International Monetary Fund (IMF)
Comments by Russian Deputy Minister of Foreign Affairs Alexander Yakovenko during the High-Level Policy Dialogue with the International and Trade Institutions within the Framework of the Substantive Session of ECOSOC, New York, July 2, 2010
Russia considers the traditional high-level policy dialogue with the leaders of the IMF, the World Bank, the WTO and UNCTAD during the substantive session of ECOSOC as an important element of an overall strategy to strengthen the UN interaction with the international financial and trade institutions.
We believe also that an open and lively discussion within ECOSOC on urgent issues of the world economy is particularly relevant in the context of international efforts to overcome the adverse effects of the global financial and economic crisis.
We are grateful to the distinguished rapporteurs for their useful and interesting presentations. For our part, we would like to make the following comments on the essence of the problems discussed.
We agree with the assessments that the global economy as a whole is gradually recovering after the crisis. Nevertheless, it has to be noted that consumer and investment demand still remains at a low level, the recovery process has been uneven and to speak of a steady growth of basic indicators is premature.
Of particular concern to us is the persistent problem of the so-called bad assets in the global financial system, the amount of which, according to expert estimates, is 2.3 trillion dollars, as well as the still high risks of a further fall in property prices, which could negatively affect the balance sheets of some of the largest banks and lead to a new wave of crisis.
It is obvious that the resource underpinning the consumer model of developed countries has practically been exhausted. In conditions of high unemployment and weak domestic demand, the growth models of major Western economies will inevitably require revision. A mechanical restoration of the "growth trajectory" means a return to the unsustainable global development model.
Thank you, Mr. Chairman.
July 2, 2010