Putin favors BRICS' more active part in IMF, World Bank decisions

July 15, 2014 RBTH, Interfax
The BRICS leaders believe the global economy is excessively dependent on the monetary and financial policy of the U.S. government and the IMF reform is unreasonably drawn-out and intend to change this, Russian President Vladimir Putin said.

The BRICS leaders believe the global economy is excessively dependent on the monetary and financial policy of the U.S. government and the IMF reform is unreasonably drawn-out and intend to change this, Russian President Vladimir Putin said.

"We should take a more active part in the IMF and the World Bank's decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this," Putin said in an interview with a Russian state news agency.

In his opinion, the international monetary and financial system "in the present form it is unjust to the BRICS countries and to new economies in general."

The BRICS leaders will discuss the IMF reform at the summit in Brazil, Putin said. "The BRICS countries are concerned about the unreasonable delay in holding a debate of this subject. This jeopardizes all the efforts of G20 in this direction. In the meantime, it is the case of fulfilling the rightful demands of "new economies" to balance the IMF according to the 21st century reality," the chief of state pointed out.

"In the modern world the factor of common borders does not play a defining role. On the contrary, global processes encourage us to join efforts as challenges and problems become shared. In the BRICS case we see a whole set of coinciding strategic interests," Putin continued.

"Another important initiative that is underway is creating a BRICS pool of foreign currency reserves. It will become a safety net to help us form a joint response to economic challenges," Putin said, adding, "It is clear that all the BRICS economies need serious infrastructure modernization. Our initiative to establish the Development Bank is aimed at expanding cooperation in this sphere."

"In the near future, we expect to finalize all the remaining issues and we will be able to use this Bank's potential to realize major projects in our countries," he said.

"I would like to emphasize that both the Development Bank and the foreign currency reserves pool are practical steps for our countries, intended to strengthen international financial architecture and to make it more balanced and just," Putin said.

"The BRICS countries have shared attitudes towards other modern challenges in the economy, including the prompt completion of the Doha Round Negotiations, creating a more just global trade system and ensuring transparency in regional trade agreements," the Russian president said.

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