This year there will be presidential elections or changes of heads of government in countries that together account for over half of the world economy, a process which could have an adverse effect on the quality of the decisions made by governments.
As the euro crisis wreaks havoc on the cohesion of the European Union and the global economy, Europe faces significant foreign policy challenges, including the escalating conflict in Syria and rising tensions with Iran.
Corporations have acquired increasing clout in international affairs and their power in some ways rivals that of sovereign states. The international system may need to be reformed in order to take private actors into account.
China performed better than expected in 2011, managing major risks and serving as the world’s strongest economic engine. In early 2012, China is making progress towards rebalancing as its external surplus continues to shrink.
The Obama administration faces conflicting interests in its relations with Georgia, especially as the United States tries to pursue the reset in its bilateral relationship with Russia.
Relations between the Kremlin and Kyiv are at a new low after serious gas shortages in Europe this winter. Ukraine needs to be doing more to reduce its dependence on Russian natural gas.
Chinese Vice President Xi Jinping's visit to the United States offers an opportunity to deepen exchanges between the two countries, while enhancing cooperation and reducing friction on a range of important economic and security issues.
As Xi Jinping, China’s designated next leader, visits the United States, he faces protests over unfair competition and currency manipulation. More worrying than a trade war, however, is the potential for increased tension over technology transfers between China and the United States.
Europe needs to help, but even with help, Italy faces big changes and, assuming all goes well, two or three difficult years lie ahead.
Though globalization is increasing labor market integration and income inequality, policymakers should help workers adjust to a changing world rather than erecting protectionist measures.























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