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.
Russia’s economy suffered one of the world’s steepest declines in gross domestic product in the wake of the global financial crisis. Two years later, Russia’s economic indicators still tell a grim story.
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.
While Russia’s short-term economy will largely depend on oil prices and the country’s demographic challenges, its medium-to-long-term outlook will be influenced by the lessons that leaders take from the crisis, which will affect Russia’s economic structure and policies for many years to come.
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.
The euro crisis is driven primarily by two elements – problematic sovereign debt in Greece, Ireland, Italy, Portugal, and Spain, and fragile European banks. While ballooning public debt may be the clearest manifestation of the euro crisis, its roots go much deeper.