Putin calls for creation of new world economic order


Richard Moore

Original source URL:

Sun 10 Jun 2007

Video screens show Russian President Vladimir Putin speaking at the St 
Petersburg International Economic Forum June 10, 2007. REUTERS/Alexander 

Russia calls for new economic world order

ST PETERSBURG, Russia (Reuters) - Russian President Vladimir Putin called on 
Sunday for the creation of a new world economic order that gives greater clout 
to fast-growing emerging nations.

Days after attending a Group of Eight summit in Germany, Putin suggested that 
club was outdated and failed to reflect a shift in economic power away from the 
industrialised West to countries like his own.

"If 50 years ago, 60 pct of the world's gross domestic product came from the G7,
now it's the other way round, and 60 percent of the world's GDP is produced 
outside," Putin said in a speech to a major economic conference.

He also took aim at financial organisations such as the International Monetary 
Fund and World Bank, saying they were created in "a completely different 
reality" and had lost relevance in the fast-changing global economy.

Russia is enjoying an unprecedented spell of economic growth that has enabled it
to pay down its foreign debts and accumulate foreign exchange reserves of over 
$400 billion -- the world's third largest.

Putin said the world needed to reduce its dependency on the dollar as a reserve 
currency, and plugged the rouble as one alternative. Russia abolished capital 
controls last year.

"We need several financial centres and several reserve currencies," Putin told 
an audience of international chief executives and government leaders attending 
the St Petersburg International Economic Forum.

Putin declared Russia open to foreign investment, highlighting opportunities to 
invest in the power generation sector, now undergoing reforms to create market 
competition, and in infrastructure.

But he called for industrialised nations not to throw up barriers to Russian 
companies seeking to invest abroad.

"We see how in developed countries despite the doctrine of free investment there
are completely different approaches," he said.

"It turns out that foreign investment is not always seen as positive and foreign
participation is practically closed in those sectors such as infrastructure, 
telecoms and energy."

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Last updated: 10-Jun-07 13:21 BST

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