Emerging economies first to overcome current crisis
JP Morgan Chase and Co. one of American largest banks has predicted that emerging econ0mies, first to be hit by ongoing global financial crisis will be the first to ride it over.
The present world economic hardship was triggered in the U.S by extremely ineffective economic policy pursued by the old administration and it was first manifested in the summer of 2007. A year later, the crisis hit EU members and Japan and in the winter the plague spread to emerging economies, including Russia and China.
In an interview for VOR, Andrei Ostrovsky, deputy director of the Russian Academy of sciences’ Far East Center for Chinese studies declared that the crisis has indeed affected Russia and China: For China, the crisis has led to nose-diving of Stock Market Quotations, sharp drop in production export , including textile from Guandun province plus rising unemployment. In just over one month, 20 million migrant farmers who had been working in different enterprises in Beijing, Shanghai and in other Chinese large cities had been laid off. Russia has not escaped the crisis unscathed, said Ostrovksy. The country’s trouble stems from lower oil prices on the world market. It should perhaps be mentioned that a greater part of the Russian GDP is made up of income from oil and gas
The present crisis has adversely affected overall Sino-Russian trade and according to Ostrovsky, the effect will be felt more as the world economic crisis deepens. According to JP Morgan Chase Bank, latest forecast by analysts from different countries in the world is that the active phase of the crisis will last until the middle of this year, to be followed by lengthy and painful withdrawal.
It is however heartening that much hope is pinned on Russia and China, emerging economies, for eventual domination of the hurting financial crisis. It speaks of the much enhanced role by Russia, China, India and Brazil in global financial matters.
Russia and the European Union believe they can successfully work together with the OSCE, NATO and a number of NGOs towards a new Euro-Atlantic security system.
Foreign Minister Lavrov and the EU’s foreign policy chief Javier Solana told this to the press after emerging from a Moscow meeting on Wednesday.
Mr Lavrov also hoped that Barack Obama will revise his country’s plans for missile defences in Eastern and Central European countries.
The initiative for a new Euro-Atlantic security system is from President Dmitri Medvedev.