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The paper analyzes the current state of the world economy and offers a short-term forecast of its development. Our analysis of log-periodic oscillations in the DJIA dynamics suggests that in the second half of 2017 the United States and other more developed countries could experience a new recession, due to the third phase of the global financial crisis. The economies of developing countries will continue their slowdown due to lower prices of raw commodities and the increased pressure of dollar debt load. The bottom of the slowdown in global economic growth is likely to be achieved in 2017-2018. Then we expect the start of a new acceleration of global economic growth at the upswing phase of the 6th Kondratieff cycle (2018-2050). A speedy and steady withdrawal from the third phase of the global financial crisis requires cooperative action between developed and developing countries within G20 to stimulate global demand, world trade and a fair solution of the debt problem of developing countries. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to shed light on the controversial issue of regional development incentives. Although extensive research has been conducted, a review of the literature gives an inconclusive answer to whether economic incentives are effective. Why do researchers arrive at different conclusions, even after analysing the same programmes? Among the problems that we find, for example, is the fact that for some researchers ‘effective’ means the significant location of new firms in targeted areas, while for others the creation of jobs regardless of whether new firms are arriving in a significant fashion. Furthermore, as we elaborate, the selection of an econometric model will have a significant impact on expected results. Different models, with different limitations, will lead researchers to evaluate the same incentive programme but arrive at different conclusions regarding its effectiveness. The contribution of the paper is to inform policymakers about the potential opportunities and pitfalls when designing incentive strategies. This is particularly relevant, given that both the US and Europe have been promoting incentives as a tool for regional economic development. [ABSTRACT FROM AUTHOR]