Can the World Survive Another Crisis?

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In The Media

Can the World Survive Another Crisis?

A series of crises in advanced countries—from the financial collapse two years ago to the devastating earthquake in Japan to a surge in oil prices—has greatly diminished their ability to deal with the next economic shock.

By Uri Dadush

Published on Apr 6, 2011

Source: China Radio International

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.

About the Author

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Recent Work

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The Labors of Tsipras
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In The Media
Greece, Complacency, and the Euro
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Economy North America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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