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  • Author: Dmitri V. Trenin, Maria Lipman, Alexey Malashenko, Nikolay Petrov
  • Publication Date: 06-2012
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: To the casual observer, Russia is stuck where it was a decade ago. Vladimir Putin has once again assumed the presidency and any semblance of organized political opposition largely faded away after the March elections. But popular protests persist, and the existing politico-economic system can no longer adequately address the shifting social realities inside the country or the challenges of the global environment. The system must change if Russia is to develop further, and Moscow's policies of economic modernization alone are neither sufficient nor possible without political reform.
  • Topic: Corruption, Democratization, Political Economy, Fragile/Failed State, Governance
  • Political Geography: Russia, Europe, Asia
  • Author: Uri Dadush, Vera Eidelman
  • Publication Date: 11-2010
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The Great Recession included five major surprises: (1) the severity of the global trade and output collapse, (2) the United States suffered a milder than expected recession, (3) Europe saw the onset of a severe sovereign debt crisis, (4) China grew at an extraordinary rate even though it's greatly dependent on exports, and (5) Latin America showed remarkable resilience.
  • Topic: Economics, Globalization, Global Recession, Financial Crisis
  • Political Geography: United States, China, Europe, Latin America
  • Author: Nathan J. Brown
  • Publication Date: 02-2009
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The international effort to achieve a two-state solution to the Israeli–Palestinian conflict has come to a dead end, at least for the present. Things can—and might well—get worse unless the United States and other outside actors couple a realistic view of the present with a serious effort to push for a more promising future. The first step in a new diplomatic approach must be to establish a cease-fire that builds on the common interest of both Israel and Hamas to avoid fighting in the short term. A new cease-fire should be clear and perhaps even written; mediators (whether Arab or European) must be willing to make an agreement more attractive to both sides to sustain (Hamas can be enticed by some opening of the border with Egypt; Israel will demand serious efforts against the supply of arms to Hamas). The second step must be an armistice that would offer each side what they crave for the present—Israel would get quiet and a limit on arms to Hamas; Palestinians would get open borders, a freeze on settlements, and an opportunity to rebuild their shattered institutions. Such an armistice must go beyond a one-year cease-fire to become something sustainable for at least five to ten years. Finally, the calm provided by the armistice must be used to rebuild Palestinian institutions and force Palestinians and Israelis to confront rather than avoid the choices before them.
  • Topic: Conflict Resolution, Islam, Peace Studies, Terrorism, War
  • Political Geography: United States, Europe, Middle East, Israel, Palestine, Arabia, Egypt
  • Author: Michael Pettis
  • Publication Date: 05-2009
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Participants in the recently completed G20 meeting in London agreed on a number of measures, some substantial and some merely symbolic, but they sidestepped the real issues dividing the major economic powers and, in so doing, failed to address the root causes of the global trade and investment imbalances. This was almost inevitable. China, Europe, and the United States have incompatible conceptual frameworks for understanding the causes of the global financial crisis; furthermore, their conflicting domestic political constraints make agreement on solutions hard to reach. Europeans believe that the root cause of the crisis was excessively deregulated financial systems, and they are skeptical about U.S. and Chinese calls for fiscal expansion, worrying that excessive spending would prolong the imbalances and make the ultimate adjustment more difficult. China also believes that the roots of the crisis lie within the structure of the global financial system, although Beijing insists that it was mainly the reserve status of the U.S. dollar that permitted imbalances to develop to unsustainable levels. China is particularly vulnerable to trade protection and seeks to maintain open markets for its continued export of domestic overcapacity. Like the United States, it is pushing for more aggressive, globally coordinated fiscal expansion. However, because of rigidities in its financial system and development model, its fiscal response to the crisis may exacerbate the difficult global adjustment and may, ironically, increase the chances of trade friction. In a time of contracting demand, the United States controls two-thirds of the most valuable resource in the world: net demand. Consequently, it is U.S. policies that will determine the pace and direction of the global recovery, along with the institutional framework that will govern trade and investment relationships for decades to come. The crisis puts the United States more firmly at the center of the emerging world order than ever. So far, the United States has not understood the need to consider the global outcomes of its recovery policies. Until the major powers can reach consensus about the roots of the imbalance and cooperate on policies to promote recovery, it is likely that the world economy will get worse before it gets better. The United States will drive the recovery process, but in order to do so effectively it will need to recognize its position of strength and negotiate the appropriate agreements with other major powers, especially China, on the pace and nature of the adjustment.
  • Topic: Economics, Globalization, International Trade and Finance, Monetary Policy
  • Political Geography: United States, China, Europe, London