Economic data out this week suggests that the end of the global recession may be nearing. The most recent jobless numbers out of the United States gave economists reason to celebrate, as the unemployment rate declined by 1/10 of a point, leading to a price rally on Wall Street. Germany, which has seen a sharp decline in gross domestic product (glossary) during the global recession, benefitted from an unexpected expansion of exports—7 percent in June. While other countries continue to struggle, including Russia and Iceland, many economists now believe we are seeing the proverbial light at the end of the tunnel.
In other news from the previous week:
1. The trial of dozens of people, including a French national and two Iranians employed in the British and French embassies began in Iran on Saturday. The defendants are charged with espionage and “acting against national security” by taking part in and reporting on post-election protests to Western embassies. Under Iranian law, a conviction on either charge could be punished by death. Several of the defendants have confessed, but Western governments have dismissed the charges as “baseless” and contend the confessions were made under duress. The government of Iran accuses the United States and Britain of interfering in its internal affairs by “proving financial help to Iran’s opposition.” Meanwhile, the trial of 100 opposition leaders continued last week. The opposition leaders have condemned the trials as a spectacle, but the defendants face charges punishable by death. Opposition leaders continue to assert that the election of President Mahmoud Ahmadi-Nejad in June’s disputed presidential election was the result of electoral fraud. Nevertheless, Ahmadi-Nejad was sworn in on Monday.
2. A power struggle inside Taliban in Pakistan emerged over the weekend after the organization’s top leader, Baitullah Mehsud, was killed in a U.S. drone strike on Friday. Mehsud was a powerful figure in the Waziristan district of Pakistan, and Pakistani officials believe he was responsible for nearly all of the major terrorist attacks in Pakistan over the past two years, including the assassination of former prime minister Benazir Bhutto and the bombing of Marriot Hotel in Islamabad in 2008. Many analysts believe that Mehsud’s death will undermine the ability of the Taliban to operate in Pakistan. Already, political infighting in the Taliban in Pakistan’s leadership has led to the murder of one top leader by another, as Waliur Rehman, a leading contender to lead the organization, killed Hakimullah Mehsud, a rival for the same position. Pakistani intelligence now believes the organization is likely to splinter into several factions, each operating independently, but collectively much weaker than the original organization.
3. Former President Bill Clinton met with North Korean President Kim Jong-il this week, securing the release of two American journalists who had been sentenced to twelve years of hard labor for illegally entering the country. The meeting, which the White House maintains was not part of its official diplomatic efforts to address the challenges posed by the North Korean regime, was the highest level contact between the two countries in more than ten years. The Obama administration also reminded North Korea that, despite Clinton’s trip, that the United States will continue its efforts to increase diplomatic and financial pressure on the North Korean state unless it abandons efforts to secure nuclear weapons.
4. Secretary of State Hillary Clinton began her Africa tour this week, meeting with Kenyan officials on Wednesday. Clinton is hoping to apply pressure on the coalition government to move forward with political reforms intended to bring grater stability to the country and to prevent another flare up of the violence which rocked the country after February’s disputed presidential election.
On Thursday, Clinton met with Sheikh Sharif Ahmed, the embattled president of Somalia. Clinton used the opportunity to reiterate U.S. support for the Ahmed government, pledging to provide more military and economic assistance as the government continues its battle against Islamist insurgents. Meanwhile, in neighboring Eritrea, President Isaias Afewerki, who is believed to be a supporter of rebel groups in Somalia, dismissed U.S. efforts, saying that it is unrealistic to try and “imposing [a government] that doesn’t exist in reality.” Somalia has long topped Foreign Policy’s list of failed states. The lack of an effective central state has also made the country a haven for pirates in the Gulf of Aden.
5. A series of cyber-attacks aimed at social networking sites last week were believed to be directed at one individual—a blogger posting under the name of Cyxymu Livejournal. The denial-of-service attacks targeted several popular sites, including Facebook, Twitter, Google, and the blogging site Livejournal. Cyxymu Livejournal is a critic of Russian policy in the Caucuses, particularly Georgia. According to some sources, the Russian government has used denial-of-service attacks in the past, targeting sites critical of the Russian government in Georgia, Estonia, and Eastern Europe. But if responsible for the most recent round of attacks, this could represent an expansion of the strategy. Leading credence to the theory is the fact that this week marked the one year anniversary of the Russian-Georgian War over the breakaway regions of Abkhazia and South Ossetia.