Russia's Kudrin: Bretton Woods Institutions Need Reforming

Russia's Kudrin: Bretton Woods Institutions Need Reforming

WASHINGTON -(Dow Jones)- Russian Finance Minister Alexei Kudrin said Sunday the Bretton Woods institutions lack the relevance to cope with the fallout of the global financial crisis and need to be reformed.

In a statement made to the joint ministerial committee of the boards of governors of the World Bank and the International Monetary Fund, Kudrin said Bretton Woods institutions had to be made more inclusive to deal with the impact of the financial crisis.

"We should make sure that the financial crisis is dealt with in a way which leads to the unification of the world economic space and makes the benefit of globalization truly inclusive," Kudrin said in his address.

Kudrin was also referring to recent comments made by Russian President Dmitry Medvedev at an economic forum in Evian, France, where he said that the "traditional mechanisms, including the [Group of Eight] and other fora, should be augmented by a new process with a wider participation."

Although Kudrin criticized current plans to reform the World Bank for lacking clarity, he said Russia was prepared to support them as a first step in the process needed to overhaul the way the institution operates.

He said that any plans to reform the World Bank should include modernizing its governance in order to make it more accountable to developing countries, as well as giving these countries a bigger say in the Bank's decision-making process.

Kudrin said it was still difficult to assess the full extent of the damage from the financial crisis to the world economy, but added that countries which have accumulated sufficient external reserves are poised to better withstand the shock.

-By Nathalie Boschat, Dow Jones Newsires, 202-289-3683, nathalie.boschat@dowjones.com

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(END) Dow Jones Newswires

October 12, 2008 17:53 ET (21:53 GMT)


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