The Global Financial Crisis and the Difficulties of Economic Development in the Central Caucasian Countries (original) (raw)

The Russian Financial Crisis and its Consequences for Central Asia

IMF Working Papers, 2001

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. WP/01l169 This paper reviews the economic conditions in central Asia at the time of the Russian financial crisis of August 1998; the channels by which the crisis was transmitted to the central Asian region; and the policy responses. The paper concludes that, while real exchange rates of central Asian national currencies visa -vis the Russian ruble have returned to their pre-crisis levels following the nominal devaluations that ensued, other indicators of external competitiveness, such as unit labor cost indices, suggest the need for further surveillance in this area. Also, it is not yet clear if full exchange rate flexibility has been established in central Asia despite the protracted and costly exits from the nominal exchange rates in place at the time of the crisis. Finally, the debt-to-GDP ratios in central Asia, which grew rapidly between 1998 and 1999 in the context of large exchange rate adjustments, remain a challenge for the Tajik and Kyrgyz authorities, in particular.

The Impact of the Global Financial Crisis on the Economic Development in the Eurasian Region

2017

This study presents an empirical analysis of the impact of the global financial crisis on the economic development of the Eurasian region. The region covers fifteen states of the former Soviet Union: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine, Uzbekistan. Emerging economies of estimated countries are highly attractive for foreign investors, who stimulate economic growth in the region. This paper particularly investigates the relationship between economic growth and international capital flows in the Eurasian region before and after the global financial crisis. Panel estimations using annual data for the period 1990-2014 are made applying the Generalized Method of Moments estimation technique for the dynamic panel data, developed by Hansen (1982). Empirical results reveal that the main determinant of the regions’ economic development is FDI inflow. This study finds evid...

The Impact of the Global Financial Crisis on Political Dynamics in Central Asia

Editor's Note—The following article was written in 1998, before Nursultan Nazarbayev was reelected president of Kazakhstan on 10 January 1999, winning 79.78 percent of the vote. We are including it in this issue, however, because it provides insight into current political and economic developments in Kazakhstan. he financial crises that swept across Asia and Russia in 1998 are reshaping the leadership politics of the former communist countries.

Finance Sector in Eurasian Economies During and After the Global Crisis in 2008

Chinese Business Review

As in the other countries around the world, banking systems in Eurasian economies, comprised of Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan, were adversely affected by the 2008 global crisis. A common challenge across most economies is to revive private-sector credit growth. Compared with the high increases of 80 percent in the period immediately prior to the crisis, credit growth has slowed sharply and even turned negative in real terms in a number of economies. Governments in many countries have taken measures to address banking sector stress. The measures for restoring credit growth and thus a high economic growth will be discussed in a part of our work. In the short run, such measures include aiding banks to repair balance sheets and also providing liquidity. In the medium term, measures should promote de-dollarization and the development of local debt markets.

Economy of post-Communist capitalism under the financial crisis

Studies in Economics and Finance, 2010

Purpose -The purpose of this paper is to distinguish the economic foundations of post-Communist capitalism and to examine the key economic problems of this type of society in the context of the modern financial crisis. Design/methodology/approach -This question is approached by studying the "necroeconomy" as a phenomenon of post-Communist capitalism and the international experience of the dead firms, so-called "zombie-firms", which do exist and "successfully" function in the most developed of economies as well with Japan being the most obvious example. Unlike developed economies, which are exposed to the threat of the zombie-ing of the economy under the conditions of a financial crisis, this threat is even greater for the countries of post-Communist capitalism owing also to their exposure to necroeconomy. Findings -It is found that the financial crisis creates the favourable conditions for the zombie-ing of a necroeconomy. If in Japan, for example, the zombie-economy never touched the processing industries, then one of the qualities of the necroeconomy is to concentrate exactly upon this sector of the economy. The zombie-ing of a necroeconomy inevitably amounts to the zombie-ing of this already-dead sector as well. Originality/value -The value of the paper is to determine the carriers of the necroeconomic and zombie-economic routines -Homo Transformaticus and Zombie Economicus, respectively. The contemporary financial crisis creates the danger of the transformation of Homo Transformaticus into a Zombie Economicus.

Financial Crisis in Central and Eastern Europe – Development Differentiation in the Regions

Equilibrium. Quarterly Journal of Economics and Economic Policy, 2011

crises existed not only in the last decades. in each country fluctuations such as upswings or downturns can be observed in the economy. the serious economic crisis can take place when the extending long-lasting decline continues. in the situation when the crisis appears in the economy it is significant to have a stable financial system. the last financial crisis showed weakness of the contemporary model of social-economic development functioning in the global world, also in central and Eastern Europe (cEE). the paper presents the situation of central and Eastern Europe during the financial crisis. the goal is to analyze the most important kinds of macroeconomic indicators of cEE countries, present development differentiation in the regions at Nuts2 level and systematize causes of the crisis and anti-crisis activities in central and Eastern Europe. in this paper theoretical aspects of the financial crisis and financial crises' types are shown as a basis for further analysis. the theoretical study, the observation method and the statistical data analysis were used to present the global financial crisis influence on the cEE economy. Finally, the method of coefficient of variation was implemented to confirm regional development differentiation in central and Eastern Europe regions and to answer the question if the cEE regions can still narrow the development gap between them and other regions of the European union. * scientific work co-financed from European social Fund, the state budget and Podlaskie voivodeship budget within the project "Podlaskie innovation strategy-implementation system construction".

The Effects of the Global Financial Crisis on the Central and Eastern European Union Countries

After a period of strong expansion of economies across the world, in 2007 a crisis burst out in the real estate sector of the United States. With the collapse of Lehman Brothers in 2008 the crisis soon became global. Initially, it primarily affected the advanced economies of the United States and Western Europe, but the spillover of the crisis was unexpectedly powerful. The financial crisis has hit the various Member States of the European Union to a different degree. The global financial crisis affected the real economy in Central and Eastern European Union countries such as Czech Republic, through two main perspectives. First, the credit squeeze affected borrowing conditions for firms and households with subsequent adverse effects on domestic investment and consumption demand. Second, the downturn in the global economy, affected export demand severely. In this study the effects of the global financial crisis on the new European Union countries, how this question is handled by the European Union and which strategies are followed for crisis management will be discussed.