Russia could take a major role in introducing an economic security council

Russia should take a step forward to modernize international institutions and should not hide behind the UN and the Security Council. New alliances are being formed and Russia should be a part of those new alliances. These are the new organizations for the new world of the 21st century.

Valdaiclub.com interview with Wolfgang Nowak, Managing Director and Spokesman for the Executive Board, Alfred Herrhausen Society for International Dialogue

At the international economic forum in Davos, Russian President Dmitry Medvedev will present a report on the modernization of the Russian economy and on cooperation with Russia’s foreign partners. Can you assess the work that the Russian government has done thus far to expedite modernization and technical development in its economy? What, in your opinion, is the current status of these strategic objectives, and what other steps must the government take to make its country more competitive in a global economy?

Well, I will say that Russia is still a world power in terms of energy production, and not yet a world power with all of its industries. And I think that Russia is in a good position, but Russia should continue to cooperate with Western companies and become an industrial world power because Russia will have to rely on its healthy economy once the energy is gone. But at the moment, Russia is still one of the most important –maybe the most important – and most reliable world power in energy. I can also say that modernization also requires a reliable legal system, and the rule of law is very important for companies that do business with Russia. It’s very important. But let me say in conclusion: Russia is a world power in energy and the entire country is really fit to become an industrial world power, but you have to have a better infrastructure, you have to have the rule of law, and you have to invite Western companies – and, as I’m German, invite German companies – to help you modernize the country and become a major power. The CEO of Deutsche Bank recently said that we should have an economic zone that includes Russia and Europe, and I think that it would be a very good idea to pursue this and not to turn away from the obstacles.

Is it possible, in your opinion, for Russia to achieve World Trade Organization accession over the next 3-4 months?

Well, I think it might be realistic to do this in the next four months, and I think that most of the gains that have been made have been psychological, and I hope that they finish this agreement in the next three to four months. And I think there are some obstacles that have nothing to do with the economy. Russia needs to be more visible, take on a more visible role in solving international conflicts. This doesn’t mean that Russia has to follow America, but Russia has to develop its own ideas to solve these questions and to look for partners. And if you remember, there was an odd situation at the last G20 summit: suddenly China depended on Germany, and China and Germany were on the same side, contradicting the United States. I think that new alliances are being formed and Russia should be a part of those new alliances.

Regulating and controlling the post-crisis global economy remains a major problem for the G20. Could you assess the progress of the G20 on these issues? What is Russia's role in the creation of a new system for global economic regulation?

I must say I’m very much in favor of the G20 and of BRIC. I don’t have any trust in the UN. And I think Russia should take a step forward to modernize international institutions and should not hide behind the UN and the Security Council and so on. And these are also institutions from the years after 1945, but today we need modern institutions like the G20, like BRIC. And as the new Brazilian president recently said, the BRIC countries are very important for Brazil; I think they’re as important for Russia. And I think that we should find a kind of general secretary for these organizations. These are the new organizations for the new world of the 21st century, and we don’t need to always go back to the old institutions. We need new ones. Therefore, I think Russia should take on a very important role in the G20 and should also to participate in all kinds of regulations.

What principles should be followed in the creation of a global mechanism to respond to the risks of the next crisis?

This may sound a little bit contradictory for me, but the Security Council hasn’t really solved any crisis over the last few years… and in Africa, well… but what the G20 could be and inside the G8 there could be a sort of economic security council, and Russia should take a major role in it. This could be a system of warning and something that will take action when a crisis approaches. And maybe Russia could take a major role in introducing an economic security council, not with the members of the Security Council in the UN, but with the members of the G8, G20, or even, if nobody wants to follow you, they could start a small one inside the BRIC countries. This would be fantastic, I think, not only for Russia but for the whole world.

Source: http://en.rian.ru