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Global Economy

18 years later, in Romania

Victor Neagu's picture
Also available in: Română
 
Brasov University, Romania circa 1979

I first moved to Romania in 1998. It was a very different place back then. Stalls of CDs, clothing, pretzels (“covrigi”), and inexpensive electronic gadgets walled the sidewalks of a street that was the artery connecting my neighborhood with the more central parts of the north-eastern city of Iasi.

A sense of hardship was in the air. The city was grey. The collapse of the communist regime left many struggling for a better life in a new system that was striving for the rule of law, democracy and a free market economy.

As a 15-year old student back in those days, I was able to cross the border between Moldova and Romania with my school card. It had a glued color photo of me and my hand-written grades. One time, a border guard asked me if I was a good student. Modesty was not a choice if you wanted to cross the border, or so I felt at the time. He skipped through my grades, smiled and wished me a safe journey.

I moved back to Romania on February 1st of this year. This time as a 33-year old World Bank staff. It has been 18 years, but now I can call Romania home again.

How can Russia grow out of recession?

Birgit Hansl's picture
Also available in: Русский

Russia’s economic woes continue: the recession deepened in the first half of 2015, severely impacting households, while the economy continued to adjust to the 2014 terms-of-trade shock, which saw oil prices being halved within a few months. In addition, investment demand has contracted for a third consecutive year.

Economic policy uncertainty, arising from an unpredictable geopolitical situation and the ongoing sanctions, caused private investment to decline rapidly as capital costs rose and consumer demand evaporated.

The record drop in consumer demand was driven by a sharp contraction in real wages, which fell by an average of 8.5% in the first six months of 2015 - illustrating the severity of the recession. The erosion of real incomes significantly increased the poverty rate and exacerbated the vulnerability of households in the lower 40% of the income distribution.

So, if oil prices remain low, how can Russia grow out of its recession?

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