The latest row between Washington and Riyadh over the decision by OPEC+ to cut oil production is not just a dispute over oil prices. It is a more fundamental divide between the U.S. and most of its Middle East security partners over what’s at stake in the war in Ukraine, and how each side sees the current geopolitical map.
Economics & Business Archive
“The worst is yet to come.” That’s the message from the International Monetary Fund about what to expect in 2023. For Latin America, the IMF’s bad news about the year to come will add to a pile of years’ worth of other economic and political problems and will be critical to every political story in the region for the year to come.
Liz Truss resigned as British prime minister on Thursday just 44 days after assuming office. Though she tried valiantly to hold on, she ultimately failed to reassure the markets or her Conservative Party MPs of her ability to end the political and economic chaos unleashed by the release of her government’s fiscal plan last month.
Amid a looming global economic crunch driven in part by a slowdown in China, a recalibration of Beijing’s footprint in Africa and deepening tensions with the West, many African governments are asking questions about what direction the relationship between their countries and China will take in the next couple of years.
With U.S. President Joe Biden’s latest escalation of the U.S.-China trade war, it’s clear the world is a far cry from the “Golden Age” of economic globalization that marked the 1990s and early 2000s. So how did globalization’s “golden age” come to a halt? Three major factors contributed to the global economy’s fragility.
The focus on Peruvian President Pedro Castillo’s political travails are understandable, but they have overshadowed one of the more significant policy developments from his presidency so far: a recently introduced stimulus package designed to promote flagging economic growth that backtracks on Castillo’s hard-left economic agenda.
EU leaders are gathered in Brussels, where they are locked in a heated discussion about Europe’s energy crisis. But as they try to hammer out an agreement, they’re also keeping a nervous eye on the protests brewing in France over inflation and the cost-of-living crisis, which could tip over into widespread civil unrest.
The West’s Ties With the Gulf States No Longer Make Strategic Sense
The rise and decline of the West’s strategic commitment to Indochina from the 1950s to the 1970s should be kept in mind when examining U.S. and European relations with the Gulf monarchies today. Though ties between the two sides are still extensive, U.S. and European policymakers are reassessing their commitment to the region.
Across the world, there have been more than 8,200 protests and riots in response to the rising cost of living in the first seven months of this year alone. Although the actors involved represent broad, heterogeneous demographics, there are some clear patterns and takeaways that have already emerged.
Until recently, many observers expected the war in Ukraine would end with a deal, once the equilibrium point between Russia’s military setbacks in Ukraine and Europe’s growing economic crisis was found. The events of the past month have called into question whether such an equilibrium can and will be reached.
Two gatherings of international institutions this week—the IMF and World Bank’s annual meeting and a U.N. dialogue with the African Union—have been dominated by the global economic crisis. But many African governments and citizens regard multilateral organizations like these as missing in action regarding their major challenges.
As European countries prepared for a sharp drop in natural gas supplies and an impending energy crisis, the Netherlands announced it would slash production at one of the world’s largest natural gas fields. The announcement reflects the competing priorities across Europe, pitting climate goals against the energy crisis.
Last week, the U.S. Department of Commerce issued new regulations restricting the sale of semiconductors and cutting-edge chip-making equipment to China. For while the implementation of these far-reaching measures will require international cooperation, Beijing’s technology ambitions are still set to hit rougher waters.
OPEC+ announced last week that it will cut oil production by 2 million barrels per day starting in November, driving up prices globally. The U.S. responded by framing the cuts to oil production as a nakedly self-serving move that will benefit Russia, singling out Saudi Arabia as the ringleader of that collective effort.
Brazil’s former president Luiz Inacio Lula da Silva is favored to win the 2022 presidential election and return to the office he held between 2003 and 2010. But despite Lula’s pledge to prioritize relations with Africa as he did in his first stint in office, a return to the heydays of the 2000s is a long shot.
Europe’s eyes were fixed on Prague today for the inaugural summit of the European Political Community assembling all of continental Europe’s leaders, besides Vladimir Putin and Alexander Lukashenko. But tomorrow’s European Council meeting focusing on Europe’s energy crisis is expected to deliver more tangible outcomes.
Few institutions in British political life have seemed more indestructible than the Conservative Party. But Prime Minister Liz Truss’ chaotic first month in office has shattered what remained of the party’s reputation for economic competence. Now a pillar of British political life for 200 years is now facing electoral extinction.