Kazakhstan President expects rapture of local financial systems 23 мая 2013, 22:01
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Kazakhstan President Nursultan Nazarbayev. Photo by Danial Okassov©
The global economic crisis is nearing a new phase, Tengrinews.kz reports citing Kazakhstan President Nursultan Nazarbayev as saying at the Global Anti-Crisis Conference and the 6th Astana Economic Forum.
“Astana Economic Forum has been held for over 5 years. I would like to share my vision of the issues discussed at the Forum. Stepping up development of the global anti-crisis plan, it is important to bear in mind several principally important lessons given to the world over the last years. The collapse of the financial system at the Cyprus made us doubt that an era of global economic stability is anywhere near. I know that there are opinions rejecting any connections between the Cyprus incident and the global crisis, but the fact remains. It doesn't take an economist to point out similarities in the problems of Cyprus banks and collapse of the American mortgage crisis 5 years ago. These are, first of all, artificial blowing up of financial bubbles, a thirst for easy money, lack of responsibility of national financial institutes, weakness of the global financial management. In essence these and other reasons of the global crisis have still not been eliminated. That means that the global crisis should not be considered to be over. Moreover, it looks like it is transitioning to a new phase that will be accompanied by painful raptures of local financial systems,” Nursultan Nazarbayev said.
According to him, this is the first lesson that should be learned and taken into consideration during development of the global anti-crisis plan.
“The second lesson is that the global recessions lead to anti-crisis measures taken at national levels, however paradoxical it may seem. Of course, action is better than inaction during any crisis. Not all anti-crisis recommendations made during G20 have been implemented. Many countries have taken protectionist measures. This caused a slowdown in the global trade growth and decrease of prices at global and regional markets,” the President noted.
By Baubek Konyrov