러시아ㆍ유라시아

Our Global Economy and Markets blog has recently focused on ways to improve enforcement of Russia sanctions. This is critical, and not just because it is important to make it harder for the Russian war economy to function. Sanctions on Russia are also supposed to be a deterrent for other bad actors out there. The tougher the enforcement, the more effective this deterrence effect, which in turn should result in reduced geopolitical risk. A more stable global environment should be in the interest of all countries around the world, including the Global South. Elevated geopolitical risk is holding back private capital flows to emerging and frontier markets, while the rise in military spending has the potential to weigh on official aid flows. Successful implementation of sanctions—if this helps speed an end to war in Ukraine—is therefore a genuine positive for advanced and developing countries.