Financial regulatory reforms proposed by G20 are not sufficient to restore the stability of the global financial system. This was repeatedly stated by international experts. The world is in search of a new interactive platform that would combine the best minds to develop scenarios for the world economy development. In recent years, developing countries have intensified in this matter.
Interactive platform G-Global, which involves 14 Nobel laureates, in a short time has already gained the interest of users from 160 countries.
Virtual Forum, proposed by Kazakhstan, is the second step of the country towards a global dialogue. As the first site it can be mentioned the Astana Economic Forum (AEF), which on May 22-24th, 2013 plans to gather the world’s leading economists in the young capital of the state, geographically located at the crossroads of Europe and Asia.
This Central Asian country, showing strong economic growth (from 2008 to 2012, GDP increased by 22 percent, reaching $ 210.8 billion), currently has spared no efforts or resources in order to declare itself on the world stage. Evidence of this was the organization of the OSCE Summit on December 1-2d, 2010, VII Asian Winter Games from January 31 to February 6, 2011, the forthcoming World Exhibition EXPO-2017, in which Kazakhstan can be visited by five million people from 100 countries and some 10 international organizations according to conservative estimates.
This year, the AEF is held the sixth time. It is assumed that it will be attended by more than 1200 overseas visitors, 10 Nobel Prize winners, and heads of international organizations to discuss the challenges facing humanity.
According to the professor of economics at New York University, president of RGE Monitor Nouriel Roubini’s opinion expressed in Astana at the V Astana Economic Forum (AEF), the system G-8 is already out of date, and the “G-20 format does not reflect the realities of today. And therefore it is necessary to shift towards emerging markets. ”
And since this forum was held by Kazakhstan during the crisis years, the issue of anti-crisis measures cuts across all thematic events. In just three days of the Forum, from May 22d to 24th, 55 discussions are scheduled to take place on 5 key areas: sustainable economic growth, financial strategy, social aspects, the competitiveness of countries and regions and the development of innovation.
Open letters to the leaders of Big Twenty are already becoming traditional. In 2011, the recommendations of the AEF to the G-20 countries were presented in six areas. The first big set of recommendations touched on the functioning of the global financial system. The scientists asked the leading countries of the world to form a permanent committee to discuss the long-term issues introducing a supranational world currency. And also they asked to form a permanent body – the Council of G20 central banks to increase the stability of the global currency regulation.
The second major set of issues touched upon the capacities of developing countries and the private sector while deciding in the International Monetary Fund. According to Nobel laureates in economics, it’s time to ensure an open selection of IMF and the World Bank management by providing equal opportunities for candidates to these positions. “At the same time, the management of the IMF and World Bank should not lose political influence in times of crisis and post-crisis regulation to monitor the financial situation in the world” – they stressed.
A separate item of recommendations to the Big Twenty countries was not only a rapid decision-making, but their effective implementation in practice. Countries of Big Twenty were advised to improve monitoring of all commitments made by G-20 countries on financial regulation and supervision, as well as to conduct stress tests for banks, insurance companies and other relevant financial institutions to ensure their sustainability.
According to participants of the AEF, it is also necessary to change the principles of the main shopping regulator – the World Trade Organization. According to experts, the WTO should stop the practice of expert lending and subsidizing by developed countries, leading to the monopolization of markets of countries, which are net importers of agricultural products. According to economists, it is needed to curtail the practice of presenting stringent technical requirements for imports from developing countries for the development of world trade by developed countries. And also eliminate the practice of presenting to acceding countries additional requirements “WTO plus”.
In order to keep the mechanism of interaction between the major world powers and developing countries not bare, but real, the representatives of the “Eurasian Economic Club of Scientists” on behalf of the President of Kazakhstan Nursultan Nazarbayev, organized a virtual platform G-Global. This web platform during the year brought together more than 88,000 people from 160 countries.
The initiator of the project, the head of Kazakhstan, during last year’s forum voiced five main principles of functioning of communicative platform G-Global
He stressed that currently the humanity has great potential for the successful development as well as for self-destruction, whether environmental, political processes and global communication. Recent ones are now able to reduce both the distance and all sorts of barriers as well as to “be an instrument of informational provocations, to promote purposeful collapse of moral principles and public order in the so-called undesirables companies”.
In his view, the first and fundamental principle of the initiative should be a principle of “evolution, not revolution.” “Humanity has exhausted the limit on the revolution and World wars back in the twentieth century. Today, therefore, all human wisdom is to keep the peace – otherwise it will be a self-destruction, “- noted Nazarbayev, adding that the revolution should be allowed only in the sphere of science and technology, but in any case not in the political practice and social life.
For the second principle of initiative Kazakh president has suggested to choose “justice, equality and consensus.” “In the XXI century, the division of countries to the great and minor, leading and trailing is civilizationally outdated … An alternative to such geopolitical practices are fair basis for the development of the global economy, the monetary system and policies based on the equality of all nations … It is vital that in perspective global solutions at all levels of international organizations, regional organizations and forums, summits will be made only on the basis of consensus. It is important to note that the radical changes in the world economic system are impossible without moving from Washington to the global consensus. This, above all, is to consider new system of global management of interests of both developed and developing countries “, – said Nursultan Nazarbayev.
The third principle – a global tolerance and trust. The relationship between states, regardless of their geopolitical clout, influence, historical experience, the level of development of the economy and society should be tolerant.
The next principle is a global transparency. “The world in the format of G-Global is a transparent community of nations. There should be no double standards, degrading nations – both large, medium and small. It is needed a maximum openness and transparency in international affairs. Only in this case the global economy will be successfully developed, the prosperity of every nation will be higher, “- said the president of the Republic of Kazakhstan.
As the fifth paragraph Kazakh President outlined the principle of “constructive multilateralism.” “There must be a balanced system of geopolitical checks and counterbalances, no block psychology as negative legacy of the bipolar world. There shall be no place for geopolitical snobbery. The powerful integration associations should co-exist peacefully and work closely. I hope, Eurasian Economic Union, which we create, will be one of them in the near future “, – said Nursultan Nazarbayev.