Economics & Business Archive

Thailand and France are reportedly set to sign an agreement next month on joint development of high-speed rail in Thailand. In an email interview, Lieven Jacquemyn, founder and managing director of the Singapore-based infrastructure investment and development firm Plektics, explained Southeast Asia’s infrastructure needs and infrastructure’s impact on regional integration. WPR: What are some of Southeast Asia’s most pressing unmet infrastructure needs, and what are the primary obstacles to infrastructure development? Lieven Jacquemyn: The emerging economies in Southeast Asia have seen impressive growth, and in order to sustain this growth, the general consensus is that energy and transportation infrastructure needs […]

AMSTERDAM—When news of economic troubles in Europe started emerging in 2009, the prevailing narrative in the Netherlands, as in much of the northern part of the continent, held that cultural differences, even the weather, could help explain the problem. The troubles in Greece, one often heard the Dutch say, stemmed from a certain lack of discipline, perhaps understandable considering the temptations of leisure along the sunny Mediterranean coast. Almost five years later, Europe’s economic woes have reached the North Sea shores, sending a chill through one of the most disciplined economies of the European Union. The Netherlands is now in […]

On June 26, Mongolians will go to the polls to elect their next president, with incumbent Tsakhia Elbegdorj predicted to return to office with a renewed mandate. His principal challenge comes from B. Bat-Erdene, who maintains a strong base of populist support in Mongolia’s rural areas. The third candidate, Natsag Udval, is a staunch supporter of former President Nambar Enkybayar, currently serving a two-and-a-half year jail term on corruption charges. According to Julian Dierkes, a Mongolia expert at the University of British Colombia, Udval is unlikely to gain more than 5 percent of the vote, but her candidacy is noteworthy […]

Bolivian President Evo Morales’ successful push to clear the way for a potential third term in office has reinforced the fears of many observers who, ever since he was first elected president in December 2005, have lumped Morales in with the wave of populist, anti-democratic leaders in Venezuela, Ecuador and Nicaragua. Morales joined ALBA, the alliance of leftist countries assembled and underwritten by former Venezuelan President Hugo Chavez; he engaged in the time-honored tradition of leftist “yanqui” bashing; and he has whittled away institutional checks and balances on executive power. But in important economic and political ways, Bolivia was and […]

This month, Iceland’s new conservative coalition government announced it would suspend talks to accede to the European Union, pending a referendum on whether the talks should continue. In an email interview, Maximilian Conrad, an assistant professor of European politics at the University of Iceland, discussed this decision and the recent history of Iceland’s relations with the EU. WPR: What were the reasons behind Iceland’s EU accession application, and what is driving the coalition government’s decision to suspend accession talks? Maximilian Conrad: The Icelandic decision to apply for EU membership can only be understood against the backdrop of the “kreppa,” Iceland’s […]

At the conclusion of his first year in office, French President Francois Hollande is facing criticism from all sides. Hollande was elected as an almost accidental president in May 2012 in the post-crisis wave of government changes across Europe. His promises to renegotiate German Chancellor Angela Merkel’s hard-fought European Union budgetary pact—and to counter austerity measures by increasing public sector expenditures and imposing sharp tax hikes on business—made a deterioration in the French-German partnership, clearly visible over the past year, all but inevitable. Despite his campaign rhetoric, however, Hollande’s first year in office has been marked by conflicting policy messages. […]

There have been conflicting reports regarding the health of Algerian President Abdelaziz Bouteflika since he was airlifted to a military hospital in Paris, France, for treatment following a mini-stroke in late-April. Algerian Prime Minister Abdelmalek Sellal has denied rumors that the president, who remains in France, is seriously ill. But speculation over who might replace Bouteflika, and what might come next for the North African country he has presided over since 1999, continues. While Bouteflika may yet return to Algeria, his health makes it unlikely that he will be able to stand for re-election in the presidential balloting set for […]

This week, Chinese Premier Li Keqiang visited India in his first official overseas trip, vowing to enhance bilateral trade relations and ease tensions in the wake of a recent border dispute between the two countries. In an email interview, Arvind Panagariya, a professor of economics and Indian political economy at Columbia University, explained the recent trajectory of India-China trade relations. WPR: What is the current state of trade relations between India and China, including the value of bilateral trade, balance of trade and major sectors, as well as the priority both sides place on bilateral trade? Arvind Panagariya: Bilateral trade […]

As President Barack Obama learned during his whirlwind trip to Mexico in early May 2013, President Enrique Pena Nieto, like his predecessors, is eager to lessen his nation’s security, economic and trade dependence on the United States. During the visit, the U.S. chief executive discussed economic cooperation, education, border infrastructure, migration and the drug war. “We’ve done a lot of work with the previous Mexican administration on security issues and on economic issues. But sometimes the relationship gets characterized just as being about borders or just about drug cartels,” Obama told the Spanish-language network Telemundo. Proximity, joint assembly ventures, and […]

At their White House summit last week, Turkish Prime Minister Recep Tayyip Erdogan and U.S. President Barack Obama reaffirmed the two countries’ “model partnership” as they jointly called for greater international efforts to end the Syrian War. Thus far, the Arab Spring has had an overall positive effect on the Turkey-U.S. relationship. Before 2011, the Turkish-U.S. policy discourse focused on their divisions over Iraq, Iran and other regional security issues. But since the Arab Spring, Ankara and Washington have been preoccupied with harmonizing their policies toward the Arab world. This has become increasingly difficult with regard to Syria. Meanwhile, the […]

U.S. President Barack Obama welcomed President Thein Sein of Myanmar to the White House on Monday, praising Thein Sein’s leadership in moving his country “down a path of both political and economic reform.” That progress, Obama said, has allowed for the recent “shift in relations” between the U.S. and Myanmar. Vikram Nehru, a senior associate in the Asia program at the Carnegie Endowment for International Peace, told Trend Lines the visit underlines how far the Southeast Asian country has come. Nehru said the progress in Myanmar is real, but that the country’s leaders have so far delivered more political than […]

KABUL, Afghanistan—In a surprise move in mid-April, Germany announced it is ready to provide between 600 and 800 troops to the as yet undefined NATO training contingent that will replace the International Security Assistance Force (ISAF) mission in Afghanistan after it comes to an end in 2014. It was the first such announcement by any country, including the United States. Washington is in the process of negotiating with Kabul the bilateral strategic agreement that should lay out the framework for a reduced but continued presence of American troops starting in 2015. Germany’s attempt to pull ahead of the pack is […]

The Philippine Coast Guard opened fire on a Taiwanese fishing vessel two weeks ago, killing a Taiwanese fisherman and provoking a diplomatic deadlock between the Philippines and Taiwan in a period of growing tensions over disputed waters in the region. “This proves again that accidents happen and so all the more reason to have mechanisms in place to address accidents before they spin out of control,” Richard Bush, director of Center for Northeast Asian Policy Studies at the Brookings Institution, told Trend Lines. Bush explained that because Taiwan found the apology offered by the Philippines for the incident inadequate, the […]

The full motivation for China’s recent incursion into Indian territory along their disputed border in eastern Kashmir is as yet unclear. But the incident brings to the fore the issue of unpredictability in Chinese foreign policy implementation and Beijing’s frequent recourse to low-level aggression, often deployed to shape the backdrop to formal diplomatic negotiations. With specific regard to India, despite a general trend toward deepening cooperation, the incident lowers hopes that China’s new leadership would move to clear up uncertainty in bilateral relations and create a firmer basis for cultural and economic exchange. On April 15, in the Depsang Valley […]

Does international trade liberalization reduce poverty? The question is an important and relevant one. It was high on the agenda in the late-1990s—think of the Seattle riots against the World Trade Organization (WTO) in 1999—and after a decade or so of quiescence it is starting to worry policymakers again. Fortunately, it permits a fairly definite answer, one that surprises many people. While there clearly are exceptions, the answer is “in the long run and on average, almost always, yes, trade liberalization reduces poverty.” The terms “long run” and “average” are not weasel words, but they do mask a lot of […]

President Barack Obama traveled to Mexico City on May 2 to meet with new Mexican President Enrique Pena Nieto in an effort to recast perceptions of the bilateral agenda from security to economic issues. In 2012, for the first time in 12 years, the U.S. and Mexican election cycles coincided, providing an excellent opportunity to coordinate an agenda consistent with the political needs of the new administrations and the economic requirements of their respective countries. An early visit by the U.S. president was an important signal that Mexico’s significant contributions to the health of the U.S. economy can no longer […]

Taiwan and Japan recently signed an important East China Sea fishing rights agreement after 17 years of negotiations. More than anything, the deal represents a striking concession from Japan. Since 1996, Japan had attempted to prevent Taiwanese fishing boats from entering its claimed exclusive economic zone (EEZ) extending 200 nautical miles from the uninhabited Senkaku Islands, which are known as the Diaoyutai in Taiwan. Taiwanese fisherman have a long history of working the waters surrounding the Senkakus. The Taiwan government also claims that sovereignty of the islands reverted to the Republic of China (ROC), as the Taipei-based government is formally […]