Mirtchev, A. (2008, November 19). Supply-side Recovery Strategies – National Approaches and Mechanisms Shifting Focus onto Productivity. Forbes.
Dr. Alexander Mirtchev, President of Krull Corp., contends that different economies are adopting strategies for recovery that differ much more widely than their global interrelation suggests. Developed economies, in particular, have relied heavily on direct government intervention in the markets. A number of emerging economies, however, have put key elements of their stabilization and recovery policies within the framework of their sovereign wealth funds. This has led to a shift in focus for these funds towards industrial projects that, in effect, represent custom-tailored supply-side approaches to recovery. Notably, the priorities have shifted onto productivity and industrial development, rather than the service sector, reflecting the rebalancing between the “post-industrial” developed economies and emerging markets. Dr. Mirtchev considers that, in the global economic recovery process, sovereign wealth funds have faced increasing regulatory requirements worldwide, which has altered regional and emerging market-oriented acquisition approaches. He concludes that a SWF-based recovery strategy appears to be the common denominator for a range of emerging markets.