Economics & Business Archive

With the United States currently fighting two wars abroad and facing a health care crisis and an economy on life-support at home, Pentagon officials are hoping to meet a looming threat to America’s future global dominance — not to mention national security — by boosting capacity in elementary school classrooms across the nation. In January, the Pentagon approved a proposal by their risk-taking research agency, DARPA, to invest $45 million into efforts to increase enrollment in computing, science, technology, engineering and mathematics programs (CS-STEM). To do so, DARPA wants to develop extracurricular initiatives to target and engage elementary aged kids, […]

Drilling got underway this week off the still-disputed Falkland Islands, as an oil platform belonging to Desire Petroleum, a British company founded in 1996 for the specific purpose of oil and gas exploration in the North Falkland Basin, began operations on Feb. 22. The drilling, which is expected to last 30 days, marks the culmination of weeks of intense sparring between the Argentine and British governments over oil rights and shipping lanes in the South Atlantic. As the exploration progresses, the diplomatic battle between Argentina and the U.K. rages on. Tensions have been mounting since Feb. 16, when Argentine President […]

On Feb. 16, following decades of disruption, Turkey and Iraq restored a rail link running from the northern Iraqi city of Mosul to Gaziantep in southern Turkey, via Syria. The move is a concrete illustration of Turkey’s increased efforts to develop commercial ties with Iraq, initiatives that Ankara has in turn used to establish a platform upon which it can deepen its diplomatic role and limit destabilizing spillover effects from its volatile neighbor. The strategy has paid off, as demonstrated by the recent visits to Ankara of a host of Iraqi political players — including ‘Ammar al-Hakim, Humam Hammoudi and […]

We Americans tend to have an overly inflated sense of our place in this world. If there is an enemy, we must defeat it. If a global challenge looms, we must lead the way forward. When somebody reaches for a weapon, we must strike before they can use it (against us, naturally). And should we fail to do so, we would be to blame for whatever tragedy might result. That’s not to say that our sense of global responsibility doesn’t have deep and logical roots. Armed with the world’s largest gun after World War II, we set about creating an […]

KAMPALA, Uganda — Ranging over hills that slope gracefully down into Lake Victoria, Kampala is arguably one of the more beautiful capitals in Africa. But the city’s beauty not only belies the numbing poverty in which most of Uganda’s residents find themselves, it also masks the country’s ugly politics. Case in point: The outcome of Uganda’s 2011 presidential election is a foregone conclusion, and no one — whether Uganda’s electoral commission, its legions of international donors, or the investors in its newly discovered oil fields — is likely to do anything about it. President Yoweri Museveni rose to power in […]

Latin America’s major economies avoided the brunt of the global financial crisis, except for Mexico, whose 7 percent contraction in 2009 represented the region’s worst decline. The drop-off was primarily traceable to America’s recession: More than 80 percent of Mexico’s exports go to the U.S., and its major sources of foreign reserves — oil, remittances and tourism — depend heavily upon consumption north of the border. The loss of tourism revenues due to ongoing drug violence within Mexico and the emergence of H1N1 didn’t help matters. This year, as the panic subsides, Mexico’s economy is expected to return to positive […]

There were no bright explosions lighting up the horizon, but this week’s coordinated deployment of U.S. diplomats as well as military, intelligence and political leaders — all warning of dire consequences for a defiant Iranian regime — amounted to an Obama-style re-enactment of the Shock and Awe tactics made famous during the opening salvo of the war in Iraq. The tactically synchronized detonations of tough talk were accompanied by a loud blast from Washington, where one administration official openly considered the possibility of regime change in Iran. But it was the Middle East that saw a swarm of high-ranking members […]

Like a storyline out of a classical tragedy, the euro is being punished for the sins of Greece. The Hellenic Republic’s massive debt has shaken market confidence in the common currency and led to a volatile month in its exchange rate. Feeling increasing pressure to intervene, European policymakers have been forced to weigh what is best for the euro against what public opinion will tolerate. For now, none of the choices are appealing. Nonetheless, a decision must be made, and as this game of “financial chicken” unfolds, the only thing certain about the outcome is that no one is likely […]

A large-scale deployment of clean energy technology is gaining speed on the global stage, causing shifts of significant geopolitical consequence. As clean energy moves from margin to mainstream, it is set to alter the balance of energy security and energy power among key regions of the world. Nations will redraw the energy map, both by assessing access to renewable resources and evaluating their traditional alliances. The degree to which frameworks are established so that clean energy drives not just competition, but also cooperation, will be key to determining the impact it ultimately has on international relations. Energy transitions take time. […]

The UAE raised quite a few eyebrows last December when it announced a $40 billion contract for setting up four nuclear power stations in its territory. But what surprised analysts even more than the size of the contract was who won it: a South Korean consortium led by Korea Electric Power Company (KEPCO), with Toshiba Westinghouse as a minor partner. KEPCO managed to beat out heavyweight rivals, including a consortium led by French major Areva and the U.S.-Japanese alliance of GE-Hitachi, to walk away with the deal. Pundits have talked quite a bit of late about the shift from West […]

Biofuels were hailed in the first half of the last decade as a green solution to reliance on imported petroleum, and a savior to farmers seeking higher prices for commodities in surplus. But in the second half of the decade, biofuels emerged as real and imminent threats to both environmental quality and food security, while being a costly and ill-conceived response to energy concerns. Agriculture and energy ministers met at a high-level conference at the Food and Agriculture Organization (FAO) in Rome in June 2008, and essentially glossed over these issues in endorsing continued government subsidies to the biofuels question. […]

Throughout its first year in office, the Obama administration has completed numerous course corrections across the breadth of American foreign policy. Demonstrating the power of a much-needed apology, President Barack Obama’s new-look foreign policy was charming enough to earn him a Nobel Peace Prize. But it struck many observers as a change in style, not substance: Many of Obama’s “changes” merely extended or expanded upon those made during the last two years of the Bush administration, following the repudiation of the 2006 mid-term Congressional elections. Fair enough. But expecting anything more amid the worst global financial crisis in decades was […]

Last week in Cape Town, South Africa, I was a keynote speaker at the massive Mining Indaba conference, the premier annual gathering of global extractive companies involved in Africa’s dominant economic sector. And the difference between the many military and aid conferences I’ve attended on Africa and this international commodities convention in Africa was telling. If you think most Americans now obsess over a “rising” China, you should know that we take a backseat to the Africans on this score. But whereas we often see China’s rise as a potential threat, Africans see it as an opportunity, and China’s “positive […]

Many Hondurans as well as outside observers of the country’s political crisis breathed a sigh of relief when Porfirio Lobo Sosa was sworn in as president on Jan. 27. Lobo’s inauguration took place nearly seven months to the day after the military, backed by influential opposition leaders, forced former President Manuel Zelaya to leave the country. That marked the beginning of a lengthy power struggle between Zelaya and interim President Roberto Michelletti that thrust the small Central American nation into the international spotlight. Lobo’s inauguration definitively answers the question of who will be president of Honduras in 2010, and closes […]

In a two-round bidding procedure that concluded in mid-December, the international oil industry regained access to Iraq’s upstream resources for the first time since the 1975 nationalization, with service contracts awarded for the development of 13 major fields. Although some critics denounced the deals as a sell-off of Iraq’s resources to foreigners, Iraqi Oil Minister Husain al-Shahristani negotiated very good terms for them. Production will rise from the current 2.5 million barrels per day (mbpd) to 12 mbpd, and Iraq will be in control of every drop of oil extracted on payment of fees amounting to only $1 to $1.50 […]

“Iran engagement” is beginning to take on the attributes of kabuki theater, with all of the major participants engaging in pre-determined, stylized dance steps. The latest case in point is the announcement earlier this week by Iranian President Mahmoud Ahmadinejad that Tehran is now open to some form of the scheme proposed by the International Atomic Energy Agency last October, by which Iran would export its low-enriched uranium to France and Russia to be turned into fuel rods for its research reactor. As Howard LaFranchi reported, this “was received favorably by Russia, and it prompted Chinese officials to call for […]

When Nigerian President Umaru Yar’Adua left the country in November 2009 to seek treatment for a heart ailment, few anticipated that both he and Africa’s most populous country would end up on life support. The leadership crisis resulting from Yar’Adua’s failure to constitutionally hand over power to Vice President Goodluck Jonathan — either at the time of his departure or since — has had more than just political implications for Nigeria. It has rocked the oil sector and threatened to undo substantial security gains made in the oil-producing Niger Delta, following a mostly successful amnesty and demobilization program for the […]