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Sunday, July 21, 2024

Putin points to source of global economic turmoil

Western policies of massive money printing are driving up inflation and food prices, according to the Russian president

The world economy is struggling under overwhelming stress caused by the unwise macroeconomic policies of some countries, Russian President Vladimir Putin said during an online address to an extraordinary G20 summit on Wednesday.

Speaking via video link, the Russian leader noted that measures taken by governments, including those defended as necessary to fight the effects of the pandemic, have led to global economic turmoil.

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“The injection of trillions of dollars and euros into the economy, into the banking system, ultimately provoked a surge in global inflation, a rapid increase in food and energy prices. This is precisely what lies at the heart of the events that I mentioned [turbulence in the global economy], not our actions and our attempts to achieve justice in Ukraine, no,” Putin said.

According to the Russian president, such policies have also led to higher interest rates, which have hit poorest countries the most.

Moscow stands for the rebuilding of open and mutually beneficial international economic cooperation, based on the principles of the UN Charter and of “collegial and mutually respectful teamwork,” he stated.

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According to Putin, “It is important to achieve effective optimization of the system of global economic management. Namely, to restart the WTO [World Trade Organization] in full, including its arbitration function.”

Putin also stressed the importance of increasing the role of developing economies in international financial institutions, including the IMF and the World Bank. According to the Russian leader, it is critical “to use the resources of these organizations in the interests of the development of countries and regions that are truly in need, and not for opportunistic political purposes.”

“We are ready to work together to solve the problems of the economic agenda within the G20, as well as other international institutions, including the BRICS, the weight and influence of which is obviously growing, especially taking into account the process of its expansion,” Putin concluded.