Economics & Business Archive

Over four months on from Britain’s referendum on whether or not to remain a member of the European Union, what exactly Brexit will look like is still not any clearer. There has been no shortage of claims and counter-claims, posturing and rhetoric. The debate, if an exercise in guessing can be called that, has focused on the degree to which the United Kingdom will be able to have access to the single market. This will depend on its acceptance of the four freedoms—movement of people, capital, goods and services—as consistently emphasized by EU and member state officials, yet dismissed as […]

Indian Prime Minister Narendra Modi’s visit to Japan last month saw the conclusion of an India-Japan nuclear deal that had long been in the works. Not so many years ago, that development would have elicited major international reaction, given India’s status as a nonsignatory of the nuclear Non-Proliferation Treaty (NPT). The lack of such reaction to the latest bilateral agreement is perhaps due to the fact that India already has 14 such deals in place, with a list of countries that includes the United States, Russia and France. Nevertheless, that India became the first non-NPT country to firm up such […]

For years, Costa Rica has been a Latin American success story. The country’s democratic institutions and attention to good governance have enabled its resource-poor economy to thrive in a dangerous part of the world. The country overachieves on various measures of prosperity, with its ranking on indices such as economic quality, business environment, governance, education, health, personal freedom, social capital and the natural environment above the norm for countries at a similar level of development and wealth—and often considerably so. In terms of overall economic growth, data from the International Monetary Fund show the economy expanded at a steady rate […]

The next time they meet, Matteo Renzi, the soon-to-be former Italian premier, and Francois Hollande, the lame duck French president, will probably take a moment to console each other for their recent misfortunes. Afterward, they might spend some time trying to figure out where things all went wrong. Both entered office with the intention of bolstering the European Union’s fraying solidarity in the aftermath of the sovereign debt crisis that threatened to sink the euro and the union itself in 2009. Both were vocal advocates for a stimulus-driven response to the EU-wide economic stagnation that followed. Both are now political […]

Editor’s note: This article is the first in an ongoing WPR series on income inequality and poverty reduction in various countries across the globe. Though Sweden has one of the lowest rates of income inequality in the world, it is experiencing a wave of anti-establishment nationalism similar to what has struck much of Europe and the United States, fueled in large part by a backlash against immigration. In an email interview, Daniel Waldenström, a visiting professor at the Paris School of Economics, discusses income inequality in Sweden. WPR: What is the rate of income inequality in Sweden, what are the […]

British Prime Minister Theresa May is in Bahrain to meet with the leaders of the six Gulf Cooperation Council states on the sidelines of the annual GCC Summit on Dec. 6-7. May, who took office in July in the aftermath of the Brexit vote and Prime Minister David Cameron’s subsequent resignation, is the first British prime minister to attend the GCC summit—and only the second Western leader to be invited to do so, after France’s Francois Hollande. Nearly six months on from Brexit, the mechanics and timeframe for Britain’s formal process of withdrawal from the European Union remain unresolved and, […]

In 2007, The Economist reported that “America’s nuclear industry is about to embark on its biggest expansion in more than a generation. This will influence energy policy in the rest of the world.” Safety, management and regulatory improvements, it predicted, would lead to an “atomic renaissance” for a nuclear energy industry hobbled for decades by the accidents at Three Mile Island and Chernobyl. The nuclear industry itself anticipated that soaring electricity demand in fast-growing developing countries and rising concerns about climate change would drive countries to take a fresh look at an industry whose safety practices appeared to have improved […]

On Nov. 8, Indian Prime Minister Narendra Modi announced that 500-rupee and 1,000-rupee notes would be withdrawn from circulation, a move designed to tackle corruption that instead has created chaos and disproportionately affected India’s poor, who depend on the informal economy. In an email interview, Jan Breman, an emeritus professor at the University of Amsterdam, discusses India’s informal economy. WPR: How large is India’s informal economy, how many people participate in it, and how much tax revenue does the government lose from it? Jan Breman: The informal economy in India “employs” close to half a billion men, women and children, […]

The death of former Cuban leader and revolutionary Fidel Castro on Nov. 25 marked the end of an era for Cuba. Throughout his half-century in power, Castro staunchly opposed American influence and governed as an uncompromising authoritarian. He left behind a polarizing legacy, particularly in the context of Cuba’s rapprochement with the United States that began in 2014. While many billed the normalization of ties as Cuba’s ticket to a new era of openness, Castro’s passing has drawn attention to the enduring challenges the country faces. That, coupled with the election of Donald Trump as president in the United States, […]

With China’s aggressive posture in the South China Sea undermining the popular narrative of its peaceful rise, many experts correctly point to the dual tides of nationalism and militarization as drivers of hostile behavior. But leaning too heavily on these explanations conceals a third factor behind Beijing’s maritime claims: a burgeoning demand for energy. Already the world’s largest energy consumer, China will only need more in the coming years to maintain sustained urbanization and industrialization. As more people move into cities and China’s economic output rapidly expands, its energy consumption will increase by nearly 50 percent through 2035, accounting for […]