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The New York Times Original article ›
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Ruchir Sharma, chief global strategist at Morgan Stanley, says Poland has achieved a remarkable transformation over 25 years with steady growth of 4% year after year. The bright spot is manufacturing. For emerging nations the average percentage of GDP from manufacturing exports is 22%. Poland is at 33 percent of GDP for manufacturing exports. Countries dependent on commodity exports such as Argentina, Brazil, Russia, lack this steady growth from a manufacturing base and are less likely to cross the line of $15,000 of GDP per person that qualifies for it to be called an "advanced economy" for the IMF. South Korea, the Czech Republic and Poland are some of the countries that have benefited from manufacturing exports. Poland's wages are one third of that in Germany and its currency is cheap, giving it an advantage as an export hub for German companies. Germany is the main destination for exports and the German automobile industry uses the Czech Republic and Poland as export hubs. Poland's and Czech Republic's geographical location near Germany with a highly educated population makes it attractive for German companies. Poland has gone from $2300 per capita GDP to about $13,000 in 25 years according to the IMF, and is likely to be the next country to make it to advanced economy status by 2020, says Sharma. It is important not to run up debt, to manage finances carefully, and to maintain steady growth not growth in spurts interrupted by declines, and have a manufacturing base, says Sharma.  ...
WSJ Original article ›
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This WSJ Editorial Board opinion says president Biden needs to get European partners to make key decisions at the G-7 meeting to support Ukraine.  On the level of support it says the US has contributed 42.7 billion euros in military and humanitarian assistance compared to only 27.2 billion euros from European Union countries, according to the Kiel Institute for World Economy. Cpuld the EU do more? Russia continues to keep frontline nations such as Estonia and Lithuania on edge. The NATO support force has only 40,000 allied soldiers- more like a tripwire defense and clearly inadequate says WSJ. This needs to expand to a significant force. Separately from this NATO's Stoltenberg has announced that the NATO Response Force will now be expanded to 300,000. Mr. Erdogan needs to be persuaded to let Finland and Sweden join NATO to strengthen Baltic area defenses. WSJ says Erdogan is facing a tough election in 2023 and is objecting not because Turkish Kurds pose a threat at this time but to rouse nationalist sentiment for the election. WSJ Editorial does not mention what is critical for Ukraine's people, the refugees of women and children to return home and live normal lives - the stopping of missile attacks on civilian population and buildings. Separately Mr. Biden has announced that he will be sending Advanced Missile Defense Systems to Ukraine. Germany is sending an IRIS missile defense system that covers a space of 40 square miles enough to defend cities like Kviv and Lviv, Kharkiv. Here the question is how soon as this needs to be taken up immediately to protect the lives of the civilians caught up in this war, the women and children of Ukraine. Some are returning to their homes in Kviv, Kharkiv, other cities, that are already damaged, and are facing more missile attacks. This is the most difficult aspect of the war and hope can only return when this is prevented. It would also set the beginning conditions for the end of the war by removing this element of the war for the people of Ukraine and their homes and lives.   ...
Wall Street Journal Original article ›
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The constructive contribution made by the G-20 meetings of leaders towards building agreement on economic and other policies for peace and progress in the global economy. The meetings were especially useful for coordinating policy and addressing issues arising in the global economy after the 2008 financial crisis. Here Li Baodong, China's vice minister for international organizations and conferences, international economic affairs, describes the path ahead: IMF reforms implementation, better coordination of macroeconomic policies, pursuing the anti-protectionist and free trade policies with further support to the WTO and ministerial MC9 meeting in Bali in Dec. 2013, and infrastructure financing proposals for developing countries on the agenda at the St Petersburg, Russia, G-2- meeting in Sept. 2013. Baodong says the mechanism called the Framework for Strong, Sustainable and Balanced Growth as part of the G-20 meetings is a major achievement. Each G-20 economy submits it macroeconomic policy plan for a Mutual Assessment Process under this arrangement. The progress from the Bretton Woods financial architecture to the new arrangement- from the G-6 to the G-20 to include developing countries from India to Mexico and Brazil- is another major achievement, not fully recognized by the public, says Baodong. Interestingly Baodong makes particular mention to global rebalancing, rather than pushing what he calls the impossible task of increasing demand to get growth. This is a realization coming to China's economic policymakers under the new Jinping-Keqiang administration after the overly aggressive effort to stimulate demand in the 2009-2011 Stimulus, and the ensuing financial problems in the banking and credit system. It is indicative of the policy shift and its implementation underway in China in 2013-2015....
Wall Street Journal Original article ›
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Use of oil for transportation has increased from 30% ten years ago to nearly 50% in 2013, according to Sanford Bernstein, as more cars are added to China's roads. This makes it less likely that a slowdown in China's growth will affect demand for oil. Sales of passenger cars increased by 11% in January and February 2014. A study at France's central bank by Gauvin and Rebillard shows only a much smaller effect on oil prices from a hard landing of the Chinese economy, compared to the effect on metal prices. Passenger cars now make up two out of three vehicles on Chinese roads, according to LMC Automotive. The growth in cars is likely to continue, not just in China, but in other emerging markets such as India, Brazil, Mexico and Russia. Metal consumption is different, as it comes mostly from housing, infrastructure and factories which are the most affected parts of the economy in China.
BBC News Original article ›
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India agrees to an immediate ceasefire after a call from Pakistan's head of military operations for a ceasefire. The conflict started with attack on tourism that was reviving the Kashmir economy after three decades through a terrorist attack killing 26 tourists in Phalgam, Kashmir on  April 22, 2025 in the mountains near the Pir Panjal range. 24 million tourists visited Kashmir in 2024. Indian response was swift on May 7 early morning hours attacking 18 terrorist camps inside Pakistan occupied Kashmir and inside Pakistan. India called it a act of self-defense to Pakistan sponsored state terrorism going back to 1947. What is different in this brief 4 day war is that India made it economic with efforts at IMF to make terrorism an issue for loans to Pakistan, and ending the Indus Waters Treaty on water sharing. Pakistan economy is struggling with no debt relief from China, making it turn to the IMF, a politically split population with Opposition leader Imran Khan in jail, and continued domination by the military over civilian govenrment. On May 9 drone attacks were launched from Pakistan using Turkish made drones in large numbers on cities and towns in Gujarat, Rajasthan, Punjab. Blackouts were placed in India by May 8 in all cities in the north and in Pakistan. India responded with its own drones and missile attacks on three military airbases as the war broadened to military targets on May 10. US mediated a ceasefire through Saudis and Turkey. Earlier Saudis and Iran were in New Delhi with whom India has good relations to get a ceasefire. Mr. Trump's efforts behind the scenes secured an agreement. VP Vance had cut short an Indian trip in Jaipur on April 22. India and the US are allies in the Indo-Pacific, and India and Russia have decades of friendly relations. China now uses Pakistan as a proxy state, but does not provide the economic aid it needs, for which it has turned to the IMF.    ...
Wall Street Journal Original article ›
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To keep prices from taking a nosedive if there is a slowdown, as for example in the Chinese economy, a concentration of resources within 3 or 4 mining companies enable them to slow down development of new deposits to adjust supply with demand. In this case even if China slows, India, Russia and Brazil may still pick up, as they may be less sensitve to the U.S. consumer than China. China is a manufacturing export based economy compared to India and Russia, which are more dependent on internal demand. Iron ore prices have increased by three times since 2003, and China's imports of iron ore have gone up from 29% to half of the world's imports. Prices of all commodities copper, alumina, uranium have shot up. BHP and Rio both based in Melbourne, Australia have absorbed all the medium size companies in the Melbourne mining scene. Australia has traditionally been a leader in this field because of its huge mining resources. Other reasons for consolidation are the more complex technologies needed to develop the remaining deposit finds, which are fewer and fewer and of lesser quality. Another factor is that the resource nationalism in India, Bolivia, Indonesia, Mongolia and other places requires more sophisticated investors. Combining Rio and BHP also means BHP can use the better infrastructure of Rio and invest more productively in future infrastructure rail lines and port development to speed exports to other countries. See the Barta article in the WSJ Link on this on Dec 18, 2007. ...
WSJ Original article ›
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Oil prices in the U.S. drop to $55 a barrel on the New York Mercantile Exchange, and $65 a barrel for Brent crude price. Earlier expectation of the impact of reimposed sanctions on Iranian oil shrinking global oil supplies have been reversed with increased production from Saudi Arabia, Russia and the U.S.

Another new development that caused this reversal in sentiment is that the Trump administration granted waivers to some buyers of Iranian crude oil. The U.S. trade dispute with China has also added to this with lower growth forecasts. Unlike in previous years OPEC or Saudi Arabia cannot by itself shrink global supplies with production cuts. The U.S. and Russian output also plays a significant part.

dw.com Original article ›
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Germany is building the new pipeline that connects the Wilhelmshaven LNG Terminal to its natural gas storage tank in record time in the midst of an energy crisis in Europe. The new 26 kilometer pipeline for  the LNG Terminal is being built in a few months when it would have otherwise taken 8 years. See Rani Bhandari, Managing Director of Open Grid Europe talk about the project in this video from DW.com to get a sense of how Germany is moving quickly to address natural gas needs for the winter. Click on Original article to see it.

NYTimes.com Original article ›
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The European Union has adapted well to a cutoff of supplies of Russian gas. Alternative sources were quickly pulled together in a matter of months after the invasion and cutoff to tackle the winter of 2022-2023. Conservation was moved into high gear, renewable energy investment expanded, and alternative sources for gas established. Germany sought supplies of LNG from the US and Qatar and built gas terminal at Wilhelmshaven in record time of less than 6 months. Norway increased gas supplies to Europe and now provides one third of Europe's gas needs. German industry changed the way they used gas supplies to reduce usage and make it efficient.

Wall Street Journal Original article ›
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The WSJ's Paul Sonne gives this exceptional account of how Russians are coping in the economic crisis of 2015-2016, with the twin shocks of the collapse in the ruble and the collapse in oil prices. He does this by looking at the Kaluga region, a provincial city 110 miles south of Moscow that has benefitted from large foreign investment to meet the needs of 20 million consumers in the Moscow region. The governor of Kaluga since 2000, Anatoly Artamonov, worked hard to attract foreign investment that includes VW, Volvo AG, Continental AG, Lafarge, Samsung Electronics, General Electric, and other companies. He ran a collective in the Brezhnev era, and now is energetic in meeting needs of foreign investors. Karmanov says it is stupidity to not say he is talking to business people in other parts of the world because of the political climate in the country. About 42% of the industrial output in Kaluga comes from the foreign automobile plants, including VW. The automobile and light commercial vehicle production in Feb. 2015 dropped by about 39% compared to Feb. 2014, according to the Association of European Business estimate. Only 40% of autombile production cost from assembly lines is sourced locally, the rest is imported at the new value of the ruble which has fallen about 50%, leading to higher prices and slumping demand. Ordinary Russians are feeling the effects of the crisis with higher prices. Consumer price inflation in Feb. 2015 was at 16.7%, with 23.3% increase in food prices. High interest rates to prop up the ruble meant cutting off access to credit to finance consumer purchases. An 8% drop in real wages in Jan. 2015, according to Capital Economics, added to pressures on consumers. With the political and economic crisis following Russia's Ukraine intervention foreign investment in 2014 declined to $18.6 billion in 2014 compared to $61.5 billion in 2013, and the EBRD bank cut financing with the sanctions....
WSJ Original article ›
WSJ Original article ›
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G-7 nations reach agreement for a global minimum tax of 15% a floor for taxes that the Biden administration finds acceptable. This agreement was reached at a meeting of the Treasury chiefs of the 7 G-7 countries in London on June 5, 2021. The G-7 countries are Canada, France, Germany, Italy, Japan, UK, and US. Next agreement from Russia, China, India and Brazil in the G-20 nations would establish new ground rules for the major economies. The G-20 meeting is in Venice July 9-10. The OECD is steering the international efforts to achieve that goal. For the agreement to be effective a number of small nations that use tax rates of below 15% to attract business have to be part of the new rules. One of these countries is Ireland with a tax rate of 12.5%. For the Biden administration in the US the goal is a significant one as president Biden seeks business to pay its fair share so that long neglected priorities for education, healthcare, infrastructure, post pandemic improvements can be met. France and other nations in the EU face similar needs in the post pandemic environment. By setting a floor the Biden administration is both creating a new cultural concept of fairness in taxation and making it possible to finance the $2 trillion spending programs for these priorities of president Biden. Behind this are important facts that have left the large tech businesses paying little or no tax depriving governments of the very revenues that are needed for infrastructure and services for a modern well run state. The Biden administration seeks to include the tech businesses as well as all businesses in the new tax rules so that a uniform idea of fair taxation applies across the whole economy for the first time in two decades. In this way it makes up for the missed opportunities in the OBC administrations of Obama, Bush, Clinton that have led to loss of faith in the state and institutions in the US. A similar situation prevails in the UK,  France and Germany where previous administrations failed to address this important issue of fair taxation and financing infrastructure and priorities in health, education, and critical needs of the people.   ...
BusinessWeek Original article ›
DW.COM Original article ›
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German perceptions of Mikhail Gorbachev are shown here in DW.com. He is revered in Germany because of Gorbachev's efforts to end Soviet rule in East German state called the GDR, leading to the fall of the Berlin Wall. Gorbachev supported German reunification but did not do this is in a way that ensured that ordinary Russians and citizens of the GDR could make the transition to democratic processes in a smooth way. He also failed to grasp that economic transition could be difficult and would require extensive aid and grants from the west, and that safeguards and protections for retired pensioners and vulnerable sections of society needed to be in place. The following is a reflection of the background in political government and economy of the events in Europe leading to the war in Ukraine.  As a result Gorbachev's instincts were right by first 1956 as a student, and then 1979 as government official about the need for democratic processes to realize the real potential of Russia, just as has happened in many countries that lacked these processes for change in government- Japan, Germany, South Korea, India, Brazil and many countries in Asia and Latin America. But not realizing that these countries made the transition with considerable American and British assistance. Even where there was no direct assistance indirectly the British setup the first limited Swaraj or free rule in India, with elections and elected assemblies in Indian states in the 1930's, following the pattern in Dominion states Australia and Canada. Mohandas Gandhi negotiated within these processes for rights of South African Indians and Colored people, gaining experience, including study of British law.  A son of poor farmers in the agricultural region of North Caucasus, in Stavropol, it is relevant today that his maternal grand parents were from Chernihiv in Ukraine. He came to power in 1980 after entering the Politburo that year. These were the waning years of Leonid Brezhnev, president of the Soviet Union who followed Nikita Khrushchev (1953- 1964). Khrushchev was from eastern Ukrainian region near Donetsk. Leonid Brezhnev was a protege of Krushchev since 1931, from Kamianske, Ukraine.   Gorbachev was influenced by Khrushchev's speech that denounced Stalin in 1956 in favor of a freer and more open society. Khrushchev, became first secretary of the Communist party in 1953 after the death of Stalin and set the pace of post war Soviet society from 1950 to 1964. He removed the fear of the dictatorship of the proleteriat working class, increasingly dictatorial under Lenin, and blatantly arbitrary under his successor to make Soviet Union a freer society.  Yet his tendency to make decisions on his own without consulting others, and the failure of agriculture in the Soviet Union including food shortages led to his replacement by his protege Brezhnev. Brezhnev's whole career was built under Krushchev in Ukraine, in the army in Ukraine, and as a political leader in the Soviet 18th Army that entered Prague in 1945 defeating the Nazis. Why is this relevant? Gorbachev was educated at Moscow State University when the Soviet Union was in the Sputnik era, and felt at the time that it could reach the 1950's standard of living in the US- very different from the earlier leaders. Yet he may have been too much of an optimist and not hands on in understanding the working of a modern economy as large as Russia and the interests of different groups of society that had to be be balanced and protected. His understanding of the US and of how the US and British economies had evolved was limited or nonexistent. The isolation of the Soviet period may have compounded this. The Russian state in the Soviet Union could not simply unwind the power of the state and its intervention and everything would come out right of its own accord.   Leonid Brezhnev, the Ukrainian Russian who succeeded Krushchev from 1964 to 1979 let the system of Soviet rule remain as it was, in the Great Stagnation, leading to lethargy, lack of innovation, and a weak economy with military expansion. Gorbachev tried to regenerate the system by opening it up, but failed to see that there was a risk that it could come apart quickly as it did in just 4 years after he became president in 1985. Only the centralized power of the state had kept the Russian state together from the Tsarist period through the Communist period. The risks of this Gorbachev failed to grasp. What if it happened too quickly without a safety net for the people who could not make the transition. What lawlessness and failure of the rule of law could happen. The US and Britain had evolved their democracies over centuries. Wars were fought in the US and Britain over rights and responsibilities of kings and parliaments. In the US Lincoln fought the civil war not just for emancipation but to ensure safeguards for free white men on the farms so that Labor did not get disabilities placed on them by Capital (entrenched forces of Capital of which the southern plantation economy was only one aspect.)  Japan and Germany were set up as democratic states through American power and constitutional frameworks with Marshall Plans or agreement to take in unlimited imports from Japan. This bad scenario happened in Russia because Gorbachev failed to set the conditions first and work patiently to achieve them including introducing limited  elections and parliamentary processes first in Russia.  Leaders such as Yeltsin who succeeded Gorbachev in 1989, winning the elections that followed, failed to provide a safety net for the vulnerable in the 1980's. Unemployment increased rapidly, life expectancy dropped in Russia, and the economy failed in the early years after 1980. A Marshall Plan like that offered to Germany could have helped but Gorbachev's failure may have been his failure to provide this transition by arranging for West Germany and the US to support a planned transition, a kind of Marshall Plan of Aid, and maintaining a gradual move to democracy as the country was given time to learn institutions of American and British parliamentary democracy. No such Marshall Plan was negotiated for a smooth transition over inevitable obstacles, no safeguards were put in place for illegal efforts to control the state by rogue elements and to seize assets of state companies, no efforts to first introduce limited elections and parliamentary processes for learning democratic process in Russia, and the people of Russia were left with a memory of the this period as a bad lawless period from 1989 to 2005.  Leading to the situation today under Putin of aspiring to the Soviet period as a kind of period that had offered Russia the world recognition it had lost. And this had happened even though the Russian economy had recovered and the standard of living had risen under Putin. Putin's career spanned the period as a Russian official in Dresden, Germany Democratic Republic or Soviet period East Germany to working in the St Petersburg City Council under Yeltsin. He personally witnessed the fall of the Berlin Wall and the fall of the German Democratic Republic from Dresden and Gorbachev's refusal to build a transition period for the changes so that it would not be traumatic for the GDR. Even after reunification these traumas remain in some segments of the older population in East Germany that saw themselves as neglected and support extreme right wing parties in eastern German states by 2020- considering the Soviet period as one in which their lives were less neglected.  After three terms as president Putin with his own traumas from that period in Dresden, and with a mother lost in the period after the Nazi invasion of Russia, a father who survived the Battle of Stalingrad, saw the period of lawless behaviour in the collapse of the Soviet Union as the"greatest geopolitical disaster of the century."  Putin and people around him made missteps and miscalculations launching a war in Ukraine, leading to the situation today- jeopardizing hard won gains for the Russian economy. By 2022 Russian standards of living had risen and the economy was in the best shape it had been in the modern period since the Industrial Revolution. Yet largely exposed because of the dependence on oil and gas during a period of climate change and focus on building future economies free of fossil fuels.  Putin in his own peculiar logic may have seen this as the only opportunity in 2022 before deliinking from fossil fuel reduced the importance of the Russian fuel dependent economy to make some territorial readjusments in Ukraine with a quick war taking Kviv. That turned into a massive miscalculation with the emergence of nationalist fervor in western Ukraine spreading to the whole country of 40 million people. In the future to 2030 with phasing out of the fossil fuel economy, Russia without the connections to the US and European Union's technology and resources it had during Putin's three terms, and facing strict sanctions from US and EU, faces a difficult future. This has cautionary lessons for all countries- the US that read too much into the fall of the Berlin wall and indulged in a losing proposition with free markets that damaged its infrastructure and manufacturing with shifts to China, China understanding of how it to was dependent on the world economy for its future development, India that had to navigate a difficult period and what lessons to draw for building a bigger economy, the EU realizing the failure of its policies of depending on Russia for energy and China for manufacturing with fragile supply chains,  and Russia that there were twists and turns and the need for safeguards and experience building democratic processes before these processes would work for the economy, its people and for Russia as a nation. ...
SPIEGEL ONLINE Original article ›
New York Times Original article ›
WSJ Original article ›
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With small margins of 5-10% many Chinese producers in Shenzen see the loss of the American market after the American tariffs of 20%. US president DJT put a10% tariff on all products imported from China on Feb 4, 2025 Executive Order. Another Order on March 4 amended this for an additional 10% to total 20% in March 2025. The local Chinese market where consumption is low cannot make up for the American market. The market in Russia is smaller with its population of 145 million and smaller consumption level. The markets in South East Asia are highly fragmented, and Brazil's economy is weak. India has a large trade imbalance already and is unlikely to let this get worse. Russia is imposing some restrictions on imports to not get flooded with cheap Chinese imports that drive local makers out of business.

Washington Post Original article ›
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Bilateral trade between China and Russia is down 31% for the first half of 2015, and Chinese investment in Russia down by 20%, according to Moscow Carnegie Center. This is a result of the fall in oil prices, declining demand for commodities in China, and the economic downturn in Russia. After the western sanctions on Russia Chinese investors are cautious about making investments. This means Russia's large expectations that this would act as an offset for economic relations with Germany and other western nations is not working out in reality. The contract for the second gas deal for gas from western Siberia, for which a memorandum was signed with China in Nov. 2014, was not signed during Putin's visit to Beijing in September 2015. Experts say the economic environment is not favorable for gas deals with the uncertain economic outlook in China.
New York Times Original article ›
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Medvedev appears to have little role in setting policy in Russia, even though he has presented a different view of liberal groups and showed interest in pluralistic democracy and free expression of opinion. Putin has expressed a very different view about liberal groups, as representing foreign interests in Russia. The media remains tightly controlled in Russia, and elections are determined in the Putin way. A mayor picked by Putin won the Sochi elections even without campaigning, as many opposition candidates were disqualified or discredited before the campaign. He won with 77% of the vote. In this way elections take place in Russia but are conducted in a way which makes it very difficult for the opposition parties, and keeps media television coverage heavily pro-government.
WSJ Original article ›
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The US economy is growing at a much faster pace than Europe or China in the last quarter of 2021- at 7% annualized growth in the fourth quarter up from 2% in the third quarter, according to Federal Reserve Bank of Atlanta. This compares to 2% in eurozone and 4% in China. Major US ports such as Los Angeles are processing 20% more container volume in 2021 than in 2019, while Rotterdam and Hamburg are almost flat compared to 2019 level. Consumption of durable goods has jumped 45% above 2018 levels in the US, only 2% in eurozone, according to ECB data. The factory gate prices in China are far outpacing the consumer prices in China, suggesting weak domestic demand and strong foreign demand. Lars Jensen, head of network at container ship company A.P. Moller-Maersk says the global supply bottlenecks were started by this surge in US demand with more ships headed for the US taking ships away from other places. The US economy will grow at 6% in 2021 and 4% in 2022, with wages growing 4% a year above the pre-pandemic trend rate, compared with 1% in eurozone, according to Bank for International Settlements. This is pushing inflation up in other countries by pushing up the value of the dollar. In Mexico hitting 7.4% and the central bank raising interest rates 0.5% point to 5.5%. In Russia inflation up to 8.4% and central bank raising interest rates by 1percentage point to 8.5%. The equipment investment in the US is up by 13% this year according to JP Morgan Chase, only 3.6% in eurozone, 0.1% in Japan. All this is creating a large gap between the US and Europe, US and China in economic growth and demand growth, and in income growth. ...
New York Times Original article ›
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A lucid account of the reason why Germany, Netherlands, IMF, and the ECB, took a firm stand not to allow Cyprus to continue in the EU with a banking system many times the size of its economy. The role of a casino economy, an off shore tax haven, was anathema to these leaders, and German leaders in particular in an election year. The Estonia president, Mr Ilves, makes clear his disgust with the Cypriot model when he says its too much to ask for solidarity with thugs and money launderers. It became clear to some EU leaders that the effort to protect depositors with larger accounts of over 100,000 euros from a larger contribution was an effort to protect Russians, and Russian oligarchs who were using Cyprus to launder money. The lack of the same support from the EU bureaucracy may be because of the implications elsewhere in the eurozone, such as in Spain, where about 700,000 depositors were offered assurances that they would not have to bear losses if they were misled into taking equity in the banks. The finance minister of the Netherlands, Jeroen Dijsselbloem, followed Jean-Claude Juncker as Eurogroup president in Jan. 2013. He was on the job for only 5 months as finance minister and lacked experience, the Cypriot president in his position for one month, leading to a lack of communication and absence of coordination in this crisis. Experts say the crisis should have been managed better without denting confidence in financial markets....
DW.COM Original article ›
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GDP expanded at 3.5% in the fourth quarter of 2016, according to the Turkey Statistics Office. This follows a contraction by 1.8% in the third quarter of 2016. For the full year the GDP growth is 2.9 percent, a decline from the 6.1% in 2015. In 2015 Turkey gained from lower oil prices. This was offset in 2016 by the politics in the region- the increased instability in the country following a crackdown on the opposition and media, internal conflict in the Kurdish region which appeared for a time to be leading to peaceful settlement. As a result tourism revenues declined by 30% and this was offset by increased government spending. The uncertainty before the referendum also leads to decline in foreign investment and investment by domestic firms.

New York Times Original article ›
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Russian president Medvedev offers his view of the protests in Russia, that Russia is entering a new stage in the development of its political system. Medvedev told his United Russia party: "We are entering a new stage in the development of our political system and we should not close our eyes to that. It has already begun... It began because the old model- which faithfully and truly served our state in recent years, and did'nt serve it badly, and which we all defended- it has exhausted itself." He wanted to see United Russia take a leading role in reform. He warned that "it is categorically inadmissible that the political system be delegitimized." And warned Russians that the consequences of this were disastrous after the last time this happened in 1917. He was also critical of the U.S. government for its criticism of the elections.
DW.COM Original article ›
Wall Street Journal Original article ›
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The Center for Strategic Studies in Moscow was prescient in predicting problems of declining support for Mr. Putin before the December 2011 parliamentary elections. Work with 32 focus groups by the Center in May 2012 shows a continuing erosion of support for Putin as efforts to open the political system have faded. The discontent focusses on the delivery of basic services such as healthcare, education, law enforcement, infrastructure.

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