Economics & Business Archive

Editor's Note: This article was updated in December 2018. Foreign tech companies have been forced into difficult compromises and today find themselves asking whether the financial rewards and access to a massive market justify the work required to stay in Beijing’s good graces—especially given that the risk of failure is rising, illustrated by the recent blocking of WhatsApp in China. When users of WhatsApp in China started noticing technical problems with the mobile messaging application in September 2017, nothing seemed unusual at first. The slow sending speeds and inability to deliver video and audio files could have easily been due […]

The momentum has tapered off in the remarkable weeklong protests across Iran. But if it seems that the regime has prevailed, despite its legitimacy eroding a bit, do the demonstrations have a deeper meaning and long-term foreign policy consequences? Will policies in Tehran and Washington change? Most outside observers, even those at opposite sides of the ideological spectrum on Iran, agree on the basic facts. These protests, which broke out in the northeastern city of Mashad on Dec. 28, were triggered by economic distress. But as they spread to dozens of locales across the country, they took on a direct […]

After more than three years in the doldrums, the economy of the United Arab Emirates is headed for a recovery. Spurred on in part by the highest oil prices since December 2014, the UAE has also taken strides to implement important, if long overdue, structural reforms aimed at liberalizing and diversifying its economy. One expected boost to revenue in 2018 will come from a 5-percent value-added tax that was rolled out Jan. 1. While all six countries of the Gulf Cooperation Council initially intended to adopt the VAT initiative together, only the UAE and Saudi Arabia moved forward at the […]

Afghanistan has some of the richest mineral deposits in the world, but extracting them has proven difficult amid years of instability and war. There were modest signs of improvement in 2017, most notably the Afghan government’s ability to manage and report its earnings from mining royalties and taxes, which it couldn’t do much at all a few years ago. But challenges remain to attract more meaningful foreign investment and capitalize on the country’s resources. The Afghan Ministry of Mines and Petroleum reported earning approximately $86 million in revenues in 2017, $19 million more than it reported earning in 2016. Yet […]

John Ondawame greatly admired the independence struggle in East Timor, especially its ability to win active support from people in Europe, the United States and Australia. But the exiled former fighter, activist and spokesman for West Papuans also longed for the world to take notice of the plight of his people and to see the shared contours of the two conflicts—two ethnically distinct regions of Indonesia longing to break free. Ondawame did not live to see his dream of West Papua’s independence fulfilled; he died in 2014. But it is more difficult than ever for the Indonesian government to keep […]

HONG KONG—There are few winners from the crisis in Myanmar’s western state of Rakhine, where thousands of ethnic Rohingyas have lost their lives in an ongoing military crackdown and hundreds of thousands more have been displaced. But one exception is China, whose diplomats have skillfully exploited the turmoil to advance Beijing’s interests. In August, the Arakan Rohingya Salvation Army, an insurgent group claiming to represent Myanmar’s Rohingya minority, attacked a series of security installations, provoking a murderous reaction from the military. Doctors Without Borders reported that at least 6,700 Rohingyas were killed in the first month of violence, while over […]

The protests that have sprung up in cities across Iran over the past week have taken many observers by surprise. It was no secret that the underwhelming and unevenly distributed economic gains from the lifting of international sanctions after the 2015 nuclear deal had led to widespread discontent. But there was no catalyzing event to explain the public demonstrations on display this week, which are rare in Iran. For now, the protests raise more questions than they answer, beginning with what the protesters want and who—if anyone—is organizing and leading them. The first spontaneous demonstrations focused on economic grievances. But […]

In 2017, as the Trump administration turned its back on U.S. rapprochement with Cuba, the island deepened its relations with Russia, its longtime backer during the Cold War. Russian exports to Cuba were up 81 percent in the first nine months of 2017, and a possible agreement with Russian oil giant Rosneft may pave the way for Russia to supplant Venezuela as Cuba’s biggest energy supplier. In an email interview, William M. LeoGrande, a professor of government at American University in Washington D.C. and an expert on Latin American affairs, discusses renewed Cuba-Russia ties and the opportunities and obstacles ahead […]