Following the massive financial crisis two years ago, advanced countries have been hit by a new series of shocks, explained Uri Dadush on China Radio International. Europe is struggling with a sovereign debt crisis. Japan—which has the highest government debt in the world—now must overcome a devastating earthquake and tsunami. Political turmoil is spreading across the Middle East and oil and food prices are continuing to rise.
However, the ability of advanced countries to deal with these problems has diminished, Dadush said. The rise in government deficits and debts has greatly reduced advanced economies’ room for maneuvering. With populations aging across these countries, Dadush warned that major political adjustments will be needed, not only to help major economies withstand the next shock, but also to keep budget deficits and debts from spinning out of control.
As fears rise over currency clashes, policy makers must confront the challenges of a two-speed global economy where China and other emerging markets are surging ahead while Europe, the United States, and Japan face a number of serious economic concerns.
As armed clashes last weekend show, north Lebanon is becoming a growing support base for the Syrian revolution. Sunni mobilization in support of the uprising in Syria is mounting and the Lebanese government is losing its ability to maintain its policy of neutrality.
The U.S. pivot to the Asia-Pacific has created both tension and opportunity in its relations with China.
The success of Germany's Pirates party is the result of its transparency and accountability. Sustaining that enthusiasm through national elections in 2013 will be a challenge, however.
Putin has returned to the Kremlin, but he faces a significantly different Russia, because the country's situation has changed drastically. The previous Putin’s consensus between those in power and society has fallen apart.
Sign up for Carnegie announcements and publications—including Carnegie This Week—by filling out the form below. Note—fields marked with an asterisk (*) are required.
Enter your email address in the form below to receive an email with a link to your profile.
