Economics & Business Archive

Last month, Australia signed a free trade agreement with China, though it has yet to be implemented. Its ninth free trade deal with its neighbors came amid Australia’s active participation in ongoing negotiations over two major trade deals in the Asia-Pacific region, the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). How does all this trade-related bustle fit together? And how much is politics, as much economics, involved? The current activity reflects a shift in global trade regimes. Australia used to be a strong supporter of multilateral trade, with the World Trade Organization (WTO) at the center of […]

Earlier this month, Italian Prime Minister Matteo Renzi was in Kenya to discuss trade ties and pledge support for counterterrorism operations in East Africa. In an email interview, Mattia Toaldo, a policy fellow at the European Council on Foreign Relations, discussed Italy’s outreach to Africa. WPR: How extensive are Italy’s ties with Africa, and what are the main areas of cooperation? Mattia Toaldo: After the end of the Cold War, and with development aid money drying up, the Italian presence in sub-Saharan Africa quickly waned. But following a policy review conducted two years ago under then-Foreign Minister Emma Bonino, Italy […]

On his current visit to Kenya and Ethiopia, U.S. President Barack Obama has been wise to promote stronger business ties between Africa and the United States. The U.S. has lagged behind rivals, notably China, when it comes to commercial engagement with the continent. The Obama administration is well aware of the problem, and the president’s trip is not the first attempt to fix it. But meaningful progress will require Washington to go beyond rhetoric and actively help to enhance governance frameworks that currently prevent U.S. companies from competing effectively in many African countries. For several years now, the Obama administration […]

Extreme volatility in China’s financial markets has forced emergency interventions by financial regulators and thrown up major new challenges to Chinese policymakers. Following what amounted to a complete suspension of both onshore stock exchanges three weeks ago, market operations have begun to normalize, but confidence remains fragile. With emergency policies still in place, the broader institutional fallout is unclear, but potentially huge. The seeds of the stock market collapse were sown almost exactly a year ago. Following an 8-year bear market, a major slowdown in the real economy and increasing corporate debt-repayment obligations, it suited policymakers both politically and economically […]

Last week, officials from the United States and Central America met in El Salvador to discuss energy cooperation, including developing a regional energy market. In an email interview, Alexis Arthur, an energy policy associate at the Institute of the Americas, discussed U.S. energy cooperation with Central America. WPR: What is the current state of Central America’s energy infrastructure, and how extensive is U.S. cooperation with the region on energy issues? Alexis Arthur: Central America has become a model for the Latin American region with the interconnection of power grids across six countries. The Central American Electrical Interconnection System, or SIEPAC, […]

Last week, prosecutors in Brazil formally opened an investigation into alleged influence-peddling by former President Luiz Inacio “Lula” da Silva. The popular Brazilian leader is accused of using his position to benefit the Brazilian construction giant Odebrecht, Latin America’s largest engineering firm, between 2011, when he left office, and 2014. The corruption probe is only the latest headache for Lula’s successor, Dilma Rousseff, and a Brazilian political class shaken to the core by the ongoing Petrobras scandal, in which dozens of politicians and businessmen are under investigation for taking over $2.1 billion in kickbacks from the state-owned oil giant. Odebrecht’s […]

Ever since the end of the colonial period, in 1956 for Morocco and in 1962 for Algeria, France has had a complex and often ambivalent relationship with the two former colonies that formed the core of its North African empire. Social and economic ties have drawn all three countries closer together, but diplomatic tensions, usually involving Algeria, remain. In a recent reversal, however, Morocco has aired resentments over its colonial past after a series of recent spats with Paris, while Algeria has a newfound preference for closer French trade and security ties. French relations with Algiers were strained for many […]

Ties between Russia and Japan are slowly picking up steam again after a 16-month chill following Russia’s annexation of Crimea in March 2014. Earlier this month, Shotaro Yachi, Japan’s national security adviser, traveled to Moscow and met with his Russian counterpart to discuss President Vladimir Putin’s plans to visit Japan later this year. And despite ongoing tensions over Ukraine, there are also signs that Japan’s foreign minister, Fumio Kishida, may travel to Russia in the coming months to prepare for a potential Putin visit. Japan-Russia cooperation is also continuing on the security front with bilateral maritime security drills, focused primarily […]

Last week, at least 22 Algerians died in clashes between ethnic Arabs and Berbers in the oasis city of Ghardaia, where tensions have grown for the last two years between the two communities over jobs, housing and land. In an email interview, Dalia Ghanem-Yazbeck, a research analyst at the Carnegie Middle East Center, discussed ethnic violence in Algeria. WPR: What are the reasons behind the violent clashes between Arabs and Berbers in recent years? Dalia Ghanem-Yazbeck: The conflict between the Arabs and Berbers in Algeria dates back to 1975, when clashes broke out between the two communities for unknown reasons. […]

Cambodia’s July 2013 national elections were a watershed moment in the country’s recent political history. Amid charges of electoral fraud, long-ruling Prime Minister Hun Sen’s Cambodian People’s Party (CPP) was declared the winner of the polls by the National Election Committee. Despite the irregularities, the opposition Cambodian National Rescue Party (CNRP) still saw its support surge, winning 55 out of the 123 seats in parliament. The result represented an unprecedented loss of 22 seats for the CPP and prevented it from wielding the two-thirds majority necessary to amend Cambodia’s constitution. Following the announcement of the results, anti-government demonstrations in the […]

Indian Prime Minister Narendra Modi’s whirlwind tour this month of the five Central Asian republics of Uzbekistan, Kazakhstan, Turkeminstan, Kyrgyzstan and Tajikistan, with a stop in the middle in Russia, was a move to breathe life into the “Connect Central Asia” strategy launched under Modi’s predecessor, Manmohan Singh, in 2012. Modi’s renewed seriousness about an Indian foreign policy that looks north is underscored by India’s investment in the Iranian port of Chahbahar. The port forms the southern end of the International North-South Corridor (INSTC), a multination rail, road and shipping network connecting India with Russia via Central Asia. But this […]

Electric Yerevan, the name given to protests in Armenia that started last month, has mostly ended. But the grievances that catapulted anger over a utility rate hike into weeks of protests in the capital, Yerevan, and across the country remain all too relevant. While much international commentary on the protests has examined the geopolitical significance and repercussions of the unrest, both the Armenian government and the thousands of demonstrators themselves have insisted the protests focused on issues a little closer to home. Rather than a repudiation of Russia or a nod to the West, the protests sought to highlight the […]

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. In London, a group of Americans meet at a fundraiser in a private home in support of Hillary Clinton’s presidential campaign. Across the Atlantic, in Maryland, the construction of a $100 million mosque complex is funded by Turkey’s Presidency of Religious Affairs, or Diyanet. In Canada, the Ukrainian Canadian Congress lobbies the government to strengthen its official aid to Ukraine, while urging individuals to directly support the Ukrainian army by donating for […]

Today, the phrase “Arctic energy” has become synonymous with snowy oil rigs, icy ocean exploration and Greenpeace activists. The conditional U.S. approval in May of Shell’s plans to drill in the Chukchi Sea off Alaska has reinforced this narrow delineation of what’s included in polar energy debates. Reflecting how observers and international policymakers view the Arctic more generally, northern energy is written as an extractive narrative. From the opening of shipping routes to warnings of climate change consequences, the Arctic is frequently framed and valued by how it can help those living below the 66th parallel. But there is another […]

The relationship between South Africa and Nigeria, generally troubled since the end of apartheid in 1994, deteriorated markedly in recent years during the respective presidencies of Jacob Zuma and Goodluck Jonathan. This crisis in relations is not in the interests of either country or the wider continent, which needs its two hegemons to work in collaboration to address Africa’s myriad problems. Both sides seem locked into antagonistic postures from which there appears to be no easy exit. But there is a way out. Ties already in a freefall under Zuma and Jonathan reached their nadir in May, when Nigeria temporarily […]

Both the Brazilian and U.S. governments billed President Dilma Rousseff’s late June meeting with President Barack Obama and Vice President Joe Biden in Washington as a reset of relations between the Western Hemisphere’s two largest democracies. Revelations in 2013 by NSA contractor Edward Snowden of U.S. eavesdropping on Brazilian officials, including Rousseff herself, caused her to cancel her state visit scheduled for that October, putting bilateral relations on ice for almost two years. Arguably, Brazil and the United States had already been on separate tracks for some time prior to that, given Brasilia’s more assertively independent foreign policy under the […]

When it comes to the power of arcane financial matters to capture global attention, nothing in recent weeks compares to the drama surrounding Greece’s debt. But there is another simmering crisis with potential to do far more damage to the world economy. Consider that as depositors in Greece lined up at ATMs to withdraw pocket change from their bank accounts, investors in China were bleeding assets at an unprecedented rate. And these days, even a small financial tremor in China can be felt around the world. The Chinese stock market has endured its sharpest drop in more than 20 years. […]