Economics & Business Archive

On Oct. 1, the People’s Republic of China celebrated the 60th anniversary of its founding, most notably with an air show and military parade along Beijing’s Orwellian-sounding Avenue of Eternal Peace. The event showcased China’s arsenal of indigenously made fighter aircraft, tanks and newer-generation Dongfeng missiles, capable of delivering nuclear warheads to targets over 11,000 kilometers away. This was hardly the first time an authoritarian government has used a military review to impress its citizens and outside observers. And China has used non-martial events to display its national pride, confidence and strength. In many ways, last year’s Beijing Olympics served […]

DENPASAR, Indonesia — Since the ouster in 1998 of the Suharto regime, Indonesia’s process of democratization has made remarkable progress. The peaceful re-election of President Susilo Bambang Yudhoyono this year for a second five-year term served as the latest chapter, adding yet another layer of political stability to the country’s democratic advances. However, an extraordinary saga that sees the country’s independent anti-corruption commission (KPK) locked in a battle for survival against the police and the Attorney General’s Office (AGO) is an indicator of some of the difficulties the country still faces in its quest to grow into a mature democracy. […]

In a speech heralding the formation of his 37-member cabinet last month, Indonesian President Susilo Bambang Yudhoyono lauded his new team as “credible and accountable,” and expressed confidence in its abilities. “You are the chosen ones . . . and I consider you to be capable of doing your duties as members of the Second United Indonesia Cabinet,” Yudhoyono said. However, many experts did not join in Yudhoyono’s glowing encomium, and with good reason. After Yudhoyono’s landslide re-election victory in July, many observers had expected him to seize on his overwhelming (60.9 percent) electoral mandate to surround himself with a […]

For roughly four decades, a clear foreign policy rule set has existed between the United States and Latin America, centering largely on the question of counternarcotics. Starting with Richard Nixon’s “war on drugs,” an explicit quid pro quo came into existence: U.S. foreign aid (both civilian and military) in exchange for aggressive Latin American efforts to curb both the production and trafficking of illegal narcotics (primarily marijuana and cocaine). By virtually all accounts, that logistics-focused strategy has proven to be a massive failure. America’s focus on interdiction and prohibition has not stemmed domestic drug abuse. Instead, all indications are that […]

Saudi Arabia’s possible purchase of at least $2 billion of Russian military equipment has the potential to be the most significant Russian arms deal in the Middle East since the Soviet Union transferred SA-2s to Nasser’s Egypt. By all indications, it seems that the two countries have reached an agreement for the arms transfer, after a two-year negotiation period. The deal may be part of a larger process that leads to a significant realignment in the external relations of both parties. The arms transfer agreement, which covers a broad spectrum of weapons, is guided by the agreement on cooperation in […]

TORREÓN, Mexico — Ever since Mexico’s Felipe Calderón took office in 2006, his presidency has been irrevocably identified with one issue more than any other: security. Calderón has staked the credibility of his administration, not to mention the country’s bilateral relationship with the United States, on attacking drug runners, dismantling kidnapping syndicates, and making Mexico an overall safer country. But despite some improvements in Mexico’s institutional capacity to fight crime, Calderón’s security gamble has largely backfired. The present levels of drug-related violence are worse than ever before, and Ciudad Juárez, across the Rio Grande from El Paso, has become the […]

Late last month, Mitiku Kassa, Ethiopia’s agriculture minister, appealed to the international community for $175 million in emergency food aid to feed the 6.2 million people who are in the grip of severe drought there. Since famine killed 1 million Ethiopians 25 years ago, the country has remained in a cycle of drought-driven crises keeping it dependent on foreign aid. The U.S. is no stranger to assisting Ethiopia: It provides nearly 80 percent of food aid delivered to the country and began food shipments in anticipation of the government’s latest request. But while food aid addresses the immediate need, feeding […]