Economics & Business Archive

Until recently, it was one of the brightest, most promising trends in Latin America, and one of the strongest arguments for optimism about its future. But tragically, the fight against corruption, which had made determined strides in its drive to uproot graft, influence peddling and venal misuse of resources, has not only stalled—it has shifted into reverse. The backsliding is now converging with the scourge of the coronavirus, adding to the many challenges that Latin Americans face, and raising the barriers to recovery after the pandemic ends. Latin America is not alone in hitting a wall in its attempts to […]

If the European Union were a cartoon, it would resemble an episode of Wile E. Coyote and the Road Runner. The EU would be Wile E. Coyote, furiously paving a road with the help of some mail-order Rube Goldberg machine, patch by patch, just ahead of the car he is driving. The Road Runner would be the course of history speeding up alongside him, then zooming off into the distance. This half-finished structure constantly driven forward by the urgent necessity of events is no accident. It was one of the implicit assumptions of the EU’s early architects and builders, who […]

Earlier this year, as the effects of a deadly new virus rippled across the world, international travel was thrown into a frenzy. Images of frantic business travelers, passengers on cruise ships and study abroad students all scrambling to return home filled the news. But these were soon followed by images of quite a different nature: silent streets in Barcelona, deserted piazzas in Rome, empty beaches in Greece and Thailand, vacant airport terminals in Boston and Singapore. Eventually, international travel ground to a halt. Reservations for hotels, resorts and Airbnb stays evaporated. International flights were canceled, borders were closed, and museums, […]

The global clout of OPEC, never one of the world’s most admired institutions, reached a nadir in April when a dispute between Saudi Arabia and Russia triggered a price war just as global oil demand was collapsing due to the coronavirus pandemic. Three months later, the cartel has re-emerged as a model of transnational cooperation and collective sacrifice, implementing historic production cuts in an effort to stabilize prices. Oil markets have noticed. After cratering below $20 a barrel in April, Brent crude, the international benchmark price, has hovered between $42 and $45 so far this month, even as demand remains […]

Will the next U.S. president have any incentive to revive the Iran nuclear deal? The status of the agreement has steadily eroded since the U.S. unilaterally pulled out of it in May 2018 and subsequently reimposed punishing economic sanctions on Iran and any entities that do business with it. And Iran’s gradual and escalating breaches of the limits the deal imposed on its uranium enrichment program have led many to conclude that the clock is running out on the value of the deal. Skeptics of the deal’s chances clearly have the stronger argument at present, whether they ascribe the original […]

In this week’s editors’ discussion on Trend Lines, WPR’s Judah Grunstein, Elliot Waldman and Prachi Vidwans talk about the implications of the European Union’s new seven-year budget and coronavirus recovery fund, which were agreed after four days and nights of contentious negotiations in Brussels. They also discuss the Trump administration’s sudden decision to shut down China’s consulate in Houston, and what that could mean for the downward spiral in U.S.-China relations. Listen: Download: MP3Subscribe: Apple Podcasts | RSS | Spotify Relevant Articles on WPR:Is the EU’s COVID-19 Response Losing Central and Eastern Europe to China?The U.S. Can No Longer Ignore […]

When the Trump administration began publicly bandying about the idea of barring the popular Chinese social media app TikTok from the American market a couple of weeks ago, the mere possibility of it happening sent shock waves through Chinese society. One might have expected that most of the attention, including lots of predictable fury, would have centered on nationalist sentiments—which are easily aroused in China nowadays—about the alleged unfairness with which the country is being treated by Western competitors, none more so than the United States. Unbeknownst to Americans, who mostly see it as an almost addictive platform for distracting […]

Foreign ministers from China and the Arab world held their ninth meeting of the biennial China-Arab States Cooperation Forum earlier this month, at which they pledged to “deepen cooperation in various fields, and embrace new prospects in building a China-Arab community with a shared future,” according to Chinese state media outlet Xinhua. The meeting is sure to renew debates over the nature of Chinese influence in Gulf Arab states. China hawks in the United States often overemphasize China’s economic power in the region by focusing on the threats posed by companies like the telecommunications giant Huawei or BGI Group, a […]

As the coronavirus pandemic takes a terrible toll across Latin America, with over 3.5 million cases and nearly 150,000 deaths, the region is increasingly facing a financial and humanitarian emergency. Across Latin America and the Caribbean, GDP is forecast to contract by 9.3 percent in 2020, according to the International Monetary Fund—the region’s largest economic contraction on record, and far worse than the outlook for African and Asian economies. The United Nations expects the value of South America’s exports to fall by nearly a fifth this year due to shrinking international demand and weaker commodity prices. Foreign investment has also […]

As Americans have risen up in protest against police brutality, attention has understandably focused on the racist incidents of police killing Black Americans and their implications. How these outrages have come to light, however, remains underappreciated. They might never have been exposed without new technologies like smart phones and social media, whose use for accountability is transforming human rights. Until recently, documenting human rights abuses was a time-consuming and often imprecise activity. As a law student in the early 1990s, I worked on a United Nations project, led by the international legal scholar M. Cherif Bassiouni, to document war crimes […]

The coronavirus pandemic has inspired a great deal of scientific research into developing a vaccine for COVID-19. The process is moving much faster than normal, with more than 155 vaccine candidates currently being developed, 23 of which are already in human trials. Vaccines can take years or even decades to develop and distribute, but the Trump administration is pushing to have one ready by early next year. Developing a vaccine is one thing, but making it available to people is another issue altogether—one that involves thorny questions of ethics, intellectual property rights, global trade and recouping research costs. This is […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. The “tech war” between the United States and China has shifted to Europe, where the United Kingdom this week announced, in an abrupt reversal, that it would ban the use of equipment from Chinese telecommunications giant Huawei in its high-speed wireless network. The British government’s decision is a major victory for the Trump administration, which has been campaigning to steer countries away from China as they develop their 5G infrastructure. Europe has been one of Huawei’s key markets as […]

Editor’s Note: Guest columnist Edward Alden is filling in for Kimberly Ann Elliott. Mexican President Andres Manuel Lopez Obrador went to Washington last week to meet with U.S. President Donald Trump and celebrate this month’s official launch of the updated and rebranded North American Free Trade Agreement, now the United States-Mexico-Canada Agreement, or USMCA. Critics of Lopez Obrador, including former Mexican Ambassador to the U.S. Arturo Sarukhan, called the visit “a colossal error, electorally, diplomatically and strategically.” His supporters said Mexico has little choice but to curry favor with Trump despite the insults he has hurled at the country and […]

In April, the Kyrgyz news outlet Kloop posted a video on YouTube showing a new app called STOP COVID-19. Developed by the government of Kyrgyzstan, it allows the authorities to follow the whereabouts of those exposed to the coronavirus. The video shows the movements of two individuals being tracked by combining their digital profiles and phone locations with their government-issued IDs. In theory, STOP COVID-19 is a valuable tool in the government’s efforts to track and trace confirmed or suspected coronavirus patients. But the app goes much further than most Kyrgyz citizens would likely be comfortable with. In addition to […]

The coronavirus pandemic has thrown a harsh light on the long-standing structural weaknesses of global labor markets and of the protections available for workers. The estimated 2 billion people worldwide toiling away in the informal sector—in jobs that are not backed by contracts or institutions, and that are not monitored or taxed by governments—are the new economically vulnerable. Across the globe, in developing and developed economies alike, these often-overlooked workers are bearing the brunt of COVID-19 and its accompanying economic depression, and will continue to even when economies start to recover. Because many of these employees work off the books […]

Since the onset of the coronavirus pandemic, the Trump administration’s trade policy has been shifting from an inclination to punish to a yearning for retreat. After imposing tariffs on trading partners that cost U.S. consumers $12 billion last year, the White House has been looking for ways to repatriate industrial activity from China and launch a new state-led industrial policy. But cutting the economic cord with China will not magically halt its geopolitical rise, and imitating its state-led approach to the economy would make America both less secure and less prosperous. Instead, the next U.S. administration should launch a “Safe […]

From the moment Mexican President Andres Manuel Lopez Obrador announced plans for his first state visit to the United States, where he would meet with President Donald Trump at the White House, the news was greeted with a mixture of revulsion and astonishment. At home and abroad, critics and observers marveled at a decision to undertake a diplomatic mission so rife with potential to cause damage to Mexico and such negligible upside. The lone voices of support maintained that the lopsided odds belied the finely honed political instincts of AMLO, as Mexico’s president is widely known. Dismissing his critics, the […]