Tiraspol, 6 February. /Novosti Pridnestrovya/. Mikhail Khazin, a Russian economist, columnist and former official at Russia's presidential administration, was a guest on Radio 1 today. The main topic of the interview was the global economic crisis.
According to the Russian expert, the current state of the global economy is similar to that of the USSR in the late 1980's.
«The mechanism is the same — the lack of expansion capability. As well as in the late 1980's USSR, there are several ways out. The first way is what Gorbachev called «uskoreniye' [acceleration], which preceded Perestroika — centralised modernisation. This requires very experienced personnel. This is impossible to carry out world-wide as today's world is a kingdom of efficient managers who are not fit for any planned modernisation," said Mikhail Khazin.
According to him, this way is inadmissible for many countries; however, Belarus has succeeded in centralised modernisation, and Kazakhstan is making certain steps in this direction.
«There is another way. The USSR collapsed and the global economy is set to share its fate. Fact is that the institutions of the modern global financial system were established in 1944. The IMF, World Bank and the WTO are responsible for their operations. The functioning of these institutions is based on the expansion of the US dollar circulation. Now things are different. Back in 1944, instead of establishing a new international currency and international regulating body alongside the new international institutions, the American currency has been kept as international and the US Federal Reserve System has been retained as a regulation body. It was not a problem then, but today the share of the American economy in the global production is less than 20%. And in this situation, with the lack of expansion capability, the USA has no resources to support the international financial system," said the expert.
He reminded the audience that an attempt had been made in 2011 to establish the so-called Central bank of all central banks as the international institution that would emit the international currency. The USA, however, declared it was impossible to take control of the international currency out from the US jurisdiction.
«As a result, we can see a sharp conflict. Either we will save the financial system at the expense of the USA (this requires constant emission, which is supported by Hilary Clinton, a US presidential candidate) or new isolationists will be saving the American economy. If they win, the processes similar to those in the USSR in 1991 will happen — the collapse into pieces, accompanied with the replacement of US dollar investments with regional currency investment processes. Here arises the main question: who will join the Eurasian zone? According to my estimates, it must include Turkey, Japan, united Korea and Vietnam, and Eastern Europe," concluded Khazin.
