prints money without respite and limits and consumes material wealth, while another regional centre manufactures inexpensive goods and saves money printed by other governments, has suffered a major setback.”
“This crisis was brought about by excessive expectations. Corporate appetites with regard to constantly growing demand swelled unjustifiably. The race between stock market indices and capitalisation began to overshadow rising labour productivity and real-life corporate effectiveness.”
“We must not revert to isolationism and unrestrained economic egotism. The leaders of the world's largest economies agreed during the November 2008 G20 summit not to create barriers hindering global trade and capital flows. Russia shares these principles. Although additional protectionism will prove inevitable during the crisis-and we see it today, much to our regret-all of us must display a sense of proportion.”
“Just as any other developing market, Russia is playing an increasingly important role in the world economy, and that is clear to everyone. That is why the leaders of the biggest world economies say that such elite clubs as the G8 are getting too narrow for global decision-making, and decisions made by such elite clubs cannot aspire to be universally practicable.”
“We talk about the need to join efforts and to work out common rules-what Russia thinks should be said. First of all, we should discuss setting common standards in the global economy, including its national sectors.”
“There is a lot of talk today about the multi-polar character of the economy. What is meant is mainly prospects for establishing other reserve currencies in addition to the US dollar and the euro. In Russia we realise full well that declaration of a currency as reserve, even regional, is meaningless without economic development and diversification. It is quite possible, however, to speak of regional funds that could become a prototype for a unified economic policy in a particular region.”
“This is a special time we are going through. It is unusual due to the scope of the international financial crisis and its all-embracing character. I don't think international economic relations have seen anything like it throughout their history. So I think teamwork at such venues [World Economic Forum in Davos] is extremely important. Everyone says it is necessary to pool efforts and together overcome the problems in the global economy and finance. I think we need to take a practical approach.”
