Economics & Business Archive

This is the second of a two-part series examining diversification efforts by Latin American drug-trafficking networks. Part I examined the FARC’s illegal gold-mining operations in Colombia. Part II examines Mexican drug traffickers’ use of oil-tapping to generate revenues. Mexico’s crime syndicates are well-known as exporters of heroin, marijuana and methamphetamines, importers of firearms, and perpetrators of violence. Their business has produced bloody internecine turf wars, with rival gangs battling it out for control over distribution routes mainly within the drug-producing states of northern Mexico. But over the past five years the drug trade has been squeezed between the pincers of […]

Greece again ruled out restructuring its sovereign debt after experts from the EU and International Monetary Fund met with government officials to review its economic reforms on Wednesday.

This is the first of a two-part series examining diversification efforts by Latin American drug-trafficking networks. Part I examines the FARC’s illegal gold-mining operations in Colombia. Part II will examine Mexican drug traffickers’ use of oil-tapping to generate revenues. For more than 40 years, the Revolutionary Armed Forces of Colombia, or FARC, has waged a bloody war against the Colombian government, financed largely through cocaine trafficking. Over the past decade, as the Colombian government marshaled U.S. military assistance to greater effect, the FARC has seen its guerilla ranks diminished by about half. Meanwhile, coca eradication programs in the Colombian countryside […]

The United States spends around $40 billion to $50 billion per year to protect the free flow of oil from the Persian Gulf to the global economy, more than the entire defense budgets of all but a few countries. China, by comparison, spends virtually nothing on Gulf security, while pursuing its strategy of building political and economic relations with oil-rich countries in order to secure oil for its growing economy. This is nowhere more apparent than in China’s relations with Saudi Arabia, the world’s biggest oil power. Beijing’s focus on the Persian Gulf began in earnest in 1978, when it […]

According to documents made public by WikiLeaks, improving ties between Russia and Norway have caused strain within NATO. In an email interview, Pavel K. Baev, a research professor at the Peace Research Institute Oslo, discussed Russia-Norway relations. WPR: What is the recent history of Russia-Norway relations? Pavel K. Baev: The post-Soviet history of Russian-Norwegian relations is by no means problem-free. The long list of incidents and grievances includes spy scandals, arrests — and subsequent dramatic escapes — of trawlers for overfishing, the radar at Vardø administered by the Norwegian Intelligence Service, and Russia’s failed test of a Bulava missile that […]

Many Western observers hope that India’s growth as a global power will both balance China’s rise and ensure that rise remains peaceful. Indeed, the U.S. has identified India as a crucial partner for the coming century, and as part of its effort to cultivate a strategic partnership with New Delhi, Washington has even pledged to help India develop its nuclear energy capabilities. But the continued disappearance of India’s women and girls described in preliminary census figures released last week is putting the future of India’s security partnership with the West at risk. According to the census figures, the sex ratio […]

On Sunday, Guido Westerwelle announced his resignation as German vice chancellor and leader of the Free Democratic Party (FDP), the junior partner in Chancellor Angela Merkel’s coalition government. Endless disputes had already bogged down Merkel’s second administration even before it stumbled in its response to Japan’s tsunami-triggered nuclear crisis and its vote on the U.N. resolution imposing a no-fly zone over Libya. Last week, however, the bill came due, and the coalition was trounced in two crucial state elections. Since then, with the FDP in open revolt, the coalition government has been in utter chaos, and the fate of its […]

Canada and Japan announced in February that they were formally studying the possibility of concluding a bilateral free trade agreement. In an email interview, Carin Holroyd, a political science professor at the University of Waterloo, discussed economic relations between Canada and Japan. WPR: What is the current state of trade relations between Japan and Canada? Carin Holroyd: Trade between Canada and Japan looks, in many ways, as it has for decades. Canada sells about $9 billion annually of primarily resource products — coal, canola, lumber, copper, pulp and paper, aluminum, wheat, meat and fish — to Japan. In return, Canada […]

Africa’s longstanding position as the forgotten continent is rapidly being transformed. At the heart of this dramatic change is the rise of economic giants in the developing world — China, India and Brazil, in particular — whose state-owned enterprises and private companies, acting in combination with assertive diplomacy, have forged a growing partnership with Africa. Under the rubric of “South-South cooperation,” these emerging powers have made significant inroads into Western economic and political dominance on the continent. While the media has tended to focus on the dislocating effect that competitive emerging powers have had on key sectors of African economies […]

With energy market observers focused on the Middle Eastern uprisings and the Japanese catastrophe, the entrance on March 21 of the German company Wintershall into the consortium backing the South Stream pipeline came as a great surprise. Inaugurated in 2007 as a 50-50 joint venture between Russian giant Gazprom and Italy’s ENI, the project aims to transport up to 63 billion cubic meters (bcm) of natural gas per year from the eastern shore of the Black Sea to the consuming markets of Eastern, Central and Southern Europe. According to the memorandum of understanding signed in Moscow, Wintershall will acquire a […]

The notion that the underlying distribution of global power is shifting from West to East and from North to South is not new. For more than a decade, astute observers have noted that countries like China, Brazil and India, among others, were consistently posting impressive economic growth rates and closing the gap separating them from the advanced industrial economies. Yet, even as the reality of their economic rise was impossible to dispute, the structures of global financial governance did not adapt to reflect these changes. Of course, this is not surprising, as international institutions are notoriously resistant to reform. As […]

As recently as a decade ago, Latin America’s economic future looked dim, as highlighted by a number of events in December 2001. That month, Argentina’s economy crashed; amid massive street protests, four Argentine presidents resigned in less than two weeks, with one presiding just long enough to officially declare the largest sovereign debt default in history. Brazil and Uruguay reeled from their neighbor’s meltdown, while other countries in the region braced for capital flight by panicky investors. In addition to Argentina’s collapse, a looming threat from the East was the cause of further foreboding: On Dec. 10, 2001, the People’s […]

The rampant globalization meme of the 1990s was that the state would wither away, leaving nonstate actors to rule — or ruin — the world. The terror attacks of Sept. 11 seemed to confirm this notion, triggering all manner of academic fantasies that a proliferation of super-empowered individuals would overwhelm the world’s declining and failing states. But when globalization’s alleged coup de grâce arrived in the form of the 2008 global financial crisis, not only did the world not slide into widespread conflict, as so many anti-globalization hysterics predicted, but the state made quite the comeback. Nowadays, if globalization suffers […]

Japan recently arrested a South Korean crab fisherman for operating illegally not far from group of islands claimed by both countries. In an email interview, Min Gyo Koo, an expert in East Asian island disputes at Seoul National University, discussed the territorial dispute between Japan and South Korea. WPR: Briefly, what is the history of the territorial dispute between Japan and South Korea? Min Gyo Koo: The disputed islands known as Dokdo in Korea and as Takeshima in Japan are de facto controlled by South Korea, but Japan does not recognize South Korea’s de jure sovereignty. Japan’s fundamental legal claim […]

U.S. President Barack Obama’s decision to carry on with a trip to Latin America even as he was launching a military campaign in Libya is a testament to that region’s rising global profile. In Brazil, Peru and Colombia, pragmatic new leaders are attempting to lock in the domestic gains of their predecessors. Others are stumbling, with Mexico still seized by a bloody fight with drug trafficking and the leaders of Ecuador and Bolivia facing a loss of popular support. In this special report, World Politics Review examines the emerging shape of Latin America through articles published in the past six […]

A number of recent overtures by Colombian President Juan Manuel Santos toward China have caused concern in Washington and put pressure on Congress to finally pass the free trade agreement (FTA) with Colombia. Although this is probably Santos’ intention, the highly publicized moves should actually be understood in the context of his broader efforts to diversify Colombia’s foreign policy posture. In September 2010, one month after his inauguration, Santos accepted $1 million in aid from China to be used to acquire Chinese logistical military equipment. The Chinese government also invited several senior military officers to participate in training courses in […]