Infrastructure Archive

The $5.25 billion expansion of the Panama Canal, which officially opened in late June, tripling the size of vessels the canal can accommodate, is about more than just bigger ships. Unlike in 1914 when the opening of the canal made unimaginable trade routes possible, boosting the economies of the United States and many others, the expanded canal may have the biggest impact on Panama’s own economy. But the potential rewards also come with major risks. The canal’s ability to handle much larger ships will greatly facilitate shipping between the Pacific and Atlantic oceans. Among other things, U.S. grain exports from […]

Driving along central Malawi’s M5 lakeshore highway in mid-2016, a visitor could be forgiven for mistaking the surrounding countryside for desert. In what should have been an area lush from rains ending in April, the land of gently sloping hills, baobab trees and fiery sunsets was parched. Although the road meandered past some signs of greenery—mango trees, tobacco fields, irrigated sugar cane for export—the dust that stretched to the horizon did little to mask that Malawi, like much of eastern and southern Africa, is in crisis. Hit by the strongest El Nino in a generation, which disrupted rainfall patterns, ruined […]

LIMA, Peru—Like many Peruvians, Augusto Correa has done well over the past two decades. In the 1990s, he and his siblings converted their grandfather’s former home in Lima’s upscale Miraflores district into a small bed-and-breakfast. Customers were scarce at first, but the business grew, and the siblings slowly expanded Hostal Buena Vista, as the bed-and-breakfast is called, from three rooms to 19, adding annexes and a third floor. In the process, Augusto’s brother Jorge opened a second Hostal Buena Vista in the highland city of Cusco, the former capital of the Incan empire, and Augusto recently inaugurated a third one […]

Recent visits to Cuba by a bevy of European and Asian leaders highlight a key element of Raul Castro’s foreign policy that he has pursued alongside normalization with the United States: Don’t put all of Cuba’s eggs in one international basket. Cuba learned this lesson the hard way. Pre-revolutionary dependence on the United States, followed by post-revolutionary dependence on the Soviet Union, twice plunged Cuba into economic crisis when those ties were severed. Although less drastic, the current austerity triggered by the decline in oil shipments from Venezuela underscores the danger of relying on a single foreign partner. Cuba’s leaders […]