As the recession recedes, fuel prices have begun to soar across Latin America, confronting governments with the dilemma of how to balance fiscal demands with energy subsidies that are increasingly wreaking budgetary havoc, especially in the Andean nations. The Bolivian and Chilean governments’ recent efforts to confront that dilemma led to dramatic images of unrest, with protesters in both nations burning tires, throwing rocks and building barricades in response to announced policy changes. At the end of December, major cities across Bolivia erupted when President Evo Morales’ government decided to remove price controls that were artificially depressing fuel prices. The [...]
India’s central bank, the Reserve Bank of India (RBI), announced in late December that it would no longer allow Indian importers to trade with Iran using the Asian Clearing Union (ACU), saying it wanted to explore an alternate means of facilitating trade-related payments. The move came as something of a surprise, even though the U.S. had been pushing India to take this measure for quite some time. For its part, Iran did not welcome the move and initially put the onus on India to find an alternative mechanism. Talks are currently underway to resolve the issue. Nevertheless, the episode has [...]
Ian Bremmer and David Gordon, of the Eurasia Group, do not sugar-coat the shape of the new world order emerging in the 21st century. They starkly note: For the first time since the end of World War II, no country or bloc of countries has the political and economic leverage to drive an international agenda. The United States will continue to be the only truly global power, but it increasingly lacks the resources and domestic political capital to act as primary provider of global public goods. There are no ready alternatives to U.S. leadership. They dub this international order “G-zero,” [...]
