Economics & Business Archive

China has signed a series of currency swap agreements since 2008, most recently with New Zealand and Uzbekistan. In an email interview, Daniel McDowell, a doctoral candidate in International Relations at the University of Virginia specializing in International Political Economy, discussed China’s currency swap agreements. WPR: Why is China pursuing currency swap agreements? Daniel McDowell: There are two reasons for these agreements. First, China is concerned about dependence on the U.S. dollar, which is used to settle about half of the world’s international trade transactions. When China accepts payment in dollars, it uses some to buy foreign goods and invests […]

Under pressure from the Gulf Cooperation Council (GCC), the Arab League has indefinitely postponed a planned summit meeting in Baghdad. In an email interview, Sean Foley, a Fulbright scholar at the International Institute of Islamic Thought and Civilization in Kuala Lumpur and author of “The Arab Gulf States: Beyond Oil and Islam,” discussed Iraq-GCC relations. WPR: What has been the state of relations between post-Saddam Iraq and the GCC? Sean Foley: While both Iraq and the Gulf Cooperation Council (GCC) countries are energy-producing states allied with Washington, they have poor diplomatic relations. Shiite Arabs dominate Iraq and have close ties […]

This report by the Russian government-owned news station Russia Today focuses on predictions toward the end of American global economic dominance. The report includes soundbites from Francis Fukuyama and highlights an International Monetary Fund forecast that, after more than a century as the world’s largest economy, the U.S. will be usurped by China as early as 2016.

After a long and complicated legal battle, Colombian authorities have decided to extradite Venezuelan national Walid Makled to Venezuela to face murder and drug-trafficking charges in his native country, rather than in a U.S. court in Manhattan, where he is also wanted on drug-trafficking charges. Though the decision to send Makled to Venezuela appears to be final, the political implications of his extradition from Colombia — where he was arrested in August 2010 — have just begun to ripple around the region and in Washington. The controversy surrounding Makled, suspected of being one of the region’s most powerful brokers in […]

Earlier this month, voters in Iceland rejected for the second time a referendum that would have implemented a plan to repay the U.K. and the Netherlands for losses stemming from the collapse of Iceland’s banking industry. In an email interview, Fridrik Mar Baldursson, professor of economics at the Reykjavik University School of Business, discussed the Icesave crisis. WPR: What is the background of the Icesave crisis? Fridrik Mar Baldursson: Before the financial crisis, foreign branches of Landsbanki, one of Iceland’s failed banks, collected deposits in Internet savings accounts in the U.K. and the Netherlands marketed under the “Icesave” brand. When […]

Indian Prime Minister Manmohan Singh’s April 15-16 visit to Kazakhstan marked an important step forward in India’s ties with the rising Central Asian nation. Relations between the two countries have gained momentum since January 2009, when Kazakh President Nursultan Nazarbayev was the chief guest at India’s Republic Day celebrations. India and Kazakhstan established diplomatic relations in February 1992, with then-Indian Prime Minister Narasimha Rao paying a visit to Kazakhstan in 1993. Prior to his 2009 visit, Nazarbayev had visited India in 1996 and 2002. In a positive development, Singh and Nazarbayev signed a “Joint Action Plan” on furthering the strategic […]

Ukrainian Prime Minister Mykola Azarov recently met with Chinese Premier Hu Jintao in Beijing, where the two pledged to increase trade and strategic cooperation. In an email interview, Florent Parmentier, an academic adviser and lecturer at Sciences Po, discussed China-Ukraine relations. WPR: What is the extent of diplomatic and trade relations between China and Ukraine? Florent Parmentier: Ukraine’s interest in China is relatively new, and vice versa: The boom in trade dates back only to 2008. Yulia Tymoshenko, then prime minister of Ukraine, was the first to develop connections with Chinese leaders and notably met with Chinese Vice Premier Zhang […]

Representing around 40 percent of the world’s population and nearly a quarter of its economic output, Brazil, Russia, India, China and South Africa — the so-called BRICS countries — came together last week for a leaders summit to show off their growing global heft. The joint statement produced by the one-day meeting on China’s southern resort island of Hainan underscored the need for a realignment of the post-World War II global order based on the untrammelled supremacy of the U.S. The governing structure of international financial institutions, the statement said, “should reflect the changes in the world economy, increasing the […]

Vietnam’s defense minister traveled to China last week to meet with the vice chairman of China’s Central Military Commission, and the two countries signed a series of bilateral economic agreements later in the week. In an email interview, Brantly Womack, a professor of politics at the University of Virginia and author of “China and Vietnam: The Politics of Asymmetry,” discussed China-Vietnam relations. WPR: What is the current state of China-Vietnam relations? Brantly Womack: In the past 50 years China and Vietnam have been both bosom buddies and implacable enemies, which would suggest that the relationship is unstable. But China has […]

In the glare of global anticipation, and despite a botched first attempt, Nigeria conducted presidential and national assembly elections that have been largely viewed by domestic and international observers as fair and free. This is a significant achievement compared to the last three marred attempts. But deadly post-election riots in the north have cast a shadow over the balloting. Late on Monday, Attahiru Jega, head of the Independent National Election Commission (INEC), declared incumbent President Goodluck Jonathan the winner after he received 22.5 million votes and more than 25 percent of the vote in more than 24 of the country’s […]

The head of India’s navy, Adm. Nirmal Verma, recently met with senior military and civilian officials in Bangladesh, including Prime Minister Sheikh Hasina and President Mohammed Zillur. In an email interview, Sreeradha Datta, a research fellow at the Institute for Defense Studies and Analysis in New Delhi, discussed India-Bangladesh relations. WPR: What is the recent history of India-Bangladesh relations? Sreeradha Datta: Although they began as friends following Bangladesh’s independence, India and Bangladesh quickly lapsed into indifferent if not hostile and antagonistic relations. The worst phase in bilateral ties occurred from 2001-2006. The two subsequently emerged again as friendly and supportive […]

After visiting the site of the Chernobyl nuclear disaster on Wednesday, U.N. Secretary-General Ban Ki-moon spoke at a conference in Kyiv as a part of the international Nuclear Safety Summit. He warned that the world is becoming increasingly vulnerable to nuclear disaster.

Kyrgyzstan recently moved to open membership negotiations with the customs union formed by Russia, Kazakhstan and Belarus in mid-2010. In an email interview, Alexander Libman, a professor of international political economy at the Frankfurt School of Management and Finance, discussed the prospect of the customs union’s expansion. WPR: What are benefits of the customs union for Russia and the other countries that have joined? Alexander Libman: The three countries in the customs union (CU) — Russia, Belarus and Kazakhstan — exhibit a relatively high level of economic interconnection, partly inherited from their Soviet past and partly created anew through the […]

BEIJING — Much has been written about China’s huge investment in alternative energy sources. China spends twice as much as the U.S. on clean energy, and critics of U.S. energy policy have claimed that Beijing is “steaming ahead” in the field. Beneath the headline figures, however, a more complex picture emerges, in which China is struggling to translate capital investment into tangible benefits. To begin with, it is worth noting that the reason for China’s superior spending on alternative energy is that its energy needs are far more acute than those of the U.S. and other major economies. China is […]

The International Monetary Fund has proposed that it be allowed to borrow directly from financial markets in order to raise capital for its lending programs. In an email interview, Daniel McDowell, a doctoral student at the University of Virginia and an expert in international lending practices, discussed the IMF’s proposal. WPR: Why is the IMF seeking the ability to borrow directly from financial markets? Daniel McDowell: The IMF wants to be a fully capable international lender of last resort (ILOLR). Simply put, an ILOLR is an actor that is willing and able to provide credit during crises to solvent but […]

The signals emanating from the mini-summit between Indian Prime Minister Manmohan Singh and Chinese President Hu Jintao, held on the sidelines of the recently concluded BRICS conference in Hainan, China, were largely positive. The leaders both showed an interest in arresting the downward slide in bilateral relations that had lately touched a low. Ties between the two Asian neighbors have been bedeviled by the infiltration of Chinese soldiers into Arunachal Pradesh, China’s intrusion into some areas of Pakistan-occupied Kashmir and Beijing’s issuance of stapled visas to residents of Jammu and Kashmir entering China. Piqued by these developments, India had suspended […]

Although events in the Middle East confirm that the power of an angry crowd in a public square remains potent, the Internet is fast becoming the medium of choice for spreading political ideas. The number of global Internet users has doubled during the past five years, and now exceeds 2 billion people. In response, governments worldwide are seeking new means to influence and often control this discourse. Freedom House’s newly released report, “Freedom on the Net 2011: A Global Assessment of Internet and Digital Media” (.pdf), shows how governments have employed deviously creative tactics to control Web sites, blogs and […]