Trade Archive

Editor’s note: The following article is one of 30 that we’ve selected from our archives to celebrate World Politics Review’s 15th anniversary. You can find the full collection here. It’s been almost five years now since the global financial and economic crisis formally began with Lehman Brothers’ filing for Chapter 11 bankruptcy on Sept. 15, 2008. In today’s fast-paced, high-tech, hyperconnected world, five years is an eternity. In autumn of that year, the iPhone was barely one year old and only in its second iteration. No one had ever shared a photo of their dessert on Instagram because the service was […]

Observers looking for evidence of the importance of a sound international financial regulatory architecture in an age of financial globalization should look no further than the recent global financial crisis. The crisis laid bare the limitations of the global financial architecture that had emerged in a piecemeal fashion since the collapse of the Bretton Woods system in the early 1970s. To begin with, the crisis demonstrated the inadequacy of the Basel Accords, which for three decades formed the core of the international banking regulatory regime. The Basel Committee of central bankers had spent the better part of the late 1990s […]

One notable feature of the global economy over the half-decade since the collapse of Lehman Brothers has been the fluctuating fortunes of international economic cooperation in general and of the G-20 in particular. The G-20’s public reputation has taken a roller-coaster ride from hero to zero. The story of this rise and fall is also the story of the changing balance of (economic) power in the post-crisis global economy, and of the implications that this shift has had for how the world economy works—and how it doesn’t. This story began when the onset of the financial crisis prompted the elevation […]

It is now something of a cliche to note that Turkey’s foreign policy mantra of “zero problems” has given way to problems everywhere Ankara looks. Nowhere is that truer than in the Turkey-Iran relationship, which has been buffeted from all sides over the past three years, reaching its lowest ebb with the two sides’ diametrically opposed positions in the stalemated Syrian civil war. In that time, Turkey and Iran have increasingly vied for influence across the region. In Iraq, Turkey backed the losing electoral bloc in the 2010 elections, and currently shelters fugitive Iraqi Vice President Tariq al-Hashemi. By contrast, […]

Over the past three decades, Brazil and Argentina’s rapprochement paved the way for the two largest economies in South America to end their economic and military rivalry and commence a promising effort to institutionalize the process of regional integration in South America.* The Common Market of the South, or Mercosur, was the chief creation of that initiative and was quick to embrace Uruguay and Paraguay. Last year Venezuela became Mercosur’s fifth member, and the bloc is expected to become even bigger as Ecuador and Bolivia seek membership in the near future. But bigger does not necessarily mean better or stronger. […]

At a joint press conference with his Indian counterpart Salman Khurshid in Ankara last month, Turkish Foreign Minister Ahmet Davutoglu described Khurshid’s visit to Turkey—the first by an Indian foreign minister in 10 years—as “historic.” The visit can be seen as part of an effort to visibly raise the profile of India-Turkey relations, which have been characterized by steadily expanding common ground on the geoeconomic front. India is now Turkey’s second-largest Asian trading partner, and Turkey is seeking more bilateral high-level exchanges as a precursor to expanded people-to-people contacts. For India, whose president will visit Turkey in the coming months, […]

China’s rapid economic growth over the past 30 years has transformed the world’s most populous country almost beyond recognition and reshaped the international economic and geopolitical landscape, forcing huge shifts in global international trade and investment flows. This growth is now slowing, meaning many of the key dynamics that have accompanied China’s rise are themselves evolving. While many observers are nervous about the Chinese slowdown and its implications, a more balanced, less inflationary and less resource-intensive model of economic expansion may bring more sustainability to China’s development story and allow Beijing to fundamentally rebalance its relations with international partners. The […]

Joe Biden’s recent visit to New Delhi and Mumbai—the first trip by an American vice president to India in 30 years—occasioned no shortage of handwringing over the state of the U.S.-India relationship. Commentators on both sides point to stalled economic reforms and slowing growth in India combined with uncertainty over how India fits into Washington’s vaunted “rebalance” to Asia. And from one perspective, the glass can indeed appear half empty. Yet the U.S.-India relationship enjoys bipartisan support in both countries, and the underlying strategic logic remains sound. Building on this foundation will require able stewardship in both Washington and New […]

This is the first in a two-part series on the U.S.-South Africa bilateral relationship. Part I examines the state of economic ties. Part II will examine the state of political ties. Although it was inevitably overshadowed by the serious decline in Nelson Mandela’s health, U.S. President Barack Obama’s visit to South Africa at the end of June provided the opportunity for a comprehensive re-evaluation of the bilateral relationship. Though both sides talked about expanding cooperation and strengthening ties, the backdrop to the visit was a checkered and uneven relationship since the birth of the new South Africa in 1994. By […]

It was the phone call heard around the world: The conversation between Israeli Prime Minister Benjamin Netanyahu and Turkish Prime Minister Recep Tayyip Erdogan was hailed as a major diplomatic breakthrough, a triumph for U.S. President Barack Obama, who in the last moments of his trip to Israel last March nudged the two leaders to end their festering disagreement. Reconciliation, however, is yet to come. Four months after the call, Israel and Turkey have still not managed to bridge the gaps that have separated them since relations fell apart in May 2010, when an Israeli raid on a Turkish ship […]