Putin and G20 financiers discuss economic rough goings

At the forthcoming G20 summit this summer Russia suggests focusing on the reform of the international financial system, world trade, investment, the energy sector and job creation. Vladimir Putin stressed that Russia would insist on more transparency of the global financial and economic system and consolidation of key players.

“It is impossible to fence ourselves off the world economic processes. No country is capable of withstanding contemporary challenges alone. All this imposes more requirements to the institutes of global management. We see the main task of G20 and Russia as its chairman in fine-tuning these institutes.”

The Russian leader sees one of the main difficulties in investors’ distrust of the system of financial regulation, in malfunctions in its work. Russia consistently advocates the need to sort out the mess in this sphere, in particular to step up control over global financial institutions and the shadow banking sector.

Managing Director of the International Monetary Fund Christine Lagarde drew the audience’s attention to the fact that the lop-sided, non-uniform restoration of national economies after the crisis results in growing tension. In some cases developed economies recover slower than developing ones, which brings up mutual reproaches.

“The international monetary system could work effectively only if all countries adopted a competent economic policy.”

German Finance Minister Wolfgang Schaeuble is speaking:

“The essential condition of stable growth is effective financial regulation. We agree to discuss the management of state debts as we believe that this issue is important for preventing future crises. We also support Russia’s suggestion about financing investment.”

The leading financiers came to an agreement to meet at least three more times this year to coordinate steps in reforming the global financial and economic structure. It seems that in spite of existing contradictions, financiers are at one in estimating the current state of this system as archaic.