SPECIAL REPORT—Knowing the extent of regulation in the economy is important because regulation has been found to stymie innovation, depress productivity, raise prices, and lower living standards. However, while several studies have measured the cost of complying with the regulatory burden, there has been no attempt to measure the extent of the Canadian economy subject to regulation.
Thailand continues its slow-motion political implosion. The prime minister has been ousted and a new election has been scheduled for July 20, but the latter will settle nothing unless traditional ruling elites are willing to accept a government run by their opponents. If not, the country risks a violent explosion.
The kidnapping of over 200 Nigerian school girls has captured international attention and sparked a twitter campaign. Yet few outside of Nigeria paid attention as the terrorist group responsible, Boko Haram, killed thousands of people in previous attacks on churches, schools, police stations, newspaper offices, beer halls, bus terminals, and more. When the organization assaulted a school with male students, it simply murdered them.
As the global economy continues to evolve, world populations continue to shift — and at a rate faster than ever. As a result, an understanding of these trends can help a company determine whether its target markets are growing or shrinking, and where to focus its resources. But that’s not all. Population demographics also can determine the likelihood of civil strife, and economic and political instability.
Russian aggression in the Ukraine’s Crimea region appears to be a repeat of bad behavior. But the implications for the United States are far different than past episodes of the Russian military bullying its neighbors. This time it’s different. This time it’s about power—not ideological but energy—and natural gas to be specific.
SPECIAL REPORT—The political upheaval that erupted after President Viktor Yanukovych opted against signing an association agreement with the EU in November 2013 escalated sharply in February, and the situation is spiraling out of control, with serious negative implications for Ukraine’s already poor risk profile. Yanukovych has fled the country, taking refuge in Russia, while Moscow has declared the political takeover in Kiev by pro-western political elements to be illegal.
Representatives of the Syrian government and the opposition Syrian National Coalition held two rounds of talks in Geneva, Switzerland in early 2014, initiating a long-delayed peace process sponsored by the U.S. and Russia, and backed by both the UN and the Arab League. Unfortunately, the talks, mediated by joint UN-Arab League envoy Lakhdar Brahimi, brought no tangible progress. They even failed to produce agreement on confidence-building measures, such as limited cease-fires to facilitate humanitarian services.
As Chinese engagement with Latin America and the Caribbean has expanded over the last decade, two of the greatest inconveniences for the P.R.C. government have been managing unique relationships with each of the 42 individual countries of the region, and doing so in the shadow of the United States. China’s approach to this problem demonstrates a new assertiveness.
We can't know yet how the markets will behave in Argentina after the announcements made by the economic team, except that the Blue dollar continues to rise. What is clear is that finally the government and its dreamers and/or its grim followers should openly acknowledge the problems that the country faces, at least in the economic area.
Political risk has increased significantly since the eruption of a corruption scandal in mid-December 2013. Triggered by the detention of more than two dozen suspects, including the sons of two Cabinet ministers on charges of graft related to questionable real estate deals, the scandal has breathed new life into a popular anti-government movement that had lost momentum following a bout of mass protests last summer.
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