Economics & Business Archive

Mayor of London Boris Johnson says Greece should be allowed to default on its loans.

Sudan and Ethiopia recently reached a initial agreement to explore and develop mineral resources along their shared border. In an email interview, David Shinn, a former U.S. ambassador to Ethiopia and a current adjunct professor of international relations at George Washington University, discussed Ethiopia-Sudan relations. WPR: What is the recent history of relations between Ethiopia and Sudan? David Shinn: Ethiopia and Sudan have a long history of alternating periods of conflict and cooperation. Following the outbreak of war between Eritrea and Ethiopia in 1998, Ethiopia’s relationship with Sudan shifted from hostile to cordial as Ethiopia sought to ensure peace on […]

The Shanghai Cooperation Organization (SCO) celebrated its 10th anniversary last week, with the leaders of its six member states gathering in Astana, Kazakhstan, for the occasion. In addition to assessing the achievements of the organization’s first decade, SCO leaders also considered the applications of Pakistan, India, Mongolia and Iran for full membership. There are now increasing indications that India and Pakistan might be admitted, although not before next year. Nevertheless, admission of these two nations could alter the mission and global relevance of the SCO as a regional multilateral organization. The SCO was initially created as a security pact to […]

It is tempting to view the Obama administration’s new cyber strategy as the creation of yet another “conflict domain” to worry about in U.S. national security. Thus, in our enduring habit of piling new fears on top of old ones — nuclear proliferation, terror, rising powers and failed states, among others — we imagine yet another vulnerability/threat/enemy to address with buckets of money. In truth, the strategy document is just our government finally acknowledging that, as usual, any fruitful international dialogue on this subject awaits the first move by the system’s most advanced military power. The same stalemate exists in […]

A steady stream of leaks suggests that, at the very least, a “soft” Greek sovereign debt default is now inevitable. And if Greece defaults, it is very likely that Portugal and Ireland might be forced to do so as well. But curiously enough, that scenario no longer seems to be as apocalyptic as it did even several weeks ago. Part of that is because the European Union, for all the flaws of its response to the debt crisis, has bought much-needed time, and is likely to buy a bit more, to allow European banks to begin cleaning up their balance […]

On June 1, Brazil approved the construction of the controversial Belo Monte dam, a hydroelectric project in the Amazon rain forest. In an email interview, Kathryn Hochstetler, the CIGI Chair of Governance in the Americas at the University of Waterloo‘s Balsillie School of International Affairs, discussed the Belo Monte dam. WPR: What is the background of the Belo Monte hydroelectric dam project, and what are the opposing arguments for and against the dam? Kathryn Hochstetler: The dam was first proposed in the 1970s, but it was set aside when World Bank funding was withdrawn in the face of widespread popular […]

Chile and Brazil have both been in the news in recent weeks due to massive and controversial hydroelectric projects that have provoked heated debates and large-scale protests. Both countries are struggling with the delicate issue of how to balance the need for increased energy supplies to fuel modernizing and booming economies, with important environmental concerns in cherished parts of each country — the Amazon in Brazil and Patagonia in Chile. Like most people in emerging economies, Brazilians and Chileans are unwilling to renounce a modern lifestyle that increasingly demands access to reliable and affordable energy supplies. But the controversy surrounding […]

Saudi Arabia’s recent announcement that it plans to build 16 large reactors by 2030 may have seemed incongruous in the wake of the Fukushima crisis. In fact, it actually buttresses the Middle East’s current trajectory as a major future market for nuclear energy and underscores the continuing attractiveness of nuclear power for industrially underdeveloped economies. Moreover, given the sheer size of the plan — well more than $100 billion will go to the reactors alone — Riyadh is in a position to set terms and use the project to enhance new partnerships while balancing old ones. The kingdom’s interest in […]

Protestors opposed to austerity measures imposed by the Spanish government have been camping out in Madrid for the past few weeks. In an email interview, José M. Magone, a professor at the Berlin School of Economics and Law and the author of “Contemporary Spanish Politics,” discussed the protests in Spain. WPR: What is the driving force behind the current protests in Spain? José M. Magone: The driving force behind the protests is a general feeling of outrage on the part of the younger generation, as well as other groups that are suffering under the Spanish government’s harsh austerity program. It […]

After almost two years of intensive lobbying by New Delhi, the Nuclear Suppliers Group (NSG) — the global watchdog of the sensitive nuclear trade — is finally considering India for membership. The issue has been incorporated as a special agenda item for discussion in the NSG plenary meeting scheduled for late June. The major member states, including the U.S., Germany, France and Britain, have all indicated their support for India’s candidacy. India’s quest for NSG membership raises serious questions for the nuclear nonproliferation regime, however. According to criteria set by the NSG, only signatories to the Nuclear Non-Proliferation Treaty (NPT) […]

Chinese factories are struggling as the export growth-rate slows down. Tough domestic conditions are also hitting their profits. They are facing high borrowing costs and high inflation. And this summer power is in short supply, with blackouts frequently interrupting their operations.

Vietnam’s live-fire naval exercises this week may signal a new stage of regional tension over disputed areas of the potentially oil- and gas-rich South China Sea. At a minimum, says Abraham Denmark, a senior adviser at the Center for Naval Analysis in Washington and a World Politics Review contributor, the exercises were designed to send a message to China, which in recent months has become more assertive in its claims of sovereignty over the sea. “It’s fairly clear that Vietnam is signaling its resolve to China that they’re not going to back down on disputed claims in the South China […]

Kenya and Ethiopia recently agreed to boost security along their shared border following deadly cross-border raids in May. In an email interview, Edmond J. Keller, chair of the Department of Political Science at the University of California, Los Angeles,* discussed Kenya-Ethiopia border security. WPR: What are the main areas of concern with regard to the Ethiopia-Kenya border? Edmond J. Keller: The border between Ethiopia and Kenya is more than 500 miles long and rests in very remote and underdeveloped parts of both countries. On the Kenya side, elements of the Turkana cattle herders are the population; on the Ethiopia side, […]

Russian Foreign Minister Sergei Lavrov visited Iraq in May to discuss investments in Iraqi energy projects, among other issues. In an email interview, Marat Terterov, director and principal founder of the European Geopolitical Forum in Brussels, discussed Russia-Iraq relations. WPR: What is the recent history of Iraq-Russia relations? Marat Terterov: Russia, along with France, was one of Iraq’s closer allies during the 1990s, when Baghdad was heavily isolated and subject to U.N. sanctions. Moscow frequently lent diplomatic support to Baghdad during this period, pushing for the lifting of the oil embargo against Iraq and condemning occasional U.S. and U.K. airstrikes […]

Russia is building the world’s first floating nuclear power plant for mass production. The plant is designed to create enough electricity for 45,000 people and will have the added ability to purify sea water into fresh water.

Protests have broken out in Belarus after the government made it illegal to export cheese, butter, macaroni and several other food products. The authoritarian regime has also prevented the export of refrigerators, kitchen stoves and gasoline.

It has been nearly two decades since the international community first focused significant attention on the private military firm as an important actor in conflict. Although quasi-firms and groups of individuals had operated in conflict zones before, a series of high-profile interventions by private military firms in the 1990s served as a watershed moment for the private security industry. In particular, the positive changes to the security environment brought about by private military firms in Angola (1992-1995), Sierra Leone (1995-1999) and Croatia (1994-1996), combined with newfound claims for the firms’ legitimacy as security actors, made the world sit up and […]