Reuters blog archive
from Ian Bremmer:
It was a close call at times, but we made it through 2012. Now we’re set to encounter a new set of risks ‑ but not in the world’s advanced industrialized democracies, which are much more resilient than feared. This year, with the global recession on the wane, attention shifts back to emerging markets, the economies that are usually the ones that pose the most political risk. You can read the whole report from my political risk firm, Eurasia Group, here, but an executive summary of this year’s top 10 risks, in video and text, is below:
10.) South Africa: Africa overall looks like it will continue its recent growth. But South Africa, one of the continent’s most complex and important economies, is floundering. Its dominant political party, the African National Congress, is resorting to populism to maintain its base among the urban and rural poor. That means more state intervention, more labor unrest and more assertive unions. We’re not predicting a fundamental political crisis, but the country is moving along a path that offers little reason for optimism.
9.) India: We’ve all read the predictions that India is poised to become the world’s next infinite-growth country. Not so fast. Despite initial optimism, the 2009 election hasn’t freed Prime Minister Manmohan Singh to reform the country as anticipated, with the tough choices continually being kicked to the next parliamentary session. (Americans should find this familiar.) Corruption continues to reign, and as we’ve seen in the rape protests of the past few weeks, there are fundamental cultural issues that India has yet to resolve. As general elections draw closer, the government’s ability to execute robust economic policies will decline even further.
8.) Iran: When is the United States or Israel going to bomb Iran? That’s the question that followed us through all of 2012. But a war-wary President Barack Obama and a more-diplomatic-than-you-think Prime Minister Benjamin Netanyahu mean that the risk of military strikes this year is less than most observers believe. Nevertheless, there is still a significant risk: We’re likely to see a sharp escalation in the shadow war between Iran and Israel and the United States, a cycle of mutual killings, cyber-attacks and proxy battles that has been ongoing for several years. As new sanctions are put in place against Iran, as we predict they will, efforts to sabotage the Iranian nuclear program will escalate. That’ll force Iran to escalate its side of the shadow war.
from Ian Bremmer:
2012 - the year of the primary, the election, the Diamond Jubilee, the superstorm, the flying dictator, the escaped dissident, the embassy attack, the empty chair, the tech protest, the Olympics, and dozens of other stories already forgotten. It was a busy year and a terribly volatile one, too. Which of these stories will actually matter five years from now? By my count, three:
1) China rising
2) The Middle East in turmoil
3) Europe muddling along
They’re the good, the bad, and the ugly of 2012.
The Good: For the sake of our listless global economy, thank goodness for China’s rise. The country’s Commerce Minister is promising that China will hit its GDP growth target of 7.5 percent for the year. (In the first three quarters of 2012, it grew 7.7 percent.) China’s ability to power through the financial crisis provided global markets with much-needed energy, and its momentum, despite the crisis in the Eurozone, a key trade partner, has helped limit the damage. If it wasn’t for the resilience of the world’s second-largest economy, we’d all be a lot worse off.
from David Rohde:
Instead of leading the post-Arab Spring Middle East, Turkish Prime Minister Recep Tayyip Erdogan is setting a sad new standard for gratuitous intolerance. Three weeks ago, Turkey’s dominant political figure took time out of his busy schedule to threaten the makers of Turkey’s most popular soap opera.
The program ‑ “Magnificent Century” ‑ is a titillating weekly series that exaggerates the romance, intrigue and sex life of Suleiman the Magnificent, a revered 16th century Ottoman leader. Hugely popular in Turkey and the Middle East, the show is broadcast in 43 countries and watched by 200 million people.
from Full Focus:
WARNING: SOME IMAGES CONTAIN GRAPHIC CONTENT OR NUDITY
The conflict in Syria escalated as the pressure to oust President Bashar al-Assad intensified. Hurricane Sandy struck the U.S. Northeast leaving heavy destruction a week before the country re-elected Barack Obama as President. In this showcase, the photographers offer a behind the scenes account of the images that helped define the year.
from John Lloyd:
The Tunisian Foreign Minister, Rafik Abdesslem, visited Gaza last week to give a speech. Abdesslem, who spent many years in exile studying international relations at the University of Westminster in London, is an intellectual with little adult experience of the rougher side of the Middle East.
His speech condemned Israel, of course, while not mentioning that the Gazans had launched many rockets over the past few days - a few of them, for the first time, hitting the major centers of Jerusalem and Tel Aviv. As foreign policy intellectuals do, he sought to put events into a geopolitical framework. He pointed to what he believes is the underlying truth of the time: "Israel should understand,” he said, “that many things have changed and that lots of water has run in the Arab river.”
from John Lloyd:
Radicals of left and right like to say that the American election is an affair of sound and fury, signifying nothing. One guy in a suit replaces another guy in a suit, the two mostly agree on the basics: the economy, capitalist; foreign policy, hegemonic.
To be sure, American elections remain battlegrounds: a resurgent right has, in the past two decades, drawn sharper lines on a culture war that puts sexuality and its effects at the center of a national debate. Homosexuality, abortion and reproductive rights are divisive issues. But radicals believe that overall, little changes: An elite governs, and largely governs the same way regardless of party.
from Ian Bremmer:
There will always be a wide gap between what candidates promise and what they deliver once elected, particularly when it comes to foreign policy. After all, this is an area where U.S. presidents have less control than either candidate will ever admit near a microphone. But this year, there are contradictions that cut straight to the heart of debates over American power and how it should be used. With that in mind, here are the questions I would like to see each candidate answer.
THE CHINA CONUNDRUM
President Obama, given how much money the United States borrows from China each day, how can your administration expect to persuade the Chinese government to do anything it wouldn’t otherwise do?
Governor Romney, you have pledged that, if elected, you will formally label China a “currency manipulator” on day one of your presidency. This decision would surely provoke a sharp response from China. Are you risking a trade war, and how could the United States win a trade war with China?
China-bashing has figured into many a U.S. presidential campaign. As China’s economy and geopolitical importance has grown — and as U.S. manufacturing jobs have moved from U.S. swing states to China and other foreign countries — both sides have tried to score points by promising to “get tough” with Beijing. Given the economic interdependence of the two countries and continued Chinese willingness to loan money to the United States, voters are right to wonder how seriously they should take all this anti-Chinese rhetoric.
from The Great Debate:
The term, “Arab Spring” is itself misleading. The changes over the past 20 months have produced a fundamental transformation of the region – but not in the way most outside observers anticipated: They reflect the replacement of the dominant Arab national identity by a more Islamic identity.
from The Human Impact:
Tunisian human rights activist Amira Yahyaoui recalls how, at the age of 17, she narrowly missed being shoved under a subway train. This is just one example of the threats and pressures her family faced for their opposition to the country’s then president Zine al-Abidine Ben Ali, who was ousted last year in a popular uprising.
During Ben Ali’s 23-year rule, Yahyaoui’s father, one of the North African country’s most distinguished judges, lost his job after sending an open letter to the president decrying corruption and the state of the justice system. Her cousin was arrested for publishing satirical articles about the former leader, and died from the torture he underwent.
from Anya Schiffrin:
We visited Tunisia last week, during a scorching heat wave. The women we met were wearing sleeveless summer dresses, but a couple of them said that when they go out, their neighbors now tell them off for wearing revealing clothes. With the religious Nahda party now in power, uncovered women worry that their daughters won’t be able to wear bikinis and wonder which countries their daughters can move to if things get worse.
Tunisia is where the Arab Spring began, but the stories we heard reflect the larger sense of uncertainty and debate about how to have a democracy in a place where the word means something different for everyone. Another sign of tension was the Tunisian court decision last week to uphold the seven-year sentence given to a Tunisian who posted a cartoon on Facebook depicting the Prophet Mohammad in the nude. This small country faces stresses and strains as it continues on its path away from the dictatorship of Ben Ali.