EXCLUSIVE INTERVIEW. President of the World Organization of Creditors: European leaders should read Marx’s book about capitalism and concentrate on producing
Robert Abdullin, president of the World Organization of Creditors, present at the VI Astana Economic Forum, offered to caleaeuropeana.ro an exclusive interview regarding the economic crisis around the world and the solutions he sees towards getting out of it.
One of his main messages to the European leaders was to focus on the citizens and towards producing in order for the Europe to get out of the crisis.
Robert Abdullin: Good day, I am the president of the World Organization of Creditors, I would first of all like to thank you for inviting me to give this interview. The mission of our organization, basically, is to take part in improving the global economic situation. In which the decision calls, our organization creates models for the government and the private sector that they should accept in order to expand, to go to the next level of economic growth. This emphasizes that we are not interested in theory, or theoretical approach, we always find the solutions for a practical approach and for something that will actually work.
Calea Europeana: How do you see, as a president of this organization, the present situation, which are the main risks, for the market and the creditors?
Robert Abdullin: The situation, at a global level, is very dynamic, it is time to action for a change. The world is already changing, so this situation will stop at some level, it is not consistent. I believe that the administration will stabilize it, but it will take around 1 or 3 years and the international flow will find its new owners. I would say that right now is happening the fourth step in the moments of international money flow and that these circles of money flow are coming to an end. Right now, the forces with big international money flow are looking for this potential investment projects with less risk, less money losses and they can get their reward as soon as possible. Major investment capitals are not interested anymore in investing their money, in retirement funds, they are looking to invest in the private sectors, in more particular businesses. There is no doubt that they are interested in the technology businesses and I would like to say that the next step in the money flow will be at the point where the money will be taken by the investors from the Asians, where they invested before and direct them to more specific, smaller businesses.
Calea Europeana: So the money will be withdrawn from Asia? Where exactly?
Robert Abdullin: Yes. And when answering this question I would like to talk about Europe. Europe has now a great chance to make up, and take their money that they have invested in Asia and bring it back. And there are those who recommend that Europe (leaders, politicians etc) to go back to the basics and re-read Marx’s book about capital.
Calea Europeana: Eastern Europe is very familiar to Marx’s book.
Robert Abdullin: Actually, even Eastern Europe forgot a lot.
Robert Abdullin: Yes, I would say that happened. (…) They have to work on themselves and start working hard, concentrate on producing. The governments should start working in this direction, to get back focusing the production for small and medium-sized enterprises, they have to work hard in this direction.
The policy of many European countries, that are taking right now, should be changed. The accepted the approach, but they only focused on the immediate issues, they didn’t take into consideration what will happen in the nearest future, or on long term.
Calea Europeana: So the leaders from Europe don’t have a vision, at this point?
Robert Abdullin: They don’t have a professional approach and they don’t have a long term strategy. The economies of most European countries, so far, it is not idyllic, that is a fact. You can look at all steps that they are doing, including increasing taxes for example in order to get more money. Here i would like to make an analogy, the governments are using this tax increasing policy like a cow they want get milk out from, but they do not feed the cow. So, basically, they just want the milk, without feeding it. And here we are talking about small and medium businesses, this is the cow that could provide milk for all the people in Europe, but they have to start feeding it, they have to invest in the long-term strategy by supporting these small and medium businesses. In order to solve the problem of the unemployment, you have to take care of the production inside the country so that people will be able to buy and the opportunities will grow .
Calea Europeana: That is a very interesting approach, very valid. Yesterday, I took an interview from Mr. Romano Prodi, former president of the European Commission, and he criticized the decision of the North leaders, especially Germany saying that USA, Asia are recovering, only Europe remains like this.
Robert Abdullin: Europe is a very strong Union, I have to say that they are strong because they have a very strong history behind them and citizens have been through so much, they deserve better. Everybody should understand and accept the fact that there won’t be economic growth until they will get back to production, until they produce something. And this is reflected in the unemployment state. European governments were chosen by their own people and they have to listen to what they want and create a strategy in order to help them, to take care of them
Calea Europeana: Where is the main problem? At the European Commission, at an European level or the national governments?
Robert Abdullin: I would say it is a complex problem, probably both are responsible 50%-50% and because all things are interconnected, the matter is complex. Many people make mistakes, but the governments and the European actors have to make a strategy to get bak investors, their own investors and to create opportunities for them. In order to do this, they have to decrease the taxes, all this money that are not on their territory because of the taxes would return. They have to sit down and think through the strategy, how to attract external investors also, because they need them too and should create opportunities for them as well.
Calea Europeana: How do you see the risks for Eastern Europe, and for Romania, in particular?
Robert Abdullin: I think your country is capable of restoring its economy and economic growth, but in order to do so you have to explore the local opportunities, you have the capability ro produce something, Romanians are working people and you the chances to do something in this direction. It will be really hard without the support of the eurozone, but there they make the same mistake, they don’t think about their countries on a long term, they may seem that they care for the future of eurozone, but in most cases they did more worse than they did good. In conclusion, I want to say that I hope Europe will wake up before it loses all of its potential, it always had great potential inside all of its countries. For now, they have taken the wrong steps and there is a chance they lose all this potential and only after this it it will ve like a wake up call for them. That would be sad and we do not want this to happen. To the governments, and the European institutions I would like to say: „take care of your people, because they choose you, they beloved in you and they still do believe that you will take care of them and make the necessary steps in order to improve the quality of their lives”.
About Robert Abdullin
Studied at Suvorov Military School in 1987-1989, then at Leningrad Military Institute of Physical Education. Master of Sports in cross-country skiing. Robert Abdullin’s career started in 1993 when he began working as a manager in production and construction industries. Since 1999 he has been actively working in financial and legal areas involving disputes among business entities and private individuals.
In 2001 he created Russian Debt Market Information Trading System (ITS). In 2005 he founded printed and online newsletter Dolgovoy Faktor (Debt Factor). This monthly and daily newsletter became the first printed publication covering debt market and issues of the financial literacy among population and business entities. In 2012, after rebranding the publication changed its name to Yezhednevny Finansovy Zhurnal (Daily Finance Journal). Later a number of electronic and printed media were established as well. In 2009 Robert Abdullin founded the World Organization of Creditors (WOC) and WOC Research, an analytic service of WOC. In 2010 WOC established Investment Angel, an International investment award. In 2010 he was elected as Chairman of its organizing committee. He was awarded the Diploma of the President of Russian Federation, Business Leaders of CIS Order for Contribution to the Development of Economic integration in 2011 and Valor in Labor medal.