Bloomberg: Globalization and Fragmentation as Two Sides of the Same Coin

Mirtchev, A. (2008, October 10). Globalization and Fragmentation as the two sides of the same coinBloomberg.

07 Bloomberg-news-Alexander-Mirtchev-on-Global-Economic-MegatrendsThe President of Krull Corp., Dr. Alexander Mirtchev, assessed the strategies of emerging markets and banks in those markets which are being used to deal with the credit crisis and the global economic slump. He indicated that while the banks will accept government assistance, they are not in a position to fully utilize the resources received before needing to find a market solution to their difficulties. This situation underlines the diverging pressures of globalization and fragmentation that are currently at work in the global economy, reinforcing the importance of markets such as Russia, China, India and other rapidly developing economies, which are far from “decoupled” from the global economy. In effect, the divergent pressures of integration and fragmentation are intrinsically linked, finding a common expression in the altered economic power balances outside the traditional scope of developing and developed economies. While rapidly developing economies cannot be the “sole engines for growth” that could keep the global economy on an upward path, their “domestic” recovery measures could have a positive effect on regional economic security and the pace of global economic recovery.