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 Russia Eurasia Center
- Is There a Place for Russia in the New Race Back to the Moon?Commentary
Despite having the resources and expertise, the Russian space industry missed the opportunity to offer the United States or China a mutually rewarding partnership in the lunar race.
Georgy Trishkin
- Conspiracy Theories Are Eclipsing the Real Dangers of Russia’s Messaging App MaxCommentary
The internet is awash not only with instructions from digital security experts, but also with urban legends and conspiracy theories that divert attention away from the real dangers of Max.
David Frenkel
- Blocking of Telegram App Sparks Rare Public Rift Among Russia’s ElitesCommentary
The prospect of a total block on Russia’s most popular messaging app has sparked disagreement between the regime’s political managers and its security agencies.
Andrey Pertsev
- The Afghanistan–Pakistan War Poses Awkward Questions for RussiaCommentary
Not only does the fighting jeopardize regional security, it undermines Russian attempts to promote alternatives to the Western-dominated world order.
Ruslan Suleymanov
- After Ilia II: What Will a New Patriarch Mean for Georgia?Commentary
The front-runner to succeed Ilia II, Metropolitan Shio, is prone to harsh anti-Western rhetoric and frequent criticism of “liberal ideologies” that he claims threaten the Georgian state. This raises fears that under his leadership the Georgian Orthodox Church will lose its unifying role and become an instrument of ultraconservative ideology.
Bashir Kitachaev
