Kazakh President: Global economic crisis not finished

Business Materials 23 May 2013 13:03 (UTC +04:00)

Kazakhstan, Astana, May 23 / Trend D. Mukhtarov /

The global economic crisis cannot be considered finished, President of Kazakhstan Nursultan Nazarbayev said at a plenary session of the world crisis conference and the 6th Astana Economic Forum.

According to him, to activate the process of developing a global anti-crisis plan, it is important to take into account a number of important lessons learned from the world in recent years.

"The collapse of the financial system in Cyprus created doubt that the era of general economic stability is coming soon," Nazarbayev said noting that the reasons of the problems of Cypriot banks and the collapse of the U.S. mortgage agencies five years ago have similarities.

"First of all, these are the artificial inflation of financial bubbles, the thirst for easy money, the lack of responsibility of national financial institutions, the weakness of global financial governance. Essentially these and other causes of the global crisis have not yet been resolved," Nazarbayev said.

"This means that the global crisis cannot be considered finished. Moreover, it seems that it is entering a new phase, which will be accompanied by painful bursts of a number of local financial systems," the president noted.

In addition, Nazarbayev added that in the global anti-crisis plan of the world community must take into account the need to overcome the lack of trust.

"I fully share the view that the global crisis is first of all, a crisis of confidence. There is no confidence between global financial institutions, nation states, subjects of the financial sector, real economy and between countries," Nazarbayev said noting that without confidence in any anti-crisis plan, the situation will be reduced only to the practice of 'filling in the holes'."

According to Nazarbayev, in the 21st Century the world needs a new economic model which should be based primarily on a fair global financial system.