The gradual shift in economic power from the developed world to the developing world has accelerated in the last year. For many developed–market companies, as our lead article argues, this presents a challenge: how to balance short–term survival with long–term investment in the future engines of global growth. Staying with emerging markets, we look at Russia and its economy's Achilles' heel, inflation. Prices are ticking up once again, but there's little appetite right now for policy tightening.
In South Africa, meanwhile, unions have put a general strike on hold to consider the government's latest pay offer. Either way, the state budget is set to take a hit and taxes will probably rise. Next, from our Risk Briefing service, we look at the threats to Peru from the Shining Path, the Marxist guerrilla movement that never went away. Could its move into the drug trade give the group a greater reach?
Turning to Industry Briefing, we focus on the big energy–sector compromise in Germany: a stay of execution for the country's nuclear plants in return for more investment in green technology. From Executive Briefing, we consider research that advises companies faced with a competitor's disruptive business model, to roll out a second business model to operate alongside the first. The risk is that neither approach will operate effectively.
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