Economics & Business Archive

On Jan. 26, the Pentagon released further information (.pdf) about how the new Defense Strategic Guidance will be reflected in the Defense Department’s future spending priorities. The changes, designed to meet the White House’s mandate to cut $37 billion from its previously planned Fiscal Year (FY) 2013 defense budget, generally conform with the new directions contained in the strategic guidance document, but they leave several key questions unanswered. The department’s topline request for FY 2013 is $525 billion, down from an original $531 billion. The rest of the savings comes in the form of reducing supplemental funding for overseas contingency […]

All but two of the European Union’s 27 member states sign up to a treaty that threatens sanctions for breaches of budget deficit limits. Finance News Videos by NewsLook

In a huge win for the French defense industrial base, Dassault Aviation has emerged as the lowest bidder for a $10 billion contract to supply India with 126 of its Rafale fighter jets. If finalized, the deal for medium multi-role combat aircraft would be the first overseas order for the Rafale.* It would also represent a major loss for the rival bidder, the Eurofighter Typhoon, backed by the four-nation consortium of Britain, Germany, Spain and Italy. “Fighter jets are among the most expensive investment any country can make at the moment, and hence, because selling these is an expensive issue, […]

Whether it was in global security, economic governance, nonproliferation efforts or climate change negotiations, a host of transnational challenges put the spotlight on global governance institutions in 2011. This WPR special report examines the issues and institutions of global governance through articles published over the past year. 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. The United Nations U.N.’s Preventive Diplomacy Deserves More Than Just Lip ServiceBy Richard Gowan and Emily O’BrienSeptember 21, 2011 Defending […]

The American political discourse is rife with fear-threat reactions regarding rising China, embodied most saliently in the Obama administration’s strategic pivot to East Asia and GOP presidential candidate Mitt Romney’s repeated promise to hold “currency manipulator” China responsible for its economic sabotage of the U.S. economy. Eagerly cashing in on the hype, last week’s Economist greeted us with the most lurid of covers heralding — yet again! — “the rise of state capitalism.” We are immediately informed by the subtitle that this is “the emerging world’s new model.” Sad to say, this is the state of strategic thinking in the […]

The global financial crisis has shifted the patterns of global migration, with migrants in the Western Hemisphere increasingly avoiding the United States for the emerging South American democracies and migrants in Europe flocking to Germany. In an email interview, Stephen Castles, a specialist in international migration at the University of Sydney, discussed changing global migration patterns. WPR: What impact has the global financial crisis had on global migration patterns? Stephen Castles: The sharp fall in migration predicted by some experts in 2008 and 2009 did not materialize. Stocks of migrants overall have not declined and have indeed begun to increase […]

Japanese Foreign Minister Koichiro Gemba paid a two-day visit to Turkey earlier this month. In an email interview, Selçuk Esenbel, a Japan specialist at Bosphorus University, discussed Japan-Turkey relations. WPR: How deep are diplomatic and trade relations between Japan and Turkey, and what is their recent trajectory? Selçuk Esenbel: Since Japan and what was to ultimately become the modern state of Turkey first established relations in 1873, ties have been friendly with no serious conflicts of interest. Geographic distance has hampered the development of close trade ties, but generally speaking Turkey has always been very friendly toward Japan. Since the […]

When former U.S. Marine Amir Mirzaei Hekmati was sentenced to death for espionage by an Iranian court earlier this month, he was accused, among other things, of helping to make video games. In his televised “confession,” Hekmati stated that, after working for the U.S. Defense Advanced Research Projects Agency, “I was recruited by Kuma Games Company, a computer games company which received money from [the] CIA to design and make special films and computer games to change the public opinion’s mindset in the Middle East.” He added, “The goal of Kuma Games was to convince the people of the world […]

Human life expectancy at birth, which remained stunningly fixed for thousands of years before suddenly doubling over the course of the 20th century, now seems destined to experience a similarly bold leap across the 21st century. When it does, it will shift human thinking about population control from its present focus on the outset of life to the increasingly delayed final curtain. The problem is that the technological advances that will make extending life expectancy possible are likely to come far faster than our political systems — including the democracies — can handle. The potential outcome recalls the plot of […]

Australia’s pre-eminent economics advisory practice, Deloitte Access Economics, is forecasting that Europe has a 50 to 50 chance of managing to muddle through its major debt crisis. Finance News Videos by NewsLook

With anti-government protests in Romania moving into their second week, demonstrators are showing a persistence unusual for this part of the world, underscoring the symbolic importance they have placed in calling attention to their widespread grievances. The woes that have brought Romanians to the streets — low incomes, corruption and rising authoritarianism — are familiar to many in Eastern Europe. Indeed, the protests, which according to police estimates brought 13,000 people to the streets across the country over the weekend, follow similar demonstrations in Russia and Hungary, leading some to suggest that this is the European incarnation of the Arab […]

Five unemployed Moroccan men have set themselves on fire in the capital Rabat after demonstrating against a lack of jobs, especially for university graduates.

The Egyptian government is currently in talks with the International Monetary Fund over an emergency loan of $3 billion, after having declined a similar offer from the IMF last year. In an email interview, Magda Kandil, the executive director and director of research at the Egyptian Center for Economic Studies, discussed Egypt’s international borrowing. WPR: How dependent has Egypt been historically on international financing, and how has that changed since the revolution? Magda Kandil: Egypt has been dependent on financing to close the gap in the fiscal deficit. However, most of the borrowing has been domestic. Currently, public debt is […]

Earlier this month, India approved a $1.18 billion deal for the purchase of 500 Mica air-to-air missiles from the French defense firm MBDA. In an email interview, Jean-Luc Racine, a senior CNRS fellow at the Center for South Asia Studies at the School for Advanced Studies in Social Sciences and the vice president of the Asia Center in Paris, discussed France-India relations. WPR: What have been the Sarkozy administration’s main priorities in advancing France-India ties? Jean-Luc Racine: Since then-President Jacques Chirac’s visit to India in 1998, France-India ties have improved consistently, and current President Nicolas Sarkozy has clearly toed the […]

The perennial standoff between Ukraine and Russia over natural gas prices will be accompanied by an added wrinkle this year, with news that Ukraine plans to ink a deal for a joint venture with energy-rich Azerbaijan for supplies of liquefied natural gas (LNG). The partnership, which will finally introduce unconventional energy sources to Ukraine, underscores the flagging fortunes of Russia’s pipeline monopoly and the dwindling leverage it commands. According to Vladislav Kaskiv, the head of Ukraine’s State Agency for Investment and National Projects, the formal announcement between Baku and Kiev for the arrangement will be made later this month at […]

Iranian President Mahmoud Ahmadinejad’s four-country Latin American tour last week was noticeable for its lack of achievements. The trip again underscored the gap between Tehran’s global ambitions and its constrained capabilities. Iran has yet to establish the means to challenge core U.S. economic, security and other interests in Latin America, and there is little likelihood of that changing in the future. In recent years, Iran has sought to expand its economic ties as well as diplomatic partnerships and influence in Latin America. Thus far, however, Iran has only managed to develop close ties with a few regional governments that share […]

Globalization’s historical expansion from Europe to North America to Asia has featured a familiar dynamic: The last region “in” becomes the integrator of note for the next region “up.” Europe was the primary investor, customer and integrator for the U.S. economy in its rise during the 19th and 20th centuries, and America subsequently “paid it forward” with East Asia in the decades following World War II. Recently, it has been Asia’s turn, primarily through China, to pay it forward once again with Africa, arguably the hottest integration zone in the global economy today. Nonetheless, in Washington — and especially inside […]