Economics & Business Archive

There’s a lot of trepidation mixed in with the joy of seeing one of the Arab world’s great dictators finally step down. With Americans being so down on themselves these days, many see more to fear than to celebrate. But on the whole, there’s no good reason for the pessimism on display, which is based on a lot of specious assumptions that need to be discarded. Here’s my Top 10 list. 1) Mubarak’s quick-exit scenario means this is Iran, 1979. Nonsense, with the key reasons being the deft play by the Egyptian military and its deep and long relationship with […]

A deadly clash between Thai and Cambodian troops along the border near the Preah Vihear temple has renewed long-running tension between the two Southeast Asian neighbors. The fresh conflict poses a serious threat to bilateral relations and could be exploited, especially in Thailand, in domestic leadership struggles. The dispute has also revealed the limitations of important organizations like the Association of South East Asian Nations (ASEAN). The recent confrontation claimed the lives of three Thai and five Cambodian soldiers, and according to local NGOs forced more than 25,000 people to flee their homes amid fears of further violence. Unconfirmed reports […]

KAMPALA, Uganda — When Ugandan President Yoweri Museveni seized power 25 years ago, he brought order to a nation that was reeling from two decades of crisis. After the terror-filled reigns of Idi Amin and Milton Obote, Museveni ushered in an era of relative prosperity. The West was quick to brand Uganda a rare “African success.” Praised for tackling HIV/AIDS, promoting women’s rights and pursuing growth through the Washington Consensus of fiscal discipline and free markets, Museveni gained acclaim as a “New African Leader”: a bush soldier turned democrat, poised to steer his continent in a new direction. But in […]

Observers of the uprisings in Egypt, Tunisia and other countries in the Arab world have focused with great excitement on the role played by new media, suggesting the events demonstrate the power of social networks to build a revolution. The rebellion, they say, was a uniquely 21st-century product of Twitter, Facebook and even Wikileaks. The reality, however, is much more complex. Many factors came into play to unleash the chain reaction that came crashing into Cairo’s Tahrir Square. Some of those factors are as new as the iPhone, others as old as the slingshot. But what made the long-simmering popular […]

For the third year running, China’s upcoming National People’s Congress will be dominated by political maneuvering and speculation over the 2012 leadership transition. With jockeying for post-2012 power an increasing focus of attention, the outgoing Hu-Wen administration has lost influence, effectively putting the government on lockdown at a time of critical economic and social change. As a result, Beijing has opted to flood the economy with new credit rather than engage necessary structural reforms, creating an increasing disparity between the country’s halting social progress and the image portrayed in government propaganda. Since Deng Xiaoping’s oft-cited instruction that China’s process of […]

Editor’s note: This is the second of a two-part series on the fall of Irish Prime Minister Brian Cowen’s government. Part I examined the domestic factors leading to the government’s collapse. Part II examines the impact of the EU/IMF bailout on Ireland and the European Union. After almost half a year of lurching from crisis to crisis, the government of Irish Prime Minister Brian Cowen finally fell last week. His fate was effectively sealed at the end of last year by Ireland’s $100 billion bailout by the European Central Bank (ECB) and the International Monetary Fund, the only question being […]

Editor’s note: This is the first of a two-part series on the fall of Irish Prime Minister Brian Cowen’s government. Part I examines the domestic factors leading to the government’s collapse. Part II will examine the impact of the EU/IMF bailout on Ireland and the European Union. DUBLIN — After months of lurching from crisis to crisis, the government of Ireland’s lame-duck Prime Minister Brian Cowen finally came to an end Tuesday, with new elections to be held Feb. 25. Whatever happens Cowen will not be returning as prime minister — he will not contest the election after having been […]

As the recession recedes, fuel prices have begun to soar across Latin America, confronting governments with the dilemma of how to balance fiscal demands with energy subsidies that are increasingly wreaking budgetary havoc, especially in the Andean nations. The Bolivian and Chilean governments’ recent efforts to confront that dilemma led to dramatic images of unrest, with protesters in both nations burning tires, throwing rocks and building barricades in response to announced policy changes. At the end of December, major cities across Bolivia erupted when President Evo Morales’ government decided to remove price controls that were artificially depressing fuel prices. The […]

India’s central bank, the Reserve Bank of India (RBI), announced in late December that it would no longer allow Indian importers to trade with Iran using the Asian Clearing Union (ACU), saying it wanted to explore an alternate means of facilitating trade-related payments. The move came as something of a surprise, even though the U.S. had been pushing India to take this measure for quite some time. For its part, Iran did not welcome the move and initially put the onus on India to find an alternative mechanism. Talks are currently underway to resolve the issue. Nevertheless, the episode has […]

Estonia has become the the 17th member of the Euro Zone despite the collective currency’s ongoing troubles. The Euro became official tender in the Baltic state after the country’s original cash, the kroon, was finally phased out over the weekend. Estonia is the first former Soviet state to adopt the Euro.

Indonesian President Susilo Bambang Yudhoyono just concluded a landmark visit to India, where he was the guest of honor at India’s 62nd Republic Day celebrations on Jan. 26. Ties between the two countries stretch back to India’s first Republic Day celebration in 1950, when Indonesia’s first president, Sukarno, was also the guest of honor. India had previously given unstinting support to Indonesia’s struggle for independence from the Dutch, convening a special U.N. conference on the subject in New Delhi in 1949 to further mobilize support. The two countries went on to become leading members of the Nonaligned Movement, founded in […]

Many observers of the Korean Peninsula have traced the apparent relaxation of tensions there to the supporting contributions made by China and the United States, with attention now focusing on the upcoming inter-Korean dialogue. But Russia’s role in this process also deserves mention, since Moscow can be a positive force regarding the Koreas. Throughout the past decade, under Presidents Vladimir Putin and Dmitry Medvedev, Russian government policy toward the Democratic People’s Republic of Korea (DPRK) and the Republic of Korea (ROK) has remained remarkably consistent, adhering to several key goals, strategies, and tactics. In the security realm, Russia’s objectives include […]