Medvedev questions U.S. role in global economy

Medvedev blames U.S. for world financial crisis: http://www.youtube.com/watch?v=vVY4-HSApRA

Inside Story - Russia's global role (part-1): http://www.youtube.com/watch?v=KhT6W2wp19Q

Inside Story - Russia's global role (part-2): http://www.youtube.com/watch?v=SgQu4dRxAgg&feature=related

June, 2008

Russia's president said on Saturday that the role the U.S. has taken on in the world economy does not correspond to its true capabilities which was a major factor in the current global financial crisis. "No matter how big the American market or how reliable its financial system may be, they are unable to substitute global commodity and financial markets," Dmitry Medvedev said speaking at an international economic forum in St. Petersburg, an annual event for investors. "It is an illusion that one country, even the most powerful, can act as a global government. International institutions responsible for global financial policies, the IMF in the first instance, have had virtually no influence over the strategies pursued by market players," he said. Medvedev, who was sworn in as president last month, said Russia could play a role in tackling the problems facing the global financial and commodities markets and proposed that the country host an international conference to this end. The conference, he said, could evolve into a regular event. "I propose holding an international conference with the participation of the heads of major financial companies, as well as leading financial analysts," he said. Medvedev also blamed the economic "egoism" of some countries for the present global financial and food crisises, including the decision by some governments to take protectionist measures in the agricultural sector in response to a rapid growth in world food prices. The president said an overall growth in global prices, especially for fuel, was due to investors' disappointment in the U.S. dollar and urged the creation of new liquid investment instruments. Medvedev said Russia would adopt an action plan to turn Moscow into a global financial center and make the ruble a leading regional reserve currency.

Source: http://en.rian.ru/russia/20080607/109462913.html

The Groundbreaking Visit

Germany’s Chancellor Angela Merkel has been the first western leader to meet with Dmitry Medvedev after he was elected President: She came to Moscow short after the outcome of the voting was announced. Germany’s Vice-Chancellor, Head of the Foreign Office Frank-Walter Steinmeier has been the first high-ranking diplomat from the West to be received in the Kremlin by the Russian President after assuming office. Dmitry Medvedev is paying his first European visit in his capacity as President to Germany as well. This all points to the significance the parties attach to the development of the relations, which the Russian President called privileged, and the German Chancellor – strategic. Nonetheless, you could see that the bilateral political relations have obviously become less warm in two or three years. It is mainly caused by the fact that Angela Merkel has made no secret of her criticism of violation of human rights and crackdown on democratic freedoms in Russia, which couldn’t help irritating Vladimir Putin. More to the point, Berlin has been reluctant to have special relations with Russia: It could impede the cooperation with the EU and NATO partners and allies, which is essential for Germany. As to economic cooperation of Russia and Germany, it has reached a new level in the two years. So, it’s high time the low temperature of the political dialogue were increased to the optimal level. This is the crucial point: Dmitry Medvedev’s visit to the German capital must become a new hallmark in the political relations of the two countries. It need be said that chances of success are quite high. As far back as March Angela Merkel hinted that it’ll be no more difficult for her to work with Dmitry Medvedev than with his predecessor. In Berlin they have paid much attention to the repeated statements of the new President about his determination to strengthen the rule of law. If the Moscow guest manages to convince the hosts that deeds will follow his words, it will contribute to a thaw in the relations. Dmitry Medvedev is expected to deliver his first keynote speech on foreign policy, where priorities will differ from the ones Vladimir Putin listed in his notorious Munich speech, which smelled of cold war, as many people repute. For all that, economy, and energy in particular, will once again become the major talking point: Before starting official negotiations about a new agreement between the EU and Russia, it’s necessary to thrash out a range of basic matters at the top level. Angela Merkel is likely to offer Russia to become a partner in its modernization, which the German Chancellor has voiced several times. Nevertheless, the Russian party doesn’t seem to have duly estimated the gesture. And it can be evidence of Berlin’s taking seriously the intention of the Russian government to bring the country’s economy on the innovation track.

Source: http://www.kommersant.com/p899905/r_...isits_Germany/

Medvedev thanks Chirac for improving Franco-Russian relations

President Dmitry Medvedev conferred a Russian state award on former French president Jacques Chirac on Thursday, and thanked him for his contribution to humanitarian work and to improving ties with Russia. Medvedev led a state award ceremony in the Kremlin on Russia Day, which marks the June 12, 1990 declaration of sovereignty by the Russian Soviet Republic's parliament, a key step toward the breakup of the Soviet Union. Medvedev said: "I am sincerely glad to welcome Mr. Chirac to the Kremlin. His Russian Federation State Award is a recognition of his outstanding achievements in humanitarian work." "His enormous personal contribution to integration processes in Europe and the development of Russian-French relations is well known," Medvedev said.

Source: http://www.daylife.com/photo/072zczF...edvedev_Chirac

Deputy PM expects Russia to become world's sixth economy in 2008

First Deputy Prime Minister Igor Shuvalov told an economic forum on Sunday that the Russian economy is likely to become the world's sixth largest by the end of this year. Addressing the 12th International Economic Forum in St. Petersburg, now in its third day, the official also outlined the government's future role in the economy, saying that while new state companies will be set up, the government aims to limit its 'excessive interference' in the economy. Shuvalov said: "For the past eight years, Russia has been developing. By the end of this year we will become the world's sixth largest economy." Russia, which joined the G8 in 1998, has now "become a fully-fledged member of the world's largest economies. We are beginning to put behind us the severe crisis of the last decade, and have given ourselves new goals - to become a country with developed institutions, a modern democracy with a post-industrial economic structure, and to build a global financial center." A key goal of the government in the coming years will be to scale down its dominant role in the economy, he said. "Reducing excessive state interference in the economy is now an important factor... The state reacts to crises far slower than an economic entity acting on market signals." However, he said new state companies would need to be established in the future. "We believe they are needed to act where market agents are not able to act independently... We will create them in such a way that they will work entirely openly, under the rules of corporate governance." The St. Petersburg International Economic Forum, running from June 6-8 this year, is an annual event held with the support of by the Russian president, bringing together politicians and business leaders. Russian news agency RIA Novosti is the general information sponsor of the forum.

Source: http://en.rian.ru/russia/20080608/109531170.html