Economics & Business Archive

The reaction in much of the Western press to Russian Prime Minister Vladimir Putin’s proposal of a Eurasian Union at the beginning of October was more or less predictable to longtime Russia watchers. Familiar accusations of Russian neo-imperialism and wild claims about a “new Soviet Union” abounded, feeding into a general narrative of Russia as a looming threat that must be contained. These fears are premature, to say the least. As Richard Weitz pointed out in his WPR column last week, the idea of some form of overarching supranational organization for the post-Soviet states has been a hallmark of Russian […]

China-Russia relations took another step forward during Prime Minister Vladimir Putin’s visit to Beijing last week. With the Arab Spring throwing the two governments into an unexpected alliance at the United Nations this year, the visit marked the continuation of attempts to build a deeper and less volatile bilateral relationship. The two sides signed off on trade deals worth $7 billion, demonstrating a tangible effort to move beyond energy-based economic ties, while Putin suggested a greater focus on China for the Kremlin’s foreign policy after the recent period of rapprochement with the U.S. This suggests that, although mistrust and suspicion […]

Zimbabwe is moving ahead with a new “indigenisation” law, known as the National Community Trust, which will force foreign companies to hand 51 per cent of shares to black Zimbabweans.

Thirty years of globalization has propelled widespread economic growth across Southeast Asia. In recent decades, the number of people in the region living on less than $1.25 a day has dropped by half. Yet, these positive development trends are accompanied by a darker side of globalization: trafficking in drugs and small arms, piracy, human smuggling, the marketing of counterfeit goods and nuclear proliferation. The size and scope of these challenges threaten to undercut the remarkable gains of the past quarter-century. Preserving those gains will require collaboration between Southeast Asian governments, the identification of novel streams of security and development assistance […]

The strategic partnership agreement signed by Afghan President Hamid Karzai and Indian Prime Minister Manmohan Singh in New Delhi last week made front-page news across the region and beyond. The attention it attracted is hardly surprising: The agreement, the first of its kind for Afghanistan, includes the provision of training for Afghanistan’s military and police, the establishment of social and cultural exchanges, and measures to enhance economic ties. It also comes in the context of increasing tensions between Afghanistan and Pakistan. A day prior to the announcement, Karzai harshly criticized Islamabad for not supporting ongoing peace and stability operations in […]

In a move that signals India’s resolve to stay the course in Afghanistan after NATO troops withdraw in 2014, Indian Prime Minister Manmohan Singh signed a Strategic Partnership Agreement (SPA) with visiting Afghan President Hamid Karzai in New Delhi last week. The SPA includes a major security component, with India “agreeing to assist, as mutually determined, in the training, equipping and capacity-building programs for Afghan National Security Forces.” That this was the first security pact of any kind signed by India on the subcontinent was not lost on Islamabad, with former Pakistani President Pervez Musharraf immediately dubbing the pact “anti-Pakistan.” […]

Is the world about to see a “drone race” among the United States, China and several other major powers? Writing in the New York Times, Scott Shane argued that just such an arms race is already happening and that it is largely a result of the widespread use of drones in a counterterror role by the United States. Shane suggests that an international norm of drone usage is developing around how the United States has decided to employ drones. In the future, we may expect that China, Russia and India will employ advanced drone technologies against similar enemies, perhaps in […]

The recent revelation that a computer virus had infected the digital cockpits of Predator and Reaper drones at Creech Air Force Base in Nevada raises the question of whether America’s pre-eminent tool in the war on terror could become a victim of cyber-espionage. The fact of the matter, says Noah Shachtman, who broke the story for Wired last Friday, is that “the more we rely on computers and robots to wage our wars, the more vulnerable we become to viruses and worms and trojans.” However, in speaking with Trend Lines, Shachtman stressed how little is actually known about the current […]

In June 2011, Ollanta Humala was elected president of Peru after campaigning on a platform of change. Significant for Peru, but also for South America more broadly, Humala advocated for moderate, not revolutionary, change — calling for a better and fairer distribution of the fruits of Peru’s impressive economic growth and for lower levels of corruption and crime. That kind of program won’t entail upending the prevailing system. It will, however, require serious institutional reform. The Peruvian case dramatically illustrates wider trends in South America, where sustained economic growth and sound macroeconomic policymaking in recent years have coexisted with continuing […]

Recent developments in South America have upended the United States’ historical — and often misguided — tendency to lump the region into a one-size-fits-all policy. A politically and economically muscular Brazil, the rise of an anti-American bloc of countries led by Venezuela, and the emergence of economic and even political extraregional rivals in the hemisphere have created a more diverse, independent and contentious region for the United States. At the same time, the looming shadow of a double-dip U.S. recession and the spectacle of partisan intransigence leaving Washington paralyzed have led to an overwhelming impression across the region that the […]

When Mexico’s secretary of foreign affairs, Patricia Espinosa, recently acknowledged that Brazil is dragging its feet on the free trade deal the two countries agreed to hash out last November, it was not the lament of an aggrieved party. After all, Mexico, Latin America’s second-largest economy, is hardly a victim in its trade relations with Brazil, the region’s largest. To the contrary: In the first seven months of 2011, Mexico registered a $478 million trade surplus with Brazil, a 24-fold increase over the $19 million registered during the same period in 2010. That might explain Brazil’s lack of enthusiasm for […]

Russian Prime Minister Vladimir Putin followed up his unsurprising Sept. 24 declaration that he would again seek the presidency with a more surprising call: to create what he called a “Eurasian Union.” In a rare and lengthy newspaper piece published on Oct. 4, Putin announced his desire for Russia to again lead a multinational bloc of tightly bound, former Soviet republics. But major obstacles stand in the way of Putin’s project, and the prospects of a new Eurasian Union emerging anytime soon in the former Soviet space are small. Putin’s press secretary, Dmitry Peskov, told the influential Kommersant newspaper that […]

One of the subjects dominating discussions of Latin American politics this year has been the June 30 revelation that Venezuelan President Hugo Chávez is being treated for cancer. Very little is known about his illness, other than the not-so-encouraging news that he has received four, possibly five, chemotherapy treatments, most them in an undisclosed location in Cuba. A bombshell accompanied by such secrecy has raised speculation about the future of Venezuelan politics. It seems that all scenarios, ranging from Chávez’s death to his full recovery, are possible, which makes the presidential election scheduled for October 2012 one of the most […]

“Resource wars” enthusiasts worldwide have a new — and unexpected — poster child: “zero problems with neighbors” Turkey. The Turkish government of Prime Minister Recep Tayyip Erdogan is beside itself over Israel’s recent moves to cooperate with Cyprus on surveying its Eastern Mediterranean seabed for possible natural gas deposits thought to be lying adjacent to the reserves discovered last year off the coast of Haifa. I told Reuters last week that the mounting war of words between Turkey and Israel, which includes some clear military preparations, amounts to a “storm in a teacup.” But other respected experts quoted in the […]

A free trade agreement between Israel and Mercosur entered into force in September, following Argentinian approval of the deal in August. In an email interview, Arie M. Kacowicz, a professor of international relations at the Hebrew University of Jerusalem, discussed Israel-South American relations. WPR: What is the recent history of Israel’s diplomatic relations with South America? Arie M. Kacowicz: Israel has managed to maintain cordial diplomatic relations with most of the countries of South America, with the exception of Venezuela, Bolivia and Ecuador, with which relations deteriorated following the Second Lebanon War of 2006 and the war in Gaza of […]

Japan and Colombia recently agreed to deepen economic relations, following a meeting between Colombian President Juan Manuel Santos and Japanese Prime Minister Yoshihiko Noda in Tokyo. In an email interview, Melba Falck Reyes, a professor in the Pacific studies department at the University of Guadalajara, discussed Japan-Latin America relations. WPR: What is the recent history of Japan’s trade and diplomatic relations with Latin America? Melba Falck Reyes: In Latin America, Japan has a long history of diplomatic relations with Mexico, Peru and Brazil. It is no coincidence that these nations are presently Japan’s main economic partners in the region. In […]

In its goal to significantly decrease its dependency on foreign oil, the U.S. Navy has successfully tested its first unmanned reconnaissance helicopter powered by biofuel. The trial was the second successful test for the Navy in as many weeks.