Diplomacy & Politics Archive

The Democratic Republic of Congo has changed. Five years ago, the country’s eastern provinces were entering a second decade of low-intensity violence marked by the proliferation of armed groups perpetrating atrocities that had enveloped the region since the collapse of the Zairian state in 1996-1997. The ineffective, grossly undersized United Nations peacekeeping mission struggled to keep track of the chaos around it, and diplomatic efforts to address the conflict had little impact. The national army, known as the Armed Forces of the Democratic Republic of Congo (FARDC), was useless at best and actively harmed the population at worst. When rebels […]

Multilateral development banks (MDBs) have long played an important role in international development finance. Subregional development banks (SRDBs) have had a more limited function, until the emergence of a few dynamic institutions in recent years. This paper explores the origins of MDBs and SRDBs; considers key issues and trends in their purpose, governance and financing; and explores challenges and opportunities that MDBs and SRDBs face in a changing global development environment. Origins of Multilateral and Subregional Development Banks The current international monetary and development architecture has a long history, going back to the establishment of the International Monetary Fund and […]

Japanese Prime Minister Shinzo Abe today announced a major shift in the posture of Japan’s military, known as the Self-Defense Force, that could allow it to engage in combat on foreign soil six decades after it was founded. Japan’s military has for decades maintained a defensive mission under Article 9 of Japan’s constitution, which states that “the Japanese people forever renounce war as a sovereign right of the nation and the threat or use of force as a means of settling international disputes.” The move was greeted with protests both at home and abroad. Local polls showed at least half […]

South Korean President Park Geun-hye’s high-profile six-day visit to Central Asia last week imparted further momentum to her “Eurasia initiative,” intended to deepen South Korean ties with that energy-rich but geopolitically volatile region. The trip also highlighted South Korea’s value to Washington at a time when the U.S. role and influence in the region is declining due to the ebbing U.S. military presence in Afghanistan and strained relations between the United States and the other two great powers active in the region, Russia and China. Park announced her Eurasia initiative last October. The declared goal is to remove physical and […]

On June 15, Juan Manuel Santos emerged as the victor of a close and contentious battle for the Colombian presidency. He ran on a campaign promise to continue the peace talks he started with the country’s main leftist guerrilla army, the Revolutionary Armed Forces of Colombia (FARC), in November 2012. His re-election, Santos declared, was proof that Colombian voters had given him a mandate for peace and wanted to complete the process. Santos’ second-round victory relied in large part on the support he received from most of the established segments of Colombia’s political left, which, though historically not a major […]

The financial industry is commonly described as one of the most influential in politics. The numbers certainly support this impression. In terms of lobbying expenditures in the United States, the banking sector outspent even the health care sector. Few industries have comparable resources available and have been able to establish such a strong institutional presence. In many countries, top bankers and high-ranking public officials meet frequently; revolving doors between the two worlds are common; and the technical complexity of financial regulation makes consultation with the industry at all levels of decision-making a necessity. Accordingly, commentators in the media and academia […]

Informal finance is ancient. What is it, and does it still have a place in today’s economies? Throughout the first half of the 19th century and into the 1970s, informal finance was studied by anthropologists under the heading of indigenous or traditional organizations. In the 1970s, technical assistance agencies rediscovered these organizations in the context of self-help based on savings, a concept that had been central to the credit cooperative movement founded in the 19th century by the German mayor Friedrich Wilhelm Raiffeisen. In the 1980s, self-help groups (SHGs) came to be known as informal financial institutions, and their reputation […]