Tag Archives: Six Party Talks

Five Stories You Might Have Missed

A new report issued by the International Monetary Fund on Saturday suggests that the globally economy will contract by 1.3 percent in 2009 with a slow recovery beginning in 2010. While the United States has been pushing countries to expand stimulus spending, the IMF said that existing stimulus spending already committed for 2009 should be sufficient to address the crisis. A Friday meeting of the finance ministers of the G7 countries was more cautious, concluding that, “the pace of decline in our economies has slowed and some signs of stabilization are emerging,” but simultaneously warned that “downside risks persist.”

In news outside the global economic crisis from the last week:

1. The outbreak of a new flue strain has raised concern in Mexico, as 68 people have died and more than 1,000 have been infected. The World Health Organization is monitoring the situation to determine if it is likely to reach pandemic status. While the Mexican government is urging people to remain calm, authorities have already canceled more than 500 public events and many residents in Mexico City have opted to stay home rather than travel for shopping and work. Tests have also confirmed the virus has made people in California, Texas, Kansas, and New York ill.

2. Elections in Iceland have produced the country’s first center-left government. The previous government of Iceland had been forced to resign as a result of the devastating impact of the global financial crisis on the country. Preliminary election results give Johanna Sigurdardottir’s Social Democrats 30 percent of the vote. With their coalition partner, the Left Greens’ 22 percent of the vote, the coalition appears well-positioned to drive the political agenda in Iceland. Sigurdardottir becomes the first openly gay person elected head of state in the modern world. The first item on her agenda: Icelandic membership in the European Union.

3. While the Obama administration is hoping to resume the six-party talks with North Korea, the government of North Korea appears to be taking a more hardline stance. Earlier this month it test fired a long-range missile, sparking a confrontation with the UN Security Council. Last week, the government of North Korea last week announced it would put two U.S. reporters on trial, charging them with illegal entry and “hostile acts.” Additionally, after expelling international atomic inspectors two weeks ago, North Korea has announced its intention to resume plutonium extraction. It is widely believed that North Korea already possesses enough plutonium for six to eight nuclear bombs. According to some observers, the deteriorating relations between North Korea and the West may be part of the country’s efforts to force the United States into direct, bilateral negotiations.

4. The sharp upsurge of violence in Iraq, including two suicide attacks that killed 75 people outside a Shia shrine in Baghdad on Friday, have raised concerns that Iraq is sliding back into civil war. Recent attacks raise the concern of sectarian violence, suppressed by a strong U.S. presence over the past year, but never entirely defeated.

5. Reversing a longstanding policy of the Bush administration, Secretary of State Hillary Clinton announced on Thursday that the United States would be willing to work with a Palestinian government backed by Hamas so long as the organization met international demands to renounce violence and recognize Israel’s right to exist.  The Bush administration had refused to work with Hamas, which has effectively controlled the Palestinian government since it defeated its rival, Fatah, in elections in 2007. Meanwhile, Israeli Prime Minister Benjamin Netanyahu is under pressure to engage meaningfully in international diplomacy and to be seen acting.

And because it was such a busy week internationally, here are two bonus stories from this week:

6. The rebel Tamil Tigers in Sri Lanka on Sunday declared a unilateral ceasefire, a move almost immediately rejected by the government. An operation launched by the government last month has effectively confined the Tamil Tigers to a small enclave in the northern part of the country, and the government is expected to announce the defeat of the Tigers any day. But the United Nations has described the situation as a humanitarian disaster, with more than 6,500 civilians already killed and as many as 100,000 refugees created as a result of the fighting.

7. It was announced on Friday that China has become the world’s fifth largest holder of gold reserves, with 1,054 tones of gold. Seen as part of a broader strategy to diversify its nearly $2 trillion in foreign exchange reserves, the government of China has slowly been building its gold reserves over the several years. However, even with the recent purchases, China has a level of gold reserves (as a percent of its total reserves) far below that of the United States and other developed countries.

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Five Stories You Might Have Missed

Here’s this week’s installment of Five Stories You Might Have Missed, with a special bonus entry on Tuesday’s Canadian elections!  Enjoy!

1. The Bush administration has removed North Korea from its terror list.  In exchange for its removal, North Korea has agreed to allow nuclear inspects into its facilities to verify compliance with the agreement produced in the six-party talks.

2. World economic markets continue to be turbulent, as demonstrated by the global market selloffs last week, including the largest single-largest day decline for the U.S. stock market since 1987.  In a move intended to address the crisis, most of the world’s major central banks last week announced simultaneous cuts in inertest rates.  But despite the ongoing financial crisis, the United States remained the most competitive country in the world, topping the World Economic Forum’s Global Competitiveness Index.  The remaining countries in the top 10: Switzerland, Denmark, Sweden, Singapore, Finland, Germany, the Netherlands, Japan, Canada, Hong King, and Britain.

3. Concerns over the continued development of Iran’s nuclear program sparked discussions between the U.S. and its allies last week about imposing sanctions on Iran without the support of the United Nations Security Council.   Action by the Security Council seems unlikely given the strength of objections raised by China and Russia.  The proposed sanctions would be imposed on a voluntary basis and would likely target Iran’s petrol imports and refining sector.

4. The tentative settlement of the crisis in Zimbabwe  reached several weeks ago now appears to be in limbo, as the Mugabe government has unilaterally moved to seize control of key positions within the government of national unity.  Mugabe announced his party, the Zimbabwe African National Union, would control several key ministries, including justice, media, home affairs (police), foreign affairs, defense, local government, and finance.  The opposition parties would be given control of relatively less important ministries, including constitutional affairs, energy, health, labor and social welfare.  No word yet on the response from South Africa, which had mediated the original settlement.

5. In local election results last week, Mexico’s Institutional Revolutionary Party (PRI) performed above most expectations, nearly capturing a majority of seats in two districts, while the ruling National Action Party (PAN) placed third.  The results suggest that Mexico may be in for a political transformation in its next round of mid-term, scheduled for summer 2009.

6. And in a bonus story for this week, Canada may be the first country to experience a political transition due to the current global economic crisis.  When a snap election was called six weeks ago, Stephen Harper’s ruling Progressive Conservative party had been projected to cruise to victory, perhaps even winning a majority in the parliament.  It now appears that Stéphane Dion’s Liberal Party may be positioned to play spoiler.

Five Stories You Might Have Missed

Over the past week we’ve seen a lot of news from the domestic U.S. political front: Obama’s speech at the Democratic National Convention, McCain’s pick of Sarah Palin for his Vice Presidential candidate.  What’s been going on in the rest of the world?  Here are five important stories from the past week.

1. The worldwide economic downturn continued last week.  On Friday, the Japanese government announced a new economic stimulus package.  Analysts are holding out little hope that it will make much of a difference.  In the United Kingdom, Chancellor Alistair Darling conceded that the current crisis will likely be “profound and longlasting.”  He forecasted that it might be the worst economic crisis faced by the United Kingdom in the past 60 years.  Similarly, figures released by the Canadian government last week show that the country is on the brink of recession, with gross domestic product growing by  a mere 0.1% in the second quarter.  All of this suggests that the current economic crisis is global in scope and potentially long in duration.

2. Ongoing political violence in Thailand last week culminated in the closure of three major international airports and blockades of the country’s rail, road, and port infrastructure.   Earlier in the week, protestors had laid siege to state buildings.  The protestors—a loose coalition of business, royalists, and activists under the banner of the People’s Alliance for Democracy—are demanding the resignation of Prime Minister Samak Sundaravej and his government.  So far, the military has refused to become involved in the political crisis.

3. In an interview on Tuesday, Zwelinazima Vavi, leader of the Congress of South African Trade Unions, declared that South Africa would need to radically change its economic policies to avoid the “ticking bomb” of poverty, unemployment and crime.  Vavi is a close ally of Jacob Zuma, the leader of the African National Congress and the person mostly likely to become president of South Africa after Thabo Mbeki’s term expires next year.  Many analysts believe Vavi’s views reflect the policies favored by Zuma.  Many South Africans believe the economic policies pursued by Mbeki have not improved the quality of life for ordinary people.  His complete interview is available through the Financial Times website.

4. The North Korean government announced on Tuesday that it would suspend the processing of disabling its nuclear facilities and was considering reactivating the Yongbyon reactor.  The announcement, which North Korea maintains is a response to the failure of the United States to make good on promises made during the six party talks, raises new concerns about the effectiveness of the talks and the progress made there.  On Thursday, South Korea announced that it would drop the label “main enemy” when referring to North Korea in its biannual defense white paper.  According to Major Seo Young-suk, the decision to drop the term “does not mean that we have changed our stance.  North Korea is still a substantial and present threat.”

5. In a report issued Thursday, the World Health Organization (WHO) condemned health inequalities between rich and poor around the world, describing them as “unfair, unjust, and avoidable.”  According to the WHO “a toxic combination of bad policies, economics, and policies [was] killing people on a grand scale.”  The complete report, entitled Social Determinants of Health, is available through the WHO website.