Economics & Business Archive

The 2015 Paris Agreement on climate change contains a curious omission: The phrase “fossil fuels,” which appears nowhere in the nearly 7,200-word document. Nor do the terms “coal,” “oil” or “natural gas,” despite these resources being responsible for most greenhouse gas emissions. That lacuna was no accident. It reflects the decision by national governments, reinforced by industry lobbyists, to focus emissions reduction efforts on reducing the demand for fossil fuels, rather than limiting fossil fuel supply by discouraging or even prohibiting their extraction in the first place.  In other words, as climate activist Tzeporah Berman points out in a powerful […]

After five years and a nearly 20-month border shutdown, the heads of government of Mexico, Canada and the United States gave a sense of restored normalcy to trilateral relations last month, when they joined up in Washington for the first summit of its kind since a 2016 gathering—featuring a famously awkward handshake—in Ottawa. Then again, by the time Mexican President Andres Manuel Lopez Obrador, or AMLO, met with U.S. President Joe Biden in the Oval Office on the sidelines of what has been dubbed the Three Amigos Summit, they were already capping off a period filled with renewed, high-level bilateral […]

The eighth edition of the triennial Forum on China-Africa Cooperation, or FOCAC, took place this week in Dakar, Senegal, marking the first time the meeting was held in West Africa. The conference, which took place days after the release of a Chinese government white paper detailing a new era of cooperation with African countries, saw major announcements on COVID-19 vaccines, Special Drawing Rights allocations and climate cooperation. While those areas of cooperation portend to be the cornerstone of engagement between China and Africa, growing debates are emerging on the continent and elsewhere about the imbalanced nature of the relationship. FOCAC […]

It’s never a good sign for a country’s leader when fluctuations in the value of the national currency become a dominant concern for everyday people. That is the case today in Turkey, where President Recep Tayyip Erdogan is taking a huge gamble with his monetary policy, setting a controversial interest rate policy that runs contrary to firmly established economic theory and has caused the local currency, the lira, to nosedive. Slashing the value of savings, spooking investors and further fueling inflation, the policy is already causing significant hardships for the Turkish people, who polls show have lost faith in the […]

There may never be a good time to cut social spending, especially in a Latin American country so wracked by inequality that an unpopular austerity package resulted in lethal riots even before the onset of the coronavirus pandemic. That is the lesson Guillermo Lasso, Ecuador’s conservative new president, appears to be learning the hard way six months into his term in office.  After his surprise win in April’s presidential runoff election, Lasso, a former banker and one of his nation’s richest citizens, moved swiftly to establish his authority upon taking office the following month. He rapidly accelerated Ecuador’s vaccination drive […]

As he watched his country flail early in the COVID-19 pandemic, the Nobel laureate economist Paul Romer argued that only by taking a dramatic, concerted step, carried out simultaneously nationwide, would the United States be able to stop the spread of the virus and contain its spiraling costs. At the time, in April 2020, Romer said that the United States should commit an estimated $100 billion dollars to a crash national testing program that would allow the quarantining of people who were positive and thereby stop the spread of the pathogen to others. This, he argued, was a pittance compared […]