Economics & Business Archive

Iran’s southwestern province of Khuzestan has long been a hotbed of civil unrest and instability. In 1979, at the height of the Islamic Revolution led by the late Ayatollah Ruhollah Khomeini, segments of the province’s large minority Arab population led a violent push for autonomy. The oil-rich province on the border of Iraq was also at the center of the first major offensive in the Iran-Iraq war during the 1980s. In 2005, a wave of bomb attacks set off by Arab separatists rocked Khuzestan’s provincial capital, Ahvaz. Six years later, in 2011, an Iranian government crackdown on protests inspired by […]

Editor’s Note: This is the web version of our subscriber-only weekly newsletter, China Note, which includes a look at the week’s top stories and best reads from and about China. Subscribe to receive it by email every Wednesday. If you’re already a subscriber, adjust your newsletter settings to receive it directly to your email inbox.  Over the past few months, Beijing’s increasingly uncompromising posture toward policy disagreements with foreign powers has been reflected in the strident rhetoric used by Chinese officials. The latest round of U.S.-China high-level diplomacy was no exception. But several incidents this week demonstrated how this sharp, aggressive tone on the […]

Relations between the four members of South America’s Mercosur trade bloc—Argentina, Brazil, Paraguay and Uruguay—are at their worst since the group’s establishment three decades ago. For months now, Argentine President Alberto Fernandez has been blocking a demand by Brazil and Uruguay to reduce Mercosur’s external common tariffs, in an attempt to protect domestic companies and prevent even further disruption to an economy mired in high inflation, currency problems and a prolonged recession. Frustrated, Uruguayan President Luis Lacalle Pou announced earlier this month that he would seek trade deals outside of Mercosur, which is prohibited by the bloc’s rules. Uruguay’s decision is not […]

Like picking up a rock in the garden, the NSO Pegasus spyware scandal exposes a repulsive world teaming with life in the muck and mire—so much so that it is tempting to put the stone back in place and pretend that world doesn’t exist. There are many layers to the story: the human cost, the murky ethics of selling powerful spy tools to states with poor human rights records, and the complexities of trying to regulate the global market for such software. They all point to a challenge that will be with us for some time, despite the popular outrage […]

The word corruption tends to evoke images of self-dealing politicians and bureaucrats, and for good reason. In Central America, graft is so endemic among public officials that it constitutes a “root cause” of out-migration from the region, according to U.S. President Joe Biden’s administration.  But the private sector can play just as central a role in sustaining corruption. In recent years, traditional business elites in Central America have bankrolled efforts to roll back progress made by prosecutors and civil society groups to strengthen the rule of law.  This poses a key challenge for the Biden administration. While it has shown […]

Last week, the world’s richest man, Jeff Bezos, journeyed to the edge of space in a Blue Origin rocket christened the New Shepard. Bezos’ trip came only nine days after his fellow billionaire Richard Branson had done the same in a Virgin Galactic space plane.  So, what else is new? Wealthy industrialists have always enjoyed building themselves expensive toys. Think Howard Hughes and his Spruce Goose. What sets these voyages apart is their techno-utopianism. Bezos and Branson, along with Space X founder Elon Musk, are the modern avatars of Icarus. They believe that humanity’s destiny lies not on terra firma but in the heavens—and that exploring, exploiting […]

This is the web version of our subscriber-only Weekly Wrap-Up newsletter, which uses relevant WPR coverage to provide background and context to the week’s top stories. Subscribe to receive it by email every Saturday. If you’re already a subscriber, adjust your newsletter settings to receive it directly to your email inbox. Explosive revelations this week from the Pegasus Project detailed the widespread use of the Pegasus surveillance software program by repressive governments and three democracies—Hungary, India and Mexico—to spy on their own citizen activists and journalists, but also on foreign journalists and even heads of government. The software, developed and sold by the Israeli […]

Editor’s Note: This is the web version of our subscriber-only weekly newsletter, Africa Watch, which includes a look at the week’s top stories and best reads from and about the African continent. Subscribe to receive it by email every Friday. If you’re already a subscriber, adjust your newsletter settings to receive it directly to your email inbox. We are all in this together. COVID-19 is the great leveler. The pandemic knows no borders. Build back better together.  The coronavirus pandemic has yielded enough shopworn cliches to last an entire lifetime of Model United Nations speeches. Yet, nearly 18 months after Africa’s first recorded case […]

Last week, the European Union surpassed the United States when it comes to the share of its population that is vaccinated against the coronavirus.  More than 56 percent of people in the EU have now received at least one vaccine dose, compared with just under 56 percent in the U.S. The EU looks set to overtake the U.S. shortly on the percentage of people who have received a second dose as well, which now stands at 48 percent in the U.S. and 44 percent in the EU. Five EU countries, including Belgium and Spain, have already administered second doses to […]

For just about anyone who spends time thinking about the future of the world, the fast-unfolding competition between the United States and China looms as one of the most important issues shaping both expectations and uncertainty over the near and medium term. The rivalry between these two countries, which boast the biggest economies and most powerful militaries in the world, is ostensibly over global leadership. The international crisis caused by the coronavirus pandemic, however, has revealed another darker reality: Where it counts most—meaning for the well-being of the largest numbers of people in the world—there is no real leadership competition. […]

Once again, the U.K. appears to be out of step with its closest ally on chips and China, sitting on its hands over the sale of its largest semiconductor factory to a company with alleged links to the Chinese Communist Party. The U.K’s “have your cake and eat it, too” approach highlights disturbing inconsistencies that undercut its national security positioning and seem certain to reawaken tensions with the U.S. on policy toward China and technology. Highlighting the inconsistency at the heart of U.K. policy, the current controversy arises even as Hull, in the northeast of England, is due this month […]

Over the past several months, as China began building its own space station in low-Earth orbit and collaborating with Russia on an asteroid mission and new lunar base, some in the United States have expressed concerns that a new space race is on. Cold War-style rhetoric has cropped up in media reports and government statements alike—and not for the first time. The establishment of the U.S. Space Force in 2019, for example, was largely justified as a response to the alleged weaponization of space by China and Russia, both of which in turn saw the new American military branch as […]

Last week the European Commission seized global leadership on climate change, unveiling a sweeping scheme to reduce the EU’s carbon emissions by 55 percent from 1990 levels by 2030 and achieve “net zero” by 2050. Brussels envisions a total overhaul of the bloc’s economy, including eliminating the sale of new gas- and diesel-powered automobiles by 2035 and introducing border taxes to penalize imports from jurisdictions less committed to decarbonization.  The bloc’s bold move ramps up diplomatic pressure on the United States, China and other major emitters to respond in kind in the run-up to the Glasgow climate change conference. The ultimate fate […]

On June 30, Saudi Crown Prince Mohammed bin Salman, the country’s de facto ruler, announced a wide-ranging National Transport and Logistics Strategy. Billed as a “key pillar” of Riyadh’s sweeping development blueprint known as Vision 2030, the strategy calls for $147 billion in investments over nine years, including plans for a second national airline and new logistics zones. The operator of Saudi Arabia’s Red Sea Gateway Terminal also plans to spend $1.7 billion to expand its main port in Jeddah and invest in at least three international ports—with each investment totaling some $500 million—over the next five years.  Sustaining such international partnerships will be critical if […]

There are a few things Facebook executives don’t want you to know. They don’t want you to know that some of its engineers have breached company rules about accessing users’ personal details to stalk women online. They don’t want you to know that members of their security team watched Russian hackers game Facebook’s algorithms and fleece its users for months before the FBI announced its investigation into Russian interference into the 2016 U.S. presidential election. They would prefer that you not think about the fact that it has failed to appoint a single computer science expert to its Oversight Board, […]

Editor’s Note: This is the web version of our subscriber-only weekly newsletter, Europe Decoder, which includes a look at the week’s top stories and best reads from and about Europe. Subscribe to receive it by email every Thursday. If you’re already a subscriber, adjust your newsletter settings to receive it directly to your email inbox. BRUSSELS—The European Commission unveiled its mammoth proposed climate package Wednesday, called “Fit for 55.” It might sound like an exercise video or a dating service, but in fact it’s a package of 12 legislative proposals designed to get the union to its new target to reduce carbon emissions by […]

The worst of the coronavirus pandemic has receded considerably in countries with high vaccination rates, despite the new challenge posed by the more contagious delta variant. So far, this mostly means that rich countries are finding it possible to restart their economies safely, while lower- and middle-income countries, whose populations continue to be brutally battered by the pandemic, are struggling with massive public health demands, along with the economic and political crises ignited or worsened by COVID-19. Nowhere is this relentless predicament more urgent than in Latin America, which is why multilateral organizations are urging the rich nations that have […]