Economics & Business Archive

During his recent visit to Buenos Aires, President Barack Obama enthusiastically embraced Argentina’s new president, Mauricio Macri, who took office last December promising to overhaul the country’s economy, politics and foreign policy, including its endemic anti-Americanism. Obama appeared eager to endorse Macri’s new approach, and while thousands protested the visit, Obama made a statement that expressed surprisingly lofty ambitions for the new administration in Buenos Aires. “Argentina,” Obama declared, “is re-assuming its traditional leadership role in the region and around the world.” The notion of Argentina becoming a regional leader will strike some as awkward. Latin Americans frequently decry what […]

The uneasy mutual dependence between Russia and the European Union’s energy sector is well documented. With some EU member states relying on Russia for up to 90 percent of their energy needs, Brussels has long wanted to remedy the situation by diversifying the sources of oil and gas shipped into EU borders. These efforts intensified after Russia spooked the continent in 2006 and 2009 by cutting off natural gas supplies to Ukraine over a pricing dispute, leading to gas shortages in parts of Europe during the dead of winter. Since then the EU has invested in infrastructure to link so-called […]

Editor’s note: This article is part of an ongoing WPR series on the Trans-Pacific Partnership and the potential impact on members’ economies. New Zealand’s prime minister, John Key, spoke at the U.S. Chamber of Commerce in Washington on Wednesday about the need for the United States to ratify the Trans-Pacific Partnership (TPP). In an email interview, Timothy Hazledine, a professor of economics at the University of Auckland, discussed the benefits and drawbacks of New Zealand’s membership in the TPP. WPR: What are the expected economic benefits and potential downsides for New Zealand from the TPP, and who are the expected […]

On March 30, President Barack Obama hosted the fourth and final Nuclear Security Summit, where global leaders convene in an effort to secure nuclear materials and prevent nuclear terrorism. Along with Obama’s vision articulated in a 2009 speech in Prague of a world without nuclear weapons, the summits provide an important marker for assessing Obama’s record on reducing the security risks posed by nuclear weapons and material. The following articles are free to nonsubscribers until April 14. A Mixed Record on Nonproliferation Why Obama’s Nuclear Nonproliferation Commitments Fell ShortIt appears that with the exception of the Iran nuclear deal, President […]

When Barack Obama traveled to Cuba in March, he became the first U.S. president in almost 90 years to set foot on the island nation. But during the final year of his presidency, he will become the first-ever sitting U.S. president to visit another communist-ruled former foe: Laos. In September, Obama will go to its capital, Vientiane, for the summit of the Association of Southeast Asian Nations (ASEAN). Given Cuba’s proximity to Florida and the huge Cuban-American community in the United States, it is hardly surprising that Obama’s visit to Havana has attracted much more attention than his upcoming trip […]

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries. Last week, Nigeria’s Senate passed President Muhammadu Buhari’s proposed 2016 budget, which projected a deficit of $15 billion due to falling oil prices. In an email interview, Matthew Page, an international affairs fellow at the Council on Foreign Relations, discussed the impact of falling oil prices on Nigeria’s economy and politics. WPR: How realistic is President Buhari’s latest proposed budget, and what are the implications of the budget’s $15 billion deficit? Matthew Page: Stubbornly low crude oil […]

Last weekend, Israel prevented Indonesian Foreign Minister Retno Marsudi from entering the West Bank to attend the inauguration of the Indonesian Honorary Consul to Palestine in Ramallah, after she refused to pay an official visit to Jerusalem. In an email interview, Emanuel Shahaf, CEO of Technology Asia Consulting and vice chairman of the Israel-Indonesia Chamber of Commerce, discusses Israeli-Indonesian political and economic ties. WPR: What are the extent of Israel’s trade and political ties with Indonesia, and how institutionalized are current informal ties? Emanuel Shahaf: Bilateral trade is nominally valued at around $200 million, with roughly 80 percent made up […]

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries. Earlier this month, Colombian President Juan Manuel Santos announced he was cutting the national budget by 3 percent due to falling oil prices. In an email interview, Christian Gómez, an international development professional, discussed the impact of falling commodities prices on Colombia’s economy. WPR: How has the relative significance of oil and commodities exports to Colombia’s economy evolved in the recent past, and what effect have falling commodities prices had on the economy and public spending and […]

President Barack Obama’s trip to Cuba on March 21-22 marks a pivotal moment in the unfolding process of normalizing U.S.-Cuban relations. In the 15 months since Obama and Raul Castro declared the end of the cold war in the Caribbean on Dec. 17, 2014, there has been just enough progress to justify the historic presidential visit. But much remains to be done. By underscoring the commitment of both presidents to prioritize better relations in the time they have left in office, the trip should energize their government bureaucracies to accelerate the pace of change. After a slow start—it took six […]

South African President Jacob Zuma’s two-day trip to Nigeria earlier this month was the first step in a campaign to first stabilize and then hopefully radically improve relations between Africa’s two anchor states. Analysts have been lamenting for some time the degree to which this pivotal relationship has been allowed to deteriorate. Poor relations have been detrimental to African unity, the cohesion and purpose of the African Union, and the promotion of the wider African agenda of development, conflict management and democratization. What’s behind this overdue diplomatic outreach, and what are the prospects for a lasting rapprochement? Since 2009, the […]

In 2016, Kuwait faces a combination of domestic and regional challenges arising from looming uncertainty over succession, the decline in international oil prices and the threat from radical groups such as the so-called Islamic State. Each of those issues has the potential to bring an end to the relative political stability that Kuwait has enjoyed since its most recent legislative election in July 2013. The risk for Kuwait’s ruling officials is that the intervening years of political calm have masked, but not resolved, many of the underlying socio-political and economic triggers of discontent that surfaced in 2011 and 2012 and […]

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries. Plunging oil prices have put Iraq in an economic bind, and according to The New York Times, “much tougher economic times are ahead.” In an email interview, Frank Gunter, a professor of economics at Lehigh University and author of “Political Economy of Iraq: Restoring Balance in a Post-Conflict Society,” discussed the impact on Iraq of low oil prices. WPR: How important is oil for Iraq’s economy and government revenues, and what impact have falling oil prices had […]

Pakistani Prime Minister Nawaz Sharif and Army Chief Gen. Raheel Sharif visited Saudi Arabia last week for the closing ceremonies of a multinational military exercise, following recent tensions in relations. In an email interview, Shehzad H. Qazi, managing director at CBB International and a geopolitical analyst specializing in emerging and frontier markets, discussed Pakistan’s relations with Middle East nations. WPR: Who are Pakistan’s main partners in the Middle East, and what are their main areas of cooperation? Shehzad Qazi: Saudi Arabia, the United Arab Emirates (UAE) and Turkey are three of Pakistan’s main partners in the Middle East. Pakistan and […]

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries. In late January, Liberian President Ellen Johnson Sirleaf announced that the government would cut budgetary spending by 11 percent, due to a drop in mining revenues caused by the collapse of global commodities prices. In an email interview, Gonne Beekman, a postdoctoral researcher at Wageningen UR, discusses the impact of the commodities bust on Liberia. WPR: How important are commodities for Liberia’s economy, and what effect have falling commodities prices had on public spending and, by consequence, […]

Last week, U.S. warplanes bombed the Libyan town of Sabratha, targeting militants of the self-declared Islamic State. The move is the most recent illustration of the dilemma presented by Libya’s political and security stalemate, characterized by political infighting and militia violence. The Islamic State’s emergence in the country in early 2015 has given the situation regional implications. The United States is weighing its next steps, amid ongoing questions about its role in the 2011 NATO intervention that some see as the source of today’s chaos. The following articles are free for nonsubscribers until March 17. Stabilizing a Chaotic Libya Libya’s […]

Editor’s note: This article is part of an ongoing WPR series on the Trans-Pacific Partnership and the potential impact on members’ economies. Last month, following large protests against the Trans-Pacific Partnership (TPP) in Santiago, Chilean Foreign Minister Heraldo Munoz defended the 12-country trade pact, calling it a politically and economically sound route for Chile. In an email interview, Roland Benedikter, a senior research scholar at the Council on Hemispheric Affairs and author of “Chile in Transition: Prospects and Challenges of Latin America’s Forerunner of Development,” discussed the benefits and drawbacks of Chile’s membership in the TPP. WPR: What are the […]

Last week, Chinese engineers broke ground on what press accounts styled “China’s first overseas naval base” in Djibouti. That is a big deal. Djibouti lies in East Africa along the Bab el-Mandeb Strait, the waterway that connects the western Indian Ocean with the Red Sea. It also adjoins the patrol grounds for the Gulf of Aden counterpiracy mission, in which China’s navy has taken part since 2009. In short, it occupies strategic real estate. China, however, will not be the lone occupant of the seaport. Djibouti is also home to other foreign logistics hubs: The Japan Maritime Self-Defense Force operates […]