MOSCOW: Russian Prime Minister Vladimir Putin promised Thursday the country would emerge stronger from a world economic crisis he said had been triggered by U.S. recklessness. Putin said the global financial system had made the crisis "impossible to avert." "Cheap money doping and mortgage troubles in the United States have caused a real chain reaction, paralyzed the global financial system and brought global distrust to the market," Putin said, addressing a meeting of United Russia, the dominant pro-Kremlin party he leads. The prime minister said Russia had prepared for the crisis in advance through economic growth and abundant currency reserves -- benefits of the oil-driven economic boom during his eight-year presidency. But he acknowledged that "low diversification of the national economy, its low efficiency and the insufficient development of the financial system" made Russia's economy "extremely dependent on global factors."
MOSCOW: Russian Prime Minister Vladimir Putin promised Thursday the country would emerge stronger from a world economic crisis he said had been triggered by U.S. recklessness.
Putin said the global financial system had made the crisis "impossible to avert."
"Cheap money doping and mortgage troubles in the United States have caused a real chain reaction, paralyzed the global financial system and brought global distrust to the market," Putin said, addressing a meeting of United Russia, the dominant pro-Kremlin party he leads.
The prime minister said Russia had prepared for the crisis in advance through economic growth and abundant currency reserves -- benefits of the oil-driven economic boom during his eight-year presidency.
But he acknowledged that "low diversification of the national economy, its low efficiency and the insufficient development of the financial system" made Russia's economy "extremely dependent on global factors."
Prime Minister Vladimir Putin's speech to a congress of the United Russia party surely surprised many members of the commentariat. Putin went into great detail about how the global financial crisis is impacting Russia. Of course, the commentariat tells you the Russian government is afraid to do this and bars media from saying otherwise. In his wide ranging speech, Putin covered in great detail the main economic and financial problems facing the country and what the government was doing about it. As things stand now, Russia is in for at least two lean years to come. However, Russia is far better prepared to deal with this crisis than most countries. There will be no shortage of pain, but this time round the state has the political will and resources to cushion the blow.
As things stand now, Russia is in for at least two lean years to come. However, Russia is far better prepared to deal with this crisis than most countries. There will be no shortage of pain, but this time round the state has the political will and resources to cushion the blow.
