Economics & Business Archive

By now, the European Union has been struggling for over half a decade to sustainably resolve the euro crisis. And as the latest round of brinkmanship over the next bailout tranche for Greece shows, the crisis is far from resolved. It’s still too early to tell what kind of EU will eventually emerge from the crisis, but it is not too early to take stock of the political changes the past five years have already brought about. Conventional wisdom has it that both left- and right-wing populism have been on the rise across the continent. Yet this lazy equation of […]

Earlier this month, thousands in Mauritania took to the streets to protest President Mohamed Ould Abdel Aziz’s proposed constitutional referendum that many believe is designed to allow him to seek a third term in office.* In an email interview, Noel Foster, a doctoral student at Princeton University, discussed politics in Mauritania and the reaction to the proposed reforms. WPR: What constitutional reforms has President Mohamed Ould Abdel Aziz proposed, and what is driving the move? Noel Foster: Abdel Aziz recently proposed a constitutional referendum, ostensibly to amend the constitution so as to abolish the Senate and pursue decentralization. Granted, the […]

Pity Matteo Renzi. Italy’s prime minister knows that his country’s troubled banking system has put its nascent economic recovery at risk. Yet Italy’s own financial weakness and European Union rules severely constrain his options. Not all the news is bad, though. Renzi’s financial team has come up with an imaginative response to the country’s bank problem with what they call the Atlante Fund, a rescue package to buy up risky loans. But the fund has its own limits, given the precariousness of Italy’s finances, and by implication Europe’s. Past regulatory oversight or maybe just negligent private management have left Italian […]

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 week, the Malaysian government announced that it had established a national committee to oversee the implementation of the Trans-Pacific Partnership (TPP). In an email interview, Shankaran Nambiar, a senior research fellow at the Malaysian Institute for Economic Research, discussed the potential impact of TPP membership on Malaysia’s economy. WPR: What are the expected economic benefits and potential downsides for Malaysia from the TPP, and who are the expected “winners” and “losers”? Shankaran Nambiar: Malaysia’s export-oriented firms will […]

One of U.S. President Barack Obama’s most significant measures to promote commerce with Cuba isn’t working. Last March, a few days before the president’s trip to Havana, Washington announced a new package of regulatory reforms loosening the U.S. embargo—the fourth since December 2014. One element of that package licensed U.S. financial institutions to process international transactions between Cuba and non-U.S. parties, so-called “u-turn” transactions. Because most dollar-denominated transactions are cleared through U.S. banks, the ban on these transactions severely hampered Cuban trade. In fact, lifting that prohibition was at the top of Cuba’s agenda last February when Cuban Minister of […]

The third ASEAN-Russia summit, held in the Russian city of Sochi, concluded on May 20. In a beehive of diplomatic activity, Russian President Vladimir Putin held bilateral meetings with the leader of every member-state of the Association of Southeast Asian Nations (ASEAN) over two days. The conclave has been heralded for setting in motion a roadmap to accelerate economic and security cooperation between the states of Southeast Asia and Russia—a new level of interaction that will allow Moscow to move beyond its stalled relationships with the United States and Europe to take advantage of new opportunities in Asia. Even before […]

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, the prime minister of the Democratic Republic of Congo (DRC), proposed a new budget that included cutting government spending by 30 percent in a bid to avoid hyperinflation, as the economy continues to suffer from low global commodities prices. In an email interview Yvan Yenda Ilunga, a doctoral student in the division of global affairs at Rutgers University, discussed the effect of declining revenues from commodities on the DRC’s economy. WPR: How important are commodities […]

In this week’s Trend Lines podcast, WPR’s editor-in-chief, Judah Grunstein, and host Peter Dörrie discuss the challenges facing President Maurico Macri’s reforms in Argentina, Mozambique’s hidden debt crisis, and land protests in Kazakhstan. For the Report, Denise Natali joins us to talk about how the Syrian war has impacted the country’s Kurds and their prospects for autonomy. Listen:Download: MP3Subscribe: iTunes | RSS Relevant articles on WPR: Macri’s Moment: Can Argentina’s New President Live Up to the Hype? Massive Debt Revelation Another Blow to Mozambique’s Economy Kazakhstan’s Unprecedented Land Protests Only the First Wave of Discontent? Can Syria’s Kurds Leverage War […]

Over the past quarter-century, citizens of Kazakhstan have developed a reputation for relative staidness. Unlike residents of other post-Soviet republics like Kyrgyzstan, Ukraine or Georgia, Kazakhstanis have largely avoided public protest, opting to sideline complaints on longstanding corruption and political repression in favor of enjoying the fruits of the country’s massive hydrocarbon windfall. Over the past three weeks, however, that reputation has begun to shift. And considering how much collapsed energy prices have gouged Kazakhstan’s economic prospects—and how myopically Astana has managed the country’s finances since—recent frustrations may be just the beginning. In late April, a series of large-scale, spontaneous […]

Argentina’s new president, Mauricio Macri, is creating a buzz on the international circuit, but he won’t have an easy time installing a new paradigm in a deeply divided society. On March 24, Argentina marked the 40th anniversary of the military coup that ushered in a brutal seven-year dictatorship in 1976. As has become customary, tens of thousands marched on Plaza de Mayo, in central Buenos Aires, to remember the atrocities of that era and chant the universal slogan, Nunca Mas—Never Again. But this year, the march was different. Just 24 hours earlier, the same historic square had been adorned with […]

The results of Ireland’s general election in late February were as indecisive as anyone could have imagined, leaving a hung parliament. After unsuccessful talks about forming a grand coalition, few are confident of the stability of the new minority government, led by Fine Gael and backed, at least for now, by its longtime rival, Fianna Fail. The breaking point will most likely come on economic policy issues. For decades Ireland’s traditional party of government, Fianna Fail had been severely punished in the previous general election in 2011 for the economic collapse over which it presided. It made a strong recovery […]

Earlier this month, Singapore and Australia announced a $1.7 billion military cooperation deal, part of a broader strategic partnership between the two countries. In an email interview, Euan Graham, director of the international security program at the Lowy Institute and author of “The Lion and the Kangaroo: Australia’s Strategic Partnership With Singapore,” discussed Australia’s defense and security relationship with Singapore. WPR: What has been the nature of Australia-Singapore defense ties, and how has their defense relationship evolved in recent years? Euan Graham: Australia’s defense relationship with Singapore is longstanding, deep and mutual, although for the most part it has been […]

Earlier this month, Japan announced a three-year, $7 billion investment deal with the countries of the lower Mekong River to boost development and improve infrastructure. In an email interview, Phuong Nguyen, an associate fellow with the Southeast Asia program at the Center for Strategic and International Studies, discussed Japan’s relations in Southeast Asia. WPR: How extensive are Japan’s ties in Southeast Asia, and with what countries does Japan have the closest relations? Phuong Nguyen: Japan has a long history with Southeast Asia dating back to the World War II period. Southeast Asia functioned as an important source of resources and […]

This month marks the centenary of the Sykes-Picot treaty, a French-English agreement to establish areas of control and influence in the Arab lands of the Middle East after the collapse of the Ottoman Empire. The milestone has stirred up resentments and a sense that the flailing states of the region never really existed as coherent geographic entities. But changing borders is not easy, and even if one could draw a better map of the Middle East, it would not solve its deepest sources of distress. Much is being said about the 100th anniversary of the Sykes-Picot agreement, a minor event […]

The breakdown of the Syrian state has been a political boon for Kurdish groups. Failed governance, civil war, jihadi threats and external support have enabled the Kurds’ Democratic Union Party (PYD)—an affiliate of the Kurdistan Worker’s Party (PKK)—to advance its leftist-nationalist agenda. Since 2011, the PYD has created new facts on the ground in Syria by expanding territories, assuming de facto control over oil fields, creating three autonomous cantons, and declaring a so-called federal Kurdish region. The PYD has also benefitted from both U.S. and Russian backing in the campaign against the self-proclaimed Islamic State (ISIS), support that has bolstered […]

Given global headlines, you might think the world is terribly off course. Geopolitical rivalry threatens stability from Eastern Europe to the South China Sea. Jihadi terrorists sow mayhem throughout the Middle East. A scary virus emerges in Latin America, spreading across borders. A Brazilian president is brought down, as the Panama Papers expose corruption in other lands. Publics everywhere, alienated by yawning inequality and anemic growth, vent their frustration at a system rigged for moneyed elites. Populist politicians, sensing the sour mood, promise to reverse globalization by building walls to keep out foreigners and abandoning trade agreements. This noisy, negative […]

South Korean President Park Geun-hye visited Iran earlier this month, pledging to forge ahead and establish a new era of relations with Tehran built on closer economic cooperation. During the three-day visit, Park and Iranian President Hassan Rouhani agreed to 30 joint economic projects, totaling more than $37.1 billion. The two sides also agreed to more than 50 memorandums of understanding dealing with everything from infrastructure cooperation and joint energy ventures to work on medical and health care projects. South Korea was eager to quickly restore relations with Tehran following the finalization of last year’s nuclear deal between Iran and […]