Tag Archives: budget

Five Stories You Might Have Missed

President Barack Obama is in Moscow today, meeting with Russian President Dmitry Medvedev to lay the foundation for a new nuclear arms control agreement to replace the Strategic Arms Reduction Treaty, which expires in December. In an interesting twist to the meeting, Obama appears to be attempting to improve relations with Medvedev, leaving some to speculate that he is signaling the interest of the United States to work with Medvedev rather than Prime Minister Vladimir Putin, who most observers believe holds the real political power in Russia.

In news from outside the Moscow meetings:

1. Rioting by ethnic Uighurs in Xinjiang, China, has left 140 people dead. Protests broke out in the isolated region in western China over the weekend after police broke up an anti-discrimination protest in the capital, Urumqi. Tensions between Han Chinese and Uighurs had been increasing over the past year, as an oil boom in the Muslim-dominated region led to a massive increase in Han immigration. Security was increased in the region in the run up to the Olympic Games in Beijing last summer, but tensions continued to mount, culminating in this weekend’s violence.

2. Two protestors were killed and several were wounded in Honduras over the weekend. The protestors were awaiting the return of deposed President Manuel Zelaya, who was expelled by the country’s military last week. On Sunday, he attempted to return to Honduras from Costa Rica by plane, but his plane was unable to land. As a result of the coup, Honduras has been suspended from the Organization of American States, and the country faces the risk of future formal and informal sanctions, including risking sharp declines in foreign direct investment and reduced access to international credit flows.

3. The Movement for the Emancipation of the Niger Delta (MEND) has stepped up attacks on Nigeria’s oil infrastructure, following an offer of amnesty from the government. Nigeria’s President, Umaru Yar,Adua, had offered a 60-day amnesty to militants in the region, hoping the offer would bring to a close attacks in the oil-rich Niger delta. But militants appear to have rejected the offer, instead launching a new round of attacks. At issue is the distribution of benefits from the oil industry. The Niger River delta region is one of Nigeria’s poorest regions, despite being home to the vast majority of the country’s oil wealth. Groups living in the delta region are seeking a larger share of the oil revenues and greater autonomy from the Lagos-based government. The conflict has a long history, predating Nigerian independence in 1960. But the most recent phase of the conflict dates to 2006, when MEND launched its attacks.

4. The G8 is preparing to launch a new food security initiative this week, pledging more than U.S. $12 billion over the next three years to support the program. The plan marks a dramatic shift in U.S. policy, which historically has emphasized the provision of emergency food aid sourced from American farmers rather than efforts to expand production of foodstuffs in the developing world. However, the recent global food crisis underscored the vulnerability of global food stocks. With an estimated 1 billion hungry people worldwide and the continuing global financial crisis, observers fear that the global food crisis may yet re-emerge.

5. Indian Finance Minister Pranab Mukherjee delivered the country’s new budget on Monday. The budget, which includes sharp increases in infrastructure spending and new protections for Indian farmers, immediately proved unpopular with investors. India has suffered from a slowdown in economic growth resulting from the global economic crisis, and the new budget would expand the country’s fiscal deficit to as much as six percent of gross domestic product. Nevertheless, the new government appears to be committed to is program of “inclusive growth,” moving forward with privatization and liberalization but maintaining protections for the country’s most vulnerable populations.

Advertisements

Five Stories You Might Have Missed

The turmoil over last week’s Iranian elections continued into this week, with thousands of people defying a statement  by the country’s spiritual leader, Ayatollah Ali Khamenei, and orders by President Mahmoud Ahmadi-Nejad and the country’s Revolutionary Guard banning such protests. Over the weekend, hundreds of supporters of Mir-Hossein Moussavi were arrested during protests. Moussavi’s supporters believe the election was rigged, but international observers and foreign governments have so far refused to comment.

In other news from the previous week:

1. The World Bank issued a statement urging the developed world to focus on the global economy in their recovery efforts. The collapse of global credit markets over the last year, the Bank noted, had led to a dramatic decline in private capital flows, with investment in developing countries declining from $1,200 billion in 2007 to an estimated $363 billion this year. Meanwhile, announcement of the new stimulus package by the Chinese government led the World Bank to increase its forecasts for the Chinese economy this year. But the decision of the Chinese government to include a ‘Buy China’ policy in its stimulus package has led to increasing tensions over the specter of protectionism in the global recovery effort.

2. French President Nicolas Sarkozy gave a rare address to the country’s parliament at the Palace of Versailles this week. For more than 130 years, the French President had been constitutionally prohibited from entering parliament—an attempt to ensure legislative independence. But after the constitution was amended last year—in the name of increasingly parliamentary oversight—the restriction was removed. French Green and Communist parties boycotted the speech in protest of what they see as an attempt to increase the power of the French presidency. Sarkozy used the opportunity to outline measures intended to address the problem of rapidly detiorating public finances, sparked by the global economic crisis. In the speech, Sarkozy rejected the introduction of austerity measures, instead focusing on the need to protect jobs.

3. The situation in Iraq deteriorated over the past week, as the number of bombings as increased. On Saturday, a large truck bomb exploded outside a Shi’ite mosque in the Kurdish town of Kirkuk. The attack, the deadliest single attack in more than a year, killed 73 people. Meanwhile, a series of smaller attacks in Baghdad killed 15 people on Monday. The declining security situation comes as the United States prepares to begin its withdrawal from Iraqi towns, handing responsibility for day-to-day security over to Iraqi police by the end of June.

4. The speaker of the parliament in Somalia has issued a call for neighboring countries to send in troops to help prop up the country’s fragile government. The security situation in Somalia remains grim. On Thursday, the government’s security minister, Omar Hashi Aden, and more than 20 others were killed in a suicide attack by Islamic militants known as al-Shabaab. Al-Shabaab seeks to overthrow the country’s western-backed government and impose its vision of strict sharia law in Somalia. So far, international assistance has been limited, and al-Shabaab has confined the influence of the government to the country’s capital, Mogadishu. Meanwhile, according to United Nations estimates, some 122,000 civilians have been forced to flee as a result of fighting which began in early May.

5. Tensions between the government of Hugo Chávez and the anti-government television station Globovisión have increased in Venezuela in recent days. Chávez accuses the station of “media terrorism” as a result of its critical coverage of his government, particularly following a minor earthquake which hit the capital, Caracdas, in early May. According to observers, the station makes an easy target for Chávez, who has stepped up his efforts to transform Venezuelan society and economy in recent months.

Five Stories You Might Have Missed

The biggest story of the week has to be the breakdown of the ceasefire between Israel and Hamas in the Gaza Strip.  Since last week, when we discussed the termination of the Egyptian-brokered ceasefire, the two sides have increased cross-border attacks.  Civilians on both sides of the border are preparing for an increase in violence, as Hamas threatens a dramatic increase in rocket attacks against Israeli communities bordering the Gaza Strip in response to the dramatic increase in Israeli air strikes over the weekend.  So far, Prime Minister Ehud Olmert has refused to launch an all-out ground attack, but many are speculating that Israel is preparing to follow the massive air strikes with some kind of ground assault.  The United States has given tacit approval to the Israeli strikes, calling on Hamas to cease its activities.  The Europeans are calling for a stop in the violence, and Libya has called an emergency session of the UN Security Council to address the crisis.  However, any solution to the crisis must also involve Egypt, which has so far failed to develop an initiative both sides can accept. 

In other news from the last week:

1.  On Friday, Pakistan began shifting large portions of its military forces from its northern border with Afghanistan to its eastern border with India.  Pakistani military officials are downplaying the move, which so far has involved an estimated 20,000 soldiers.  But the Pakistani government has raised concerns that India may launch a strike in response to the Mumbai terrorist attacks.  The United States and the European Union are urging restraint on both sides, noting that Pakistan’s move undermines the ability of coalition forces to wage the war against al Qaeda in Afghanistan.  India and Pakistan have long been at odds over the disputed territory of Kashmir.  Both are also nuclear powers.

2.  Somalia’s President, Abdullahi Yusuf, may be close to resigning.   Earlier this month, a political crisis emerged when Yusuf attempted to force the resignation of the country’s Prime Minister, Nur Hassan Hussein.  Hussein had been appointed as part of a power-sharing agreement supported by the West and by neighboring governments.  Since the attempt, Kenya has announced its intentions to move forward with sanctions against Somalia.  The resignation of Abdullahi Yusuf may increase instability in the embattled country, already home to a number of pirates and warlords.  Alternatively, it may result in greater stability if the Islamic insurgency with close ties to al Qaeda is able to establish control over the country. 

3.  The Russian government is bracing for an increase in unrest as the ruble fell to a four-year low against the euro and the dollar on Friday.  In early December, the Russian government put down protests in Vladivostok as it increased duties on imported cars in an attempt to protect domestic auto manufactures.  The opposition has criticized the government, and the liberal People’s Democratic Union leader Mikhail Kasyanov, has argued that the implicit social contract, under which the Russian people exchanged political freedoms for economic prosperity and consumer goods, had broken down.  The global economic crisis has hit Russia particularly hard, with industrial output falling and unemployment increasing at the same time the price of the country’s most important product, oil, has collapsed. 

4.  The December 23 death of Lansana Conté, left a power vacuum in Guinea  which was filled on Friday by a military junta.  Conté had ruled the West African nation for 24 years, after seizing power in a coup in 1984.  The military group which seized power on Friday is led by Moussa Camara, a captain who served in a logistics unit.  The junta has appealed to the international community for recognition and assistance.  But so far, the international community has been slow to recognize the new government, as the United States, the European Union, the African Union, and France have all condemned the coup.  Guinea is the world’s largest exporter of bauxite, a precoursor in the production of aluminum, and the coup has raised concerns about the stability of world alumunum markets.  It also has a key role to play in ensuring the stability of its neighbors, Sierra Leone and Liberia, which experienced a long civil war in the 1990s fueled by trade in illicit diamonds.

5.  The budget of the United Nations was passed on Tuesday.  The new budget increases spending by $700 million (from $4.17 billion to $4.87 billion), excluding the cost of peacekeeping operations.  Passing the budget of the United Nations has become an increasingly politicized affair, as developing countries push for an expansion of the international institution’s role while the developed countries attempt to limit it.  This year, compromise was reached when the developed countries agreed to fund an additional 92 positions in exchange for increasing UN missions in Afghanistan and Iraq.