Euro crisis: Russia ready to roll out
BRIC countries are key to solving the crisis in Europe, and Russia is ready to lend money and expertise to solve it, presidential aide Arkady Dvorkovich told RT.
“BRIC countries are trying to provide the highest possible growth rates. Their share of the global GDP is already quite big and growing. What they do is very important for solving the problems of global economy,” he said.
The presidential aide also believes that Russia is strong enough to provide help to some other countries which require assistance, such as those struggling in the eurozone.
“We do feel that we have sufficiently good results to both advise – if the advice is requested – and also to contribute to the stability with our own financial reserves,” he explained. “We are already participating in the European package via the International Monetary Fund with quite big amounts of money.”
Dvorkovich is preparing to take part in the G20 summit that will kick off in France on Thursday, with Russian President Dmitry Medvedev.
While G20 summits do not tend to result in specific decisions, co-ordination of policies conducted by national governments and direct dialogue are crucial to deal with the global financial turmoil, he pointed out.
“When leaders look into each other’s eyes, the final outcome is much more efficient,” Dvorkovich told RT. “Any phone conversations are too formal for these kinds of decisions.” In the past, the G20 played a “pushing role” for the decision making process, such as in Europe, the president’s aide explained: “Without G20’s pressure there would be no decision at all.”
“This will help to achieve the degree of fiscal consolidation needed to curb the markets and start a new cycle of growth,” he said. “The pace of the reforms is sufficient. We should not go too fast. If we introduce tougher executive standards for financial institutions now, this will have a negative impact on growth. I think we have a good chance to prevent another recession.”
Speaking of Russia’s position at G20 summits, Arkady Dvorkovich noted that its position is very strong, because Moscow is following all the commitments it had made.
“The budget deficit is down, the debt is still very moderate – one of the lowest levels in the world,” he said. “We have recovered from the recession we had in 2009-2010 and have a 4 per cent growth this year, which is quite good according to all international benchmarks.”
With all that, Dvorkovich confesses that any global turbulence will affect Russia. The question is how badly the country will be affected, and here the Russian president’s aide is optimistic, saying that a crisis similar to what Russia had to endure in 2008 will not return.
Referring to the difficulties the US economy is experiencing, Arkady Dvorkovich says that the approach that American authorities have chosen to deal with their economic problems is rather selfish. On the other hand, the US economy is so big and important too, that a combined effort of all countries is required in order to minimize the negative impacts of the US difficulties.
“The US economy is still the biggest economy, and the negative events in the United States will affect the global economy in a negative way,” he said.
“But we should all support each other in this difficult time,” Dvorkovich concluded.