Carnegie Moscow Center
If the European debt crisis, which is straining the ties that bind the continent together, brings about the end of European integration, the economic, political, and social repercussions will impact the entire world.
With divisions emerging within the Group of 20, the big players at the upcoming G20 meeting in Seoul will need to work together to avert a currency war and reduce trade tensions.
With inflation rising, trade balances falling, and economic growth slowing, the outlook for Russia's economy is bleak. Official plans for strict budget tightening will only add to the troubles.
Growth in emerging economies has slowed from torrid post-crisis rates, but remains high and will likely mitigate—but not fully compensate for—a sharp slowdown in advanced countries.
In the face of the euro crisis, questions have emerged about Europe’s cohesion—particularly the strength of the institutions called for under the Lisbon treaty—and what that means for its relevance in major international challenges.
The Russian government’s drive to modernize its economy is increasingly reflected in its foreign policy priorities, including its relations with the United States, Europe, and China and its position on Iran's nuclear program.
At the 2010 St. Petersburg International Economic Forum, President Medvedev appealed to investors to put their money into the Russian economy. However, corruption continues to kill investor interest in Russia.
Moscow’s unwillingness to trust market forces and continued insistence on top-down economic policies undermines any attempt at a true economic partnership with Europe.
Despite the renewed flow of bank credit, investment remains low in Russia. If investment growth fails to materialize soon, the economy may be headed for a long period of stagnation.
In 1998, Russia successfully dealt with a severe fiscal crisis by restructuring its debt. If Greece chooses to do the same, it should take note of three valuable lessons from Russia’s experience.