Tag Archives: power sharing

Five Stories You Might Have Missed

Recent data about the U.S. economy indicates that the current crisis is worse than economists had believed. On Wednesday, the government announced that initial jobless claims spiked unexpectedly, reaching the highest levels since 1982. About 667,000 people made initial claims fro the week ending February 21, sending the total number of unemployed people in the United States over the 5 million mark for the first time in the country’s history. The official unemployment rate stood at 7.6 percent, the highest level since 1992. Consumer sentiment also fell to record lows in February, as housing prices fell precipitously. Housing prices declined 18.5 percent over 2008, and have declined 26.7 percent from the peaks of July, 2006.  Although the Federal Reserve is forecasting an economic contraction of 0.5-1.3 percent this year with an unemployment rate of between 8.5 and 8.8 percent, many economists are offering more dire predictions, calling this the worst downturn in U.S. post-World War II historyThe U.S. economy shrank by an annualized 6.2 percent in the fourth quarter of 2008 (its worst performance since the recession of 1982).

And now for five important stories outside the ongoing economic crisis:

1. On Friday, President Barack Obama announced a plan that would see the majority of U.S. forces withdrawn from Iraq by August 2010.  Obama’s plan was greatly coolly by anti-war Democrats, who were disappointed that the plan did not accelerate the drawdown in forces. Congressional Republicans appeared more supportive of the president’s plan.

2. The Bangladeshi army has reaffirmed its support for the government of Prime Minister Sheikh Hasina after an attempted mutiny by paramilitary forces was put down earlier this week. On Wednesday, a paramilitary force of border guards—the Bangladeshi Rifles—mutinied over a pay dispute, but violence quickly spread throughout the Bangladeshi capital, Dhaka. The government was able to reassert control over the region as members of the Bangladeshi Rifles surrendered. At least fifty people are believed dead in the fighting, and the whereabouts of 168 officers who were in the building where the mutiny began are still unaccounted for. The discovery of a mass grave in the building has led to speculation that the number of dead will rise. 

3. Tobias Billström, who is slated to become president of the European Union when Sweden takes over the position from the Czech Republic in July, has indicated that immigration reform will be on the agenda. Immigration and asylum have long been controversial issues in European politics, as countries have vastly different policies. But E.U. member states have been hesitant to transfer responsibility for coordinating policy to Brussels. Billström has suggested that the European Court of Justice in Luxembourg would have final discretion over asylum cases.

4. The new power-sharing government in Zimbabwe appears to be making good progress in addressing the economic meltdown in the country. According to the African Development Bank, Zimbabwe has made an impressive start on addressing the problems it faces. The ADB has called on Zimbabwe to make progress on repaying its external debt as a precondition for securing more outside assistance. The new Prime Minister, Morgan Tsvangarai, has said that Zimbabwe urgently needs $5 billion in foreign assistance to repair the economy. Meanwhile, the power sharing agreement itself appears to be at risk, as President Robert Mugabe’s party has been accused of creating its own parallel government, effectively attempting to bypass the power-sharing agreement. Further, members of the opposition party remained jailed, and the push for land reform has intensified.

5. In an attempt to address growing concerns of farmers over poor forecasts, the government of Argentina has agreed to increase protectionist measures, including waiving some export tariffs and granting subsidies to small producers. Longstanding drought conditions in the country have led to declining yields, and farmers are forecasting the worst harvest in forty years. The crisis has exposed deep political divides in Argentina, resulting in a weakening in the ruling alliance and the resignation of four senators and two deputies over policy differences.

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Five Stories You Mihgt Have Missed

The big stories in the United States this week were the landfall of hurricane Ike and the impact of the failure of Lehman Brothers investment bank.  Here are other important stories that you might have missed during the past week:

1. On Wednesday, the Organization of Petroleum Exporting Countries, or OPEC, announced it would cut production by 520,000 barrels per day in an attempt to keep oil prices above $100 per barrel.  The move was quickly criticized by the International Energy Agency and the White House.  The cut, OPEC’s first since December 2006, comes as oil prices have fallen to just over $100 per barrel, a decrease of more than 30% from peak prices several months ago.

2. On Saturday night, a series of bomb blasts tore through New Delhi.  The five explosions killed 25 and wounded more than 90.  An additional four explosive devices were found before they detonated.  Although no group has yet claimed responsibility, police believe that the bombings may be linked to one of India’s banned Muslim groups, such as the Students Islamic Movement or the Indian Mujahideen.

3. The longstanding political impasse in Zimbabwe appeared to be diffused last week when the ruling Zimbabwe African National Union-Popular Front (ZANU-PF) and the opposition Movement for Democratic Change (MDC) reached a power-sharing deal.  The details of the deal have not yet been released, but both sides view the new government of national unity as a victory.  Despite the agreement, concerns over the country’s political stability and economic collapse remain.  Inflation in Zimbabwe is currently estimated to be more than 10 million percent.

4. On Thursday, the Financial Times reported that the Chinese government had used its foreign exchange reserve funds to pressure Costa Rica to sever ties with Taiwan and establish relations with Beijing. If confirmed, the move would mark the most dramatic use of China’s $1.8 trillion forex reserves as a tool of Chinese foreign policy.

5. In an interview with Charlie Gibson last week, Vice Presidential candidate Sarah Palin declared on Thursday that the United States would be obligated to go to war with Russia if Georgia were a member of Nato.  McCain has advocated a more aggressive stance towards Russia over the past several months, but Palin’s announcement was the first time the idea of direct confrontation between the two Cold War rivals has been specifically mentioned.

Five Stories You Might Have Missed

The big news this week was John McCain’s surprise choice for running mate choice: Sarah Palin, governor of Alaska.  There were many developments outside the United States and its presidential race, however.  Here are a five important stories you might have missed:

1. Canadian Prime Minister Stephen Harper has called for new elections, which will take place on October 14.  Harper’s Conservative Party has ruled Canada as a minority government since February 2006.  The election is expected to be closely contested, as the Liberal Party, under the leadership of Stéphane Dion, mount their challenge.  With Canada’s economy tittering on the brink of recession, the economy figures to be the central issue of the campaign.  The outcome of the election may also signal a fundamental shift in Canadian politics, as the Bloc Quebecois appears to be losing its regional support in Quebec, creating the possibility of a Conservative majority in the national legislature.

2. There were two important developments in the Israeli-Palestinian dispute last week.  On Wednesday, the Palestinian Strategy Study Group released a report which indicated that Palestinians may be willing to endorse a bi-national state with Israel should the U.S.-backed two-state solution fail.  The proposal would mark a dramatic change in the structure and intended goal of Israeli-Palestinian negotiations.  In an unrelated development, Israeli President Shimon Peres on Friday called for direct talks between Israel and Syria to address outstanding issues.  The two countries been engaged in mediated indirect talks for a number of years, but relations between the two have generally been poor since 1947.  Normalization of relations between Syria and Israel would have to be a central component of any comprehensive settlement of the Palestinian question.

3. In a not-so-subtle confirmation of the flood of divestment from the country following the conflict over South Ossetia, the Russian central bank was forced on Thursday to intervene to support the rouble.  According to some estimates, as much as $21 billion in foreign currency has been withdrawn from Russia over the past several weeks, leading to a dramatic decline in the value of the rouble.  This represents the worst currency collapse for Russia since the 1998 crisis.  But despite the crisis, the Russian government still have the third largest currency reserve in the world—estimated at some $582 billion—thanks in large part to the dramatic increase in oil and natural gas prices over the past few years.

4. In Paksitan, Asif Ali Zardari of the Pakistan People’s Party won Saturday’s presidential elections as expected.  Zardari, who is the widow of assassinated former prime minister Benazir Bhutto, now faces a number of challenges: reinforcing the fledgling democracy amidst growing political and economic instability, normalizing relations with the west in the face of strong opposition in key regions of the country, and establishing a stronger degree of national unity while addressing growing violence within Pakistan. 

5. Talks between Zimbabwe’s main opposition party, the Movement for Democratic Change (MDC), and the ruling ZANU-PF suffered their most serious setback to date last week.  The MDC announced it had lost faith in negotiations intended to bring about a power sharing agreement, accusing South African President Thabo Mbeki, who is mediating the negotiations, of trying to force through a deal which would see ZANU-PF’s Robert Mugabe retain political power.  The MDC also refuses to sign an agreement under which Mugabe would retain control of the country’s security forces, which they contend have been used for the political gain of the ruling party.