Tag Archives: Nicolas Sarkozy

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.

Advertisements

Five Stories You Might Have Missed

The global economic crisis continues to expand.  Despite the announcement of a tentative agreement on a $827 billion stimulus package in the U.S. Senate and announcement of a $200 billion lending facility by the U.S. Federal Reserve intended to encourage more lending by banks and credit card companies, the economic numbers continue to decline.  Despite being relatively insulated from global markets, Brazil announced a large slump in output and a decline in jobs last week.  Following an announcement that the national economy contracted by 4.6 percent in December—the largest contraction since reunification in 1990s—and more than 2 percent last year, the German Economic Minister, Michael Glos, offered to tender his resignation.  Many observers are also concerned that some of the stimulus packages proposed by national governments may rekindle protectionist measures.  (Indeed, the Financial Times now carries a special section, updated regularly, on “The New Protectionism.”)   

In news from outside the financial crisis last week:

1.  In the first major foreign policy speech of the Obama administration, Vice President Joe Biden proposed to “press the reset button” on relations with Russia, noting that despite policy differences in many areas, the U.S. and Russia could still work together on areas of mutual interest and concern.  The conciliatory tone did not include a review of the U.S. missile defense system, which has angered Russia.  In recent weeks, the Russian government has announced a series of initiatives, including plans to establish naval and air bases in Abkhazia, an air defense treaty with Belarus, and a collective security organization which includes many of the former Soviet republics.

2. A Pakistani court last week released Abdyl Qadeer Khan from house arrest.   Khan is the nuclear scientist responsible for the development of Pakistan’s nuclear capabilities.  He is also believed to have played a key role in the proliferation of nuclear equipment and know-how to North Korea, Iran, and Libya.  Khan’s role in the Pakistani nuclear program made him a national hero, and many Pakistanis believe the evidence against him was fabricated.  But under threat of sanctions, the Pakistani government placed Khan under house arrest five years ago.  His release was greeted by disappointment from the United States and France.  Despite the move, Pakistan is still hoping to woo more aid from—and potentially a closer relationship with—the United States.

3.  With elections for the Israeli Knesset scheduled for Tuesday, polling over the weekend suggested the race would be much closer than anticipated.  Early polling had suggested that the center-right Likud party would cruise to an easy victory, as most Israelis were identifying security as their primary concern and Likud was seen as strong on security.  But recent polling data suggests that neither Likud nor the center-left opposition Kadima party will win a majority, forcing either to enter into negotiations with minority parties to form a government.  Meanwhile, polls from Gaza show a sharp spike in support for Hamas following Israel’s three-week military offensive in the Palestinian territory,  suggesting that Hamas may actually have been strengthened by the campaign.

4.  The longstanding drought in Argentina continues.  The drought, the worst in nearly fifty years, threatens the collapse of Argentina’s agricultural exports.  As one of the world’s second largest exporter of agricultural commodities and livestock, the projected collapse of exports from Argentina threaten global food supplies.  World food prices had declined form their record highs set in 2007-08 in part on projections of increased production from Argentina.  Global market prices for rice, wheat, and soy have already increased 20 percent in the last two months, and with declines now projected for Argentina’s wheat, corn, and soy output, world prices are projected to continue to increase.  In an unrelated development, the Chinese government declared an emergency in response to drought conditions in central and northern China.  The Chinese drought undermined wheat production.

5.  Relations between British Prime Minister Gordon Brown and French President Nicolas Sarkozy stumbled late last week after Sarkozy declared that Brown’s proposal to temporarily cut the value-added tax in an attempt to stimulate the economy would have “absolutely no impact,” arguing that Britain “doesn’t have any industry left” and its banks were “close to ruin.”  Brown is already facing strong domestic opposition from the opposition Conservative Party, whose leader, David Cameron, sized on the French president’s comments.

Five Stories You Might Have Missed

Congress finally passed a bailout package on Friday.  The bill, which promises up to $700 billion to purchase failing mortgages from banks, was quickly signed into law by President Bush.  The vice presidential debate between Senator Joe Biden and Governor Sarah Palin also garnered much attention.  But will all the focus on the outcome of the bailout and the VP debate this week, you might have missed some other important developments in the world this week.  Here are my top five:

1. We discussed the political transition in South Africa last week.  One interesting (and critically important) result: a new health minister.  The incoming heath minister, Barbara Hogan, has vowed to make fighting HIV/AIDS the ministry’s top priority.  In a country where an estimated 5.6 million people are HIV positive, and more than 1,000 die from HIV/AIDS-related illness every day, the disease touches everyone.  Hogan was a well-know critic of the Mbeki government’s HIV/AIDS policy, campaigning for improved access to medicines and a greater emphasis on education.  Hogan was a white anti-apartheid activist who spent eight years in prison for fighting for democracy and majority rule. 

2. The Bush administration notified Congress of its intention to move forward with a $6.5 billion weapons deal with Taiwan.  The deal would include some of the U.S.’s most advanced weapons systems including Patriot missiles, Apache helicopters, submarine-launched Harpoon missiles, and spare parts for F-16 fighter jets.  Taiwan feels the weapons are necessary to increase the island’s ability to defend itself.  China views the sale as a provocation.

3. In another U.S. foreign policy development, the Senate appears likely to approve a civilian nuclear energy deal between the United States and India next week.  Secretary of State Condoleezza Rice is visiting with Indian government officials this weekend to hammer out the deal, which could receive approval from the Senate as early as Wednesday.  The deal represents a fundamental shift in U.S.-Indian relations.  Because India had developed nuclear weapons outside of the Nuclear Non-Proliferation Treaty, it was subject to intense trade-restrictions on nuclear-related technologies.  In light of the U.S. move, Europe is making a similar policy shift.

4. In Angola, the government announced a plan to attract $6 billion in new agricultural investment over the next five years.  Encouraged by high global food prices, the government of Angola hopes to diversify the country’s economy away from exclusive reliance on diamonds and oil, into new areas.   The country has already attracted two new investors, Lonrho and Chiquita, both of which hope to capitalize on the new initiative.  However, the United Nations has raised concerns over the risk of “food neo-colonialism” in the context of such efforts.

5. French President Nicolas Sarkozy’s Saturday summit intended to develop a plan to prevent a European-wide credit meltdown—similar to that which seems to be developing in the United States—ended without a specific plan on action.  The summit’s outcome was undermined by competition between the German and French governments over responsibility for and the nature of a rescue package.

Five Stories You Might Have Missed

The closing of the Beijing Olympics and Barack Obama’s announcement of his Vice-Presidential candidate have been the two most widely covered stories over the past few days.  Here are a few other important stories from the past week:

1.  Growing instability in Afghanistan: A Taliban attack outside of Kabul, Afghanistan, resulted in the deaths of ten French soldiers.  The attack appeared to be part of a coordinated effort by the Taliban against Nato forces in the country, coinciding with another attack against US forces in the southwestern part of the country.  The attacks highlight the shortage of material and soldiers  in the country.  Attending a memorial service for the soldiers, French President Nicolas Sarkozy asserted that he would continue French involvement in Afghanistan, asserting that it was “essential to the freedom of the world.”  Reflecting growing tensions in the country, the government of Afghanistan on Friday accused Nato of killing 76 civilians, mostly children, during operations against Taliban insurgents.

2. The Crisis in South Ossetia: After negotiating a ceasefire, Russia and the west once again appear unable to resolve their differences over Russian withdrawal.  Russia has rejected Nato’s call for a total withdrawal to pre-crisis positions.  Nato has moved to isolate Russia, and in return Russia has cancelled joint military operations with Nato countries.  The crisis gave new impetus to the United States and Poland to sign a missile defense shield.  Demonstrating the link between international security and global political economy, the crisis also helped to push oil prices higher and marked the beginning of a trend of western investors pulling their money from Russia at a rate not seen since the Russian Ruble crisis of 1998.

3. The Rise of Food Neo-Colonialism: In a report issued on Tuesday, Jacques Dious, director general of the United Nation’s Food and Agriculture Organization, warned that the drive for farmland could result in the development of a neo-colonial system for agriculture.  Driven by record high commodity prices, foreign direct investment in farms and agricultural production has grown dramatically over the last couple of years.

4. The Pakistani Presidential Race: After the departure of embattled Pakistani President Pervez Musharraf last week, the struggle to find a new president has begun.  Mohammad Mian Soomro, chair of Pakistan’s Senate, has been named acting President and is heading the search for a new leader.  Asif Ali Zardari, widower of former Prime Minister Benazir Bhutto, has emerged as the leading candidate from the Pakistan People’s Party, the largest party in the parliament.  

5. Unified European Parliament: After part of the ceiling of the European Parliament in Strasbourg collapsed last week, the Parliament was forced to cancel its monthly trek from Brussels to Strasbourg.  The Parliament traditionally moved to the French city of Strasbourg from Brussels for its monthly meetings, despite the fact that the majority of the Union’s administrative and bureaucratic support—not to mention its most important institutions—are based in Brussels, Belgium.  The move, widely denounced by both the EU’s proponents and opponents—costs an estimated €200 million (($350 million) per year.  It is hoped that the forced relocation of the Parliament may encourage a reconsideration of the monthly move, although French opposition may be hard to overcome.