World currency system in the twenty-first century.
With the idea of creating a global supranational currency Kazakh leader serves more than one year. One such notable applications was Mr Nazarbayev's speech at a business forum in New Delhi (India) seven years ago.
First of all, the President of Kazakhstan proposed the creation of a supranational world currency system, as a means of global economic crisis. And the most universal means and without side effects.
- I think that future measures are that - said he then - so we had quite a fair world currency and a single issuer, as is currently happening. It is undemocratic, non-free, non-competitive, uncontrolled world currency. Instead, countries should agree on how to create a global revenue per unit for the exchange of goods, which would be adopted by the United Nations and monitored by the relevant committees.
According to President of the Republic of Kazakhstan fully implement such a mechanism in practice. In addition to the approval of the single currency of the United Nations must be approved by the Law "On the global currency", signed by most countries.
- In this market should be categorically excluded any privileges for separate world currency issuers groups - specifically, said the leader of Kazakh nation. - Such a system could be the basis for the creation of the first in the history of mankind is absolutely legal and legitimate world currency unit.
The prerequisites for such a unit should be its supranationality, bank, stability, and its rate does not depend on the fluctuations of world currencies.
- The new currency system, without breaking the already existing monetary systems, will allow to conduct a stable and long-term infrastructure investments and operational current transaction, - Nazarbayev said.
Form of reforms
It was of similar character and appearance of the Head of Kazakhstan at last year's UN General Assembly, where he proposed to member states to unite in the face of the global, the global crisis. To this end, in his opinion, it is necessary to develop a plan of UN Centennial Global Strategic Initiatives - 2045 to improve the existing international mechanisms to add new and make the system really working today. The single currency is given a considerable role in this scheme.
UN Economic and Social Council, Mr. Nazarbayev proposed to transform the Global Development Council. The composition of the Board will be expanded to include there with elected by the General Assembly of the UN member states, all the heads of the UN specialized agencies, including the International Monetary Fund (IMF).
This body discharged Global economic regulator functions and responsibilities entrusted to it on the implementation of global projects designed to become a reference point for global economic growth. This is how the President of Kazakhstan believes will help significantly reduce the risk of global crises, as well as ensure responsible conduct of States in matters of national economic and social policies. And would solve a number of pressing issues on the international agenda, such as terrorism, the destruction of states, migration and other negative phenomena. Nazarbayev called them the consequences of the economic crisis, poverty, illiteracy and unemployment and, therefore, called to deal with them by economic methods.
But before embarking on an active and global anti-crisis battle the global level, the UN member states need to bring order to the financial system.
- In the twenty-first century, the world needs a new financial instruments for money -said the President of Kazakhstan. - It is necessary to unite the efforts of the countries - members of the UN to develop a supranational world currency that meets the goals and objectives of global sustainable development and prosperity.
The proposals of the Kazakh leader found their response. According to well-known scientist, expert, laureate Robert Mundell Nobel Prize in Economics, the project is worthy of attention, although difficult from a practical point of view.
- I agree with President Nazarbayev on the occasion of his statements, - the expert said, speaking to the media. - I think he's absolutely on the right track. With regard to the guidelines for a global currency, there are different approaches and systems. There regionalization approach, in which you can create its own currency in Europe, you can create an Asian currency, African currency. This approach should be used if a global approach does not work.
His colleague, also a Nobel Prize in economics Edmund Phelps also endorsed the idea, albeit not agreed with everything.
- It makes no sense to have more than 90 currencies in the world, - said Phelps. - And this idea looks very good. However, the process of creating a new world currency requires careful working out. It is necessary to consider mechanisms that will make the new currency more stable.