WASHINGTON — Sky-high oil prices are keeping Iran’s government flush with revenue. But they are also contributing to Iran’s soaring inflation, President Mahmoud Ahmadinejad’s worst economic woe. Pain at the pump for consumers of oil-importing countries usually translates into political gain for authoritarian leaders in oil-rich countries who use oil rents to buy political support. As Thomas Friedman famously put it, “the price of oil and the pace of freedom always move in opposite directions.” “Iran is no exception,” said Farideh Farhi, a public policy scholar at the Woodrow Wilson International Center for Scholars in Washington. “But high oil prices […]

HISTORICAL NOTE — Many of the 200,000 or so Germans who thronged the Tiergarten in Berlin to listen to Barack Obama may see him as another John F. Kennedy, but Obama didn’t yield to the same temptation of throwing a German phrase into his speech — and getting it slightly wrong. In 1963, when Kennedy spoke at the Berlin Wall, Berliners roared their approval when the president said he identified with them, even if his historic phrase “Ich bin ein Berliner” translates as “I am a doughnut.” What Kennedy meant to say was “Ich bin einer Berliner.” Twenty-four years later […]

“If China is winning, the United States must be losing.” That is precisely the principle that many Americans see at work not only in the world, but also in the Middle East. China’s surging manufacturing capacity has contributed to the steep decline in manufacturing jobs in the United States. U.S. businessmen worry about the consequences of Chinese firms taking over U.S. firms such as Unocal and 3Com and scuttle the deals. U.S. bankers agonize over China’s massive current accounts surpluses and its huge dollar holdings. Many perceive China to be a military threat too, expanding its reach in the Pacific […]

PHNOM PENH, Cambodia — Cambodian authorities have called for a special U.N. Security Council resolution aimed at resolving a border dispute with Thailand as a wave of nationalism sweeps the country ahead of national elections on Sunday. Foreign Minister Hor Namhong said Tuesday Cambodia’s ambassador in New York had sought the request, as a troop build-up around a 900-year-old temple in this country’s remote northwest continues. Reports Wednesday indicated that the Security Council would discuss the issue at a Thursday meeting. “Thai troops with artilleries and tanks are building up along the border, constituting a very serious threat not only […]

An ogre of a giant looms to the east of Europe, occasionally in the shape of a country, other times in the shape of a company, the two often indistinguishable. Russia and Gazprom are poised to devour the whole of Europe and its Asian neighbors. OAO Gazprom’s influence has been underestimated and, astonishingly, often ignored. By far the largest owner of natural gas reserves and the largest supplier of gas in the world, six times as big as No. 2, Royal Dutch/Shell, the company currently provides over a quarter of Europe’s natural gas, and is aggressively looking to greatly increase […]

Drugs, Energy, Economy Beset Mexico’s Calderón in Second Year

MEXICO CITY — President Felipe Calderón spent the week leading up to the second anniversary of his narrow election victory July 2 touring Southeastern Mexico, where he promoted the main tenets of his administration: security; structural reforms; and social programs. While inaugurating a baseball stadium in Cancún that was built with funds from a public security program, he spoke of the Mexican military destroying a “world record” amount of cocaine and seizing more than 16,000 weapons over the past year. The president also got his hands dirty mixing cement in a Campeche home as he promoted “Piso Firme,” a program […]

GORE, Chad — The U.N.’s main refugee agency is expanding its work in southern Chad, adding programs for impoverished local villagers in order to head off conflict between locals and a growing population of Central African refugees. The programs, administered by the U.N. High Commissioner for Refugees and partner aid groups, include aid to farmers and herders. The idea, according to Serge Male, UNHCR’s representative to Chad, is to ensure that the local population never have less than the refugees they host. “We cannot provide more to refugees if the local population does not benefit to some extent,” Male told […]

WARSAW, Poland — To defend against the potential threat of a nuclear attack from “rogue states,” the United States has been working to shore up support for deploying 10 silo-based long-range interceptors in Poland and a mid-course tracking radar in the Czech Republic by 2013. After months of shuttle diplomacy and intense negotiations, U.S. Secretary of State Condoleeza Rice inked a deal with the Czechs on July 8 but failed to convince her Polish counterparts to host the project. For months, it appeared that Poland would easily accept U.S. plans. Undoubtedly, Poland is a strong U.S. ally and a vital […]

Energy differences between Russia and European countries have created an opportunity for the GUAM states — Georgia, Ukraine, Azerbaijan, and Moldova — to assume a more prominent role in Europe’s institutional architecture. Until now, the GUAM has been overshadowed by more prominent institutions such as NATO, the European Union, and the Commonwealth of Independent States. Most recent attention has focused on how GUAM might help EU members pursue their energy diversification strategy. GUAM includes both energy-producing (Azerbaijan) and energy-transit (Azerbaijan again but also Georgia and potentially Ukraine) countries. The pivotal geographic location of GUAM members — which have direct access […]

While the United States debates the benefits of weaning itself from foreign oil, one Western hemisphere neighbor has already moved boldly to achieve energy independence: Brazil. With record levels of ethanol production and the recent discovery of a monster underwater oil field, South America’s largest country is on its way to becoming energy self-sufficient. Brazil’s favorable energy position is due to a combination of foresight and good fortune: the government’s decision years ago to mandate ethanol production to reduce oil dependency and the find of the massive offshore Tupi oil fields. The discovery, in November last year, of the Tupi […]

IRIBA, Chad — Four years after some quarter-million people fled ethnic cleansing in Sudan’s Darfur province for the relative safety of eastern Chad, one of the world’s most persistent humanitarian crises shows no signs of letting up. Indeed, there are signs that Darfuri refugees are in Chad to stay, despite acute shortages of water, firewood and food. Today the Darfuri refugees are housed in a dozen U.N.-administered camps that, over time, have become more like permanent towns and less like the squalid tent cities of popular conception. But appearances can be deceiving: Despite seeming self-sufficient on the surface, the camps […]