Economics & Business Archive

America’s foreign policy establishment is at war with itself over the shape of the country’s approach toward a steadily rising China. For now, it is only an epistolary war. But as the debate deepens, its outcome will go far toward deciding how the United States responds to its most serious global rival for economic and geopolitical power for decades ahead. Among a slew of recent op-eds and policy papers about how Washington should manage the perceived challenge that China represents, two statements stand out as poles in the debate and, as such, deserve extended consideration. The first, which appeared in […]

Japan and South Korea are in the midst of a nasty diplomatic dispute, and Japan is using trade restrictions as a weapon to try and resolve it. Beyond the potential threats to American and regional geopolitical interests if the two countries remain at loggerheads, the nature of the spat is also disturbing. Japan’s use of trade restrictions to force South Korea to back down, while publicly justifying them as necessary for national security reasons, echoes U.S. President Donald Trump’s cavalier approach to trade rules and alliance relations. If the dispute is not resolved quickly, it could complicate efforts to deal […]

After 20 years of on-and-off negotiations, leaders from the European Union and South America’s Mercosur trade bloc announced late last month that they had reached a sweeping trade agreement encompassing 800 million people and almost a quarter of the global economy. Hailed on both sides of the Atlantic as a “landmark,” the accord must still be ratified by the negotiating parties’ legislatures, and it faces stiff opposition in key European countries like France and Ireland as well as in the four Mercosur member states of Brazil, Argentina, Paraguay and Uruguay. In an email interview with WPR, Bruno Binetti, a Buenos […]

Mexican President Andres Manuel Lopez Obrador does not waste time with mundane political rhetoric. Long before he won the presidency on his third attempt, a year ago this month, the man better known in Mexico as AMLO had already gained a reputation for setting sky-high expectations. The leftist veteran of Mexican politics hailed his administration as ushering in the country’s “fourth transformation”—the previous three being events no less groundbreaking than its Declaration of Independence in 1810, the War of Reform, which led to the separation of church and state in the mid-19th century, and the Mexican Revolution of 1910. Yet […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. Since early July, Chinese and Vietnamese vessels have been engaged in a tense standoff over natural gas resources in waters off the coast of southern Vietnam. The ongoing confrontation is just one incident in a pattern of increasingly assertive Chinese behavior in the South China Sea, and while no shots have been fired so far, it could provoke anti-Chinese protests in Vietnam. The South China Morning Post reported on July 12 that six “heavily armed” coast guard vessels—two Chinese […]

Weeks after Presidents Donald Trump and Xi Jinping agreed to a truce in the U.S.-China trade war on the sidelines of the G-20 summit in Osaka, negotiations remain on pause, and speculation is growing that neither side is particularly eager for a deal. Last week, reports emerged that American and Japanese negotiators are intensifying efforts to strike a smaller trade deal that Trump and Japanese Prime Minister Shinzo Abe could sign during the annual meeting of the United Nations General Assembly in New York in September. The news hardly looks like a coincidence. Trump is desperate for a trade deal […]

Editor’s Note: This article is part of an ongoing series on food security around the world. In the short term, it is critical to respond to the immediate food shortages being caused by persistent African drought conditions. But the search for more lasting solutions may actually mean looking back to traditional systems. Persistent drought conditions across large swaths of Africa have left tens of millions in need of food assistance, particularly in the semi-arid eastern and southern regions of the continent. These areas are on the forefront of the fight against global climate change and will be increasingly hard-pressed to […]

La Paz, BOLIVIA—President Evo Morales wants Bolivia to become the “energy heart of Latin America,” producing many times more electricity than it consumes and exporting it all across the continent. The key to these grand ambitions will be hydroelectric power, with several megaprojects planned. But these dams are proving controversial for their social, environmental and economic consequences—and for the way the government is trying to push them through. There are three main projects at different stages of development. The Rio Madera complex is a set of four dams in the northeast of the country, near the border with Brazil; two […]

Leaders from across Africa gathered in Niamey, the capital of Niger, earlier this month to officially launch the African Continental Free Trade Area, or AfCFTA. The sweeping agreement, which covers 54 out of 55 African Union members, is designed to boost intra-African trade and eventually create a single African market for goods and services. It has been called a potential “game changer” for Africa, but member states must now complete the hard work of implementing the deal and negotiating specific reductions in tariffs and non-tariff barriers to trade. In an email interview with WPR, Trudi Hartzenberg, the executive director of […]

As China’s trade war with the United States casts a pall over the global economy, a separate dispute between two of China’s neighbors—and two American allies—is adding to the gloomy outlook. Earlier this month, Japan curbed exports to South Korea of three materials that are necessary for the production of semiconductors and display screens, threatening to upend South Korea’s technology industry and throw a wrench into complex global supply chains for smartphones, televisions and other popular consumer devices. The move is only the latest escalation in an ongoing standoff, rooted in deep historical grievances, that has regional observers and officials […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. Economic data published Monday revealed China’s economy is growing at its slowest pace since at least 1992, when modern record-keeping for quarterly growth began. Official figures from China’s National Bureau of Statistics showed the economy grew 6.2 percent between April and June, compared with a year earlier. Though it still looks like a brisk pace, it represents a slowdown for China, where the previous quarter’s growth rate was 6.4 percent. A slump in trade was a main reason for […]

Earlier this month, The New York Times created a mini furor on the internet with a job listing for someone to lead its coverage of East Africa. The announcement described it as an opportunity “to dive into news and enterprise across a wide range of countries, from the deserts of Sudan and the pirate seas of the Horn of Africa, down through the forests of Congo and shores of Tanzania.” It went on to speak of the region’s “many vital story lines, including terrorism, the scramble for resources, the global contest with China,” among others. Whether as afterthought or sop, […]

Ursula Von der Leyen, the former defense minister of Germany, was narrowly confirmed as the next president of the European Commission this week. She will take the helm in Brussels at a difficult time, with widening fissures among European Union member states and a rising challenge from far-right, euroskeptic political movements across the continent. Von der Leyen and other top EU leaders will need to tackle these internal challenges while navigating the tumultuous Brexit process, addressing the crisis in U.S.-Iran relations, and managing the EU’s difficult relationship with the Trump administration. In this week’s Trend Lines interview, WPR’s associate editor, […]

During the Cold War, American policymakers frequently pushed nonaligned countries to take sides. The Central Intelligence Agency fomented coups against governments that flirted with communism and the Soviet Union, or that just drifted too far to the left for comfort. The State Department threatened to cut aid flows to countries that voted too often against U.S. priorities at the United Nations. Could sub-Saharan Africa find itself caught in the middle again if a cold war with China breaks out? In a speech at the Heritage Foundation last December, President Donald Trump’s hawkish national security adviser, John Bolton, launched a new […]

In the early years of this century, there were suggestions that the European Union could play the role of a “quiet superpower,” and even speculation that Brussels might become a hegemonic rival to the United States. Now, with the rise of China and talk of a new Cold War brewing between Washington and Beijing, the EU’s place in the world is looking dramatically less imposing. For some experts and observers, the EU continues to be a “civilian power,” given its nonmilitary capabilities, or a “normative power,” referring to its historical role in helping to shape global norms on human rights […]

Editor’s Note: Every Friday, Andrew Green curates the top news and analysis from and about the African continent. It took four years of discussions, but the African Continental Free Trade Area, or AfCFTA, is officially operational. African leaders gathered in Niger’s capital, Niamey, last weekend to launch the trade zone, which they hope will create a $3.4 trillion economic bloc and bolster development across the continent. AfCFTA got a late boost when Nigeria, the largest African economy, agreed Sunday to sign on, but that’s no assurance that the bid for a single unified market will be a success. Every African […]

BOLOGNA—Italy’s populist government has been in power for all of 13 months and already speculation is rife about its imminent demise. The stability of this rowdy coalition was in doubt from the moment it was formed. How could the anti-establishment Five Star Movement, or M5S, avoid falling out with its aggressive junior partner, the far-right Lega or League, and its leader, Matteo Salvini? These doubts only grew when Salvini used his first year in office as interior minister and deputy prime minister to boost his own popularity, campaigning rather than governing. In the European Parliament elections at the end of […]