This article was originally published by Pacific Forum CSIS on 16 March 2017.
If Japanese Prime Minister Abe Shinzo wakes up these days with an extra bounce in his step, it’s with good reason. He has overtaken Nakasone Yasuhiro to become the sixth longest serving prime minister in Japanese history, and he will soon pass Koizumi Junichiro, who set the standard in the post-Cold War era. The ruling Liberal Democratic Party (LDP) just agreed to revise party rules to extend the maximum presidential tenure to three consecutive three-year terms for a total of nine years. (The previous limit was two.) If Abe completes a full third term, he will become Japan’s longest serving prime minister ever.
Changing the rules is a smart move. While in office, Abe built and cemented his party’s parliamentary majority, bringing stability to a political system that was marked by uncertainty and hobbled by ineffectual leaders. The economy has regained its footing, with growth on the upswing, unemployment shrinking, and business confidence surging. Abe has set the standard for a good working relationship with US President Donald Trump and reduced tensions (somewhat) with Beijing and Seoul (although neither relationship can be counted on to continue its current path untended). He has made good on his promise to secure Japan’s place among the first tier of nations and to make it a force to be reckoned with in international relations.
Courtesy Victoria Pickering/Flickr
This article was published by Political Violence @ a Glance in October 2016. The post draws on the author’s chapter in a recently released Peterson Institute for International Economics Briefing volume.
China’s Belt and Road Initiative (BRI) – a plan to build a vast network of roads, rail lines, new ports, and other infrastructure improvements a in more than 60 countries, at a cost of $4 trillion – is an economic policy designed to radically expand trade and investment in Asia and around the Indian Ocean. Critically, however, it is also a security initiative with the aim of facilitating economic integration and promoting longer-run peace in the region.
The economic benefits are likely to be large, but there may be rough patches along the new Silk Road. While the proposed investments are precisely the types of trade-enhancing projects development economists have long called for, the geopolitical implications of BRI are complicated. From the restive western Chinese province of Xianjing to Jammu-Kashmir, the Myanmar-Chinese border, and the Indian Ocean, BRI-related initiatives target or traverse some of the world’s most contested territories. Major power development programs abroad – such as the US Marshall Plan and Alliance for Progress – have always been motivated by a mixture of economic and security concerns. Indeed, BRI is intended in part to address security fears emanating from these regions by improving economic prospects.
Courtesy Diego Wyllie/flickr
This Expert Commentary was published by the Elcano Royal Institute on 11 July 2016. It also appeared in the discussion paper “EU-China Relations: New Directions, New Priorities” by Friends of Europe.
China’s re-emergence over the last few decades coincides chronologically with the process of diversification in Latin America’s pattern of international insertion. We have witnessed Beijing grow from a marginal factor in Latin America, to become a key player in shaping the evolution of countries in the region and their process of regional integration. Deepening relations with non-traditional partners has opened a more pluralistic scenario for Latin American countries, extending the range of their international cooperation options in all spheres.
The economic dimension of Chinese-Latin American relations has blossomed in the areas of trade and finance. Beijing has become the second largest trade partner and the main source of international public finance for Latin America. With that being said, the economic development of some Latin American countries is so dependent on the performance of the Chinese economy that a fall of one percentage point in the growth rate of Chinese GDP would reduce Latin American growth by 0.6%, according to the World Bank. Therefore, it is particularly relevant to analyse whether engagement with China is healthy for the economic development of Latin America or not.
G20 Summit, courtesy of The Prime Minister's Office/flickr (Crown Copyright)
The global economy is strongly integrated, and domestic economic policies are strongly… well, domestic.
A landmark report by Chatham House and the Centre for International Governance Innovation (CIGI) argues that the way in which nations design their economic policies is woefully inadequate to prevent financial and economic crises.
Entitled “Preventing Crises and Promoting Economic Growth: A Framework for International Policy Cooperation“, the report is the outcome of a nine-month international research project. Authors Paola Subacchi and Paul Jenkins consulted with finance and foreign affairs ministries, multilateral institutions and research institutes in Europe, Asia and North America.
They call for national policy-makers to recognize the spillover effects of their policies on other countries as well on the wider economic system. In practice, this would mean accompanying internationally relevant domestic policies by “international impact assessments”.
The report also proposes a new framework for G20 policy cooperation. Indeed, cooperation tends to be “only feasible when interdependencies are made clear by incidents of instability and volatility as happens during crises, i.e. when the costs of non-cooperation are painfully evident“. » More
Marching for work and retirement, photo: marcovdz/flickr
Europeans are talking about retirement. Yet, in France at least, it’s the youth who are most angry. Today the biggest protest movement since President Sarkozy took office continued for a tenth day. Airports have been disrupted, health risks have reached ‘pre-epidemic levels’ with refuse collectors on strike, even the Louvre was closed as staff blockaded the museum entrance.
The cynical readers among you will view this tête-à-tête as more déjà vu than coup d’état. Nonetheless, there remains a fundamental question in the developed world over how to balance the right to a ‘long and happy retirement’ against the gerontological and economic realities of modern times.
In financial terms it’s hard to argue with the figures. According to Allianz, a leading German financial services company, public pension expenditure for the European Union as a whole will increase to 12.8 percent by 2050. Compare this with France, Greece, or even Italy – where expenditure will increase to 25 percent of GDP by 2050 – and it seems inevitable that the budgetary axe should fall at this time of fiscal ‘belt-tightening’ across the continent. In Britain, for instance, the new measures are projected to save £5 billion a year. Furthermore the financial crisis has hit one rather traditional quirk of European retirement rights, namely that of a gender-based pension entitlement, with both the UK and Greece removing a woman’s prerogative to beat her husband to the pension pot.
However, this is one problem we can’t blame on the bankers. Aging populations are a direct result of our successful economic development – as the social, technological and cultural effects of modernization and urbanization mean lives are lengthened and people have fewer children to keep their populations youthful. As the New York Times put it in response to the protests, “it is hard to conjure a situation in which people move back to the countryside and again have larger families.” In fact, the Oxford Institute of Ageing – which published the seminal 2008 Global Ageing Survey – predicts that the West’s future search for a younger workforce will be instrumental at improving lives in the developing world, where in Africa only five percent are projected to be 65 or older in 2050 – compared to 29 percent in Europe.