As 2013 draws to a close, we look at the year's dominant economic trends, novel business developments, and market movements that have shaped the global economy these past 12 months. 2013 -- the year as it was with Nikita Alentyev for Radio VR.
Show hosts: Nikita Alentyev
The fluctuations of the exchange rate are directly linked to the economic performance of underlying countries and the EUR – US exchange rate is both indicative of the domestic anti-crisis measures and the external market shifts – the developments closely watched by the business community. Experts are now saying that the euro is to become the best performing major currency of 2013, contrary to the general expectations of weakness. Maria Tsibylina, head of customer support at Alfa-Trading, gave her account of the annual trend with the Voice of Russia:
The advanced Western countries have been trying to fan every possible spark of economic growth hard enough to heat up the lukewarm global economy. Whereas China seems to be steadily making progress and 2013 is no exception. Dr. Oded Shenkar, PhD, professor of Management and Human Resources with the Fisher College of Business comments on China’s performance in 2013 with the Voice of Russia.
January 2013 saw the United States hanging off a cliff. A fiscal cliff that is, a situation in which a series of previously enacted laws would simultaneously come into effect. Glyn Cozart, researcher with Georgetown University, and Lindsay Funk, pundit with PolicyMic commented the critical issues in the US economy in 2013 with the Voice of Russia.
2013 has seen a massive crackdown on large institutional investors behind the ‘credit crunch’. Some of Wall Street’s biggest banks have faced billion-dollar fines from regulators this year, setting records in this type of civil settlements. Yves Guillaume A. Messy – economist and consultant, and Jerry Robinson – economist and author shared their opinion with the Voice of Russia.
The fine line between the matters of economy and politics is virtually no longer existent as proved by China’s move to sell parts of American debt it owns in 2013. The world waited with baited breath as the giant of the ‘orient’ started gently pulling its powerful political leverage. Dr. Oded Shenkar, PhD – a professor of Management and Human Resources with the Fisher College of Business – comments on an alternative scenario with the Voice of Russia:
One of the basic rules of investment reads ‘a dollar today is worth more than a dollar tomorrow’. A 2013 extension to that may read ‘a euro in Germany is worth more than a euro in Greece’. The single currency union is still fighting the disparities between its constituent economies, whereby the year’s generally positive trend for the value of the euro serves as an anesthetic for the zone’s remaining ailments. Vanessa Rossi, an advisor with Oxford Analytica, in her interview with the Voice of Russia, points to the 2013 successes of the joint European debt crisis recovery effort.
The most common anti-corporate propaganda draws on the images of the ‘robber barons’ of the American past. The turn of the 21st century saw an image change for front-runners of business. Being environmentally-friendly, socially aware and policy conscious became the new craze and 2013 blew this cover for those who saw it only as a matter of ‘vogue’ and extended CSR to a new level for the rest of the companies. Shaaz Nasir, a consultant, comments with the Voice of Russia on why 2013 is a turning point for the re-conceptualization of business from massive profit-making to ‘social re-investment’:
As much as the current professional ethic is dominated by workaholism, hardly anyone would say ‘no’ to some easy money. This happens to be true of companies as well as individuals. With the single exception of wording where the corporate term for this ‘innovative and unconventional’ policy is quantitative easing. Quantitative easing is a monetary policy tool used by central banks to try and stimulate the economy when the economic cycle is far below optimum levels. The Voice of Russia talked with Dr. Desmond Lachman of the American Enterprise Institute accounts for the monetary policy, and Maria Tsibylina – head of customer support at Alfa-Trading shared their views on the monetary policy of the leading world powers.