The world enters 2009 with Russia in play in a way it hasn't seen in decades. The relevant comparison isn't 1998, when the Russians engaged in default and devaluation but remained within the bounds of their existing political and economic system (as Lenin said, two steps forward, one step back). The history to consider is 1989--as key aspects of the Russian system could change for the worse.
Where could this go? There will be near-zero state tolerance for dissent. And the strongest level of anti-Americanism (and, in many quarters, of broader xenophobia) of any significant emerging market in the world, creates the potential to make security a serious concern--and possibly lead to unrest that disrupts supply chains... [snip]
As the latest gas cutoff to Ukraine shows, the Kremlin puts realpolitik and national interests first. "market discipline" in the aftermath of Georgia did not prevent Moscow from again turning off the tap to Ukraine, and more instances of bare-knuckles foreign policy are likely in 2009.
READ MORE
No comments:
Post a Comment