Beyond the Burgeoning Crisis – The Financial Crisis will be Followed by a Patchy, Uneven and Anemic Recovery, with a Better Outlook for the Rapidly Developing Economies and Some Emerging Markets
Says Plans to Stimulate the Economy Require a Comprehensive Approach and Government Funding Alone Will Not Be Enough to Stave Off the Crisis
In an interview with Reuters, Dr. Alexander Mirtchev, founder and chairman of the Krull Corporation and an economic expert on emerging markets, shared concerns about the impact of the credit squeeze on emerging market economies. As the U.S. financial system continues to bear historic pressure, economies that have experienced considerable growth in the past decade are in grave danger of entering a prolonged period of slowing growth. While the central banks in some nations are better equipped to deal with a liquidity squeeze, dollar-based economies such as Korea, Russia and Kazakhstan will be faced with serious challenges in the coming year.
Dr. Mirtchev, also the chairman of Kazakhstan's national development fund, Kazyna, stressed the need for involvement from the private sector to help prop the struggling markets in emerging market economies. "The plan should be for the private sector to get more involved in the process in order to balance the burden and not to reward market mistakes. It is not realistic to expect just this one platform to cushion the market from all problems," he said.
Kazyna was set up to help diversify the Kazakh economy -- one that has traditionally been dominated by natural resources -- in addition to sustaining surplus capital to deal with difficult economic times. "Kazyna," according to the interview, "will not be used to reward bad mistakes or bad decisions made by financial institutions. The financial sector's malaise cannot be realistically resolved just on the basis of government funding." Governments across Europe and Asia have been intricately involved in attempting to deal with this historic economic crisis and Dr. Mirtchev has commented on the issue of bailouts in a discussion with Focus Washington's Chuck Conconi. The interview can be viewed at www.youtube.com/focuswashington.
For more information, visit www.KrullCorp.com.
About Krull Corporation
Krull Corporation is a Washington, D.C.-based advisory and project management firm with expertise in dealing with economic growth, industrial expansion and restructuring issues. Founded by Dr. Alexander Mirtchev in 1992, Krull Corporation capitalizes on his extensive professional experience in market developments and reforms and focuses primarily on emerging and transitional economies. Over the years, the firm has provided its clients with outstanding strategic guidance and professional services in various areas. Combining a unique blend of global reach and understanding of local markets, Krull is able to consistently produce high quality results and returns.