INSOR Russia: Institute of Contemporary Development
Updated June 28, 2019

Analytical Bulletin, Issue 5, October 2012

November 14, 2012

 

The Institute of Contemporary Development has published its fifth analytical bulletin in 2012. The main themes of the issue are Russia’s upcoming presidency of the G20, financial risks of the global economy and the G20 agenda, Chinese investment in the EU, and extra-regional players in the Arctic.

Below are summaries of the articles and the full bulletin in Russian can be found here.

* * *

Igor Yurgens. Looking Ahead to Russia’s G20 Presidency

In the run-up to the G20 summit in St. Petersburg (autumn 2013)… “Russia has a special, one might even say unique, place in the G20. It is a member of the privileged G8 club and at the same time an anchor player in the BRICS. It is the largest Eurasian state and the initiator of a new integration alliance – the Customs Union.”

“The creation of the G20 and its functioning over the past four years represents the most important step in improving global governance following the end of the Cold War… However, following the first phase, which was characterized by cohesion and solidarity, a second phase has arrived with pronounced differences in approaches between countries with positive and negative trade balances, resource and consumer economies, Keynesians and monetarists. The G20 agenda is unraveling; its legitimacy is being called into question. The Russian presidency, in light of our universality, could substantially help strengthen the authority and efficacy of the G20…”

 

Sergei Kulik, Igor Yurgens. Chinese Investment in EU Countries

At the EU-China summit in late September 2012 an agreement was reached on the start of negotiations to develop an agreement on investment. “The marked intensification of the work of Chinese companies on the European market, Beijing’s substantial financial resources and the serious financial difficulties affecting the Eurozone have considerably stimulated debates on the pluses and minuses of strengthening Beijing’s position on the European landscape…”

 

Nikita Maslennikov. Financial Risks of the Global Economy. A Reset

Developments in the situation in the world economy and the renewal G20 agenda. “Even with all the ongoing and future disagreements over the nature and triggers of the 2008-2009 crisis, we can already speak of one essential consensus – this was a systemic crisis of the world economy and overcoming it will require profound structural changes in the global economy over an extended period of time (no less than ten years). This entire period will be burdened by risks, the effective management of which (including their timely identification) can only be done collectively… The G20 is closely approaching the resolution of issues concerning the provision of equal conditions for international competition of jurisdictions and market institutions as well as monitoring progress on structural reforms in the financial sphere, social sectors and labor markets, which are of great importance for budget consolidation. New horizons are opening for collective management of global risks.”

 

Sergei Kulik. On Extra-Regional Players in the Arctic

In the near future the Arctic Council will have to take a serious look at the requests submitted earlier by a number of non-Arctic states to receive observer status. For some time now China, South Korea, Japan, India and a few other states have been trying achieve this. “At the same time, expert dialogue between Arctic states and East Asian states is clearly lagging behind the efforts of the latter. Insufficient attention is being paid to issues related to the ever increasing footprint of East Asian players in this strategically important region of the world.”