G20 needs 'mechanisms' to check big economies: Medvedev

In World on March 14, 2009 by viCheth

MOSCOW (AFP) – The G20 summit should find ways to give other states a say in decisions by the world’s richest to mitigate disasters like the US mortgage loan crisis, Russian President Dmitry Medvedevsaid Saturday.

Reiterating Russia’s view that global finance needs sweeping reform, Medvedev said new tools and rules were needed "so that the problems which start in one state will not trigger the hardest chain reaction" in others.

In comments broadcast on state television, he specifically referred to the current economic crisis which snowballed "when someone out there issued mortgage loans in huge amounts and it whacked the entire global economy."

The Russian president said a key topic for discussion at the April 2 meeting in London should be "control over macroeconomic indicators of the countries which influence the general world financial situation."

He added: "It means we should have mechanisms which would let us somehow at least influence decisions being made by our partners while at the same time protect ourselves from these sorts of repercussions."

Medvedev, who is scheduled to meet US President Barack Obama on the eve of the G20 London summit, reiterated his criticism of global institutions like the International Monetary Fund and the World Bank.

"I hope will be able to come to an agreement" at the G20, he said. "Because otherwise we will confront these kinds of problems perhaps not every year but every 10 to 15 years for sure."

Russian authorities say they are working to limit damage at home from an economic disaster that originated abroad. Critics however say Russia, very hard hit by the crisis, is coping with problems largely of its own making.


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