Economics & Business Archive

Second of a three-part series. Part I can be found here. Part III can be found here. BAYAMO, Cuba — Tropi Crema isn’t like ice cream parlors found elsewhere in the world. Most days, only a single flavor is available, advertised on a board by the entrance, and there’s often a line to get in. Still, for many residents of this tidy city in eastern Cuba, it’s irresistible. One recent afternoon, two middle-aged women sat at the long, crowded counter. Between them they ordered 12 scoops of chocolate ice cream and two pieces of coconut cake. Here and there, along […]

As Western financial sectors reeled during 2007 and 2008, Asian and Middle Eastern sovereign wealth funds (SWFs) offered some succor, administering exotic medicine to banks poisoned by subprime toxins. These White Knights cast a dark shadow, however, as questions — and fears — were raised about the political influence that, for instance, a Chinese government presence on the board of Barclays Bank might represent. The focus has shifted recently. Plummeting oil prices and declining demand for imports by contracting U.S, European and Japanese markets undercut the vast revenue base the SWFs were drawing upon. Now SWFs are writing off untold […]

First of a three-part series. Part II can be found here. Part III can be found here. HAVANA, Cuba — Arriving in Cuba this time felt different straight away. The airport, where I arrived on a flight from Cancún crammed with Cubans and their purchases, was hassle-free. No tour operators solicited me; no cabbies assailed me. It was the same in touristy Old Havana. Ten years before, on my last visit, I couldn’t walk a few steps without having cigars or a lobster dinner pressed on me. This time, whether in the leafy, mansion-studded Vedado section, the shopping arcades near […]

This article is based on the book, “Organizing for a Complex World: Developing Tomorrow’s Defense and Net-Centric Systems,” recently published by the CSIS Press. Programs such as the Army’s Future Combat System, the Coast Guard’s Integrated Deepwater System program and the FAA’s Next Generation Air Traffic System are far more ambitious than any previously attempted. They combine groundbreaking technologies to create large, network-centric systems-of-systems with unprecedented capabilities. But such ambition brings unparalleled complexity, making these programs susceptible to cost overruns, schedule slippages and performance shortfalls. In recent testimony before the Senate Armed Services Committee (pdf), Secretary of Defense Robert Gates […]

Russia’s foreign arms sales recently had another banner year, breaking all post-Soviet records, causing Moscow policymakers to celebrate. Meeting with the Commission for Military-Technical Cooperation with Foreign States on Feb. 10, President Dmitry Medvedev reported that the value of Russian weapons exports in 2008 exceeded $8.35 billion, up from $7.4 billion in 2007, also a record. On Feb. 12, Alexander Fomin, deputy director of the Federal Service on Military-Technical Cooperation, said that Russia planned to export $8.5 billion of arms in 2009. On Feb. 16, Nikolai Dimidyuk, special programs director for Rosoboronexport, Russia’s arms export monopoly, announced that the company […]

INTEL CHIEF SIGNALS CHANGE — Adm. Dennis Blair, President Obama’s new director of national intelligence, has lost no time living up to his reputation as a hard-driving boss. The intelligence community has been at work since last December compiling the 2009 Annual Threat Assessment, which the new director submitted to Congress Thursday. According to a well-informed source, when Blair arrived to take up his post some days ago, the finished draft was handed to him, but to almost everyone’s consternation he rejected it. Intel officers had to scramble to produce a new version shifting the emphasis from terrorism to the […]

The tale could begin, “During the short reign of the Ritalin King cameth the downturn. . . .” During his six-month EU presidency, Nicolas Sarkozy laced into any number of challenges with a typically hyperactive gusto and self-importance. The spirit of the Sun King may have been whispering in Sarko’s ear, as he put his own stamp on Louis XIV’s famous motto: “L’Europe, c’est moi.” When time came to pass the EU crown to Prague, the Frenchman threatened to boycott the handover, after unsuccessfully pushing for self-serving alternatives to exisiting EU mechanisms. The Coulisses de Bruxelles blog quoted an aide […]

The U.S. government’s map of the Middle East is changing. Long dominated by the Arab-Israeli conflict, U.S. conceptions of the Middle East are drifting eastward, increasingly centering in the Persian Gulf and coming to envelop the mountains and plains of Afghanistan and Pakistan. Seen this way, the U.S. purpose in the region far transcends the need to resolve historical conflicts. The problems of the Middle East now encompass some of the most important challenges to U.S. power and influence in the world. The signs are subtle but no less clear. In his interview last month with al-Arabiya television, President Obama […]

According to a recent article in Global Security Newswire, President Barack Obama might seek an international agreement to limit weapons in space, reversing Bush administration policy. As noted on the White House Web site, the new administration is calling for “a worldwide ban on weapons that interfere with military and commercial satellites.” The president’s position on this issue is impractical and dangerous. Proponents of the ban argue that because the U.S. has the most space-based assets to lose in a future space war, it also has the greatest interest in restricting the use of space to peaceful purposes. An international […]

Since 1944, America’s position within the International Monetary Fund has given it tremendous influence over national and international financial markets. Increasingly, however, this influence has been met with resistance in some parts of the world, with America’s relative economic decline causing some to question its dominant role within the Fund. But the U.S. has been largely unwilling to relinquish its privileged position, or to dramatically change its stance on the benefits of unfettered markets. As a result, despite a recent resurgence in the face of the global financial crisis, the IMF is today facing a serious challenge to its status […]

The Obama administration is up and running at a brisk speed, from confronting the challenges of the financial crisis to closing the Guantanamo prison camp within a year. With the confirmation of Secretary of State Hillary Clinton and the naming of special envoys to the Middle East and to Afghanistan and Pakistan, President Obama has indicated not only his foreign policy priorities but also the style of diplomacy he’ll use to tackle the world’s toughest problems. While Obama’s China policy has yet to be articulated, some of its priorities were indicated during the presidential campaigns by both him and his […]

Collection is one of the essential activities in intelligence. Not only does it involve some of the most daring and technically adept aspects of intelligence, it is also a major part of the United States intelligence budget. It even forms the basis for the security classification system, with classification of intelligence stemming from the harm that would be done to U.S. national security if the means by which intelligence is obtained were revealed. Much of the intelligence collection system that the United States developed over many decades was dictated by two factors: the nature of the Soviet state and the […]