Dominique Strauss-Kahn: Economy Must Be "Re-started" in an Innovative Way

Dominique Strauss-Kahn: Economy Must Be
14 September 2012

Tactics employed by international financial institutions and European governments to combat the economic problems are to be changed, stated former Managing Director of the International Monetary Fund Dominique Strauss-Kahn at the session on "The Future of the World Economy" of the 9th Yalta Annual Meeting.

"Economic recovery has been delayed again. The prospects are grim. On the global scale, the growth will be sluggish and accompanied by poor financial conditions. Policies of the key countries did not restore confidence in the economic recovery," former head of the IMF summed up the situation in the global economy.

In his view, the problem of the fiscal collapse and growth of public debt in the U.S. remains to be serious, along with the debt crisis in the eurozone. Traditional tactics advocated by the IMF in solving problems of Greece have failed to meet expectations.

"Economy must be re-started in an innovative way. We believed that the main thing was to avoid losses. That is, to lower the rates, to extend deadlines on debt repayment. And we haven’t accepted the fact that it is better to suffer losses now, if they are unavoidable, without turning away from them. And now an avalanche of economic problems is growing and expanding,” stated Dominique Strauss-Kahn.

He believes that rescue measures were justified during the acute phase of the crisis, but today the situation is different. "Fire-fighters are good when fire is raging. But then we must deal with recovery. European leaders must demonstrate that they can handle it," said former head of the IMF.

The 9th Yalta Annual Meeting entitled “Ukraine and the World: Addressing Tomorrow’s Challenges Together” takes place in Yalta at the Livadia Palace, Ukraine, from 13-16 September 2012. More than 200 leaders from politics, business and society representing more than 20 countries will discuss major global challenges and their impact on Europe, Ukraine and the world.

The President of Ukraine Viktor Yanukovych and the Prime Minister of Turkey Recep Tayyip Erdogan opened the plenary part of the 9th YES Annual Meeting on September 14. The two leaders discussed critical issues affecting the development of Ukraine and Turkey, as well as the future of a “Wider Europe” in the 21st century. Aleksander Kwasniewski, President of Poland (1995-2005) and Chairman of the Board of YES, moderated the discourse.

The overarching topic of the 9th Yalta Annual Meeting will be the key transformations that are already shaping the future of the world. Forum sessions will focus on the future of the world economy, on a new world order and its security, and on possible models for the development of capitalism. Special attention will be paid to the role of innovation and leadership in transforming the economy and society. Other topics for discussion include the future of the European Union, energy issues and the internal and external challenges facing Ukraine.

This year’s Yalta Annual Meeting will welcome, among others, Robert Zoellick, Dominique Strauss-Kahn, Condoleezza Rice, Gordon Brown, Alexei Kudrin, Alec Ross, Eric Lander, Kairat Kelimbetov, Carl Bildt, Javier Solana.

At the plenary discussions of the 9th YES Annual Meeting, Ukraine will be represented by the Prime Minister Mykola Azarov; the First Vice Prime Minister of Ukraine Valeriy Khoroshkovsky; Deputy Prime Minister and Minister of Social Policy Serhiy Tihipko; Minister of Economic Development and Trade of Ukraine Petro Poroshenko; Minister of Energy of Ukraine Yuriy Boyko; Minister for Foreign Affairs of Ukraine Kostyantyn Gryshchenko; Secretary of the National Defence and Security Council of Ukraine Andriy Klyuev.

Chrystia Freeland, Global Editor-at-Large at Thomson Reuters will moderate discussions.

The 9th Yalta Annual Meeting is streamed live on in Ukrainian and on and in English.

The official Twitter of the 9th Yalta Annual Meeting: @yes_ukraine
Hash tag: #yalta2012

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Alec Ross
Alec Ross
Senior Advisor on Innovation to the Secretary of State of the United States, 9th YES Annual Meeting, 2012
«The government role in innovation and entrepreneurship should principally be to unleash it»