What's new ? Things to read...
Comprehensive report on Algae for BioDiesel:
http://www.folkecenter.net/mediafiles/folkecenter/pdf/Report_algae.pdf
Resource links:
http://www.biodiesel.org/
http://www.oilgae.com/
http://www.greencarcongress.com/
http://www.unh.edu/
http://www.biofuelsdigest.com/
**** Smoking: Maddy's Thoughts: From the first puff to the last.
About acrid beedis and other nasties
http://maddy06.blogspot.com/2009/02/from-first-to-last-puff.html
(Note: Smoking Kills !)
**** Historic Alleys (by the same Maddy as above)
Learn about how Malabar endured Tipu... and the story of Moplahs vs Tipu.
http://historicalleys.blogspot.com/
**** Wild-Singapore. For Nature lovers.
For Wild-life and nature lovers, Singapore. Includes events this week etc.
http://wildsingaporehappenings.blogspot.com/
* KMK -- Educational Exchange Service
http://www.kmk-pad.org/
* Auslandsschulwesen (Central Agency for German Schools Abroad)
http://www.auslandsschulwesen.de/
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** Levers
http://www.edheads.org/activities/simple-machines/frame_loader.htm
http://library.thinkquest.org/CR0210120/Types%20of%20Levers.html
http://www.worsleyschool.net/science/files/lever/quiz.html
** Acid rain and Eutrophication
http://videos.howstuffworks.com/hsw/6204-water-in-our-environment-acid-rain-video.htm
http://www.bbc.co.uk/science/space/playspace/games/jigsaw/launch.html
http://www.bbc.co.uk/science/space/solarsystem/sun/solareclipse.shtml
http://www.earthsunmoon.co.uk/
http://home.hiwaay.net/~krcool/Astro/moon/moonphase/
http://www.woodlands-junior.kent.sch.uk/time/moon/phases.html
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http://dsal.uchicago.edu/dictionaries/platts/
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The Davos World Economic Forum (WEF)
Competing Ideologies: Davos v. Belem
by Stephen Lendman
Global Research, February 3, 2009
Founded in 1971, the Geneva-based World Economic Forum (WEF) meets annually in Davos, Switzerland to bring together top business and political leaders as well as mostly neoliberal minded intellectuals, economists, journalists, and others.
WEF calls itself "an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas." It aims for "world-class governance (read dominance)." Its motto is "entrepreneurship in the global public interest (read for the top 1%)." This year's theme - "Shaping the Post-Crisis World" - a tall order addressing what they caused that's heading the world for a calamitous depression.
Its five-day 2009 meeting attracted over 2500 participants from 91 countries, including over 1170 CEOs and chairpersons from the world's most powerful companies. Others included 219 public figures, 40 heads of state, 64 cabinet ministers, and various other high-level business, government, think tank, media, academic, religious, organizational, and union officials. Noticeably different, according to Bloomberg, "was the virtual absence of Wall Street figures" as well as top Obama administration figures.
Annually, Davos becomes headquarters for the world's power elite to meet and review past achievements, challenges, and prospects for greater exploitation of world markets, resources, and people everywhere. Or put another way, to use money to create more of it, for themselves, of course.
Ordinarily the occasion is celebratory. Capitalism flaunts its successes and parties. This year gloom prevailed, and one topic above others took precedence: assessing the global economic crisis, its risks in the near and longer term, plotting strategies for the coming year and beyond, and avoiding an appearance of panic in an event drawing prominent media coverage.
Not easy with capitalism most in crisis since the Great Depression, no one sure how to right things, and attendees like George Soros believing today's problem "is larger than in the 1930s." Bloomberg headlined the mood: "Grimmest Davos Ever Brings Anger, Finger-Pointing at Bankers," and one observer noted that "the only good news in Davos was the weather."
Bloomberg added that "Almost everyone blamed the few bankers who showed up for the near-collapse of the financial system," with harshest criticism for Wall Street, the Bush administration, and Obama officials for their absence. Economist Kenneth Rogoff called this year the grimmest Davos ever. Abraaj Capital's CEO, Arif Naqvi said "People are looking for the solution, but don't yet have the question formulated." Other attendees predicted that conditions in 2010 may be no better.
The Financial Times' (FT) John Gapper wrote: "This was not the week to be seen in Davos and, if you were there, it was not the time to remain calm." He cited one debate with Black Swan author Nassim Taleb saying bankers should be punished and forced to return their bonuses. He described WEF founder Klaus Schwab as "pale-faced," considering "the impossible task this year - to forge harmony out of tension" and plan how to recover.
For many, Davos this year was "where the pent-up dismay and anger over what Wall Street wrought boiled to the surface" despite efforts to contain it. The stars were those who saw the crisis early and warned about it. Figures like Taleb and Nouriel Roubini who says the worst is still to come.
The FT reported that "The unrelenting economic gloom and the fragility of the banking system have cast a cloud over the global agenda and (managed) to dominate discussions. Drama did as well with Turkey's prime minister Erdogan storming out after an exchange with Israel's Shimon Peres over Gaza, but there was more. Despite its absence, America dominated geopolitical and financial concerns.
The Wall Street Journal reported that "The premiers of Russia and China slammed the US economic system in speeches (January 28), holding it responsible for the global economic crisis."
Implying but not naming America, China's Wen Jiabao said the financial crisis was "attributable to inappropriate macroeconomic policies of some economies and their unsustainable model of development characterized by prolonged low savings and high consumption; excessive expansion of financial institutions in blind pursuit of profit."
Putin, in contrast, was blunt in attacking a "unipolar world," saying it's "dangerous" to rely on the US dollar, and calling for the development of multiple, regional reserve currencies in addition to the dollar. He also mocked US businessmen who boasted last year that America's economy was strong and prospects sound. "Today," said Putin, "investment banks, the pride of Wall Street, have virtually ceased to exist," then added: "The entire economic growth system, where one regional center prints money without respite and consumes material wealth, while another regional center manufactures inexpensive goods....has suffered a major setback."
US officials didn't comment but former Fed vice-chairman, Alan Blinder said: "The sad thing is that we might have scoffed at (these comments) a while ago. But we really dragged the world down" economically. "No wonder (Klaus) Schwab looked so stricken," said FT's Gapper.
Davos is a secluded ski village. Protests are banned but not entirely. Dozens marched through the town and threw snowballs and shoes at Swiss police and the convention center. Among them were members of the Young Socialist and Green parties as well as Amnesty International representatives.
Things were violent in Geneva where Germany's Deutsche Welle reported that "Riot police fired tear gas and water cannons at bottle-throwing demonstrators protesting against the annual World Economic Forum in Davos." AP said hundreds turned out for a largely peaceful demonstration until police "chased black-clad protesters through (Geneva's) narrow streets as shoppers took refuge in bars and cafes."
Regional secretary for the trade union Unia, Alessandro Pelizzari, spoke for many in saying: "100,000 lost their jobs in Europe this week. And those responsible are in Davos." One of the protest organizers, Laurent Tettamenti, added: "The WEF is a symbol of the neoliberal policies of the last 20 years that have caused (today's) crisis. We have no confidence that the same people who caused (this) can solve it."
* The World Social Forum's (WSF) Alternative Vision
At a time of global crisis, WSF more than ever was crucial, relevant and vital. Founded by Brazil's Ethos Institute for Business and Social Responsibility chairman Oded Grajew, it held its first meeting concurrently with WEF in late January 2001 and continues doing it annually. Its motto - "Another world is possible." Today, it's essential.
WEF is "an opened space - plural, diverse, non-governmental and non-partisan - that stimulates decentralized debate, reflection, (and) proposals building. (It) experiences exchange and alliances among movements and organizations engaged in concrete actions towards....more solidarity, (and a) democratic and fair world."
The first three forums were in Porto Alegre, Brazil. It moved to India in 2004, then back to Porto Alegre in 2005. In 2006, it was "polycentric" - in January in Caracas, Venezuela and Bamako, Mali, then delayed until March in Karachi, Pakistan because of the area's earthquake. In 2007, it was in Nairobi, Kenya, then in 2008, it became a Global Call for Action and Mobilization by letting thousands of autonomous organizations worldwide hold simultaneous events in dozens of countries. The 2009 forum returned to the Amazonian port city of Belem in northern Brazil, about 60 miles upriver from the Atlantic Ocean.
* WSF's Charter of Principles
After its 2001 inaugural, WSF drafted Principles "to guide the continued
pursuit of (its) initiative."
Unlike predatory capitalism on display at Davos:
(1) WSF "is an open meeting place for reflective thinking, democratic debate of ideas, formulation of proposals," free exchanges among participants, and formulations of collective action plans. Participants are civil society individuals, groups and organizations committed to a new society "directed towards fruitful relationships among Mankind and between it and the Earth."
(2) WSF's "Another World Is Possible" theme is a "permanent process of seeking and building alternatives."
(3) WSF is "a world process."
(4) WSF supports global justice, democracy, human rights, equality, the "sovereignty of peoples," and opposes neoliberalism, predatory capitalism, complicit governments, and their destructive harm.
(5) WSF is a civil society meeting ground, not a body representing it.
(6) Forums are for participant exchanges, not to establish positions for WSF as a body or make it a "locus of power."
(7) WSF facilitates and circulates ideas and decisions "without directing, hierarchizing, censuring or restricting them, but as deliberations" and decisions by Forum participants.
(8) WSF is decentralized, "plural, diversified, non-confessional, non-governmental and non-party" locally and internationally "to build another world."
(9) WSF is committed to "pluralism (and) diversity." Government officials who accept the Charter Principles are welcome to attend. More on that below.
(10) WSF opposes totalitarianism and reductionist economic views. It stands in solidarity with all humanity in peace and harmony for a better
world.
(11) WSF is a Forum for debate, reflection and exchange of ideas on how to "resist and overcome" the domination of capital.
(12) WSF "encourages understanding and mutual recognition (among) participant organisations and movements, and places special value on (exchanges) among them."
(13) WSF aims to "strengthen and create new national and international links (to) increase the capacity for non-violent social resistance (against) dehumani(zing) the world."
(14) WSF aims to have a global agenda for "building a new world in solidarity."
* Themes and Solidarity in Belem
Over 100,000 attendees from 150 countries voiced common themes - Pan-Amazonia for the Forum's site, opposition to predatory capitalism, wars, inequality, injustice, intolerance, environmental destruction, prejudice, and elitism. For six days, hundreds of events took place in workshops, campings, seminars, conferences, speeches, testimonies, marches, cultural and artistic activities, exchanges, reflection, proposals, consensus-building for a better world, and ending with a "Day of Alliances" to decide on joint actions. In all, it was a mass coming together for a better world and an utter rejection of Davos and its ruling ethos.
* Latin American Leaders at Belem, Not Davos
On January 29, Venezuela's Hugo Chavez, Brazil's Luiz Inacio Lula da Silva, Bolivia's Evo Morales, Ecuador's Rafael Correa, and Paraguay's Fernando Lugo criticized Washington in Belem.
Correa: "The guilty parties in this crisis try to give lessons on morality and good economic handling. The most powerful people on the planet have united to find a therapy for the dying. They're getting together - the central bankers, the representatives of the large financial firms, the people primarily responsible for the crisis." They caused it. Can we expect them to fix it? Correa called for a "common project," a 21st century socialism characterized by justice and efficiency, a return to state planning "for the development of the majority of the people."
He also attacked US-dominated institutions like the IMF and World Bank: "Using the art of deception they will try to confuse us into thinking the victims are the guilty ones. They are the ones responsible for the crisis. They are not the ones to give us lessons." Correa should know. He's a University of Illinois-educated Ph.D in economics.
Lula: the global crisis affecting Latin America wasn't caused by "the socialism of Chavez (or) the struggles of Evo (Morales)," but by wealthy Western states. It's their crisis, not ours. "And who is the god to whom they have appealed? Why, the state! (They) told us what we need in our poor countries. They thought we were incompetent." Look what they did. In attacking George Bush, he added: "The world cannot elect any more presidents that do not listen to social movements, that do not listen to the people."
Lula is a former factory worker and union leader, yet far from a popular president. Outside the event, several hundred in his United Socialist Workers Party (PSTU) protested his making concessions to bankers, business and Washington, yet doing little to stabilize employment for ordinary Brazilians.
Paraguay's Lugo is a former Catholic bishop and liberation theology adherent. He said his country changed "because of your movements' voices of hope" and quoted from the Guarani people's ancient aspiration that one day a "Land Without Evil" might be created. He added that "Latin America is changing and the hope is the north will change as well. We have seen the economic policies they said were so efficient fail."
Evo Morales used anti-imperialist slogans in condemning American interventionism and its regional military bases. He said "Before you are four presidents - four presidents (Lula spoke separately) who could not be here were it not for your fight. I see so many brothers and sisters here, from Latin America's social movements to European figures."
Hugo Chavez spoke about a new revolutionary path saying social movements have been in the "trenches of resistance" and must go on the "offensive" to create alternatives to global capitalism.
"Just like Latin America and the Caribbean received the biggest dose of neoliberal venom, our continent has been the immense territory where social movements have sprouted with the greatest strength and began to change the world....another world is necessary (and) is being born in Latin America and the Caribbean. Revolutions are no longer guerrilla battalions, no! This is a new revolutionary wave....This year will be hard, we must unite. Our socialism should not be a copy. Our socialism should be a heroic creation....Socialism of our America, a profoundly democratic socialism. This is our path."
For the ninth consecutive year, WSF's participants agreed that "Another World Is Possible." This year it's essential, now more than ever.
Stephen Lendman is a Research Associate of the Centre for Research on Globalization. He lives in Chicago and can be reached at
lendmanstephen@sbcglobal.net.
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Some Malayalam links
1. Resource (many links):
http://www.cs.princeton.edu/~mp/malayalam/
2. Wiki Library (Malayalam)
http://ml.wikisource.org/wiki/%E0%B4%AA%E0%B5%8D%E0%B4%B0%E0%B4%A7%E0%B4%BE%E0%B4%A8_%E0%B4%A4%E0%B4%BE%E0%B4%B3%E0%B5%8D%E2%80%8D
3. Malayalam language resources
http://theory.tifr.res.in/bombay/history/people/language/malayalam.html
4. Malayalam Resource Centre. (ER&DC's products etc)
http://www.malayalamresourcecentre.org/
History: Search for Muziris -- The Muziris Heritage Project
* The search for Muziris: Pattanam, not Cranganore ?
Roman coins and pottery found by excavators
http://news.bbc.co.uk/2/hi/south_asia/4970452.stm
* Comprehensive Web site on Pattanam excavations
http://www.webahn.co.in/index.html
===========
The following text is a transcript of Russian Prime Minister Vladimir Putin's speech at the opening ceremony of the World Economic Forum in Davos, Switzerland.
Good afternoon, colleagues, ladies and gentlemen,
I would like to thank the forum's organisers for this opportunity to share my thoughts on global economic developments and to share our plans and proposals.
The world is now facing the first truly global economic crisis, which is continuing to develop at an unprecedented pace.
The current situation is often compared to the Great Depression of the late 1920s and the early 1930s. True, there are some similarities.
However, there are also some basic differences. The crisis has affected everyone at this time of globalisation. Regardless of their political or economic system, all nations have found themselves in the same boat.
There is a certain concept, called the perfect storm, which denotes a situation when Nature's forces converge in one point of the ocean and increase their destructive potential many times over. It appears that the present-day crisis resembles such a perfect storm.
Responsible and knowledgeable people must prepare for it. Nevertheless, it always flares up unexpectedly.
The current situation is no exception either. Although the crisis was simply hanging in the air, the majority strove to get their share of the pie, be it one dollar or a billion, and did not want to notice the rising wave.
In the last few months, virtually every speech on this subject started with criticism of the United States. But I will do nothing of the kind.
I just want to remind you that, just a year ago, American delegates speaking from this rostrum emphasised the US economy's fundamental stability and its cloudless prospects. Today, investment banks, the pride of Wall Street, have virtually ceased to exist. In just 12 months, they have posted losses exceeding the profits they made in the last 25 years. This example alone reflects the real situation better than any criticism.
The time for enlightenment has come. We must calmly, and without gloating, assess the root causes of this situation and try to peek into the future.
In our opinion, the crisis was brought about by a combination of several factors.
The existing financial system has failed. Substandard regulation has contributed to the crisis, failing to duly heed tremendous risks.
Add to this colossal disproportions that have accumulated over the last few years. This primarily concerns disproportions between the scale of financial operations and the fundamental value of assets, as well as those between the increased burden on international loans and the sources of their collateral.
The entire economic growth system, where one regional centre prints money without respite and consumes material wealth, while another regional centre manufactures inexpensive goods and saves money printed by other governments, has suffered a major setback.
I would like to add that this system has left entire regions, including Europe, on the outskirts of global economic processes and has prevented them from adopting key economic and financial decisions.
Moreover, generated prosperity was distributed extremely unevenly among various population strata. This applies to differences between social strata in certain countries, including highly developed ones. And it equally applies to gaps between countries and regions.
A considerable share of the world's population still cannot afford comfortable housing, education and quality health care. Even a global recovery posted in the last few years has failed to radically change this situation.
And, finally, this crisis was brought about by excessive expectations. Corporate appetites with regard to constantly growing demand swelled unjustifiably. The race between stock market indices and capitalisation began to overshadow rising labour productivity and real-life corporate effectiveness.
Unfortunately, excessive expectations were not only typical of the business community. They set the pace for rapidly growing personal consumption standards, primarily in the industrial world. We must openly admit that such growth was not backed by a real potential. This amounted to unearned wealth, a loan that will have to be repaid by future generations.
This pyramid of expectations would have collapsed sooner or later. In fact, this is happening right before our eyes.
* * *
Esteemed colleagues, one is sorely tempted to make simple and popular decisions in times of crisis. However, we could face far greater complications if we merely treat the symptoms of the disease.
Naturally, all national governments and business leaders must take resolute actions. Nevertheless, it is important to avoid making decisions, even in such force majeure circumstances, that we will regret in the future.
This is why I would first like to mention specific measures which should
be avoided and which will not be implemented by Russia.
We must not revert to isolationism and unrestrained economic egotism.
The leaders of the world's largest economies agreed during the November
2008 G20 summit not to create barriers hindering global trade and
capital flows. Russia shares these principles.
Although additional protectionism will prove inevitable during the
crisis, all of us must display a sense of proportion.
Excessive intervention in economic activity and blind faith in the
state's omnipotence is another possible mistake.
True, the state's increased role in times of crisis is a natural
reaction to market setbacks. Instead of streamlining market mechanisms,
some are tempted to expand state economic intervention to the greatest
possible extent.
The concentration of surplus assets in the hands of the state is a
negative aspect of anti-crisis measures in virtually every nation.
In the 20th century, the Soviet Union made the state's role absolute. In
the long run, this made the Soviet economy totally uncompetitive. This
lesson cost us dearly. I am sure nobody wants to see it repeated.
Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state.
And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing.
* * *
Ladies and gentlemen, unfortunately, we have so far failed to comprehend the true scale of the ongoing crisis. But one thing is obvious: the extent of the recession and its scale will largely depend on specific high-precision measures, due to be charted by governments and business communities and on our coordinated and professional efforts.
In our opinion, we must first atone for the past and open our cards, so to speak.
This means we must assess the real situation and write off all hopeless debts and "bad" assets.
True, this will be an extremely painful and unpleasant process. Far from everyone can accept such measures, fearing for their capitalisation, bonuses or reputation. However, we would "conserve" and prolong the crisis, unless we clean up our balance sheets. I believe financial authorities must work out the required mechanism for writing off debts that corresponds to today's needs.
Second. Apart from cleaning up our balance sheets, it is high time we got rid of virtual money, exaggerated reports and dubious ratings. We must not harbour any illusions while assessing the state of the global economy and the real corporate standing, even if such assessments are made by major auditors and analysts.
In effect, our proposal implies that the audit, accounting and ratings system reform must be based on a reversion to the fundamental asset value concept. In other words, assessments of each individual business must be based on its ability to generate added value, rather than on subjective concepts. In our opinion, the economy of the future must become an economy of real values. How to achieve this is not so clear-cut. Let us think about it together.
Third. Excessive dependence on a single reserve currency is dangerous for the global economy. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.
Fourth. Most nations convert their international reserves into foreign currencies and must therefore be convinced that they are reliable. Those issuing reserve and accounting currencies are objectively interested in their use by other states.
This highlights mutual interests and interdependence.
Consequently, it is important that reserve currency issuers must implement more open monetary policies. Moreover, these nations must pledge to abide by internationally recognised rules of macroeconomic and financial discipline. In our opinion, this demand is not excessive.
At the same time, the global financial system is not the only element in need of reforms. We are facing a much broader range of problems.
This means that a system based on cooperation between several major centres must replace the obsolete unipolar world concept.
We must strengthen the system of global regulators based on international law and a system of multilateral agreements in order to prevent chaos and unpredictability in such a multipolar world. Consequently, it is very important that we reassess the role of leading international organisations and institutions.
I am convinced that we can build a more equitable and efficient global economic system. But it is impossible to create a detailed plan at this event today.
It is clear, however, that every nation must have guaranteed access to vital resources, new technology and development sources. What we need is guarantees that could minimise risks of recurring crises.
Naturally, we must continue to discuss all these issues, including at the G20 meeting in London, which will take place in April.
* * *
Our decisions should match the present-day situation and heed the requirements of a new post-crisis world.
The global economy could face trite energy-resource shortages and the threat of thwarted future growth while overcoming the crisis.
Three years ago, at a summit of the Group of Eight, we raised the issue of global energy security. We called for the shared responsibility of suppliers, consumers and transit countries. I think it is time to launch truly effective mechanisms ensuring such responsibility.
The only way to ensure truly global energy security is to form interdependence, including a swap of assets, without any discrimination or dual standards. It is such interdependence that generates real mutual responsibility.
Unfortunately, the existing Energy Charter has failed to become a working instrument able to regulate emerging problems.
I propose we start laying down a new international legal framework for energy security. Implementation of our initiative could play a political role comparable to the treaty establishing the European Coal and Steel Community. That is to say, consumers and producers would finally be bound into a real single energy partnership based on clear-cut legal foundations.
Every one of us realises that sharp and unpredictable fluctuations of energy prices are a colossal destabilising factor in the global economy. Today's landslide fall of prices will lead to a growth in the consumption of resources.
On the one hand, investments in energy saving and alternative sources of energy will be curtailed. On the other, less money will be invested in oil production, which will result in its inevitable downturn. Which, in the final analysis, will escalate into another fit of uncontrolled price growth and a new crisis.
It is necessary to return to a balanced price based on an equilibrium between supply and demand, to strip pricing of a speculative element generated by many derivative financial instruments.
To guarantee the transit of energy resources remains a challenge. There are two ways of tackling it, and both must be used.
The first is to go over to generally recognised market principles of fixing tariffs on transit services. They can be recorded in international legal documents.
The second is to develop and diversify the routes of energy transportation. We have been working long and hard along these lines.
In the past few years alone, we have implemented such projects as the Yamal-Europe and Blue Stream gas pipelines. Experience has proved their urgency and relevance.
I am convinced that such projects as South Stream and North Stream are equally needed for Europe's energy security. Their total estimated capacity is something like 85 billion cubic meters of gas a year.
Gazprom, together with its partners – Shell, Mitsui and Mitsubishi – will soon launch capacities for liquefying and transporting natural gas produced in the Sakhalin area. And that is also Russia's contribution to global energy security.
We are developing the infrastructure of our oil pipelines. The first section of the Baltic Pipeline System (BPS) has already been completed. BPS-1 supplies up to 75 million tonnes of oil a year. It does this direct to consumers – via our ports on the Baltic Sea. Transit risks are completely eliminated in this way. Work is currently under way to design and build BPS-2 (its throughput capacity is 50 million tonnes of oil a year.
We intend to build transport infrastructure in all directions. The first stage of the pipeline system Eastern Siberia – Pacific Ocean is in the final stage. Its terminal point will be a new oil port in Kozmina Bay and an oil refinery in the Vladivostok area. In the future a gas pipeline will be laid parallel to the oil pipeline, towards the Pacific and China.
* * *
Addressing you here today, I cannot but mention the effects of the global crisis on the Russian economy. We have also been seriously affected.
However, unlike many other countries, we have accumulated large reserves. They expand our possibilities for confidently passing through the period of global instability.
The crisis has made the problems we had more evident. They concern the excessive emphasis on raw materials in exports and the economy in general and a weak financial market. The need to develop a number of fundamental market institutions, above all of a competitive environment, has become more acute.
We were aware of these problems and sought to address them gradually. The crisis is only making us move more actively towards the declared priorities, without changing the strategy itself, which is to effect a qualitative renewal of Russia in the next 10 to 12 years.
Our anti-crisis policy is aimed at supporting domestic demand, providing social guarantees for the population, and creating new jobs. Like many countries, we have reduced production taxes, leaving money in the economy. We have optimised state spending.
But, I repeat, along with measures of prompt response, we are also working to create a platform for post-crisis development.
We are convinced that those who will create attractive conditions for global investment already now and will be able to preserve and strengthen sources of strategically meaningful resources will become leaders of the restoration of the global economy.
This is why among our priorities we have the creation of a favourable business environment and development of competition; the establishment of a stable loan system resting on sufficient internal resources; and implementation of transport and other infrastructure projects.
Russia is already one of the major exporters of a number of food commodities. And our contribution to ensuring global food security will
only increase.
We are also going to actively develop the innovation sectors of the economy. Above all, those in which Russia has a competitive edge – space, nuclear energy, aviation. In these areas, we are already actively establishing cooperative ties with other countries. A promising area for joint efforts could be the sphere of energy saving. We see higher energy efficiency as one of the key factors for energy security and future development.
We will continue reforms in our energy industry. Adoption of a new system of internal pricing based on economically justified tariffs. This is important, including for encouraging energy saving. We will continue our policy of openness to foreign investments.
I believe that the 21st century economy is an economy of people not of factories. The intellectual factor has become increasingly important in the economy. That is why we are planning to focus on providing additional opportunities for people to realise their potential.
We are already a highly educated nation. But we need for Russian citizens to obtain the highest quality and most up-to-date education, and such professional skills that will be widely in demand in today's world. Therefore, we will be pro-active in promoting educational programmes in leading specialities.
We will expand student exchange programmes, arrange training for our students at the leading foreign colleges and universities and with the most advanced companies. We will also create such conditions that the best researchers and professors – regardless of their citizenship – will want to come and work in Russia.
History has given Russia a unique chance. Events urgently require that we reorganise our economy and update our social sphere. We do not intend to pass up this chance. Our country must emerge from the crisis renewed, stronger and more competitive.
* * *
Separately, I would like to comment on problems that go beyond the purely economic agenda, but nevertheless are very topical in present-day conditions.
Unfortunately, we are increasingly hearing the argument that the build-up of military spending could solve today's social and economic problems. The logic is simple enough. Additional military allocations create new jobs.
At a glance, this sounds like a good way of fighting the crisis and unemployment. This policy might even be quite effective in the short term. But in the longer run, militarisation won't solve the problem but will rather quell it temporarily. What it will do is squeeze huge financial and other resources from the economy instead of finding better and wiser uses for them.
My conviction is that reasonable restraint in military spending, especially coupled with efforts to enhance global stability and security, will certainly bring significant economic dividends.
I hope that this viewpoint will eventually dominate globally. On our part, we are geared to intensive work on discussing further disarmament.
I would like to draw your attention to the fact that the economic crisis could aggravate the current negative trends in global politics.
The world has lately come to face an unheard-of surge of violence and other aggressive actions, such as Georgia's adventurous sortie in the Caucasus, recent terrorist attacks in India, and escalation of violence in Gaza Strip. Although not apparently linked directly, these developments still have common features.
First of all, I am referring to the existing international organisations' inability to provide any constructive solutions to regional conflicts, or any effective proposals for interethnic and interstate settlement. Multilateral political mechanisms have proved as ineffective as global financial and economic regulators.
Frankly speaking, we all know that provoking military and political instability, regional and other conflicts is a helpful means of distracting the public from growing social and economic problems. Such attempts cannot be ruled out, unfortunately.
To prevent this scenario, we need to improve the system of international relations, making it more effective, safe and stable.
There are a lot of important issues on the global agenda in which most countries have shared interests. These include anti-crisis policies, joint efforts to reform international financial institutions, to improve regulatory mechanisms, ensure energy security and mitigate the global food crisis, which is an extremely pressing issue today.
Russia is willing to contribute to dealing with international priority issues. We expect all our partners in Europe, Asia and America, including the new US administration, to show interest in further constructive cooperation in dealing with all these issues and more. We wish the new team success.
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Ladies and gentlemen, the international community is facing a host of extremely complicated problems, which might seem overpowering at times. But, a journey of thousand miles begins with a single step, as the proverb goes.
We must seek foothold relying on the moral values that have ensured the progress of our civilisation. Integrity and hard work, responsibility and self-confidence will eventually lead us to success.
We should not despair. This crisis can and must be fought, also by pooling our intellectual, moral and material resources.
This kind of consolidation of effort is impossible without mutual trust, not only between business operators, but primarily between nations.
Therefore, finding this mutual trust is a key goal we should concentrate on now.
Trust and solidarity are key to overcoming the current problems and avoiding more shocks, to reaching prosperity and welfare in this new century.
Thank you.
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