Russia on Direct Investment

Although reports over the past few years have shown that the transfers of the financial resources for development were under the negative impact of the financial crisis. At the same time, in spite of the contraction of the overall volume of the resources inflows, a certain growth in the direct investments to the developing and “transitional” economies has been traced. And, an improvement of the general situation in this sphere is already prognosticated for the year 2002.
In the opinion of the Russian delegation, the expectations for changes for the better are directly linked to a certain progress of the last years in strengthening the global financial mechanisms. Their effective functioning greatly ensures favorable external conditions for development of the countries. In no small degree, in our opinion, was this positive process assured by the growing attention to it that was noticeable at the UN forum, including in the framework of the regular high-level dialogue between countries- members of the ECOSOC and the heads of the World Bank, IMF and WTO. Many ideas expressed in those forums were later reflected in the forming concrete approaches to the reform of the international financial system.
With due account of the lessons of the financial crisis, measures have been taken to improve exchange of information and its transparency, standards and rules of the banking sector are being reviewed, additional schemes of crediting in emergency situations have been introduced, new mechanisms are being tested on forming international consensus on the reform of the international financial system, such as “Group of 20” and the “Financial stability forum”. All this in aggregate represents a substantial step forward, and, in general, according to the estimates of the prestigious international experts, the reforms evolve in the right direction. They were established in the corresponding resolutions of the UN General Assembly and at the G-8, currently G-10, summits in Cologne and on Okinawa. Among the key ones- improvement in the mechanisms of the early warning and financial crises prevention. Namely in this sphere the UN, due to its powerful analytical potential, could be extremely useful.
Special attention on the part of the UN and international financial institutions is required opinion, to the issues of strengthening the potential of developing and “transitional” economies in monitoring and regulating activities of financial markets and the banking sector. Of particular importance shall be restructuring of the banking sector, so that its activities ensure economic growth. The UN assistance along these vectors seems to be of special importance since, according to the established ideas, the rates of liberalization should correspond to the specific economic and institutional conditions of the individual countries.
In conclusion, we would like to underline that one of the key factors, capable of ensuring successful reform of the international financial system, is the building-up of the fruitful cooperation between the UN system, on the one hand, and the Bretton Woods institutions and WTO, on the other.