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A new paradigm for a post-imperial world

Russian leader outlines finance reform plan

Posted by seumasach on November 1, 2008

 

“The new financial system should have common sources based on many global financial centres and many reserve currencies,” 

“Medvedev said he would propose to the summit that the world economy reduce its reliance on the US dollar as the main reserve currency.”

“They should be based on a harmonised system, not like the one we have now when those who use the rules of continental Europe feel unhappy about the Anglo-Saxon model,” he said

The Peninsula

1st November, 2008

 

MOSCOW • Russian President Dmitry Medvedev will tell a summit on the financial crisis in Washington next month that the health of the world economy should no longer be reliant solely on the United States, he said yesterday.


 

Medvedev, who is preparing to take part in the November 15 summit of the 20 leading industrial and developing economies, said the new global financial system he was proposing should be formalised in an international pact.

 

“We need to reform the current financial system (to encourage) rational, motivated and balanced behaviour by players,” local news agencies quoted Medvedev as telling officials at his Gorki residence outside Moscow. “The new financial system should have common sources based on many global financial centres and many reserve currencies,” he was quoted as saying.

 

Russian officials see lax regulation and a breakneck pursuit of profits in the United States as the main cause of the global financial crisis.

 

The Kremlin, which has ambitions to play a greater role on the world stage, sees the crisis as an opportunity to establish Russia as a major player in any new financial system that takes shape after the crisis. Medvedev said he would propose to the summit that the world economy reduce its reliance on the US dollar as the main reserve currency.

 

Russia is seeking support for its plan from other major developing nations. Earlier this week, Chinese Premier Wen Jiabao sided with the Kremlin on the issue after talks in Moscow. Medvedev said the plan he will present in Washington also included working out global rules for risk management.

 

“They should be based on a harmonised system, not like the one we have now when those who use the rules of continental Europe feel unhappy about the Anglo-Saxon model,” he said. “We need common, formalised rules which will be used without allowances for national rules.” he said.

 

“The building of the new system should be carried out on the basis of new conventions,” Medvedev said. “For that we will need an international accord.”

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