Economics & Business Archive

The revolution in shale oil production in the United States has had a major impact on global energy markets, leading to the collapse of energy prices but also limiting their vulnerability to geopolitical instability. In an email interview, Meghan L. O’Sullivan, the Jeane Kirkpatrick professor of the practice of international affairs at Harvard University’s Kennedy School, where she directs the Geopolitics of Energy Project, and the recent author of “Windfall: How the New Energy Abundance Upends Global Politics and Strengthens America’s Power,” discusses what a rebalancing of supply and demand will mean for geopolitics going forward, if a supply gap […]

The Chinese Communist Party’s congress, the once-every-five-year gathering that draws to a close today, brings to mind the old Danish proverb, sometimes misattributed to the New York Yankee hall of famer Yogi Berra: It’s difficult to make predictions, especially about the future. This year’s congress, which comes at the end of Chinese President Xi Jinping’s first five-year term in office, was being watched closely for signs of whether his second term would conform to the practice of other recent Chinese leaders and be his last. Since Deng Xiaoping’s exit from power in 1989, the party’s collective leadership has used the […]

On Sept. 26, Joao Lourenco was sworn in as just the third president since Angola gained its independence from Portugal in November 1975. Unlike other post-colonial leaders in Africa, Angola’s first president, Agostino Neto, was in power for barely four years, until September 1979. In the nearly 38 years since then, Jose Eduardo dos Santos has been at the helm of the oil-rich nation. The historic handover of power, after elections in August, came as Angola finds itself in the deepest economic crisis since before its civil war ended in 2002. Even if there is not yet a political transition […]

Changing realities in the Americas are forcing Japan to re-evaluate its brand in the region. Seeking to preserve and expand its longstanding economic connections from Argentina to Mexico, Japan is taking active steps to raise its profile in the shadow of China’s continuing push into Latin America and growing uncertainty about the role of the United States under the Trump administration. As the newly protectionist trade talk coming out of Washington threatens economic pillars like NAFTA, there are surprising consequences for Tokyo. Traditionally, Japan has taken a low-key approach to Latin American issues, content to build its relations quietly and […]

With talks to renegotiate NAFTA deadlocked this week over the hard-line positions of the Trump administration, Mexico was again left pondering the fate of its biggest trade relationship. Negotiations over the trade deal will now extend into next year, heightening both the economic uncertainty and Mexico’s desire to branch out, as countries like China look to expand their stake in the Mexican economy. In an email interview, Carin Zissis, editor-in-chief of AS/COA Online, the website of the Americas Society/Council of the Americas, discusses the evolving nature of Mexico’s ties with China, how a change in NAFTA could affect them, and […]

When Algeria’s newly appointed prime minister, Ahmed Ouyahia, addressed parliament last month, he ominously declared that his government would be insolvent by November. Three years of low oil prices had rapidly expanded the country’s budget deficit and eroded its reserves, leaving it with little cash to pay public sector employees or invest in the type of projects that would keep the private sector afloat. Ouyahia’s startling admission provided the pretext for unveiling a new, unconventional monetary policy that he argued would buy Algeria some more time to fix its finances and execute reforms. Ouyahia’s policy—known popularly by economists as “helicopter […]

Editor’s note: This article is part of an ongoing WPR series on income inequality and poverty reduction in various countries around the world. In late August, British Prime Minister Theresa May wrote in an op-ed that excessive pay to some business executives in the United Kingdom represented the “unacceptable face of capitalism.” The statement followed up on her Conservative Party’s manifesto, which was unveiled last spring and includes a proposal to limit corporate executive compensation in an effort to reduce income inequality. But those plans have gone nowhere so far, despite popular resentment over Britain’s inequality—an important factor in the […]

On Nov. 26, Cubans will go to the polls to elect delegates to 168 municipal assemblies, the first step in an electoral process that will culminate next February when the National Assembly, Cuba’s parliament, will select a new president. In 2013, when Raul Castro pledged not to seek a third term, he also imposed a two-term limit for all senior government and Communist Party leadership positions. That means the succession will replace not only Castro but almost all the remaining members of the “historical generation” who fought to overthrow Fulgencio Batista’s dictatorship in 1959. The changing of the guard comes […]

When China’s top officials convene in Beijing next week for the Communist Party’s 19th Congress, President Xi Jinping could further consolidate his growing political power and advance his agenda. Xi has already dismissed two high-ranking generals, in his latest maneuver to reform the People’s Liberation Army and assert more authority over its ranks. In an email interview, Timothy R. Heath, a senior international defense research analyst at the RAND Corporation specializing in China, explains what further steps Xi will likely make at the Party Congress, what they mean for reform in the Chinese military, and if Xi could face any […]

When U.S. President Donald Trump visited Saudi Arabia last May, making it the first stop in his first foreign trip as president, he unleashed a wave of euphoria in the kingdom. The Saudis viewed Trump as a like-minded leader, whose ascent augured a future of closely coordinated foreign policy and firm advances for a U.S.-backed Saudi Arabian agenda in the Middle East. But five months later, in a twist few could have anticipated, Saudi King Salman landed in Moscow to meet with Russian President Vladimir Putin, signaling that Trump’s embrace of the kingdom has proved less fruitful than the Saudis […]

In late September, the U.S. International Trade Commission declared that growing imports of solar panels had significantly hurt U.S. manufacturers. The decision could provide the cover for President Donald Trump to make good on his threats to put up trade barriers with China, whose companies are the leading suppliers of solar cells and panels in the United States. In an email interview, Dieter Ernst, a senior fellow at the East-West Center and former adviser to the Organization of Economic Cooperation and Development, discusses the impact of the commission’s ruling, what it means for the U.S. solar industry, and why a […]

In this week’s Trend Lines podcast, WPR’s editor-in-chief, Judah Grunstein, senior editor, Frederick Deknatel, and associate editor, Omar H. Rahman, discuss Saudi King Salman’s landmark trip to Moscow and what the visit—the first by a Saudi monarch—says about Russia’s growing influence in the Middle East. For the Report, Salvatore Babones talks with Andrew Green about how geoeconomics is replacing geopolitics as the driver of international power politics, and why that is ultimately good for the United States. If you like what you hear on Trend Lines, as well as what you’ve seen on WPR, please think about supporting our work […]

When Panama cut diplomatic ties with Taiwan in favor of recognizing China in June, it was an acknowledgment of the significant commercial interests China already has in one of the most important transport and financial hubs in the Western Hemisphere. It also opened the door for deeper Chinese involvement in Panama. In an email interview, R. Evan Ellis, a research professor of Latin American studies at the U.S. Army War College Strategic Studies Institute and the author of “The Strategic Dimension of Chinese Engagement with Latin America,” explains what’s behind Panama’s diplomatic shift, the opportunities the move unlocks and what […]

In mid-September, British defense company BAE Systems announced it had signed a letter of intent to supply Qatar with 24 Typhoon jets, in the latest proposed sale of military hardware to the Persian Gulf. As U.S. power in the region has steadily receded over the past decade, the U.K. has tried to seize influence in a part of the world it once dominated by expanding security and economic ties. In an email interview, Jane Kinninmont, a senior research fellow and deputy head of the Middle East and North Africa program at Chatham House, explains the basis for enhanced defense cooperation, […]

As Myanmar’s long-simmering Rohingya crisis boils over into ethnic cleansing, refugee exodus and possible civil war, there are inevitable calls for economic sanctions to be reimposed on Myanmar’s military-dominated government. The outgoing Obama administration lifted U.S. economic sanctions on Myanmar, also known as Burma, in late 2016 in recognition of its partial transition to democracy under de facto leader Aung San Suu Kyi. Now the Nobel Peace Prize laureate finds herself the subject of international condemnation for her failure to act toward, or even to speak in favor of, a peaceful resolution to the crisis. There is no hint of […]

Last month, Snap—the parent company for the popular social media app Snapchat—announced it would remove Al-Jazeera, the pan-Arab satellite network, from its platform inside Saudi Arabia in “an effort to comply with local laws,” as a Snap spokeswoman told The Wall Street Journal. Snap’s decision came on the heels of a June ultimatum by Saudi Arabia and other Gulf countries to their rival Qatar, which owns Al-Jazeera, to close down the network completely—one of 13 conditions for ending their ongoing economic blockade of the tiny Gulf country. The move to “silence freedom of expression,” as an Al-Jazeera spokesperson put it, […]

When Malaysian Prime Minister Najib Razak met U.S. President Donald Trump at the White House last month, they tried to forge more common ground on key issues and manage some of their differences. Although Najib and Trump made some progress as they commemorated the 60th anniversary of bilateral ties between Malaysia and the U.S., bigger tests will come in their bid to surmount deeper obstacles that stand in the way of really broadening the relationship. Throughout the past 60 years, the United States and Malaysia have had to find ways to cooperate despite often stark disagreements on matters such as […]