Azerbaijan, Baku, 24 October / corr Trend N.Ismaylova / "The International Bank Conference of CIS member states 'Financial Markets of Countries of Commonwealth: Development and Integration' will enable to exchange of views on development of national strategies for way out of crisis situation and development of flexible mechanisms of coordination for collective solution of issues of financial stability," Elman Rustamov, CEO of the National Bank of Azerbaijan, said at the opening ceremony of the conference, in Baku.
"Preliminary estimation of global crisis shows that absence of suitable collective interaction in modern world is one of the reasons for imbalance of world economy," Rustamov said.
It is the first large crisis of the 21st century, which exceeds much all previous crises by its scale and consequences. It covered the territory, where 2.3bln people or 35% of world population reside and the countries, which produce 63% of the world GDP.
"Crisis influences on our economy to a greater or lesser extent, as, it is, first of all, reduction of world demand, world inflation, problem of refinancing of loan in international markets for us, and - reduction of oil prices for the extractive countries," Rustamov said.
Global imbalance has intensified and signs of world stagflation become apparent distinctly (economic stagnation upon simultaneous inflation) under conditions of crisis.
There is an idea that this crisis is the
result of next cyclical variation of world economy, but the depth of recession
is aggravated by several factors. First, strong integration of the financial systems is peculiar
for the modern global economy that strengthens its vulnerability before
intersystem shocks. Secondly, the electronic type of commerce at the financial
markets enables to realize the overall speculative operations with
derivative financial tools.
According to estimations, the volume of such tools exceeds by 10 times the
volume of world GDP.
"Obviously, world's financial risk and liquidity management institutes turned out to be inadequate to the scale of development of the financial system. Under these conditions, world financial architecture approached closely to the necessity of fundamental reconstruction, and calls to create new configuration of world financial order have become intensive lately," the head of ANB said.
Although, Integration and Development was defined as the theme of conference last year, the issue of development of defense tools to survive financial crisis is the most actual at present, Rustamov said.
Integration processes are of long-term character, first of all, integration of national economies, financial sector happens, however, it is the most objective and right process, CEO of NBA said.
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