Economics & Business Archive

Russia’s assertive approach to reclaiming a sphere of interest in the post-Soviet space has highlighted the security dilemmas facing Eurasian countries that find themselves outside of any regional military alliance. Although recent attention has focused on Georgia and Ukraine, the Caspian littoral countries have for several years considered themselves vulnerable to renewed Russian assertiveness and have complained about declining U.S. and European engagement in their region. In response to these challenges, as well as in pursuit of new opportunities for regional energy cooperation, Azerbaijan has partnered with Turkey and, at various times, Georgia, Iran and Turkmenistan in recent years to […]

Despite marathon talks over the weekend, Greece and its creditors—the European Central Bank (ECB), the International Monetary Fund (IMF) and the European Commission—failed to agree on a list of reforms that Athens must implement before the next $7.8 billion tranche of its bailout package is released. Greece could run out of money before next week if those bailout funds are not dispersed. The government must repay about $482 million to the IMF on April 9, but given the current situation, that seems unlikely. Though it looks like there won’t be a deal before the end of the week, both sides […]

Earlier this month, Indian Foreign Secretary Subrahmanyam Jaishankar went on a whirlwind tour of all seven nations of the South Asian Association for Regional Cooperation (SAARC). The objective was to discuss the implementation of reforms, ranging from developing infrastructure to combating terrorism and improving governance, which member states agreed to during last year’s SAARC summit in Nepal. Strengthening the SAARC to boost South Asia’s economic integration and development has been a key foreign policy objective of Indian Prime Minister Narendra Modi’s government, but beyond that regional agenda, Jaishankar’s trip to Pakistan was also a chance to restart dialogue on bilateral […]

Last week, Jordan signed a $10 billion deal with Russia to build its first nuclear power plant. In an email interview, David Schenker, director of the program on Arab politics at the Washington Institute for Near East Policy, discussed Jordan’s nuclear energy policy. WPR: What are Jordan’s current power needs, how does it meet them, and how are they projected to change moving forward? David Schenker: Jordan has 3,380-megawatts (MW) of installed electricity-generation capacity—by comparison, Israel has 14,000-MW—but will need to boost this number significantly to meet growing domestic requirements. Rapid increases in the kingdom’s population—including 1 million Syrian refugees—as […]

On Monday in Khartoum, the leaders of Egypt, Sudan and Ethiopia signed an initial accord on mutual water rights to the Nile River, removing another obstacle to Ethiopia’s massive Grand Renaissance Dam, which has been a source of tension with its neighbors since construction began just 10 miles from Sudan’s border in 2011. But the agreement is about a lot more than water. It may signal a seismic shift in the politics of northeastern Africa and could lead to a new axis of cooperation to manage, if not resolve, conflicts in one of the world’s most turbulent regions. The accord’s […]

Last year, Laos announced it would go ahead with the second of two massive, controversial dams on the Lower Mekong River, over the strong objections of its downstream neighbors, Vietnam and Cambodia. Despite the contentious decisions to build the Xayaburi and Don Sahong dams, however, the widespread and well-founded fear that a series of dams along the Mekong is fated to destroy a uniquely productive ecosystem may be overly pessimistic—not because the impact of the dams themselves has diminished, but because there are more reasons to doubt whether all of them will actually be built at all. Up to 11 […]

The U.S. Department of the Interior is due to decide this week if Royal Dutch Shell can restart drilling for oil off the coast of Alaska after it was forced to shut down operations in 2012 over safety and environmental concerns. In an email interview, Robert Huebert, an associate professor at the University of Calgary, discussed Arctic drilling amid the slump in global oil prices. WPR: Who are the main parties interested in exploring Arctic hydrocarbon resources, and what projects are currently underway? Robert Huebert: Hydrocarbon development and exploration is occurring in the northern land and maritime regions of Canada, […]

In February, China’s State Council announced the approval of two new nuclear reactors at the Hongyanhe nuclear power plant in the northeastern province of Liaoning, underscoring Beijing’s intention to move forward with an ambitious nuclear power plant construction program despite the 2011 Fukushima nuclear accident in neighboring Japan. In the wake of that accident, when other players slowed and in some case scuttled nuclear development, China limited itself to holding off on approving new reactors while safety procedures throughout the country’s nuclear facilities were reviewed. However, none of China’s 24 nuclear reactors already in operation were shut down, and ongoing […]

Rafael Correa, a left-leaning academic turned populist politician, has dominated Ecuadorian politics since 2007. He won three presidential elections and has consistently maintained popularity rates of over 50 percent. His movement, the Alliance for a Proud and Sovereign Homeland, controls the legislature. The judiciary and all institutions of horizontal accountability are in the hands of his lieutenants. At the time of this writing, Ecuador’s National Assembly, as the congress was renamed, is modifying Ecuador’s 20th constitution, enacted during Correa’s term, to allow for his permanent re-election. According to Correa, his regime is promoting a better democracy that is advancing social […]

Dilma Rousseff has faced worse. Nothing that happens to her as president of Brazil could compare with the physical pain inflicted on her by professional torturers from the military dictatorship she fought to topple as a young revolutionary. But now that she is the one holding power, she is facing an avalanche of troubles, including the wrath of the people, the perils of a global economy and the stubbornly uncooperative forces of nature. Sadly for Rousseff, all signs indicate her problems are only about to grow worse. The dire signals started emerging a long time ago. But the evidence that […]

2015 has already been a very difficult year for Brazilian President Dilma Rousseff. After a hard-fought re-election last October, the most competitive in the past two decades, Rousseff is now confronted with the need to implement meaningful fiscal adjustments amid declining approval ratings and popular unrest, after hundreds of thousands took to the streets in protest Sunday. The series of negative developments since her re-election has been dramatic but is likely to get even worse, with Rousseff in the eye of a political perfect storm. The scandal and ongoing investigations surrounding state-controlled oil giant Petrobras are the biggest concern, having […]

With the next stage of the United Nations Framework Convention on Climate Change (UNFCCC) process set for November and December of this year in Paris, there has been a recent flurry of political and diplomatic activity from the European Union and its 28 member-states regarding their plans for reducing greenhouse gas emissions. Their pledges have come alongside ambitious designs for future joint electricity generation continent-wide, given geopolitical tensions with Russia, which remains “Europe’s largest single foreign supplier of not only gas, but also oil, coal and nuclear fuel.” While there are still critical challenges to realizing the milestones set down […]

In 2000, diplomats at the United Nations adopted eight development goals aimed at poverty reduction, education, nutrition, gender equality and safeguarding the environment in the world’s poorest countries. An impressive consortium of governments, multilateral organizations, philanthropic foundations, nongovernmental organizations and even celebrities answered the U.N.’s call to implement the so-called Millennium Development Goals (MDGs). In the past 15 years, partly due to the MDGs agenda, progress was made on a wide range of these development challenges: Extreme poverty was cut in half; deaths from malaria and tuberculosis were drastically reduced; millions of people gained access to anti-retroviral drugs to fight […]

Last week was an auspicious time for Indian Prime Minister Narendra Modi to culminate his three-country tour around the Indian Ocean with the first visit by an Indian leader to Sri Lanka in three decades. Given the island nation’s shifting political landscape following the surprising defeat of its two-term president, Mahinda Rajapaksa, in early January, the milestone represented by Modi’s visit Friday and Saturday was further amplified by the trip’s geopolitical importance. Under Rajapaksa’s leadership, Sri Lanka ended a civil war that lasted nearly three decades. But his rule was plagued by corruption, nepotism, the centralization of power and increasingly […]

Last month, India signed a nuclear energy deal with Sri Lanka. In an email interview, Saurav Jha, an independent energy consultant in India, discussed India’s civilian nuclear export industry. WPR: What is the extent (expertise, dollar value, market access) of India’s civil nuclear export industry, and how has that evolved since the U.S.-India civil nuclear deal? Saurav Jha: There are no Indian exports of nuclear power-generating equipment to any country at the moment, aside from a few components. The highest-value nuclear-related export by India currently is heavy water—India is the world’s top producer—to countries such as South Korea and the […]

Last week, the European Union launched a review of its European Neighborhood Policy (ENP), its instrument for engaging with non-member states along the bloc’s edge from Eastern Europe to North Africa. Announced by the EU’s foreign policy chief, Federica Mogherini, and the commissioner responsible for ENP and enlargement negotiations, Johannes Hahn, the consultation process will review the ENP’s underlying principles and scope as well as the tools at its disposal. European Commission President Jean-Claude Juncker had promised a review of the policy within his first year in office. The ENP, established in 2004, governs the EU’s relations with 16 countries […]

Peru recently recalled its ambassador to Chile for consultations over allegations of Chilean spying. In an email interview, Christopher Sabatini, adjunct professor at Columbia University’s School of International and Public Affairs, discussed the ongoing diplomatic spat between Peru and Chile. WPR: What are the reasons behind the current diplomatic tensions between Peru and Chile? Christopher Sabatini: The specific event that led to the tensions was the sale of information from Peruvian surveillance of Chilean fishing vessels to officers from the Chilean navy. As a result, both countries—at least temporarily—recalled their ambassadors. In truth, neither side comes out looking good on […]