Economics & Business Archive

Washington and Beijing are a little over two weeks away from their self-imposed March 1st deadline to reach a sweeping trade agreement that addresses China’s alleged unfair trade practices. If they fail, and the current truce in their trade war ends with no deal, the costs will be substantial for both sides. The United States imports more goods from China than any country in the world—roughly $500 billion in 2017—and a breakdown in the talks could lead to even higher tariffs on at least half of that. Right now, under the tariffs steadily imposed by President Donald Trump, the U.S. […]

OPYTNE, Ukraine—One afternoon in January 2015, 78-year-old Maria Gorpynych stood on her porch and anxiously watched her son Victor run the short distance to the home of a neighboring family. At the time, Opytne, located in the Donetsk region of eastern Ukraine, was caught in the middle of heavy fighting between Russian-backed separatists and Ukrainian soldiers. Victor wanted to help the neighbors wrap a gas pipe in rubber to protect it from shelling. Less than five minutes after he left, Gorpynych saw one of the neighbors running back toward her house. He came bearing bad news: A mine had detonated […]

As unrest grows in Venezuela, oil production mismanagement is turning the disaster from bad to worse. Find out more when you subscribe to World Politics Review (WPR). When oil prices started their collapse in 2014, plummeting from well above $100 a barrel to just over $29 by early 2016, the market drama sent shockwaves across the global economy, producing winners and losers. Oil importers benefited from sharply lower import costs, while producers’ economies, particularly those that rely on oil for the majority of their exports, went into crisis mode. That was the case in Venezuela, where oil production remained the […]

Leaders from Iraq and Jordan held a summit meeting earlier this month, where they signed a slew of agreements liberalizing trade and commercial ties. The meeting, which follows a visit to Iraq by Jordan’s King Abdullah II, is part of a recent intensification in Baghdad’s diplomatic outreach as it seeks to rebuild after its brutal, years-long war with the Islamic State. In an interview with WPR, Randa Slim, a senior fellow at the Middle East Institute, discusses Iraq’s post-ISIS foreign policy priorities. World Politics Review: What is Iraq’s interest in cultivating increasingly close economic and diplomatic ties with Jordan? Randa […]

Business leaders at the World Economic Forum in Davos last month warned that China has overtaken the United States in the development of artificial intelligence and other emerging technologies, such as fifth-generation wireless or 5G. “There’s almost an endless stream of people who are showing up and developing new companies,” Blackstone’s CEO Stephen Schwarzman told one panel of his frequent trips to China. “The venture business there in AI-oriented companies is really exploding with growth.” The attention on China’s rapidly evolving tech sector has overshadowed another area of competition between Beijing and Washington, which may be moving more slowly but […]

Editor’s Note: Every Friday, WPR Senior Editor Robbie Corey-Boulet curates the top news and analysis from and about the African continent. The president of Chad, Idriss Deby, has understood for a while now that Western powers are willing to overlook domestic human rights abuses and repression so long as his military continues to combat extremist groups in the Sahel. This week, France demonstrated that its loyalty to Deby, who has been in office since 1990, runs even deeper, and that it is willing to lend military support of its own to keep him in power. On Sunday, French Mirage jets […]

In this week’s Trend Lines podcast, WPR’s editor-in-chief, Judah Grunstein, and managing editor, Frederick Deknatel, discuss the implications of the upcoming second summit between U.S. President Donald Trump and North Korean leader Kim Jong Un, and the potential consequences of a content-free diplomatic process. For the Report, Mariana Palau talks with WPR’s senior editor, Robbie Corey-Boulet, about Colombia’s post-conflict land restitution program, which is not only struggling in its mission to help landowners reclaim property that was stolen during the country’s civil war, but is also in some cases driving a new cycle of displacement. If you like what you […]

The latest United Nations climate talks held in Poland in December produced surprising progress toward developing the rulebook governing the Paris climate agreement. International negotiators added teeth to the accord by crafting a detailed system to catalogue national emissions, requiring new benchmarks for measuring and forecasting emissions, and mandating public multilateral and technical assessments. Nations will now have to uniformly track their emissions progress and expectations, with scrutiny from other governments and independent experts. But the next obstacle to climate action will be harder to overcome. There is no existing international financial institution capable of mobilizing enough money to finance […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. The U.S. and China held two days of high-level trade talks in Washington last week, just before the start of China’s week-long Lunar New Year holiday. Negotiators conveyed cautious optimism but stressed that much work remains to reach an agreement before the March 1 deadline. Vice Premier Liu He, China’s economic czar, led a Chinese delegation that included central bank governor Yi Gang. The American negotiating team was headed by U.S. Trade Representative Robert Lighthizer and also included Treasury […]

The death toll continues to rise in southern Brazil after the collapse of a tailings dam at a mine last month triggered a massive mudslide. In what is being called the country’s worst environmental disaster, 134 people have been confirmed dead and another 199 are still missing in the nearby town of Brumadinho, in Minas Gerais state. Five people have been arrested as part of an investigation into the collapse, and a Brazilian court ordered the mine’s operator, Vale S.A., to stop using eight other tailings dams, which are constructed out of the waste materials left over from mining operations. […]

Weeks into Nicolas Maduro’s disputed second term as Venezuela’s president, his prospects for political survival appear more uncertain than ever. Many countries, including the United States and many South American and European countries, have recognized opposition leader Juan Guaido, president of the National Assembly, as the legitimate interim president, as he declared himself last month. It is risky to predict the end date of a regime whose leadership has already weathered nearly six years of economic crisis, but if it is approaching, there should be plans for reviving the economy of an oil-rich but desperate nation. Guaido is already devising […]

He is often tagged as an aloof, slow-moving executive with a narrow and insular coterie of advisers, and he has fallen short of the promises that won him the presidency four years ago. Yet Muhammadu Buhari remains the front-runner in Nigeria’s presidential elections scheduled for Feb. 16, which will pit the incumbent against several challengers—the most prominent, by far, being former Vice President Atiku Abubakar, who served in office from 1999 to 2007 and placed third in the 2007 election. Buhari is still the favorite because of his party’s continued strength in its strongholds in northern and southwestern Nigeria, along […]

APARTADO, Colombia—The sun was sitting low in the sky when Luis Izquierdo noticed the group of armed men walking onto his family’s farm in this town in Uraba, a region of northwestern Colombia that abuts the Caribbean Sea. In the fading daylight, he couldn’t see them clearly at first; he and his parents and siblings thought they might be soldiers looking for something to eat or drink. Their guts started to clench, however, when the men came closer with their rifles shouldered. They realized it was more likely that the men belonged to a paramilitary group that had recently started […]

The scale of the humanitarian disaster in Venezuela is almost inconceivable. Despite the world’s largest proven oil reserves, the economy barely functions. People struggle just to survive. Store shelves are nearly empty of food, medicine and other necessities. The few goods available are out of reach for most people because of hyperinflation that the International Monetary Fund estimates reached a shocking 1 million percent in 2018. An estimated 3 million Venezuelans have already fled to neighboring countries, and more will likely join them. Last fall, the Pharmaceutical Federation of Venezuela estimated that only around 20 percent of needed medicines were […]

After years of impoverishment, Guyana is suddenly on the verge of prosperity. Since 2015, a consortium led by Exxon Mobil has developed at least 10 deepwater oil wells off Guyana’s shores, with a combined productive capacity of around 750,000 barrels per day. Exploration is ongoing, with most experts anticipating the country’s oil reserves exceed the current estimate of 5 billion barrels. One way to grasp the magnitude of these discoveries is that in 10 years, Guyana, with a population of slightly less than 800,000, could pump nearly a barrel of oil per person each day—more production on a per capita […]

The U.S. Department of Defense is grappling with a serious problem: It has an increasing need for top-tier technology talent but has a difficult time competing with the private sector for the people it wants. “The Pentagon is struggling to attract and retain talent for technology-centric jobs related to artificial intelligence, coding and software development,” as Mark Pomerlau put it in Defense News. Part of this problem cannot be resolved. The Department of Defense will never match the salaries that the private sector offers its stars. But many of the issues that the Pentagon faces are self-inflicted. Its organizational culture […]

Paraguay’s main opposition party recently introduced a bill offering conscription-age youth an alternative to mandatory military service: replanting trees in depleted forests. The reforestation proposal highlights the seriousness of environmental degradation in Paraguay, mainly driven by the clearing of forests for agriculture, which has sustained one of Latin America’s highest economic growth rates. In an interview with WPR, Joel E. Correia, an assistant professor of Latin American studies and core faculty member in the University of Florida’s Tropical Conservation and Development Program, discusses deforestation in Paraguay and its disproportionate impact on the country’s indigenous peoples. World Politics Review: How serious […]