Economics & Business Archive

For months, the critical issue for Iraq has been its capacity to win back territory in its western provinces controlled by the so-called Islamic State (IS). The focus abroad has been on building an international coalition to support Iraqi forces; enabling various Kurdish militias to do their part in the war against IS; and strengthening Iraqi resolve, particularly among Sunnis, to see the IS threat in all its dimensions and reinvigorate Iraq’s national capacity and purpose. But in Baghdad, other dynamics are in play. Earlier this month, Prime Minister Haider al-Abadi followed through on pledges to take on corruption and […]

More than five years in the making, the ambitious African trade agreement known as the Tripartite Free Trade Area (TFTA), officially launched in June, aims to bring together three key African trading blocs—the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA)—to create a common market spanning the continent from Cairo to Cape Town. With a huge free trade zone encompassing a region of more than 626 million people and a total gross domestic product of $1.2 trillion—equivalent to 58 percent of the continent’s entire GDP—the deal hopes to […]

During his remaining time in office, U.S. President Barack Obama is pushing hard to finalize the Trans-Pacific Partnership (TPP), the major free trade deal between the United States and 11 Pacific Rim countries. The Obama administration is also intent on providing significant new aid to reduce violence, support development and build institutions in Central America. At first blush, the two appear unrelated; the TPP includes no Central American countries. Yet the deal’s final shape may actually play an important part in determining whether the Obama administration will meet its policy and security goals in Central America, since it could unintentionally […]

Over the last two years, the notion that the impasse over Iran’s nuclear program could be solved has gone from being a theoretical possibility to becoming a reality, with the landmark agreement between Tehran and six world powers. The potential lifting of Western economic sanctions on Iran has, in turn, quickly boosted interest in the Iranian economy, especially in Europe, which sees a market re-emerging with significant potential, ready for international investments, technology and goods. But in a somewhat contradictory way, the Iranian economy has both been underestimated during the last five years of sanctions, and now runs the risk […]

Last month, India and Thailand signed a series of agreements, including a tax avoidance deal and extradition treaty. In an email interview, Pongphisoot Busbarat, a postdoctoral fellow at Columbia University’s Weatherhead East Asia Institute, discussed India-Thailand relations. WPR: How extensive are Thailand’s economic ties with India, and what are the main areas of cooperation? Pongphisoot Busbarat: Thailand’s economic ties with India are multilayered, based on bilateral, subregional and regional schemes. These arrangements were made possible by the complementarity of both countries’ foreign policy strategies since the early 1990s: India’s “Look East” policy and Thailand’s “Look West” policy. The Joint Commission […]

On July 20, an honor guard of three Cuban soldiers in full dress uniform raised the island country’s flag over the embassy in Washington for the first time since January 1961. The re-establishment of diplomatic relations concluded “the first stage” of the dialogue between the United States and Cuba, said Foreign Minister Bruno Rodriguez, but a “complex and certainly long process” of negotiations still lay ahead before the two countries would have truly normal relations. “The challenge is huge,” he added, “because there have never been normal relations between the United States of America and Cuba.” Indeed, myriad issues still […]

During a session of the Angolan parliament late last month, members of the main opposition party, UNITA, boycotted a vote on a private investment law because of concerns over transparency. It was a rare display of dissent against President Jose Eduardo dos Santos, with some UNITA lawmakers questioning the details surrounding recent loan deals with China, struck during dos Santos’ visit to Beijing in June. “How much did our president get from China? Nobody knows. How will we pay for it? Nobody knows,” Raul Danda, a UNITA legislator, told his fellow parliamentarians. “We asked our president to explain what he […]

Last month, Venezuelan President Nicolas Maduro formally requested that the U.N. mediate its long-standing border dispute with Guyana. In an email interview, Mark Kirton, senior lecturer at the University of the West Indies, discussed Guyana’s relations with Venezuela and the impact of the territorial dispute on bilateral ties. WPR: How extensive are Venezuela and Guyana’s political and economic relations, and what are the main areas of cooperation? Mark Kirton: Relations between the two countries are characterized by prolonged periods of controversy and tension, interspersed with short periods of economic and political cooperation. Tensions stem from Venezuela’s claim to the Essequibo […]

Ever since the last-minute agreement reached last month to reopen negotiations for a third bailout for Greece, Germany has become the target of harsh criticism both in the European Union and the United States. The agreement, which set even harsher terms for reopening talks than what had been on offer before Athens called for a referendum it hoped would strengthen its bargaining position, has been characterized as a “German diktat,” with critics calling the German government vindictive, contemptuous and brutal. Such criticism stands in stark contrast to perspectives in Berlin, where many policymakers regard the compromise found as a rather […]

On July 30, Societe Generale, one of France’s biggest banks, was declared an “assisting witness”—somewhere between a suspect and a witness—in a money-laundering case against Teodorin Obiang, the son of Teodoro Obiang, Equatorial Guinea’s president who has been in power since 1979. Days later, Maixent Accrombessi, a close aide to Gabon’s president, Ali Bongo Ondimba, was held for questioning in a corruption probe in Paris hours before he was set to return to Libreville. His detention was part of an ongoing investigation into the French military-uniform company Marck—which signed a $7.6 million contract with Gabon in 2005—on suspicions of corruption […]

There has been no shortage of buzz about Indian Prime Minister Narendra Modi’s activist foreign policy since he took office in May 2014. He has visited a number of countries in India’s immediate neighborhood, expanding India’s “Look East” policy by looking north to Central Asia. He has boosted ties in Europe, traveling to France, Germany and Russia; and the Middle East, hosting Gulf leaders in New Delhi; in addition to visits for bilateral meetings and multilateral summits from Australia and Japan to Brazil and the United States. All in all, he has brought renewed vigor to India’s foreign policy concerns […]

Billboards in New York’s Times Square advertise it as “Egypt’s gift to the world.” An expansion of the Suez Canal, completed in just a year—at President Abdel Fattah el-Sisi’s request—is set to formally open Thursday, with a party estimated to cost $30 million and full of foreign dignitaries. Those ads in Times Square, which have also appeared in London and, curiously, in a special cover wrap of some editions of The Economist, claim that “Egypt boosts the world economy.” How? By allowing two-way shipping traffic that, the Suez Canal Authority says, will cut transit time by seven hours. But plenty […]

In May, Costa Rica’s National System of Conservation Areas tested the use of unmanned aerial vehicles to monitor collect evidence of illegal fishing and poaching. In an email interview, Marco Quesada Alpízar, the director of Conservation International’s Costa Rica program, discussed Costa Rica’s fishing industry and fisheries policy. WPR: What is the current state of Costa Rica’s fishing industry? Marco Quesada Alpízar: Over 90 percent of Costa Rica’s fishing industry operates on the Pacific coast. The main fishing fleet comprises small-scale operations, composed of thousands of fishermen—4,000 to 6,000 in the Gulf of Nicoya alone—30 to 50 percent of which […]