Can the World Survive Another Crisis?

{
  "authors": [
    "Uri Dadush"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "North America"
  ],
  "topics": [
    "Economy"
  ]
}

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

Commentary
The Labors of Tsipras
- Uri Dadush
In The Media
Greece, Complacency, and the Euro
- Uri Dadush

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.

More Work from Carnegie Endowment for International Peace

Commentary
China Financial Markets
The Plaza Accord and Its Relevance for China
The Plaza Accord was not an externally imposed punishment of Japan but part of a broader restructuring that Japanese economists and policymakers themselves recognized was necessary. Its effects were undermined, however, when Tokyo responded to the resulting slowdown with policies that exacerbated investment, credit expansion, and the very imbalances the adjustment was intended to resolve.
Michael Pettis
Commentary
Strategic Europe
A Black Sea Truce Is About Global Food Security, Too
A summer of escalation in the Black Sea has hurt Ukraine economically and is exacerbating world food security. A truce is needed—as is a broader reframing of Europe’s Ukraine strategy.
Thomas de Waal
Commentary
BIS in the New Age of Import Controls
The Bureau of Industry and Security needs to adjust its focus and practices to maintain its position as the U.S. government’s primary champion of international technological competition.
Geoffrey Irving
Commentary
Carnegie Politika
The Kremlin Can No Longer Postpone Hard Economic Decisions
Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.
Alexandra Prokopenko
Commentary
Emissary
The Fallout of the U.S.–Canada Trade War Won’t Be Limited to North America
U.S. trading partners in Asia are closely watching the dispute for signs of how it may affect their own interests.
Barbara Weisel

More Work from Carnegie Endowment for International Peace

Commentary

China Financial Markets

The Plaza Accord and Its Relevance for China

The Plaza Accord was not an externally imposed punishment of Japan but part of a broader restructuring that Japanese economists and policymakers themselves recognized was necessary. Its effects were undermined, however, when Tokyo responded to the resulting slowdown with policies that exacerbated investment, credit expansion, and the very imbalances the adjustment was intended to resolve.

Michael Pettis

Commentary

Strategic Europe

A Black Sea Truce Is About Global Food Security, Too

A summer of escalation in the Black Sea has hurt Ukraine economically and is exacerbating world food security. A truce is needed—as is a broader reframing of Europe’s Ukraine strategy.

Thomas de Waal

hands holding semiconductors in production

Commentary

BIS in the New Age of Import Controls

The Bureau of Industry and Security needs to adjust its focus and practices to maintain its position as the U.S. government’s primary champion of international technological competition.

Geoffrey Irving

Commentary

Carnegie Politika

The Kremlin Can No Longer Postpone Hard Economic Decisions

Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.

Alexandra Prokopenko

Aerial view of shipping containers at a port

Commentary

Emissary

The Fallout of the U.S.–Canada Trade War Won’t Be Limited to North America

U.S. trading partners in Asia are closely watching the dispute for signs of how it may affect their own interests.

Barbara Weisel