Paper
Pekka Sutela
{
"authors": [
"Pekka Sutela"
],
"type": "other",
"centerAffiliationAll": "dc",
"centers": [
"Carnegie Endowment for International Peace",
"Carnegie Russia Eurasia Center"
],
"collections": [],
"englishNewsletterAll": "ctw",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "russia",
"programs": [
"Russia and Eurasia"
],
"projects": [],
"regions": [
"Caucasus",
"Russia",
"North America"
],
"topics": [
"Economy"
]
}
Source: Getty
Other
Russia's Response to the Global Financial Crisis
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.
By Pekka Sutela
Published on Jul 29, 2010
While the timing and extent of the global financial crisis surprised many countries, Russia was generally prepared. Its macroeconomic management of the recession rightly earned accolades from several international organizations.
But Moscow’s industrial and social policy responses were not as praiseworthy, representing yet another victory of political tactics over economic strategy. Although Russia’s leaders saw the crisis as vindicating their past policies—including the reform strategies they devised from 2006–2008—most of the structural issues in Russia’s economy remain, with solutions likely delayed for several years. Russia’s fiscal decline— from an average of 7 percent annual growth before the crisis to a loss of 7.9 percent GDP in 2009—is the highest figure among G20 countries.
Russia’s economy in the near term will largely depend on oil prices and how Moscow handles the country’s demographic challenges. But the economy’s 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.
About the Author
Pekka Sutela
Former Nonresident Senior Associate, Russia and Eurasia Program
Sutela was a nonresident senior associate in the Carnegie Endowment’s Russia and Eurasia Program, where his research focuses on the economies of Eurasia, especially Russia.
- The Underachiever: Ukraine's Economy Since 1991
- Russia’s Economic ProspectsArticle
Pekka Sutela
Recent Work
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.
More Work from Carnegie Endowment for International Peace
- Europe’s New Industrial Policy Can Learn From U.S. MistakesCommentary
Although the IAA often differs from the IRA, European policymakers can still take note of the U.S. act’s shortcomings.
Milo McBride
- What the Russian Energy Sector Stands to Gain From War in the Middle EastCommentary
The future trajectory of the U.S.-Iran war remains uncertain, but its impact on global energy trade flows and ties will be far-reaching. Moscow is likely to become a key beneficiary of these changes; the crisis in the Gulf also strengthens Russia’s hand in its relationships with China and India, where advantages might prove more durable.
Sergey Vakulenko
- Beyond Oil: Hormuz Closure Puts Russia in the Lead in the Fertilizer MarketCommentary
The Kremlin expects to not only profit from rising fertilizer prices but also exact revenge for the collapse of the 2023 grain deal.
Alexandra Prokopenko
- “Mr. Nobody Against Putin”: A Deep Dive Into Russian PropagandaCommentary
Talankin and Borenstein’s documentary is a unique inside look at a regime that threatens the world and has killed thousands of people in its neighboring country. And many critics and general viewers alike draw parallels between the Putin regime and their own governments.
Ekaterina Barabash
- The Diverging U.S. and Israeli Goals in Iran Are Making the Endgame Even MurkierCommentary
The cracks between Trump and Netanyahu have become more pronounced, particularly over energy and leadership targets.
Eric Lob
