Economics & Business Archive

On March 19, students occupied Taiwan’s legislature to protest President Ma Ying-jeou and his Kuomintang (KMT) government’s handling of the services trade agreement with China (CSSTA). With strong public backing, the protest swelled into what is now known as the Sunflower Movement. The movement won the support of major KMT figures for a compromise that would see the services pact, and any future agreements with China, undergo more thorough—and public—scrutiny. The protest leaders have now announced that they will vacate the legislature on Thursday evening. These dramatic events are forcing a rethink about the very nature of the China-Taiwan relationship. […]

The original and most immediate rationale for redistributive land reform is that, at low levels of capital intensity, large farms operated by wage labor will be less efficient than small owner-operated ones. This has given rise to an inverse relationship between farm size and productivity that continues to be widely observed in the literature. In fact, colonial powers had often tried to restrict access to land by the local population to ensure a continued supply of cheap and relatively uneducated labor, despite the associated economic cost. In a sense, land reform is an effort to rectify this historical injustice and […]

It is now very much old news that economic inequality has risen dramatically in the United States and many other developed democracies over the past 30 years. This dramatic increase has produced a flurry of discussion over how severe the increase has been, how much of a problem inequality really is and what can and should be done about it. While inequality is resurgent as an issue in U.S. politics, it has a much longer and more prominent history in middle- and low-income countries. This is likely due to the fact that inequality in developing countries has historically been much […]

Since the Fourth United Nations World Conference on Women and the adoption of the Beijing Platform for Action in 1995, many governments and international development institutions have expressed their commitment toward gender equality goals. Most development actors and policymakers, however, remain focused on a narrow interpretation of women’s empowerment and often argue for “investing in women and girls” as a means to achieve poverty reduction and GDP growth, rather than as an end in itself and as a matter of social justice. For example, the main argument behind the slogan “gender equality is smart economics” coined by the World Bank […]

U.S. Defense Secretary Chuck Hagel hosted defense ministers from 10 ASEAN members last week. The informal meeting in Hawaii was the first of its kind, and it came at a time when the United States is trying to build the partnerships necessary for its Asia rebalance strategy. Ian Storey of the Institute of Southeast Asian Studies in Singapore explains in an email that while ASEAN defense ministers have previously met with their U.S. and Chinese counterparts, last week’s meeting was “the first time they have done so outside the region.” A meeting between ASEAN defense ministers and the Chinese defense […]

KIGALI, Rwanda—For a milestone year in Rwanda’s post-genocide history, 2014 began with an ugly start. In the early morning hours of Jan. 1, as revelers flooded Kigali’s nightspots, Patrick Karegeya lay half a continent away, dead in a Johannesburg hotel room. Once among Rwanda’s most powerful men, Karegeya had served for a decade as Rwanda’s head of external intelligence before falling out with the regime of President Paul Kagame. After spending time in prison, in 2007 he fled to South Africa, where he was granted asylum and put under state protection. But sometime on New Years Eve, in the upscale […]

The European Union has at last proposed what it calls the “second pillar” of its banking union. The first pillar, unveiled last December, consists of proposals for banking reform, aimed at reducing risk in the financial system. This next step proposes a mechanism should those reforms fail and the authorities have to deal with bank failures. Some, including Michael Barnier, the EU commissioner in charge of regulation, have referred to this proposed Single Resolution Mechanism (SRM) as a “revolution” on a par with the adoption of the euro. That characterization surely overstates, as does use of the word “pillar.” Matters […]

The South Korean Ministry of Defense recently made the official announcement that it will purchase the F-35 fighter jet as part of an ambitious plan to modernize the country’s air defenses. Japan also plans to purchase the F-35, meaning that the two countries most central to the Obama administration’s Asia rebalance will be using the same platform. This is good news for a fighter that has become the most expensive defense acquisition program in history. Although the U.S. Air Force has consistently maintained the importance of the F-35—and continues to robustly fund it under the recent fiscal year 2015 budget […]

Everyone knows that the United States needs to shrink its defense budget and national security organization; the challenge is doing so intelligently. Without attention to the long-term effects of the downsizing, the rush to cut could stifle creativity and fail to cultivate strategic visionaries. The net effect would be pawning America’s future security to make today’s budget. Fostering creativity is not easy for an immense, ponderous bureaucracy even in the best of times. This is particularly true for the national security organization, which instinctively leans toward risk aversion, cautious consensus-building and a focus on the short term. Senior officials know […]

The new foreign investment law passed unanimously last Saturday by Cuba’s National Assembly is a key component of President Raul Castro’s program to “update” the economy. Castro deemed the law so important that he called the assembly into special session to pass it rather than wait for the regularly scheduled session in July. The new law offers significantly better terms to foreign investors than the 1995 law it replaces, with the aim of boosting direct foreign investment (FDI) in Cuba’s chronically capital-poor economy. Though Cuba’s internal sector reforms have garnered more attention, it was a crisis in the external sector […]

The effects of Russia’s military takeover of Crimea are being felt far beyond Ukraine’s now-disputed borders. The crisis has put a spotlight on NATO, placing it once again at the center of European security discussions. For Russia, the move into Ukraine comes with great risk, as Moscow’s control of European energy supplies has weakened in recent years while a long-running military modernization program has yet to transform Russian forces. And in Washington, next steps depend on an assessment of exactly where U.S. interests lie. This special report reviews the key regional actors in the Ukraine crisis through recently published articles. […]