The world must truly be reaching those infamous “end times” when Russian Prime Minister Vladimir Putin’s speech at the opening ceremony of the World Economic Forum in Davos, Switzerland is what we would have normally expected to come from the President of the United States (emphases, mine):
“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.”
Of course, buried elsewhere in the rest of this address are veiled threats to our juvenile “hope & change” administration. Putin is no fool and knows full-well that Russia stands poised to take over global leadership should the little hothouse flower in the Orchid Office wilt even the slightest bit. He also waltzed rather prettily through the fact that the U.N. is at best ineffective and at worst an instigator of global military and political instability – truths that the current administration would do well to heed.
I am a little suprised that this did not get more press coverage. But coming only days after the inauguration, apparently too many people were still nursing their hangovers.