Articles from Vedomosti (Ведомости)
The global oil situation is particularly interesting at the moment. At $30 a barrel of crude, the oil price stays high even though world demand is low. The previously fashionable view that the American seizure of Iraqi oil resources would break OPEC and send the price of oil plummeting has turned out to be nonsense. Even with improved security, it will take 5 years' investment to get Iraq oil fully on stream. And the American economy is now recovering strongly. So the price of oil should stay high, or even go up, in the foreseeable future.
The announcement by Mr.Kudrin that Russia will start an oil stabilization fund comes, therefore, at a good moment. It means that the fund can look forward to several years of surpluses. This is both
Security before Prosperity
| Thursday, July 24, 2003
Amidst all the Iraq-dominated news and comment, one question little asked is: what effect will the warlike turn in international relations have on globalisation? Till quite recently, it was widely assumed that increasing economic integration was inevitable. Technology and economics, it was said, were welding the world into a single unit. The challenge was to develop institutions to manage the problems of interdependence: financial crises, growing inequality between rich and poor, environmental damage, disruptive trade flows, the traffic in narcotics, and so on. In those rosy days, national security seemed less important. America had 'won' the Cold War, removing the danger of major interstate conflict. The main question for Russia was howContinue reading...