Economics & Business Archive

Turkey and China signed a deal last month for the construction of an underground natural gas storage facility at Lake Tuz in Turkey. In an email interview, Selcuk Colakoglu, an associate professor at the International Strategic Research Institution (USAK) in Ankara, Turkey, discussed relations between Turkey and China. WPR: What is the nature of trade relations between Turkey and China, including the main sectors of trade and direct investment? Selcuk Colakoglu: One of the main motivations of Ankara’s rapprochement with Beijing in the late-1990s was to gain economic benefits for Turkish businessmen in China. However, the increasing trade volume with […]

When most people think of revolutions, they imagine the overthrow of political orders. By contrast, most of what we see today in globalization’s continued expansion is not violent political revolution, but rather unsettling socio-economic revolution. Yes, when existing political orders cannot process that change — and the angry populism that typically accompanies it — they can most definitely fall. This is what we have seen in the Arab Spring to date. But more often this populism leads to political paralysis in countries both democratic and authoritarian. A case in point is the recent controversy in India over Prime Minister Manmohan […]

The recent elections in Egypt and Russia have important lessons for both Washington and Beijing about the contour of politics in the 21st century — and the limits of both authoritarianism and Western-style liberalism. For the past 12 years, as part of its campaign to modernize Russia, the Kremlin has encouraged the spread of new communications technology. However, over the course of his time first as president and then as prime minister, Vladimir Putin’s concern with mass communications focused primarily on shaping television coverage. Meanwhile, the growth in Russians’ mobile phone usage, in particular, has been quite dramatic. If less […]

Recent moves by Russia, Norway and even China have put a spotlight on the High North, where warming temperatures have led to greater seasonal ice melt and access. With increased future activity in the Arctic inevitable, the United States must begin to address some of the potential security challenges that could result. As part of this effort, the European Command (EUCOM) — the U.S. military command responsible for the Arctic — must leverage the progress made by the Arctic Council in nonsecurity matters to facilitate expanded security cooperation efforts in the region. The Arctic Council has successfully raised awareness of […]

Last week’s historic visit to Myanmar by U.S. Secretary of State Hillary Clinton represents the culmination of the Obama administration’s policy shift toward the pariah state. Launched in September 2009 to establish a new starting point in the relationship between the two countries, the engagement with Myanmar is part of the broader U.S. effort to play a primary role in the fast-evolving Asia-Pacific region. By contrast, the European Union seems unable to keep up with the economic and political changes taking place in Asia, and instead appears simply to follow Washington’s lead without needed policy debates within the union. EU […]

The recent formalization of a new regional cooperation bloc that includes every country in the Americas except Canada and the United States has been largely dismissed in the English-language media as little more than a new soap-box from which the region’s more flamboyant leftists, namely Venezuelan President Hugo Chávez, will now spew anti-American rhetoric. To some extent, the potential for such an outcome exists. But it is also worth noting that the Community of Latin American and Caribbean States, or CELAC by its Spanish acronym, has now been given an official stamp of approval from not just left-leaning heads of […]

On Nov. 28, the Turkish government reluctantly imposed comprehensive sanctions against the government of Syrian President Bashar al-Assad. Meanwhile, Turkish leaders are now calling for Assad to step down, with Prime Minister Recep Tayyip Erdogan comparing him to Hitler. Thus far, the Turkish government has relied on diplomatic, political and economic instruments to achieve its goals of regime change in Syria. But the possibility of active military intervention, though previously excluded and still unlikely, is becoming more plausible. Historically, relations between Turkey and Syria have been troubled, but they experienced a noticeable improvement since Turkey’s ruling Justice and Development Party […]

It was an ignominious start for a potentially profound technological revolution. On June 21, 2011, a U.S. Navy MQ-8 Fire Scout robotic reconnaissance helicopter was shot down near Tripoli by forces loyal to then-Libyan dictator Moammar Gadhafi. The 24-foot-long, gray-painted drone was one of two launched from the frigate USS Halyburton and remotely controlled by operators aboard the vessel. Carrying classified sensors, the Fire Scouts likely helped detect targets for NATO forces flying top cover for Libyan rebels. The Fire Scouts’ Libyan missions represent the major combat debut for the U.S. Navy’s growing arsenal of unmanned vehicles. In coming years, […]

The United States is on the verge of an industrial renaissance, according to energy experts enthusiastic about technological advances surrounding the “fracking” of shale gas and the processing of “tight oil.” America is sitting on a century-worth of natural gas, and the Western hemisphere boasts five times the reserves in unconventional oil as the Middle East claims in the conventional category. Suddenly, all our fears of resource wars with China and never-ending quagmires in Southwest Asia seem to melt away, heralding with great certainty another American century based on the promise of energy independence. As “deus ex machina” moments go, […]

I had the pleasure of participating in France 24’s panel discussion program, The World This Week, last Friday. The other panelists were Time magazine’s Vivienne Walt, Newsweek and the Daily Beast’s Christopher Dickey and France 24’s Melissa Bell. Topics included Islamist electoral victories in Tunisia and Egypt, and the European debt crisis. Part one can be found here. Part two can be found here.

A look at Vietnam’s recent diplomatic moves shows Hanoi increasingly diversifying and intensifying its relations with major powers, a pattern that should be seen as an effort by Hanoi to deal with a more forceful China. Like many countries in the region, Vietnam is increasingly dependent on either direct or indirect economic links with fast-growing China. Furthermore, Vietnam’s political and economic system is similar to — if not modeled after — China’s. Maintaining a friendly relationship with their big neighbor is therefore the top priority of Vietnam’s leaders. Both sides have officially pledged to build a comprehensive partnership, guided by […]

If national security flows from economic strength, then the ongoing global economic crisis is poised to strike at one of the more underappreciated tools in the security kit — the checkbook. We’re all familiar with the term “checkbook diplomacy.” But “checkbook security” has played a largely unsung role in America’s approach to national security over the past decade — from “buying off” Sunni insurgents in Iraq as part of the Surge to funding development projects in Afghanistan as part of the war effort to helping countries in Latin America and Africa improve their capabilities to fight drug traffickers and organized […]

Australia recently sent two naval ships to participate in a joint naval exercise with Indonesia. In an email interview, Fergus Hanson, director of polling and a research fellow at the Lowy Institute for International Policy, discussed Australia-Indonesia relations. WPR: What is the recent trajectory of Australia-Indonesia relations? Fergus Hanson: Australia-Indonesia relations remain caught in a deep rut. At a people-to-people level there is entrenched distrust. Polling in both countries reveals widespread negative perceptions and suspicions of the other country. Each year since 2006, the Lowy Institute Poll has asked Australians to rate their feelings towards Indonesia on a zero to […]

Over the past decade, Russia’s resurgence has led to conflict and reset with the U.S. and a muscular, energy-based reassertion of influence in Eurasia and beyond. But Moscow’s efforts to regain its tarnished superpower status are threatened by fundamental weaknesses that could undermine its ambitions. This WPR report examines Russia, between ambition and reality. Below are links to each article in this special report, which subscribers can read in full. Not a subscriber? Purchase this document for Kindle or as a PDF from Scribd. Or subscribe now. Strategic Vision Strategic Posture Review: RussiaRichard Weitz November 30, 2011 Re-Examining Russia’s Putin-Medvedev […]