UNUnited Nations Economic Commission for Europe

Press Releases 1999

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Geneva, 20 April 1999

ECE/GEN/99/2

THE IMPACT OF THE GLOBAL FINANCIAL AND ECONOMIC CRISIS ON THE UN/ECE REGION TO BE DISCUSSED AT THE 54TH SESSION OF THE COMMISSION

4 - 6 May 1999

For three days, the 55 member States of the United Nations Economic Commission for Europe (UN/ECE) will meet for the annual session of the Commission at the Palais des Nations in Geneva. It has become a tradition that the first day of the Commission session concentrates on an in-depth discussion of the economic situation of the United Nations Economic Commission for Europe (UN/ECE) region. Eminent economists and policy makers lead the discussion. Three major, related topics are going to be at the centre of the discussions on 4th May: the impact of the global financial and economic crisis on the UN/ECE region, with special emphasis on western and central Europe; overcoming the crisis of the Russian economy; and the threats to the transition process in other economies.

The discussion on "the impact of the global financial and economic crisis on the ECE region, with special emphasis on western and central Europe" will offer a diagnosis of the causes of the crisis, its likely effects on economic growth in the region and the extent to which they may be offset by policy responses, and ask whether such shocks can be avoided or at least mitigated in the future.

This session will be chaired by Miroslav Somol (Czech Ambassador to the United Nations in Geneva and President of the Commission). Jorge Braga de Macedo (Professor, Nova University, Lisbon, former Minister of Finance, Portugal, and former EC Director General); Christian de Boissieu (Professor, La Sorbonne, Paris); Antonio Costa (Secretary General, EBRD); László Csaba (Budapest University of Economics and KOPINT-DATORG); and Daniel Gottlieb (Senior Adviser to the Governor of the Bank of Israel) will act as discussion leaders.

The discussion of the second topic, namely "Overcoming the crisis of the Russian economy", will start from the fact that the proximate causes of the August 1998 crisis were located in the fiscal imbalance and in the way the market for government debt was managed. The ECE secretariat, however, has argued that the crisis reflects a more radical failure to reform the country=s economic and political institutions to restructure the enterprise sector and so lay the basis for a sustained economic recovery. Is this analysis correct? If so, how can a programme be designed to deal with both the problems of short-run stabilization and the longer term question of institutional reform? What is required to obtain support for such a programme from western governments and the international economic institutions?

This session will be chaired by Antonio Costa (Secretary General, EBRD). Grzegorz Kolodko, (Professor at Warsaw School of Economics, Deputy Premier and Minister of Finance of Poland, 1994-97); Jorge Márquez-Ruarte (Deputy Director, Europe II Department, IMF); Alexsander Shokhin (Deputy of the State Duma of Russia, former Deputy Prime Minister, Minister of Labour and Minister of the Economy); Andrei Swinarenko (Deputy Minister of Economics of the Russian Federation); and Mikhail Zadornov (Minister of Finance of the Russian Federation) will act as discussion leaders.

The third session will concentrate on the "threats to the transition process in other economies". It is clear that while some transition economies have moved strongly ahead with basic reforms and are now seeing high rates of growth of output and fixed investment, others are falling behind and often showing signs of increasing economic stress. Are the roots of these problems sui generis or do they reflect a more general set of problems relating to basic economic transformation? Can anything be learned from the Russian experience to avoid or diminish the impact of transformation crises elsewhere? What are the policy alternatives open to such countries at present and what are the lessons for the international community in their efforts to assist the transition process in these economies?

Bernhard Molitor (Chairman, OECD Economic Development and Review Committee) will chair this session. Daniel Daianu (former Minister of Finance of Romania and President of the Romanian Institute for Free Enterprise); Lutz Hoffmann (President, DIW, Berlin); Igor Mitiukov (Minister of Finance of Ukraine); Brigita Schmögnerová (Deputy Prime Minister and Minister of Finance, Slovak Republic); and Timo Summa (Director, Directorate-General IA, European Commission) will act as discussion leaders.

The session and discussions are open to the public.

For further information please contact:

Economic Analysis Division
United Nations Economic Commission for Europe (UN/ECE)
Palais des Nations
CH B 1211 Geneva 10, Switzerland

Tel: (+41 22) 917 27 18
Fax: (+41 22) 917 03 09
E-mail: [email protected]
Website: http://www.unece.org/ead/ead_h.htm