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  • Author: Roland Rajah
  • Publication Date: 08-2020
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: Indonesia has much economic potential but the trade-off between growth and stability continues to bind its growth ambitions. Indonesian economic policy continues to prioritise stability over growth but the adequacy of economic growth has become the bigger issue. President Joko Widodo’s commendable pro-growth efforts have so far only stabilised Indonesia’s trajectory rather than boost it. Doing better will require reforms to be calibrated to make the trade-off between growth and stability less binding while enhancing productivity.
  • Topic: Government, International Trade and Finance, Economy, Economic growth
  • Political Geography: Indonesia, Asia-Pacific
  • Author: Nicola Bilotta, Alissa Siara
  • Publication Date: 04-2020
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: One of the key priorities of the new European Commission is to enhance the EU’s geopolitical credentials and “learn to use the language of power”, as stated by the incoming EU High Representative Josep Borrell. The EU’s ambition is two-fold: to increase the Union’s ability to project power and influence at the global level, including through increased integration and coordination among member states, and secondly to enhance the EU’s strategic autonomy from the US in the political, military and economic domains. Both objectives, ambitious in the best of circumstances, are today under severe strain by the COVID-19 crisis. Implications will be long-lasting and multidimensional, and for Europe, its impact will have a direct bearing on its ambition for strategic autonomy, touching each of the three pillars outlined above.
  • Topic: Regional Cooperation, Geopolitics, Economy, Autonomy, Coronavirus
  • Political Geography: Europe, European Union
  • Author: Giuliano Garavini
  • Publication Date: 04-2020
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: Oil markets are facing a perfect storm. The scissors of supply and demand are moving against one another, generating increasing pain on the oil industry and the political and financial stability of oil-producing countries. Global oil demand is dropping due to the recession induced by the COVID-19 shut down of economic activity and transport in the most industrialized countries. Goldman Sachs predicts that global demand could drop from 100 million barrels per day (mdb) in 2019 to nearly 80 mdb in 2020.1 If confirmed, this would be single biggest demand shock since petroleum started its race to become the most important energy source in the world.
  • Topic: International Trade and Finance, Oil, Global Markets, Economy
  • Political Geography: Russia, Saudi Arabia, Global Focus
  • Author: Nicoletta Pirozzi
  • Publication Date: 04-2020
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: Every era has its symbols. In 1984, Mitterrand and Kohl held hands on the battlefield in Verdun, coming to symbolise the importance of peace in the pursuit of European integration. Today, in times of COVID-19, the so-called “Coronabonds” could have emerged as the symbol of a new Europe, one that is ready and able to do what it takes to collectively overcome the present crisis. Yet, what some member states consider an indispensable emblem of European solidarity, namely debt mutualisation to face an unprecedented symmetric crisis brought about by COVID-19, is regarded by others as an ultimate excuse for moral hazard. As a result, Europe could end up with a politically more digestible European Fund, as proposed by Commissioners Paolo Gentiloni and Thierry Breton, designed to issue long-term bonds.[1] Or, as outlined by the Eurogroup, a Recovery Fund that is “temporary, targeted and commensurate” to the extraordinary costs of the current crisis, helping to spread them across time.
  • Topic: Financial Crisis, Governance, Finance, Economy, Coronavirus
  • Political Geography: Europe, European Union
  • Author: Dan Gottlieb, Mordechai Kedar
  • Publication Date: 05-2020
  • Content Type: Commentary and Analysis
  • Institution: The Begin-Sadat Centre for Strategic Studies (BESA)
  • Abstract: The coronavirus crisis has exposed Arab and Islamic notions of fraternity, mutual commitment, and solidarity as hollow rhetorical slogans. Each country in the region is focused entirely on its own efforts to survive economically, socially, and politically as the pandemic continues to wreak havoc.
  • Topic: Government, Health, Economy, COVID-19
  • Political Geography: Middle East
  • Author: Roie Yellinek
  • Publication Date: 02-2020
  • Content Type: Commentary and Analysis
  • Institution: The Begin-Sadat Centre for Strategic Studies (BESA)
  • Abstract: China and Iran have a close relationship, but Beijing’s influence over Tehran is questionable. Its response to the killing of Iranian Quds Force commander Qassem Soleimani offers clues to its view of its own role in the Middle East.
  • Topic: Bilateral Relations, Economy, Political stability, Qassem Soleimani
  • Political Geography: China, Iran, Middle East, Asia, United States of America
  • Author: David Orsmond
  • Publication Date: 12-2019
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: China’s economic growth has fallen to its slowest rate since 1990, and this deceleration looks set to continue unless China implements the kinds of deep reforms behind the successful economic transitions of Japan and Korea. China’s economic growth has fallen to its slowest rate since 1990, and this deceleration looks set to continue. Key factors include weakening demographics, inefficient investment, maturing export markets and declining productivity growth rather than the current trade dispute with the United States. To reverse that trend, China will need a wide-ranging policy approach that mimics the policies implemented by Japan and Korea at a similar economic stage. While there are considerable political and economic obstacles to such reforms, if it manages to continue its rapid catch-up to advanced economy incomes the potential returns for both China and the world are significant.
  • Topic: Reform, Economy, Economic growth, Trade Wars, Trade
  • Political Geography: China, Asia, Australia, United States of America
  • Author: Bobo Lo
  • Publication Date: 08-2019
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: The rise of Asia is the central challenge of Vladimir Putin’s foreign policy, calling into question long-standing assumptions about Russia’s place in the world. Moscow is now more committed to engagement with the Asia-Pacific than it has ever been. This reflects belated recognition of the region’s critical importance in global affairs. Russia’s ambition to become a major player in the Asia-Pacific faces considerable hurdles. Overcoming them will depend on larger changes in its foreign policy mindset — an uncertain prospect at best.
  • Topic: Foreign Policy, Geopolitics, Economy, Vladimir Putin
  • Political Geography: Russia, Asia-Pacific
  • Author: Manu Bhaskaran
  • Publication Date: 06-2018
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: Without bold adjustments, Singapore’s extraordinary economic performance may prove difficult to sustain. The Singapore economy retains many strengths but is facing growing challenges, including to its key regional hub status. Singapore’s ability to adjust effectively to these challenges may have weakened compared to the past. The major reason for this diminished capacity is that the policy responses required to support a successful adjustment may not be evolving quickly enough. Moreover, the capacity for companies to make more spontaneous bottom-up adjustments seems to be lacking.
  • Topic: Government, Economy, Business , Economic growth, Economic Policy, Capacity
  • Political Geography: Singapore, Southeast Asia, Asia-Pacific
  • Author: Greg Colton
  • Publication Date: 04-2018
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: Greater Australian engagement in the Pacific Islands region is needed if Canberra wants to ensure regional stability and underpin Australia’s national security. Inconsistent engagement by Australia, the United States, France and New Zealand in the Pacific Islands region has created space that non-traditional powers have exploited to engage with sovereign Pacific Island states. There is an increasing risk of geostrategic competition in the region, particularly with the growing influence of China and the economic leverage it holds over some indebted Pacific Island nations. The Australian Government should pursue a deliberate strategy of forging stronger links with its traditional partners in the region, and more equitable partnerships with its Pacific Island neighbours, if it is to underpin regional stability and strengthen Australia’s national security.
  • Topic: International Relations, National Security, Regional Cooperation, Geopolitics, Economy
  • Political Geography: China, France, Australia, Asia-Pacific, United States of America
  • Author: Misha Nagelmackers-Voinov
  • Publication Date: 07-2018
  • Content Type: Commentary and Analysis
  • Institution: The Geneva Centre for Security Policy
  • Abstract: Long considered a natural partner for peace through economic diplomacy and bilateral trade agreements, business has increasingly become ignored or demonised. The private sector comprises a wide diversity of organisations and is the part of the economy that is not run by a state, but by individuals and companies for profit. Small businesses/micro-companies serve as a good starting point for a conflict resolution process because they often constitute the only form of economic activity in a conflict zone. MNCs have a range of options to respond to conflict, but cannot openly take part in conflict resolution and peacebuilding initiatives, and rarely become involved officially. Track Two diplomacy is their more likely area of involvement. The United Nations has frequently supported the view that the private sector can be a powerful agent of change. However, the UN still engages only two players in conflict resolution and peacebuilding: civil society/NGOs and armed actors. UN peace operations have never been expressly mandated to consult with business or use its influence to build peace. Combining the resources, expertise and leverage of all possible actors would produce a more formidable force for peace. World affairs would benefit from integrating the private sector into a new UN system of governance; new routes are possible for a truly inclusive approach, recognising the business sector’s positive contribution to sustainable peace through informal mediation and collaborative engagement.
  • Topic: International Relations, Diplomacy, Economy, Business , Peace, Sustainability
  • Political Geography: United Nations, Global Focus
  • Author: Bal Kama
  • Publication Date: 12-2017
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: Papua New Guinea entered its 2017 National Election after a tumultuous period in the country's politics and economy, and there remains much uncertainty about the election process, with significant implications for the country's future. In the last ten years key political, bureaucratic, and regulatory institutions have struggled and in some cases, failed. These struggles have been more profound under the O'Neill government despite some tangible advances in the country's ambitious Vision 2050 roadmap. There is a widespread desire across the country for robust and independent institutions to ensure economic gains are transparently and sustainably managed. The ultimate question for many voters in the 2017 general elections was not who would form the next government, but who would be the most credible leader. [3] With elections now over, and the O'Neill government returning for a second term, what does Papua New Guinea expect of the new government and those in power? This analysis attempts to address how key trends in PNG's politics will impact upon both the bureaucracy and regulatory environment. It will identify some of the key actors and how they are likely to change. It will discuss current political trends, their impact on the regulatory and legislative environments and how likely they are to continue in the future. Finally, it assesses the prospects of continuing dysfunction in PNG politics, the further marginalisation and deterioration of the bureaucracy, and how this destructive course might be avoided.
  • Topic: Government, Politics, Elections, Regulation, Economy, Institutions, Bureaucracy
  • Political Geography: AustralAsia, Papua New Guinea