Economics & Business Archive

At IMF meetings in Washington last week, the threat of a global “currency war” was a hot topic. For more on this issue, see this WPR column by Thomas P.M. Barnett.

The United States and Europe are pressuring oil-rich members of the Gulf Cooperation Council (GGC) to forge closer ties with Yemen in a bid to link the fight against al-Qaida to tangible economic benefits for the Arab world’s poorest nation. U.S. officials say the Obama administration recently conveyed to GCC leaders Yemen’s reiteration of its 10-year-old request for GCC membership. The officials believe that U.S. and European endorsement of the request will prompt GCC leaders to respond more favorably when they meet in Abu Dhabi in December. The U.S. and Europe are exerting pressure against the backdrop of an increasing […]

After having cooperated to an unprecedented degree — on stimulus spending and new bank rules, for instance — to avoid a global meltdown these past two years, the world’s major economies now appear ready to turn on one another with truly self-destructive vengeance. Poorly informed Americans are increasingly convinced that free trade pacts — and not our uniquely high corporate tax rates — are responsible for sending jobs overseas, and they want to see China punished with tariffs on its imports for its undervalued currency. With China’s neighbors intervening heavily to keep their own currencies from rising too high in […]

Relations between Iran and Egypt have been strained — if not outright hostile — since the Islamic revolution of 1979. In addition to ideological hostility entrenched by the Islamic revolution, Egypt is the traditional regional power and does not welcome Iranian interference in issues Cairo considers to be Arab concerns. The growth of Iranian proxies in Arab states has raised the stakes in a rivalry that began in 1979 as a war of words and propaganda, but has now become a reflection of the broader struggle for regional leadership. While both sides have made efforts to improve ties, recent developments […]

When Ecuador’s police seized their station houses, shut down airports and took to the streets last week in protest against austerity measures that would eliminate their Christmas bonuses and restructure their promotion policies, it looked as though the administration of Rafael Correa might come to an untimely end. South American leaders quickly responded by sending their representatives to the Union of South American Nations (UNASUR) to Buenos Aires, where they “energetically condemned the coup attempt” against Correa. The UNASUR representatives also promised to introduce a new “Democratic Clause” at the group’s next meeting in Guyana on Nov. 26, specifying measures […]

To kick off this weekly column, which will focus on national security, I thought I’d begin by introducing myself. My name is Robert Farley, and I work as an assistant professor at the Patterson School of Diplomacy and International Commerce at the University of Kentucky. I write at Information Dissemination and Lawyers, Guns and Money, and have published defense-related work in several magazines. My focus is on military doctrine, maritime affairs, airpower, and anti-submarine warfare. In particular, I am most interested in defense policymaking in the United States and the United Kingdom, which makes today a great day to start […]

Recent rumors that China had effectively banned rare metal exports to Japan over a thorny territorial dispute have thrust the issue of rare earth elements to the fore. With demand rising and Beijing continuing to tighten its stranglehold over the dwindling supply of rare earths, other countries are now scrambling to secure their own access to the key strategic resource. The 17 varieties of rare earth elements, which are scattered across the Earth’s crust, are essential components in important technology products ranging from televisions and cell phones, to precision-guided missiles and hybrid cars. Approximately 130,000 tons of rare earths are […]

When examining the effects of globalization, the international arms market presents an interesting case. It is certainly a global market in terms of distribution, with almost every country in the world, as well as many non-state actors, buying and selling weapons. And its impact is also felt throughout the world, for good as well as ill. But when it comes to the most sophisticated weapons — such as advanced warplanes, warships, tanks and missiles — that can reshape the balance of military power between important countries, the same states that have dominated the high-end of the international arms trade for […]

After decades of peace and growing prosperity, the strategic environment in Asia is increasingly marked by tension and rivalry. China’s rise as an economic and military power has forced its neighbors to reassess their relative standing. Some, like India, have pushed back directly against growing Chinese influence where they can. Others, like Vietnam, have set aside historical enmity to seek closer ties with the United States. Meanwhile, a region-wide arms race is gathering steam, especially in naval capabilities. World Politics Review takes this opportunity to review the strategic environment in Asia through recently published articles on the Balance of Power […]

BEIJING — The news that China has overtaken Japan as the world’s second-largest economy was seen by many as further evidence of the Sleeping Dragon’s unstoppable geopolitical re-awakening. Equally significant, however, is the recent standoff between the two countries over the disputed Diaoyu (Senkaku) Islands, which serves as a stark reminder of the regional difficulties China faces. The incident demonstrates the volatility that characterizes international relations in Asia as it experiences rapid and fundamental changes to its constellations of power and influence. To achieve global superpower status, China will first have to become not only a dominant, but also a […]

America’s top African diplomat recently signaled Washington’s desire to establish more official contacts with the autonomous region of Somaliland, which sits within the internationally recognized borders of the failed state known as Somalia. Meanwhile, both our Agency for International Development and the Pentagon’s recently established Africa Command worry about Sudan’s upcoming vote on formally splitting the country in two. For a country that has sworn off nation-building, it’s interesting to see just how hard it is for America to remain on the sidelines while globalization remaps so much of the developing world. Not that globalization causes changes that otherwise would […]

Reports last week suggested that China is considering investing in a large, 1,000-megawatt reactor in Pakistan, in addition to the two small reactors recently agreed upon by the two countries. If validated, the reports indicate that Chinese policymakers have given the go-ahead to a nuclear development plan prioritizing early export of indigenous large reactors, while simultaneously underlining Beijing’s willingness and ability to pursue a policy of nuclear exceptionalism in the subcontinent. The backstory on the reported deal dates back to 2004, when the smaller State Nuclear Power Technology Corporation (SNPTC) won a momentous decision from Chinese planners to proceed with […]

For almost 20 years, Indian development has been guided by the “Look East” policy, based on the premise that Asia holds the key to India’s economic and strategic future. The recent state visits by Indian President Pratibha Devisingh Patil to Laos and Cambodia, which yielded Indian offers of trade initiatives and cash loans, have demonstrated that, for New Delhi, an eastern orientation is still promising. Shifting its gaze northward, however, tends to leave India blinking uncomfortably in China’s reflected light. Admired but also feared, emulated but also repudiated, China can spoil the appeal of Asia’s opportunities for India. Economic ties […]