Economics & Business Archive

Editor’s Note: Guest columnist Edward Alden is filling in for Kimberly Ann Elliott. Along North America’s 49th parallel, where it meets the Pacific Ocean, a huge white stone arch stands on the border between the United States and Canada. Called the Peace Arch, it was built in 1921 to commemorate the resolution of boundary disputes that dated back to the War of 1812. Inside the arch, there is an iron gate attached to both walls, and an inscription that reads, “May these gates never be closed.” Since March 21, in an effort to stop the spread of the coronavirus, the […]

In December 2019, a new Argentine president was sworn in amid considerable upheaval, promising to wrest the country from its endless cycles of boom and bust. His predecessor’s efforts to reform the economy and finally unleash the country’s great potential had to come to naught. On almost every economic indicator, Argentina was actually worse off than when he had taken office four years before and, once again, the country faced the dreaded specter of foreign debt default. Though that brief summary refers to the presidential transition from Mauricio Macri to Alberto Fernandez, change the names and dates and this could […]

Editor’s Note: You can find all of our coverage of the coronavirus pandemic here. If you would like to help support our work, please consider taking advantage of our subscription offer here. Six months in, it is tempting to think the worst of the coronavirus pandemic is past. Hard-hit cities are breathing easier and many countries are already in the advanced stages of reopening their societies and economies. But even as a second wave looms, COVID-19’s first wave isn’t done. Globally, the contagion is accelerating as the pandemic’s epicenter shifts. The increase from 8 million to 9 million cases took […]

When does a global catastrophe stimulate a revival of international cooperation, rather than accelerate fragmentation and disorder? When does a crisis become a turning point in international relations, rather than just augur more of the same? These questions loom large in the COVID-19 pandemic, the biggest shock to world politics and the global economy since 1945. While history provides no definitive answers, it hints at three preconditions for resurrecting international cooperation from the ashes: new thinking, enlightened leadership and a favorable distribution of power. It was in reaction to World War II, and the economic chaos that preceded it, that […]

If all goes as planned next week, Vladimir Putin will be on a glide path to serve as Russia’s perpetual president. On July 1, Russia will hold a national referendum on a proposed package of changes to its constitution that many predict will essentially pave the way for Putin to run for office again after his current six-year presidential term expires in 2024. In theory, the proposed changes—which will, among other things, “reset the clock” on the current constitutional limit of two consecutive presidential terms—mean Putin could win two more elections and remain in power until 2036. If he does, […]

While the health impacts of the coronavirus pandemic have been primarily endured by elderly populations, there is increasing recognition that young people will disproportionately absorb the economic and social impacts. One study, conducted in April and released last month by the International Labor Organization, found that the pandemic had caused one in six young people to lose their jobs, as well as a 23 percent average reduction in working hours for those still employed. Within this “lockdown generation,” as the ILO calls them, the situation is especially dire for women, ethnic minorities and migrant workers. Tedros Adhanom Ghebreyesus, the director-general […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. American video-conferencing company Zoom recently admitted that it crossed a line by temporarily closing the account of a group of U.S.-based Chinese activists last month after they held a virtual event to commemorate the June 4 anniversary of the Tiananmen Square massacre. Zoom insisted that it did so in order to “comply with local law,” but without stating which law it had violated. Zoom has since pledged that censorship requests from the Chinese government will no longer affect users […]

For weeks, trade has taken a back seat to Black Lives Matter protests and the ongoing COVID-19 pandemic. Last week, however, trade was back on the front page with stunning charges from John Bolton, the former national security adviser, about an alleged attempt by President Donald Trump to manipulate U.S.-China trade negotiations for his personal political gain. This past week also saw U.S. Trade Representative Robert Lighthizer testifying before Congress about the Trump administration’s trade agenda, while both U.S. and European officials threatened an escalation in their dispute over digital services taxes. The overall message from all this was clear: […]

Earlier this month, Germany announced that a landmark summit between the European Union and China, planned for September in Leipzig, would be postponed. It was initially slated to be the first-ever meeting between China’s leader, Xi Jinping, and all 27 of his counterparts from EU member states. Officials had hoped to make progress at the meeting on a key investment treaty, but have now decided to delay it, ostensibly due to travel difficulties caused by the coronavirus pandemic. Many analysts aren’t buying that excuse, though. Relations between Europe and China have deteriorated of late in part because of a disinformation […]

One of India’s foreign policy success stories under Prime Minister Narendra Modi is the country’s deepening relations with Gulf Arab states. Building on previous Indian governments’ engagement with members of the Gulf Cooperation Council—namely Saudi Arabia, Oman, Bahrain, Kuwait, Qatar and the United Arab Emirates—Modi has zeroed in on common economic and security interests to cement strong ties with GCC countries during his time in office. The coronavirus pandemic has been the biggest disruption in years to these partnerships. For starters, prominent voices in the Gulf have spoken out against rising Islamophobia in India and among some members of the […]

It might seem like an all-too familiar story: With its economy cratered by civil war, and new pockets of anti-regime resistance, Syria is on the verge of state collapse. President Bashar al-Assad isn’t just on the back foot; he is weaker than ever. Is he about to fall? You might have read this before—back in 2015, perhaps, before Russia intervened to save Assad. Indeed, in May 2015, I wrote about just that, as Syria’s army showed more signs of fracturing and the economy sank further. The value of Syria’s currency that month had hit a record low against the U.S. […]

DUBLIN—As the world braces for a prolonged economic downturn due to the coronavirus pandemic, the United Kingdom and Ireland may have to face this crisis alongside another, partly self-inflicted one: a no-deal Brexit. The U.K. officially left the European Union in January and is currently in a transition period that is scheduled to end on Dec. 31. During that time, EU rules remain in effect, and London and Brussels are supposed to hammer out the details of their future trading relationship before the end of the year. Yet so far, there has been little progress. “We should be very concerned,” […]

The global, rules-based trading system that the United States helped to create after World War II is in deep trouble. President Donald Trump had already spent the past three years sparking trade wars and undermining the World Trade Organization. Then, the COVID-19 pandemic struck, hammering economies and sharply reducing trade flows worldwide. Panicked governments, including in Washington, have imposed export restrictions on critical medical supplies and, in some cases, food. To make things even worse, the White House has blocked the normal process for settling trade disputes, just when it is needed most. Because of the concerns about hosting large […]

In the months since the coronavirus pandemic effectively shut down large parts of the world, the changes to the environment have become one of the most visible backdrops to life under lockdown. Suddenly blue skies have provided a welcome setting for more varieties of birds, whose songs can now be heard without the roar of airplanes and car traffic. From Istanbul to New Delhi, vistas reappeared that no one alive remembered seeing. Animals started exploring what had once been their usual habitats, with flamingoes venturing in Mumbai, deer clambering through East London, and all manner of animals strolling into cities […]

Some of Latin America’s most serious challenges—violent crime, drug trafficking, economic inequality and public corruption—all have one thing in common: money laundering. In Mexico alone, the government’s Financial Intelligence Unit reported that drug cartels and other illicit actors laundered an estimated $50 billion in 2019— crucial revenue for cartels that has also contributed to Mexico’s record-high homicide rate in recent years. Money laundering has helped Brazilian gangs like the Primeiro Comando da Capital, or First Capital Command, expand their criminal networks into neighboring Paraguay and Bolivia. In Venezuela, it has enabled a dramatic theft of public resources by officials tied […]

A recent history of natural disasters and its longstanding dependence on tourism have left the Caribbean extremely ill-prepared to address the economic effects of COVID-19. Caribbean economies were already highly indebted after calamities ranging from hurricanes to earthquakes to the destructive effects of higher sea levels stemming from climate change in the past few years. Those natural disasters have left most of the region’s economies with poor and declining credit ratings, limiting their borrowing capacity and their ability to mobilize resources against the pandemic. And if it hasn’t already, the sharp drop in tourism stemming from the pandemic will undoubtedly […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. The coronavirus pandemic has brought tensions between the United States and China to a boiling point. But before the global health crisis, relations between Washington and Beijing were already heated on the tech front. The Trump administration’s latest moves in its campaign to stymie Chinese telecommunications giant Huawei have only stoked this “tech war.” Last month, the Commerce Department imposed new restrictions on Huawei that prevent the firm and its suppliers from using American technology and software. In response, […]