Economics & Business Archive

Populist politicians, who have been sweeping to power in countries across the globe, build their appeal partly on claims that they will base their policies on the needs and interests of the people. But once in power, their decisions, often ill-conceived, can create grave problems for the very voters they purport to champion. For proof, look no further than what has befallen the people of Sri Lanka. In recent months, life in the island nation has turned into a grinding, ever-worsening ordeal. What started as a government debt crisis has devolved into broader economic turmoil, marked by critical shortages of […]

In mid-March, Spanish Prime Minister Pedro Sanchez sent a letter to Moroccan King Mohamed VI, supporting Rabat’s plan to grant Western Sahara autonomy over its internal affairs, while remaining under Moroccan sovereignty. The move appeared to be an abrupt departure for Spain, which has maintained a position of careful neutrality over its former colony’s efforts to gain independence from Morocco for nearly 47 years. When the Moroccan Foreign Ministry eventually made Sanchez’s support public, it provoked an uproar in Spain centered around two primary questions. First, Does this really constitute a major policy change for Spain, given that it has never explicitly ruled out the Moroccan autonomy […]

Since Feb. 24, the eyes of the world have been fixed on Eastern Europe. But the events unfolding in and around Ukraine portend great changes for another region: the Arctic. Commonly viewed as a “territory of dialogue,” the Arctic has over the past three decades won a reputation as a “zone of peace” marked by exceptionally calm and collaborative security dynamics. Indeed, this is what former Soviet President Mikhail Gorbachev envisioned back in October 1987, when he launched a series of policy initiatives aimed at lowering the level of military confrontation in the Arctic by facilitating cooperation among the eight […]

This weekend, “Dune,” the highly acclaimed film adaptation of Frank Herbert’s science-fiction classic of the same name, capped off a successful box-office run by bagging an impressive six Oscars at the Academy Awards. The movie, directed by French Canadian filmmaker Denis Villeneuve, has received particular praise for its stunning cinematography and soundtrack, and for breaking from prior adaptation attempts by “sensibly” tackling only the first part of the 412-page novel. This is why, critics have argued, this version of Dune has been so well-received compared to previous versions. But an alternative—or perhaps complementary—explanation could be that today, there is simply more demand for stories […]

Even before Russia’s invasion of Ukraine pushed the price of crude oil above $100 a barrel for the first time since 2014, global oil prices had been on the rise for several months. After the pandemic-induced slump, the spike in prices is expected to create a boon for oil-producing countries. But for Nigeria, Africa’s largest oil producer and the holder of the 10th-largest proven oil reserves in the world, higher prices will be a mixed blessing at best. In fact, they might not provide a financial windfall at all, due to the country’s diminished oil production capacity, large-scale corruption in […]

Western outrage over Russian President Vladimir Putin’s illegal war of aggression in Ukraine has prompted calls to eject Russia from apex institutions of global cooperation, most notably the Group of 20 and the United Nations Security Council. While this impulse is tempting, efforts to exclude Russia from both institutions would be imprudent and likely futile, given the diverse membership of the former and U.N. Charter provisions regarding the latter. Rather than tilt at windmills, the United States and its allies should use both forums to shame Moscow for its criminal actions, while sharpening the already punishing sanctions they have deployed […]

AMSTERDAM—Back in February, when the Russian invasion of Ukraine began, a meme went viral on Facebook: “Just booked a Kiev AirBnB for 1 week, simply as a means of getting cash into the hands of Kiev residents. It’s really cheap and can make a small difference right now.” The phenomenon, known as “ghost-bookings,” became a simple, personalized, grassroots method to provide resources to and demonstrate solidarity with Ukraine’s civilian population, while assisting Airbnb hosts in Kyiv who were housing internally displaced persons, or IDPs, fleeing from the invasion further east. This sort of grassroots effort has become not only common […]

On March 9, after a long campaign and an even longer election night, South Korea finally elected a new president: Yoon Suk Yeol, of the conservative People Power Party. The 61-year-old career prosecutor, who won by less than 1 percent of the vote, may not have the strongest electoral mandate to work with. But he is nevertheless expected to make dramatic changes to the country’s foreign policy once he enters office on May 10. Since Yoon is new to politics, it’s hard to know what to expect of him once he takes over. That’s all the more true because public […]

On Feb. 27, nothing less than a revolution took place in Germany. In a 30-minute speech to parliament, Chancellor Olaf Scholz overturned all the old certainties that have dominated German security policy for over 30 years. He replaced them with an ambitious agenda that had defense, a topic with which Germany normally only reluctantly engages, at its core. Since the end of the Cold War, Germany has not felt threatened militarily. As a result, Berlin has felt little urgency to invest in its military and was reluctant to engage in the various military operations of the post-Cold War period. Where […]

One of the more concerning things about the virus that causes COVID-19 is the potential for its symptoms to linger long after the initial infection has waned. No one knows exactly what is causing “Long COVID,” as the disease is now known, but we do know that dealing with it will impose costs on societies for years to come. Not dissimilar are the pandemic’s economic and financial impacts. The initial symptoms of the crisis were acutely painful—economic downturns, business closures and supply chain disruptions. But now, as governments reopen their societies, they are realizing that some of the pandemic’s challenges may not […]

In mid-February, the World Bank issued a warning: Many low-income countries hit hardest by the pandemic are now on the brink of serious debt crisis, complicating the global economic recovery from the COVID-19 pandemic. While worries about the accumulated burden of sovereign debt and the possibility of a debt crisis have been present for years, the pandemic has exacerbated an already precarious situation for many low-income countries, revealing fundamental flaws in the current architecture for sovereign debt restructuring. These flaws are likely to become more evident in 2022, as Russia’s invasion of Ukraine contributes to higher global energy and food prices, […]

In the aftermath of U.S. President Joe Biden’s announcement last week that he was banning Russian oil imports in the U.S., global markets delivered a stark message to Russia’s leading energy giants: No one wants to buy what they’re selling. No one, that is, other than India, which is the only country that has so far offered to buy Russian crude despite the new round of U.S. sanctions and the European Union’s commitment to decrease its reliance on Russian energy imports. India’s move to buy a one-off shipment of 15 million barrels of oil from Russia is sure to rankle some in Washington, but before the […]

Russia’s invasion of Ukraine, which pits two of the world’s major wheat and corn producers against one another, has deep implications for several grain-importing countries. Grain prices had already risen steadily over the past year due to pandemic-related supply chain disruptions and increasing energy prices. The war further pushed these prices to an all-time high in February, seriously rattling an already shaky global food system. While some commentators are calling for trade measures that would facilitate alternate sources of grain exports to make up for the shortfalls, what is really needed is a major rethink of the conventional food security […]

In late February, the Intergovernmental Panel on Climate Change, or IPCC, released its most recent report, summing up the latest research on how climate change is affecting ecosystems as well as the effectiveness of the various climate adaptation measures governments across the world have enacted so far. On the latter score, the report concludes that the current pace of adaption is insufficient and finds that the measures being implemented are not holistic enough to address the major climate challenges the world faces. According to the report, some of climate change’s impacts on the natural world and human societies are now considered […]

Almost exactly 75 years ago, on March 12, 1947, then-President Harry S. Truman, alarmed by Soviet aggression in the Eastern Mediterranean and its efforts to undermine war-ravaged democracies in Western Europe, announced a dramatic reorientation of the United States’ national security policy. Addressing a joint session of Congress, he committed the U.S. to a new global mission to contain the Soviet Union by “support[ing] free peoples who are resisting attempted subjugation by armed minorities or outside pressures.” The speech set off a 15-week frenzy of diplomatic activity that culminated on June 5 with the proposal of the Marshall Plan. This new grand strategy—now known as […]

If the global scramble to replace Russia’s oil in the wake of its Ukraine invasion had occurred a few years from now, instead of today, diplomats would be turning not only to Saudi Arabia, Iran and Venezuela for potential new sources of oil, but also to another, perhaps unexpected country: Guyana, a minuscule South American nation that is now in the process of becoming a petroleum powerhouse. In the history of the world, few moments­ like this—in which an impoverished country suddenly discovers that it possesses untold wealth—have ever occurred. And yet, that’s what happened in Guyana in 2017, when ExxonMobil […]

Scarcely more than a week ago, Chinese social media and the country’s internet were ablaze with quick takes from both prominent commentators and ordinary folks praising Russian President Vladimir Putin’s armed bid to subdue Ukraine, as well as with fervent celebrations of what many in China saw as a toothless reaction from the West. The responses from Chinese voices like these, more emotional and nationalistic than lucid and analytical, saw in Putin’s defiance of the United States and Europe more evidence of the unstoppable rise of authoritarian states like their own, and of the longed-for decline of the West. Although […]