Economics & Business Archive

It is no longer possible to chin up in Zimbabwe. Not with the profusion of woes rending the country each passing day. Dozens are dying at the country’s public hospitals following a monthlong strike over pay by the few remaining doctors, inflation is fast approaching the 1,300 percent mark and political oppression has reached epidemic proportions. Formerly a major tobacco producer and breadbasket for southern Africa, Zimbabwe continues to hurtle down the tubes, producing an endless stream of sob stories. It rivals war-torn African countries in spewing out displaced people and refugees running away from the country’s socio-economic meltdown. A […]

China’s decision to conduct its first test of an anti-satellite weapon represents a sharp escalation in the hitherto low-key dispute between China, Russia, and the United States over the use of outer space for military purposes. The test, which occurred Jan. 12 (Beijing time), represents the first anti-satellite attack by any country in over two decades. It also marks the first use of a ground-based missile to destroy an orbiting satellite. On Jan. 18, the Bush administration confirmed media reports that China had used a kinetic kill vehicle (i.e., one which attacks targets by colliding with them rather than exploding […]

China’s recent decision to blast one of its own satellites from the sky using a ground-based missile has re-ignited concerns in Washington that a potential military rival could be seeking to “weaponize” space. While China’s Foreign Ministry stressed that the “test was not directed at any country and does not constitute a threat to any country,” the destruction of its own satellite has created a hotbed of speculation regarding Beijing’s possible ulterior motives. Some China experts contend it was an attempt by Beijing to pressure Washington to negotiate an international treaty banning weapons in space. The Bush administration, however, remains […]

Ever since Russia briefly interrupted natural gas deliveries to Ukraine on New Year’s Day 2006, Moscow has been harshly criticized in the West for allegedly using energy as a tool to blackmail its neighbors. The recent spat between Russia and Belarus over Moscow’s price hike on oil and gas deliveries to Minsk once again prompted charges from Western politicians and pundits that Russia is not a reliable source of energy. But where many Westerners perceive Russia as a regional bully, the Kremlin argues that former Soviet republics are not entitled to cheap Russian energy simply because Russia’s major export pipelines […]

MOSCOW — On Dec. 20, Russian President Vladimir Putin chaired a meeting of the Security Council in Moscow dedicated to addressing the social and economic problems of the Russian Far East. In Putin’s assessment, the situation in the region, which borders China, had become so grave as to constitute a threat to the country’s national security. According to a transcript on the Kremlin website, Putin declared in his opening remarks that past government action had failed to overcome the Far East’s grave problems. These include the district’s declining Russian population and its imbalanced economic activities. Putin also warned that the […]

BANGKOK, Thailand — While a jittery Thai capital has been warned to brace for more bomb attacks from unidentified terrorists, the country’s military-installed government is sowing fear among Thailand’s foreign business community. New laws promulgated by the unelected interim regime following the September army takeover seem to have less to do with the coup’s professed aim of putting the country back on the road to national unity than with blatant nationalism. Foreign companies in Thailand are seething in the wake of a law that tightens restrictions on foreign business ownership. This follows a clumsy diktat in late December on foreign […]

At a Dec. 16, 2006, meeting in Beijing, the Chinese government awarded U.S.-based Westinghouse Electric Corporation a multi-billion dollar contract to supply China with its next generation of nuclear reactors. The Westinghouse deal represents the single largest international nuclear power transaction in history. During the next few months, the two countries will negotiate a framework agreement to govern the sale. After that, Westinghouse and China National Nuclear will sign a detailed sales contract for the four 1,000-megawatt reactors. Chinese and American companies will build two of the four reactor units at Sanmen in Zhejiang Province and two at Yangjiang in […]

BANGKOK, Thailand — In an effort to bolster its armed forces, Myanmar’s ruling junta continues to diversify the sources of its military hardware, finding willing suppliers in countries that are eager to gain access to the Southeast Asian nation’s abundant energy resources. Although China remains the principal dealer of military equipment to Myanmar, India has recently offered a multi-million dollar military assistance package to the junta’s leaders. According to the New York-based watchdog Human Rights Watch, the assistance package, presented by Indian air force chief S.P. Tyagi on a visit to Myanmar’s new administrative capitol at Naypyidaw in late November, […]

BEIRUT, Lebanon — Right up to the very end, the farm community near the town of Massoudiyye in northern Lebanon was untouched by this summer’s Israeli invasion. Its Lebanese farmers and their migrant Syrian workers, ironically, had even briefly benefited — demand for their produce increased as supply in the south waned under Israeli air attacks. Then, two days before the Aug. 14 ceasefire, an Israeli jet aimed a bomb at one of the community’s small road bridges — and missed. Residents came outside to see what had happened. That’s when the Israeli jet dropped a second bomb, killing 11 […]

The resurgent strength of the euro in the international currency market could, ironically, be the agent of its demise in 2007. Problems caused by the lack of fiscal maneuverability that the “one-currency-fits-all” approach imposes saw Italy considering a return to the lira just last year. But in October, when French car manufacturing output dropped to 14 percent for the year, with the country’s monthly trade deficit running at a staggering $2.7 billion, and economic growth shuddering to a standstill, it left one of the EU’s biggest guns warning of possible withdrawal — a move which would signal the end for […]