Economics & Business Archive

Editor’s note: This is the last of a five-part series examining security and development aid in East Africa. Part I provided an overview of the challenges facing East Africa. Part II examined the overlap between public health and security challenges. Part III examined the overlap between small-arms trafficking and WMD nonproliferation. Part IV examined the overlap between counterterrorism and efforts to contain criminal violence. Part V provides success stories for the security-development model and discusses next steps. In East Africa, pressing regional challenges — including the inability to detect and treat disease, the flow of illicit firearms across unsecured borders […]

Australia and Mongolia recently signed a number of agreements to increase bilateral business and educational cooperation. In an e-mail interview, Li Narangoa, a professor in the School of Culture, History and Language at the Australian National University, discussed Australia-Mongolia relations. WPR: What is the extent of existing trade between Australia and Mongolia? Li Narangoa: Trade between Australia and Mongolia has been small, with a total value of about $25 million in 2010. Though Australia and Mongolia established diplomatic relations in 1972, a serious trade relationship began only in the 1990s, when Mongolia introduced a democratic political system and free-market reforms. […]

Argentina is a medium-sized country of 41 million inhabitants and moderate global strategic and economic importance. The country’s foreign policy, defense policy and strategic priorities are driven primarily by the domestic political concerns of the country’s political leaders. In addition, the behavior of Argentine politicians is fundamentally guided by a pragmatic approach toward politics, within which political elites are far more concerned about the accumulation of power and the control of politically valuable financial and material resources than with ideology and specific policy goals. What’s more, the time-horizon of Argentine politicians is very limited, with a short-term perspective most commonly […]

The Russian government recently announced its goals for Russia’s rearmament, with a shopping list that includes 100 ships, 600 airplanes, and 1,000 helicopters over the course of the coming decade. Although these figures make for spectacular headlines, they give a misleading impression of the extent of Russia’s likely military buildup. First Deputy Defense Minister Vladimir Popovkin, who is in charge of arms procurement, confirmed that the Ministry of Defense (MOD) envisages spending roughly $650 billion from 2011-2020 for its new State Armaments Program (SAP), which also includes more than $100 billion for the other Russian security services outside the MOD. […]

Myanamar has opened with one of its biggest ever precious gem sales where the government will flaunt its ruby industry. However, the country won’t be showing off it’s virtual slave behind the business that brings in billions of dollars to prop up the country’s ruling junta.

The story reads like a spy novel. The setting is Kyrgyzstan. The U.S. government pays billions of dollars to a mysterious American businessman known to the public only as the owner of a burger-and-beer joint. His mission: grease the right wheels in order to purchase and transport large volumes of fuel for the U.S. military. Accusations that the Kyrgyz government took kickbacks from these shady deals lead to the toppling of its leader. The Russians, as top fuel suppliers in the region, get involved, followed by the Chinese. Relations among governments grow strained. Meanwhile, dogged journalists find that the mysterious […]

Brazilian Foreign Minister Antonio Patriota recently paid his country’s first high-level visit to Venezuela since the inauguration of Brazilian President Dilma Rousseff in January. In an e-mail interview, Kurt Weyland, professor of Latin American politics at the University of Texas at Austin, discussed Brazil-Venezuela relations. WPR: What is the recent history of Brazil-Venezuela relations? Kurt Weyland: Economic exchange between Brazil and Venezuela has intensified greatly in recent years, and political relations have been officially close, despite a divergence of interests beneath the surface. Brazil has taken great advantage of the oil-fueled boom that Venezuela experienced in the 2000s, selling increasing […]

With Indian newspapers still carrying obituaries of the country’s strategic doyen, K. Subhramanyam, who passed away in February after almost a half-century at the forefront of New Delhi’s strategic debates, it is worth considering the object of Subhramanyam’s concern during his final days: the implications for India of a proposed U.S.-China grand strategy agreement hammered out by a group of policy experts in Washington and Beijing. The document proposed a series of strategic compromises between China and the U.S., including a massive Chinese investment in the U.S. economy in return for an informal nonaggression pact, particularly with regard to the […]

A tense encounter on the South China Sea found a Philippine survey ship approached by two Chinese vessels, threatening to ram the survey ship. The area where the conflict happened contains large oil and mineral deposits and is claimed by many countries as their own. The Philippines is demanding an explanation from China over an incident.

The wave of popular uprisings sweeping throughout the Middle East may give new life to what Evgeny Morozov, in his just-released book, “The Net Delusion,” called the “Google doctrine”: the “fervent conviction that given enough gadgets, connectivity and foreign funding, dictatorships are doomed.” Morozov initially dismissed that doctrine last August, when it appeared that the Iranian government had decisively broken that country’s Green Movement. But his assertion that new information technologies can just as easily be used in the service of strengthening authoritarian regimes as in toppling them is now being challenged by pundits citing the role of YouTube, Facebook […]

BEIJING — An emerging consensus holds that domestic price bubbles and the high degree of nonperforming loans littered throughout China’s financial system represent imminent threats to China’s continued economic rise. However, doomsday evocations of a Chinese crash ignore the fact that, if and when a day of reckoning arrives, China may be able to use its sovereign wealth to engineer a soft landing, thereby avoiding the more-apocalyptic scenarios often predicted. Indeed, a controlled bust may even yield benefits by moderating subsequent growth, and many analysts remain bullish on China’s long-term fundamentals. This market sentiment has been buoyed by recent evidence […]

SULAIMANIYA, Iraq — Just a quick tour of the markets in any Kurdish city in northern Iraq is all that is needed to illustrate how far relations with Turkey, the once-hostile neighbor to the north, have come. Supermarket shelves are packed with Turkish goods, while new malls are flooded with Turkish brands. And many of the major business contracts, from airports to roads, go to Turkish companies. Turkey threatened Iraqi Kurdistan with an extensive military offensive just a couple of years ago, but the invasion that did occur was of a completely different nature. “I have to say that the […]

Historians will eventually gain a fuller understanding of the forces that propelled the 2011 Arab Rebellion and of the changes that made decades of pent-up anti-government rage explode at precisely this moment. But just two months into the still-spreading uprising, we already know some of the important factors motivating protesters. We have also seen the range of responses the protests have elicited from the various Middle Eastern governments facing mass calls for the end of their entrenched regimes. What we have learned so far suggests that the revolution, like a wildfire on wind-whipped dry brush, will continue to spread. And […]

Russia, Iran and Azerbaijan recently signed a series of railway agreements aimed at implementing the North-South Transport Corridor, including constructing rail links to connect the Iranian cities of Qazvin, Rasht and Astara. In an e-mail interview, Taleh Ziyadov, a doctoral fellow at Cambridge University, and Regine A. Spector, a visiting research fellow at the Woodrow Wilson Center’s Kennan Institute, discussed transport cooperation among Russia, Iran and Azerbaijan. WPR: How extensive are the existing transportation links among the three countries? Taleh Ziyadov and Regine A. Spector: Azerbaijan and Russia are connected by railroad and by a recently constructed modern highway linking […]

A recent visit to China by Kazakh President Nursultan Nazarbayev resulted in deals that further expanded China’s extensive energy and infrastructure investments in the Central Asian country. In an e-mail interview, Niklas Swanström — director of the Institute for Security and Development Policy and executive director of ISDP’s Central Asia-Caucasus Institute and its Silk Road Studies Program — discussed China-Kazakhstan relations. WPR: What is driving the recent expansion of China-Kazakhstan trade relations, on both sides? Niklas Swanström: The most obvious factor behind the expansion is China’s willingness and ability to invest in economies in the region, particularly in energy-rich Kazakhstan. […]

Last week’s nationwide protests by Bolivian bus drivers were the latest in a series of demonstrations that have become a massive administrative and political headache for Bolivian President Evo Morales. Bolivians have developed a growing list of grievances against the beleaguered leader and are taking them to the streets — as well as to the mines and railways — across the country with greater frequency in 2011. Since winning re-election by a landslide in December 2009, Morales has been under mounting pressure from both ends of the spectrum of Bolivian society — the wealthier elites in the east and the […]

With the Russian government having assumed an increasingly aggressive posture regarding the country’s territorial dispute with Japan in recent months, the question naturally arises, Why? Senior Russian leaders, including President Dmitry Medvedev and Defense Minister Anatoly Serdyukov, have broken with precedent and visited what the Russians call the Southern Kurils and what the Japanese label their Northern Territories. The Russian government has also announced plans to enhance the islands’ socio-economic development and defenses. The escalating crisis led the counselor for European Affairs at the Japanese Foreign Ministry to characterize the Russian-Japanese relationship last week as being at its lowest point […]