Economics & Business Archive

VARANASI, India—On a recent morning, Hindu pilgrims in white robes scurried through the dusty stone alleyways of this city on the Ganges River. They moved back-and-forth between various temples and the ghats, or piers, on the riverbank, and occasionally one or more of them would wade into the sacred waters, which are said to cleanse the soul. As the sunlight faded, a traditional folk band featuring tabla drums and a harmonium struck up a song as students and families sat on the steps to take in the early evening breeze. It was, in many ways, a fairly ordinary scene for […]

Mexican President Andres Manuel Lopez Obrador was elected last year after promising to tackle corruption and inequality and improve conditions for Mexican workers. So it was little surprise that one of his first acts upon taking office in late 2018 was to raise the minimum wage. AMLO, as the president is known, also had his advisers join the team renegotiating the North American Free Trade Agreement and encourage the acceptance of U.S. demands to embed key labor law reforms in an updated deal. The result was an annex to the labor chapter in the new NAFTA 2.0—which President Donald Trump […]

In the latest issue of Foreign Affairs, Mira Rapp-Hooper and Rebecca Friedman Lissner make a compelling case for a more restrained U.S. foreign policy. The United States, they write, should abandon messianic liberal internationalism for the more realistic goal of an open world. Such a prudent policy has a lot to recommend it. It would also take America back to the future—to the grand strategy that President Franklin D. Roosevelt endorsed during World War II. As I argued in my 2009 book “The Best Laid Plans: The Origins of American Multilateralism and the Dawn of the Cold War,” it was […]

China’s voracious appetite for new nuclear power plants has helped to slow the decline in recent years of an ailing nuclear energy industry long dominated by the United States and Europe. From a late and inauspicious start in the 1990s, China’s nuclear fleet has risen to become the world’s third largest. According to Chinese government projections, within the next decade China may surpass the United States as the world’s leading nuclear energy producer. Despite that growth, though, China is increasingly viewed less as the salvation of the Western nuclear power industry, and more as a competitive threat. Chinese companies have […]

North Korean leader Kim Jong Un made his first trip to Russia this week for a long-anticipated summit with President Vladimir Putin. Kim traveled by train to the far eastern port city of Vladivostok, about 75 miles from the North Korean border, where he and Putin met Thursday and discussed the North Korean nuclear issue, as well as bilateral economic engagement. It was the first meeting between the two leaders since Kim rose to power in 2011, although Putin is acquainted with the Kim family dynasty. He previously met with the young dictator’s father, Kim Jong Il, three times in […]

Large-scale terrorist attacks destroy lives, but they also have the power to upend political realities. That, after all, is their goal. The Easter Sunday attacks in Sri Lanka are no exception. Whatever the larger objectives of the perpetrators of the suicide bombings at three churches and three hotels, their actions have sent political shockwaves across Sri Lanka, just as it prepares for presidential elections later this year. The political reverberations of the attacks were almost immediate. As Sri Lankans grappled with the human toll—more than 350 dead and hundreds more injured—revelations that authorities had received detailed warnings about an impending […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. China is expected to promote a rebooted version of its signature Belt and Road Initiative when world leaders from 37 countries gather in Beijing this week for the second Belt and Road Forum. Skepticism has been mounting for years over China’s expansive infrastructure investment strategy, and Beijing is looking for an opportunity to reset the narrative at this week’s summit, which begins Thursday and concludes Saturday. Critics have long viewed the Belt and Road Initiative as a bid to […]

THAAD and other missile defense systems offer clear military advantages for countries that deploy them—but they could alter longstanding and delicate political balances. Missile defense has become an increasingly important focus of security policy around the world. On the Korean Peninsula, North Korea’s provocative missile tests have led Seoul to move toward deploying U.S. Terminal High Altitude Area Defense (THAAD) anti-missile batteries, despite opposition from China. Proponents argue that THAAD deployment in South Korea is necessary to meet the evolving challenges posed by the North’s arsenal of short- and medium-range missiles. U.S. forces in South Korea face limits with Patriot […]

Tunisia is often considered a success story compared to other Arab countries caught up in the popular uprisings of 2011. Unlike Syria and Libya, it has been spared armed conflict. And unlike Egypt, which is descending deeper into authoritarianism, it has implemented impressive democratic reforms. Yet such comparisons risk overlooking the many ways in which Tunisia is still fragile eight years after protests toppled longtime President Zine El Abidine Ben Ali. As Francisco Serrano notes in this week’s in-depth report for WPR, the security forces are struggling to counter the threat posed by Islamist extremists based near the border with […]

History’s judgment of the Trump administration’s foreign policy is likely to be unkind, with the biggest question for now being whether it is the intended or unintended consequences that will warrant the most severe rebuke. There are plenty of examples of how the administration’s approach risks both catastrophic success and catastrophic failure, but its policy on Iran is particularly illustrative. The latest case in point is the announcement Monday that the U.S. would not extend the waivers it had granted to five major importers of Iranian crude after reimposing unilateral sanctions on Iran’s oil sector last year. The countries—China, India, […]

President Ibrahim Solih’s Maldivian Democratic Party scored a historic victory in parliamentary elections in the Maldives earlier this month, winning 65 of 87 seats in the legislature, known as the People’s Majlis. Those results clear the way for Solih’s attempts to account for the debts incurred by his corrupt and autocratic predecessor, Abdulla Yameen, who courted hundreds of millions of dollars in Chinese infrastructure investment during his time as president and is now facing money laundering charges. In an interview with WPR, David Brewster, a senior research fellow at the Australian National University’s National Security College, discusses the significance of […]

KASSERINE, Tunisia—The blast that claimed the life of Cherifa Hilali was likely meant for a soldier, not a civilian. One day in May 2016, Hilali, 40, was out picking rosemary on Mount Semmama, an area near the border with Algeria where Islamist extremists routinely battle Tunisian security forces, when a land mine detonated. The explosion killed her and another woman and left a third woman injured. “They were walking through a trail normally used by the military,” Hilali’s husband, Makki Hilali, told me when I met him in February. Rising up from fields of olive trees and cacti, Mount Semmama […]

With its allusions to a planned economy and proletarian internationalism, Cuba’s 1976 constitution was unmistakably a product of the Cold War. Perhaps that’s why the island’s new leaders, led by President Miguel Diaz-Canel, moved quickly to recodify the country’s founding charter. A new constitution, which was formally adopted earlier this month, is Diaz-Canel’s first major accomplishment since his inauguration last year and should set the tone for the remainder of his tenure. Cuban authorities appear to have consulted many other countries’ constitutions in redrafting their own, and one country stands out: China. Although there is no sign that China had […]

Until Jan. 23, 2017, the United States had a major free trade agreement with Japan and 10 other countries called the Trans-Pacific Partnership. But on his first day in office, President Donald Trump withdrew from the TPP, which had been signed just a few months earlier by President Barack Obama as his signature piece of trade policy. Trump was fulfilling one of his first campaign promises, having railed against the deal for years. At the signing of his Executive Order pulling the U.S. out of the TPP, Trump declared that it was a “great thing for the American worker, what […]

Not much remains of the “pink tide” of leftist governments that swept across Latin America in the 2000s, riding the long commodities boom. After the boom came the bust, and with it widespread voter dissatisfaction. Where free elections have been held, most of the region has subsequently swung to the right. There are, of course, some exceptions, most notoriously in Venezuela. President Nicolas Maduro, who came to office in 2013 as the handpicked successor of the leader who launched the wave, Hugo Chavez, continues to preside over one of the worst economic and humanitarian disasters in recent Latin American history. […]

The Trump administration yesterday announced a number of new sanctions and restrictions on dealing with Cuba, including new limits on remittances and nonfamily travel to the island from the United States. In a reversal of more than two decades of U.S. policy, the administration also said it would allow Cuban Americans whose property was seized during the Cuban revolution to sue foreign companies operating on that property. A law passed in 1996 had originally allowed such claims, but that provision in the law had been waived by every president, until now. To understand the implications of this move, WPR spoke […]

Lawmakers in Brazil are expected to begin discussions on a draft proposal to reform the country’s pension system next week. The issue represents a key hurdle for President Jair Bolsonaro, who has pledged to rein in budget deficits and restore investor confidence amid persistent signs of weakness in the Brazilian economy. In an interview with WPR, Peter Kingstone, a professor of politics and development at King’s College London, discusses the thorny political issues surrounding pension reform in Brazil. World Politics Review: Why is pension reform seen as so important in Brazil? How dire are the country’s financial straits? Peter Kingstone: […]