Economics & Business Archive

Egypt’s petroleum minister announced last week that British Gas plans to invest $3 billion to $5 billion in development projects in Egypt. In an email interview, Gawdat Bahgat, a professor of national security affairs at the National Defense University’s Near East South Asia Center for Strategic Study, discussed the state of Egypt’s oil and gas industry. WPR: Where have the events of the past two years left Egypt’s oil and gas industry? Gawdat Bahgat: Unlike its North African neighbors Libya and Algeria, Egypt has never been a major oil producing and exporting country. It is not a member of OPEC […]

The large-scale anti-Japanese protests that swept across China over the weekend are likely to reach a crescendo today, as Sept. 18 marks the official Chinese anniversary of Japan’s invasion of China in 1931. The wave of public demonstrations was triggered by Tokyo’s announcement last week that it would purchase the disputed Senkaku Islands, known as Diaoyu in China, from a private Japanese owner. The islands are claimed by China and Taiwan but controlled by Japan. U.S. Defense Secretary Leon Panetta, who is on a week-long tour in Asia, and other American officials have expressed concern that the escalating dispute between […]

In the not-too-distant future, should a continent-spanning republic ever emerge in Europe, historians will probably point to Sept. 12, 2012, as one of the game-changing days in the historic march toward such a goal: The German Constitutional Court effectively accepted the European Stability Mechanism (ESM); the European Commission made public its far-reaching plans for a European banking union; European Commission President José Mario Barroso declared that “the EU must strive to become a federation of nations states” in his State of the Union speech before the European Parliament; and finally, Dutch voters strengthened the country’s pro-European center, while paring back […]

Some commentators have argued that last week’s attacks on U.S. embassies in Egypt, Libya and Tunisia will strengthen the radical and anti-Western Islamic factions in those countries. However, a number of political and economic realities suggest that the violent attacks might instead marginalize the extremists and strengthen these countries’ moderate Islamists. In Tunisia and Egypt, recent elections resulted in governing coalitions led by moderate Islamist parties. But gaining control of the executive branch has made moderate Islamists responsible for dealing with the mounting economic and social problems that have plagued both countries since the 2011 uprisings. Indeed, in both countries, […]

Japan is on alert as six Chinese surveillance ships enter waters near islands claimed by both Tokyo and Beijing. Video News by NewsLook

New Zealand Prime Minister John Key met with Japanese Prime Minister Yoshihiko Noda yesterday in Tokyo, where the talks focused on Japan’s interest in joining the negotiations for the Trans-Pacific Partnership agreement. In an email interview, Yoichiro Sato, an expert in Japan’s foreign policy in the Asia-Pacific at the College of Asia Pacific Studies at Ritsumeikan Asia Pacific University, discussed Japan-New Zealand relations. WPR: What is the extent of diplomatic and economic ties between Japan and New Zealand? Yoichiro Sato: Economic ties are asymmetrical, due to the difference in the two countries’ sizes. Japan is a major trade partner for […]

When Peruvian voters headed to the polls last year, the presidential election looked like a proxy contest for two radical views of the South American country’s future. Ollanta Humala, who emerged victorious, had left advocates of free-market economic policies feeling nervous due to his past support for the policies of Venezuelan President Hugo Chavez. Humala had previously run for president as an anti-business socialist in 2006, and before that, he had attempted a military coup in 2000. Many voters worried he would take the country in a radical, populist, anti-market direction. More than a year later, Humala’s presidency could not […]

The U.S. is still the undisputed space superpower, but China is fast gaining military and technological ground on its rival. Video News by NewsLook

New strikes are hitting South Africa’s mining Industry. Gold Fields — the world’s fourth largest gold miner — is the latest victim and there’s still no sign of an end to the crisis at Lonmin’s Marikana mine. Video News by NewsLook

India and Tajikistan elevated their relationship to a strategic partnership last week following discussions between Tajik President Emomali Rahmon and Indian Prime Minister Manmohan Singh in New Delhi. In an email interview, Meena Singh Roy, a research fellow at the Institute for Defense Studies and Analyses, discussed India-Tajikistan relations. WPR: What is the recent trajectory of the India-Tajikistan relationship, and how does Tajikistan fit into India’s broader engagement with Central Asia? Meena Singh Roy: Tajikistan figures very high in India’s foreign policy priorities and remains a significant partner for India in Central Asia. India has excellent political and strategic relations […]

The global economy is currently undergoing a quiet transformation. While most of the world’s attention remains justifiably focused on the European Union’s minute-by-minute struggle to formulate a permanent solution to its unending debt crisis, other far-reaching economic forces are shifting beneath the surface. Increasingly, it seems as if the golden era of globalization that defined the last quarter of the 20th century is in danger, with the years prior to the 2008 economic crisis perhaps marking its high-water mark. Ours has become the era of perpetual global financial crisis, of sagging economic growth, of stubborn unemployment. As the world economy […]

Pacific Rim leaders met Sunday for the last day of the annual Asia-Pacific Economic Cooperation forum summit in Vladivostok, Russia. As reported by the Associated Press, the 21 APEC members pledged “to fend off the deepening damage from the European crisis and revive flagging growth in the region by supporting open trade, reforming their economies and strengthening public finances.” Alan Oxley, chairman of the national Australian APEC Study Center at RMIT University in Melbourne, Australia, and managing director of ITS Global, told Trend Lines that, with Russia “keen to showcase its new free trade credentials following its recent accession to […]

It is common wisdom that foreign policy does not decide U.S. presidential elections, and few issues inspire less enthusiasm these days than a Europe stuck in a currency crisis that it seems unable to fix. Europeans are also very familiar with the growing American belief that Europe no longer matters at all in the global arena. As a result, few were expecting any emphasis on Europe or the European Union as one of America’s most steadfast strategic partners in President Barack Obama’s keynote speech at the Democratic Party convention last week. Still, Obama’s only reference to Europe came as a […]

Few countries have benefited more from China’s rise and the global commodities boom of the past decade than Australia. One of the only major economies to escape the global financial crisis without going into recession, Australia’s newfound wealth and huge resource endowments have been major factors driving a marked increase in its strategic significance within the Asia-Pacific. However, with China’s commodities demand experiencing a major fluctuation, concerns are rising that Australia’s economy cannot sustain the current rate of expansion — and that an economic bust could curtail the country’s integration with Asia. For a country so long defined by its […]

President Barack Obama accepted the nomination of the Democratic Party to stand for a second term last night in Charlotte, N.C. But by adhering to the traditional schedule for the party’s convention, he excluded the possibility of attending the Asia-Pacific Economic Cooperation (APEC) summit in Vladivostok, Russia. Obama declined the invitation to attend this year’s APEC conclave because he would not have been able to deliver his keynote address in time to fly out to Russia’s Far East for the meetings. But, ironically, a key reason for speaking in Charlotte — to personally address tens of thousands of party activists […]

The Indian financial capital of Mumbai is struggling to realize its dream of becoming the South Asian nation’s version of China’s Shanghai. Ill-equipped and underpaid, laborers working on the expansion of Mumbai’s infrastructure face the greatest risks.

Last year, shortly after being named managing director of the International Monetary Fund, Christine Lagarde delivered a speech at the Council on Foreign Relations in which she noted that the fund needs to look beyond purely economic factors in evaluating issues that may threaten macroeconomic stability in borrowing countries. Unfortunately, in its handling of the Greek debt crisis, the fund failed to implement Lagarde’s more holistic approach and instead limited itself to economic considerations in addressing the country’s woes. The results so far in Greece demonstrates the urgent need for deep reforms of IMF conditionality. In particular, moving forward, the […]