Economics & Business Archive

Protests spread across Colombia this week, with poor rural workers blockading highways and clashing with police and numerous labor unions declaring a national strike to express a wide range of grievances. The protests, which now involve farmers, miners, teachers and health care workers all putting forth different demands, are linked by a sense that the economic growth Colombia has experienced over the past decade has not been distributed fairly. The protests are occurring while the government of Colombian President Juan Manuel Santos seeks to conclude a peace deal with the leftist Revolutionary Armed Forces of Colombia (FARC), the country’s largest […]

This is the second in a two-part series on Peruvian politics. Part I examined the evolution of Peruvian politics since the Fujimori era and the challenging conditions for governance. Part II examines President Ollanta Humala’s government and discusses policy solutions to Peru’s political volatility and social upheaval. Two years into a five-year term, the government of Peruvian President Ollanta Humala is already facing plummeting public approval. Despite Humala’s rhetorical commitment to social inclusion and justice, his government’s reaction to escalating protests against extractive industries has sparked concerns not only about his willingness to forge a consensus between local communities and […]

This is the first in a two-part series on Peruvian politics. Part I examines the evolution of Peruvian politics since the Fujimori era and the challenging conditions for governance. Part II will examine President Ollanta Humala’s government and discusses policy solutions to Peru’s political volatility and social upheaval. Another Peruvian president faces evaporating public support, a fractious opposition and civil unrest in the interior. This time it’s President Ollanta Humala, a former military officer who in his second run for office in 2011 presented himself as a moderate, pro-business social democrat—a contrast to his first run in 2006, in which […]

One notable feature of the global economy over the half-decade since the collapse of Lehman Brothers has been the fluctuating fortunes of international economic cooperation in general and of the G-20 in particular. The G-20’s public reputation has taken a roller-coaster ride from hero to zero. The story of this rise and fall is also the story of the changing balance of (economic) power in the post-crisis global economy, and of the implications that this shift has had for how the world economy works—and how it doesn’t. This story began when the onset of the financial crisis prompted the elevation […]

Observers looking for evidence of the importance of a sound international financial regulatory architecture in an age of financial globalization should look no further than the recent global financial crisis. The crisis laid bare the limitations of the global financial architecture that had emerged in a piecemeal fashion since the collapse of the Bretton Woods system in the early 1970s. To begin with, the crisis demonstrated the inadequacy of the Basel Accords, which for three decades formed the core of the international banking regulatory regime. The Basel Committee of central bankers had spent the better part of the late 1990s […]

On Aug. 13, Vladimir Putin made his first visit to Baku in seven years, marking only his third trip to Azerbaijan as president of Russia—a gap reflecting the complex and sometimes strained relationship between Moscow and Baku. The two have grown apart due to Russia’s closer ties with Armenia as well as Azerbaijan’s westward-oriented energy focus. Azerbaijan’s leaders have been trying to leverage their country’s pivotal location, energy resources and other assets to help manage their volatile neighborhood. Meanwhile, they are pursuing their own regional objectives, which focus on recovering territories occupied by Armenia, averting a war with Iran while […]

Editor’s note: The following article is one of 30 that we’ve selected from our archives to celebrate World Politics Review’s 15th anniversary. You can find the full collection here. It’s been almost five years now since the global financial and economic crisis formally began with Lehman Brothers’ filing for Chapter 11 bankruptcy on Sept. 15, 2008. In today’s fast-paced, high-tech, hyperconnected world, five years is an eternity. In autumn of that year, the iPhone was barely one year old and only in its second iteration. No one had ever shared a photo of their dessert on Instagram because the service was […]

It is now something of a cliche to note that Turkey’s foreign policy mantra of “zero problems” has given way to problems everywhere Ankara looks. Nowhere is that truer than in the Turkey-Iran relationship, which has been buffeted from all sides over the past three years, reaching its lowest ebb with the two sides’ diametrically opposed positions in the stalemated Syrian civil war. In that time, Turkey and Iran have increasingly vied for influence across the region. In Iraq, Turkey backed the losing electoral bloc in the 2010 elections, and currently shelters fugitive Iraqi Vice President Tariq al-Hashemi. By contrast, […]

British Prime Minister David Cameron has asked European Commission President Jose Manuel Barroso to gather evidence on whether the additional checks Spain has imposed on its border with Gibraltar are politically motivated. Cameron’s request is part of an escalating dispute between the United Kingdom and Spain over Gibraltar, a British Overseas Territory surrounded by Spanish territory. Spain, which claims sovereignty over Gibraltar, a small peninsula off Spain’s southern coast, cited concerns over smuggling as the reason it was imposing additional checks at the border. In separate email interviews, Pawel Swidlicki, research analyst at Open Europe, and Alejandro Baron, a researcher […]

Editor’s note: This is the first of a two-part series on Australia’s upcoming elections. Part I looks at the domestic politics of the elections. Part II will examine the foreign policy issues at stake. When a desperate Australian Labor Party (ALP) ousted the incumbent prime minister, Kevin Rudd, in June 2010, replacing him with Australia’s first female prime minister, Julia Gillard, no one foresaw that the ALP would be relying on Rudd to bring the party back from political oblivion in 2013. But in June of this year, with polls predicting the ALP would be decimated in the September election, […]

Over the past three decades, Brazil and Argentina’s rapprochement paved the way for the two largest economies in South America to end their economic and military rivalry and commence a promising effort to institutionalize the process of regional integration in South America.* The Common Market of the South, or Mercosur, was the chief creation of that initiative and was quick to embrace Uruguay and Paraguay. Last year Venezuela became Mercosur’s fifth member, and the bloc is expected to become even bigger as Ecuador and Bolivia seek membership in the near future. But bigger does not necessarily mean better or stronger. […]

At a joint press conference with his Indian counterpart Salman Khurshid in Ankara last month, Turkish Foreign Minister Ahmet Davutoglu described Khurshid’s visit to Turkey—the first by an Indian foreign minister in 10 years—as “historic.” The visit can be seen as part of an effort to visibly raise the profile of India-Turkey relations, which have been characterized by steadily expanding common ground on the geoeconomic front. India is now Turkey’s second-largest Asian trading partner, and Turkey is seeking more bilateral high-level exchanges as a precursor to expanded people-to-people contacts. For India, whose president will visit Turkey in the coming months, […]

China’s rapid economic growth over the past 30 years has transformed the world’s most populous country almost beyond recognition and reshaped the international economic and geopolitical landscape, forcing huge shifts in global international trade and investment flows. This growth is now slowing, meaning many of the key dynamics that have accompanied China’s rise are themselves evolving. While many observers are nervous about the Chinese slowdown and its implications, a more balanced, less inflationary and less resource-intensive model of economic expansion may bring more sustainability to China’s development story and allow Beijing to fundamentally rebalance its relations with international partners. The […]

Five years ago, Georgian forces crossed into the Moscow-backed separatist territory of South Ossetia, seeking to clamp down on attacks against ethnic Georgian villages along the de facto boundaries and re-establish authority over the breakaway region. Russia’s response was swift: Its troops poured into South Ossetia, pushing out Georgia’s overmatched military. When the guns were finally silenced after the short but fierce war, hundreds had been killed or wounded and tens of thousands of civilians were displaced. Although the global community refused to follow Moscow’s lead in recognizing the independence of South Ossetia and Abkhazia, Georgia’s other separatist province, the […]

Joe Biden’s recent visit to New Delhi and Mumbai—the first trip by an American vice president to India in 30 years—occasioned no shortage of handwringing over the state of the U.S.-India relationship. Commentators on both sides point to stalled economic reforms and slowing growth in India combined with uncertainty over how India fits into Washington’s vaunted “rebalance” to Asia. And from one perspective, the glass can indeed appear half empty. Yet the U.S.-India relationship enjoys bipartisan support in both countries, and the underlying strategic logic remains sound. Building on this foundation will require able stewardship in both Washington and New […]

High-value natural resources have historically been associated with dozens of armed conflicts, millions of deaths and the collapse of several peace processes, and both case studies and statistical evidence confirm that such resources play a role in sparking and fueling armed civil conflict. According to recent research, between 1970 and 2008 the portion of armed civil conflicts that were in some way related to high-value natural resources ranged from 30-60 percent each year. Why is peace so difficult to achieve and sustain in the presence of these resources? High-value natural resources can directly increase the risk of conflict in a […]

The small island-state of Timor-Leste exemplifies the challenge of resource-based development for a poor country well-endowed with a valuable natural resource. Timor-Leste, which gained its independence in 2002, has accumulated $13 billion in its petroleum fund in less than a decade. Some of the largest multinational oil companies are operating in the country, and the revenues continue to flow. And yet, while Timor-Leste has seen very notable improvements in its development indicators in the past few years, it continues to face a massive challenge of converting financial wealth into economic development. There are also heated debates about how to spend […]