On the principles of evolutionary development and open dialogue
May 24. Kazpravda
By Rysty ALIBEKOVA
President Nursultan Nazarbayev took part in the plenary session of the VII Astana Economic Forum and the II World Anti-Crisis Conference.
The seventh consecutive year world leaders, experts and representatives of the business community assemble in the heart of Eurasia to discuss and seek out responses to key economic and social challenges. This forum has assembled more 10 thousand participants from 150 countries. At the UN support II World anti-crisis conference was also held within the Astana forum.
Addressing the AEF, Nursultan Nazarbayev called inequality a most acute challenge of the global world, suggesting working out a roadmap to eradicate poverty. He said it was necessary to learn to live in the G-Global on the principles of evolutionary development , trust, openness , tolerance and dialogue .
Touching upon the agenda – risk management in the era of change in the format of G-Global, – the President stressed that the situation in the world continues to hold the countries in suspense .
– We must be prepared for various scenarios of global trends. Along with the unceasing echo of the global financial crisis, credit crunch and social tensions in the eurozone, a succession of social upheavals in the Arab world, there are new challenges.
– First, against the backdrop of recovery in developed countries, there is a general decline in the competitiveness of emerging economies. Experts predict increased capitals offshoring, which in a negative scenario could lead to a reduction in investment in them by 50 % or more.
Secondly, the income inequality is steadily growing, enhancing the gap in quality of life between the rich and the poor and increasing social tensions. The gap between the rich and the poor is not only poor countries’ problem.
Thirdly, on the background of social tensions economic, social and political conflicts are becoming more frequent, escalating into real military operations, with economic sanctions imposed. The world has once again plunged into a phase of escalating tensions and increasing military capabilities. But the principle of “social” Darwinism when only the stronger one is right is definitely destructive.
– The world is paying too high a price for the conflicts that do not lead to solution of the problems , but only exacerbate them .
– We should be prepared for global economic slowdown in the medium term, Nazarbayev went on. From 2000 to 2007 the global economy grew by 4% on average, falling to 2.5% in the following years. GDP growth in Europe as of the end of the Q1 2014 turned out to be twice lower than expected. Commodities-related bubbles also pose threat to the global economy, with signs of such bubbles already present in some key segments of the commodities-related global securities market.
The creation of these “bubbles” in the world contributes to a large amount of cheap liquidity. The U.S., Japan, UK and the eurozone states alone have poured into economy more than $ 5.5 trillion. All this certainly affects the emerging markets.
In these conditions it is most important to avert the deterioration of social well-being of ordinary people. The President urged to concentrate on the main tasks – reducing inequality and eradicating poverty.
– It is impossible in a globalized world to live in harmony and prosperity when there are serious problems in the world around, even more so – in the neighboring countries.
To solve these problems it is necessary, according to the President, to move in two directions, first, maximize the potential for economic development, avoiding new economic shocks, secondly, we need to develop a roadmap to eradicate poverty with extensive tools for the development of human capital in the poorest countries of Asia and Africa . It is important to maximally depoliticize economic relations and abstain from artificially opposing countries and regions and from the rhetoric of conflict. We need a new, more efficient and equitable global economic integration architecture, he emphasized.
– In a few days, on May 29 in Astana we are signing the Treaty on the Eurasian Economic Union (EEU), creating a common market for financial services. In Almaty a supranational authority, regulating the financial market is to be established. Factors such as a favorable investment climate, further development of Islamic financing, common borders of several Central Asian countries , are a reliable basis for the formation of Almaty as a financial center of the New Silk Road too.
No less important are international institutions in ensuring the equality of all countries, irrespective of the size of economies. In addition to the stable economic situation extensive measures are required to increase economic activity in the poorest countries. This should be the gist of the roadmap for eradicating poverty that we are proposing to work out, – said Nursultan Nazarbayev.
– Consistent struggle for poverty reduction has been and remains my main task, and in 2004-2005, our country in terms of poverty reduction succeeded in early attainment of UN Millennium Development Goals. We undertook to reduce rural population’s poverty by half by the year 2015, and we believe that one of the main tasks of the post -2015 world is social inclusive and equitable economic development , – the President said.
Nursultan Nazarbayev underlined that in the XXI century all the countries, all the politicians should learn to live in the G-Global world, on its principles of evolutionary development, trust, openness, tolerance and dialogue.
Globalization has certainly made the world much closer, more transparent and more accessible to everyone. But now this world, impacted by the worst global financial and economic crisis may relapse into recession and downturn. Termination of global dialogue is a dangerous trend.
– Kazakhstan is particularly concerned that the dialogue of leading powers on global nuclear security can stop. It would bring to naught all the achievements of the last decades in nuclear threat reduction. We are concerned over the inability of the Organization for Security and Cooperation in Europe to resolve the conflict in Ukraine. One of the reasons for it is lack of political will to reform this organization. Kazakhstan is also concerned over recurrence of worst practices of the past century – incontinence, justification of force in settling conflicts. It creates a dangerous precedent for the rest of the world, in fact encourages bias in settling international disputes, – said Nursultan Nazarbayev. – The use of sanctions policy is against the global principles of free trade and market. This practice has never been effective in international relations. It definitely restricts global economic growth, creates barriers for the formation of an equitable global energy system.
Lowering of credibility in world politics is a dangerous process, Nazarbayev cautioned. The beginning of the XXI century, contrary to the hopes of improving world order, brought new threats and challenges. The global crisis that started six years ago, is not gone, but is only growing every year. Humanity is hoping for a radically new world development project.
Summing up his speech, the President said that under the current circumstances it is necessary to impart dynamism to the G-Global project and make it applicable, and expressed hope that this forum will contribute to it.