Topic Category: World

The turmoil that erupted in Juba last month threatens to ignite a full scale ethnic civil war. If peace talks fail, a potential genocide may even result. Certainly, political risks for foreign investors and neighboring governments would increase under such circumstances. Given South Sudan’s position as a regional oil producing country, a civil war would also close transnational energy corridors throughout Central/East Africa and fuel regional instability.

Park Geun-hye’s first year in office was a bumpy one, marked by disruptive political scandals, worrisome tensions in relations with North Korea, and back-tracking on key components of her signature “economic democratization” agenda that have weakened her popularity and undermined her credibility. This new year is unlikely to be any easier, even assuming the continued recovery of the economy.

An article recently in the Argentine journal La Politica confirmed the collapse of talks between the Argentine government and Chinese financiers to help fund $21.6 billion in hydroelectric facilities to be built on the Santa Cruz river. This failure in negotiations is significant since it is one of the first times a Chinese denial of a major loan request by a “strategic partner” has been made public.

North Korea’s “Dear Leader” Kim Jong-il has been dead for two years, but his son, Kim Jong-un, appears to have taken firm control—and in a much bloodier fashion than many predicted, with the execution of his uncle and one-time mentor Jang Song-taek. However, no one knows whether the regime is stabilizing or destabilizing. The ascension of Kim fils never seemed certain. Not yet 30 when his father passed, Kim had had little time to secure the levers of power.

Professional sports players are usually paid based on performance. The better they play, the more money they make. In the business world, CEOs are typically compensated based on the performance of their company. The better the company performs, the more they are paid in salary and stock options.

In a recent speech, Secretary of State John Kerry highlighted “new energy” as an area in which the United States could work together with Latin America for the benefit of the region. As the administration pursues such collaboration, however, it will confront an important but little noticed trend: the transformation of the Latin American energy sector is already well underway, led by Chinese companies and backed by Chinese banks.

Saudi Arabia is angry with Washington. In Riyadh’s view, the U.S. government isn’t doing enough to support tyranny and war in the Middle East. The Obama administration should tell America’s foreign “friends” that Washington acts in the interests of the American people, not corrupt dictators. Repressive Riyadh long has been an embarrassment for the U.S.

A protracted political crisis that has threatened to derail the democratic transition initiated after the downfall of Tunisia’s entrenched autocratic regime in January 2011 appears to be headed toward a peaceful resolution. However, tensions between secular and religious political forces, stoked by the assassinations of two prominent secular politicians in the space of less than six months, are still running quite high.

SPECIAL REPORT—The first half of 2013 has been an unusually turbulent period for companies doing business in China. Amidst an apparent economic slowdown, the new leadership has pursued a number of actions. This includes an anti-corruption drive, a government frugality campaign, and a stronger Internet crackdown. But that’s not all. We have seen the trial of Bo Xilai, as well as the purging of China’s most profitable state owned enterprise, PetroChina.