Economics & Business Archive

Editor’s note: The following article is one of 30 that we’ve selected from our archives to celebrate World Politics Review’s 15th anniversary. You can find the full collection here. Globalization holds out the prospect that the world might become a single place, but the resulting integration is often perceived as increased sameness through new information technologies and the spread of consumer culture. In this vision, whether defined as cultural imperialism, Americanization, or the triumph of market capitalism, global culture tends to be seen as an imposed uniformity and the demise of local cultures. Globalization becomes the arch destroyer of long-sedimented traditions […]

Editor’s note: The following article is one of 30 that we’ve selected from our archives to celebrate World Politics Review’s 15th anniversary. You can find the full collection here. "I think many of our problems as a country would be solved if people had thick passports." — Matt Damon, Condé Nast Traveler, 2009. Tourism is as much a political terrain as a cultural practice. It has been promoted as a route to economic development for poor nations and wielded as an instrument of political leverage between nations — as the U.S. embargo against travel to Cuba or the recent easing of […]

Last week, China and Russia announced they will no longer use the dollar to conduct their bilateral trade, but instead will use their domestic currencies, the yuan and ruble, to do so. Some doomsayers have depicted this move as yet another sign of the dollar’s imminent decline and claim it threatens the greenback’s status as the pre-eminent reserve currency. But a closer examination suggests the deal will have more of a symbolic impact than any tangible economic or geopolitical effects. Since 1992, self-imposed restrictions have been in place requiring that trade between China and Russia be conducted in dollars, a […]

History tells us that, when a rising great power approaches the standing of the dominant system-shaping great power, conflict is inevitable, either directly or in such regions where their two spheres of influence intersect. The great counterexample is the acceptance by a “rising” America of the late-19th century of Great Britain’s implicit offer of a “special relationship,” which allowed the latter to punch above its weight throughout the 20th century. That alliance was subsequently forged in opposition to common enemies: first the Kaiser and then Nazi Germany, followed by the Soviet Union. China and the United States have no such […]

On Nov. 18, for the first time since their October 2007 summit in Tehran, the leaders of the five Caspian Sea littoral states — Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan — gathered in Baku to discuss issues including maritime-border delimitation, security and environmental protection. Despite a dramatically changed regional situation since the last summit, the Baku meeting nevertheless produced little in terms of substantive outcomes. But recent trends point to future breakthroughs. What has changed since the Tehran summit? Washington and Moscow have achieved a warming in relations, with burgeoning bilateral cooperation on Iran and Afghanistan in particular. To avoid […]

After more than 26 years of autocratic rule, a tumultuous and at times brutally violent post-coup era, and a fraught electoral period, the people of Guinea were entitled to some time to celebrate the fact that a civilian had finally been elected president. But in an indication of the deep-seated animosity, fears and mistrust that have led the bauxite-rich West African nation to the brink of disaster time and time again, the Nov. 15 announcement that veteran opposition leader Alpha Condé had won the second-round run-off election was accompanied by ethnic riots, mass arrests and killings at the hand of […]

Many observers expected late-2010 to be the moment of truth for what the European Union calls its “Southern Corridor”: a gas-transit route to Southern and Southeastern Europe regarded as a political priority by the EU and some Central and Eastern European countries, eager to reduce their dependence on Russian gas in their energy-supply mix. Since at least 2007, there has been fierce competition between two rival pipeline projects seeking to transport gas supplies from the Caspian basin and grab market shares in these profitable downstream outlets: Nabucco, backed by the EU and the United States; and South Stream, a joint […]

Heading into the G-20 summit in Seoul last week, tensions were visibly high between the U.S. and China, the world’s top-two economies. Washington’s demands that China allow its currency, the yuan, to appreciate were met with criticisms from Beijing about the Fed’s inflationary monetary policy. At the heart of the argument lay global current account imbalances, largely a consequence of the sizeable U.S. trade deficit with China. By the close of the summit, the U.S. delegation succeeded in getting the Chinese to acknowledge that these imbalances were problematic for the global economy, but failed in getting them to do anything […]

By calling the Chinese out explicitly on their currency manipulation in his concluding address to the G-20 summit last week, President Barack Obama may have torpedoed his relationship with Beijing for the remainder of what China’s bosses most certainly now hope is his first and only term. Burdened by a Republican-controlled, Tea Party-infused House, and bathed in hypocrisy thanks to the Fed’s own, just-announced currency manipulation (aka, QE2), Obama seems not to recognize either the gravity of his nation’s long-term economic situation or the degree to which his own political fate now hinges on his administration’s increasingly stormy ties with […]

Egyptians like to say that their country is Umm al Dunya, or “the Mother of the World,” and that, as the crucible of a great civilization dating back 7,000 years, its natural place is among both regional and global powers. In many ways, the boast is entirely accurate. By dint of its history, geography, and demography, Egypt has played a central role in Middle East politics and security policy since World War I. Successive global powers such as Great Britain, the Soviet Union and, most recently, the United States have come to regard Egypt as an indispensable asset for achieving […]

It is unfortunate that President Barack Obama’s visit to Asia as well as the G-20 summit in Seoul took place in the aftermath of what he himself termed a “shellacking” in the midterm elections — an electoral rebuke delivered in part because Americans believe that the Democrats have not delivered on their promises of economic security. The trip could have been used to project the message that the United States is prepared to take the lead in the global community of nations. As Secretary of State Clinton put it back in September, “[T]he United States can, must and will lead […]

Turkey has become increasingly assertive in the Western Balkans in recent years, with Prime Minister Recep Tayyip Erdogan saying only last week that his country would be happy to mediate in bilateral talks between Kosovo and Serbia. While Turkish involvement in the region is welcomed in many quarters, some say Ankara may be overplaying its hand. Turkey’s ambitious vision for the region, which the Turkish Ottoman empire held sway over for centuries, is no secret. “The Ottoman centuries of the Balkans were success stories,” said Turkish Foreign Minister Ahmet Davutoglu on a visit to Sarajevo in October last year. “Now […]

South Korea is set to host the G-20 leaders’ summit in Seoul on Thursday and Friday, the fifth such gathering since the onset of the global financial crisis. While past summits have focused on coordinated stimulus, global financial regulation and reform of the major international financial institutions, this week’s meeting is gearing up to be known as the “trade and currency summit.” It is also likely to be more tense and contentious than any of its predecessors, whether leaders admit it publicly or not. This is especially true when it comes to the ongoing economic prize-fight between the G-20’s two […]

On the morning of Jan. 1, 2009, Russia’s state-owned gas-export monopoly Gazprom halted natural gas deliveries to Ukraine. Gazprom blamed the disruption on Kiev’s refusal to pay its debts on past deliveries and its unwillingness to accept an increase in its gas prices. Although Gazprom continued to transit gas through Ukraine for delivery to other European countries, by Jan. 5, five European Union (EU) member states, including Poland, Hungary and Romania, had announced that they were experiencing gas-supply disruptions. On Jan. 7, Russia shut off all gas deliveries through Ukraine, accusing Kiev of siphoning off gas destined for Europe to […]

The rapid economic growth of the People’s Republic of China has fueled a demand for energy that has now outstripped domestic sources of supply. As a result, China can no longer sustain its economic expansion without importing massive quantities of energy. To compensate for the projected underproduction of domestic energy sources as well as further increases in anticipated energy consumption, the Chinese government has pursued a subtle energy security strategy that includes three major components: first, reforming the domestic energy sector to maximize production and attract foreign direct investment; second, expanding China’s energy mix to reduce the nation’s dependency on […]

For much of the last half-century, the U.S. has failed to engage the nations of resource-wealthy Latin America in any strategic manner. This lack of attention to our closest neighbors, and some of our strongest allies, is dangerously short-sighted given U.S. dependence on Latin America as a source for our energy. Currently, more than one-fourth of America’s imported oil comes from Latin America, which is estimated to hold 13.5 percent of the world’s proven oil reserves. In 2009, the U.S. imported 11 percent of its crude oil from Mexico, 9 percent from Venezuela, 3 percent from Brazil and 2 percent […]

BEIJING — Forty years after the establishment of modern diplomatic ties between Italy and China, Rome has become one of Beijing’s most-trusted partners in Western Europe. Following recent high-level talks in both capitals, the two countries have enhanced cooperation in a range of areas. With China keen to increase its influence in the Eastern Mediterranean and Italy in desperate need of fresh economic impetus, the potential benefits to both sides could be significant. In contrast to China’s engagement with resource-rich and emerging nations, its interest in Italy is motivated by the Mediterranean country’s geographic advantages and advanced technological capabilities. Since […]