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1. Istanbul Journal of Economics: Volume 73 Issue 2

Author:
Gökhan Karabulut
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Debt, Economics, Globalization, Tourism, Capitalism, Finance, Ethics, Economic Growth, Tax Systems, Macroeconomics, and Unemployment
Political Geography:
Turkey and Middle East

2. Istanbul Journal of Economics: Volume 72 Issue 1

Author:
Gökhan Karabulut
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Debt, Development, Economics, Budget, Finance, Investment, Trade, Unemployment, and COVID-19
Political Geography:
Europe, Turkey, and Asia

3. Renewing Growth in Puerto Rico: Evaluating the Island’s Transition to Distributed Solar Energy

Author:
Jia Jun Lee
Publication Date:
05-2022
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
As Puerto Rico emerges from bankruptcy after completing the largest public debt restructuring in U.S. history, it must revitalize economic growth to mitigate future debt situations. To achieve economic competitiveness, it should address the challenges facing its energy sector, including high costs, unreliable access, and unsustainable operations. Puerto Rico’s recent solar-focused renewable energy transition presents a unique opportunity for the island to attain affordable and reliable energy. However, the transition will likely face economic and policy barriers surrounding pricing, equity, governance, and financing. The policy recommendations discussed in this paper aim to mitigate these barriers and ensure that Puerto Rico’s renewable energy transition is economically sustainable and socially equitable.
Topic:
Debt, Economic Growth, Domestic Policy, and Solar Power
Political Geography:
Caribbean, United States of America, and Puerto Rico

4. China’s Economy: More Debt than Meets the Eye

Author:
Antonio Graceffo
Publication Date:
11-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Since the beginning of this year, investment banks and international financial organizations, including the International Monetary Fund and the World Bank, have steadily downgraded their forecasts for the People’s Republic of China’s (PRC) GDP growth in 2022 to around 3.2 percent (Nikkei Asia, October 7). Most analysts agree that Beijing is in a difficult economic position, but the situation has the potential to become far worse due to off-balance sheet liabilities. Such debt risks defaulting, or may otherwise need to be covered by the central government. Another drag on the country’s balance sheet that has yet to fully hit home is the impact of Belt and Road Initiative (BRI) financing. Due to economic problems and debt crises in BRI partner countries, a large percentage of the initiative’s loans may have to be forgive or at least restructured. Before looking at its financing and hidden liabilities, it is necessary to establish an overall picture of the current PRC economy across a broad spectrum of indicators.
Topic:
Debt, Economy, Economic Growth, Belt and Road Initiative (BRI), and Investment
Political Geography:
China and Asia

5. China and Sri Lanka’s Debt Crisis: Belt and Road Initiative Blowback

Author:
Sudha Ramachandran
Publication Date:
05-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Sri Lanka is in the grip of an unprecedented crisis. For several months, the country has been reeling under a severe foreign exchange crisis. In early May, Foreign Minister Ali Sabry said that its usable forex reserves were just $50 million (Daily News, May 5). As a result, Sri Lanka has been forced to suspend repayment of $51 billion worth of debt owed to China, Japan and other foreign creditors (The Hindu, April 12; The Island, April 13). The country has also been unable to pay for imports of essential commodities, and has experienced serious shortages of food, fuel and medicine (The Island, January 15). The economic crisis has in turn triggered a political crisis. Public anger has boiled over onto the streets. Angry protesters have been calling for the resignation of President Gotabaya Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa (Colombo Telegraph, April 7). The Rajapaksa family has dominated Sri Lankan politics for decades and several members of the family are in positions of power as ministers, legislators or heads of corporations and departments. Sri Lankans want the entire clan out. Some of them, including Mahinda, resigned under public pressure in recent months (Island, April 17). Although Gotabaya remains president and under the country’s executive presidential system, continues to wield enormous power, it is evident that the influence of the Rajapaksas has declined. The unfolding crises in Sri Lanka have implications beyond the island. China is among Sri Lanka’s largest bilateral lenders and has played a big role in the island’s infrastructure development. Sri Lanka is a part of China’s Belt and Road Initiative (BRI). Despite China’s pledges that BRI would boost Sri Lanka’s economic and social development by transforming it into “the hub of the Indian Ocean”, Chinese loans are widely believed to have pushed the country into a ‘debt trap’ (Embassy of the People’s Republic of China in Sri Lanka, June 16, 2017). How have the crises impacted China’s image in Sri Lanka and will the decline of the Rajapaksas, widely regarded as ‘pro-China,’ impact Sino-Sri Lankan relations? Finally, will the Sri Lankan crises affect the fate of BRI?
Topic:
Debt, Development, Politics, Infrastructure, Economy, and Belt and Road Initiative (BRI)
Political Geography:
China, South Asia, Asia, and Sri Lanka

6. A Narrative of Debt Trap Vs Connectivity under CPEC: A Case of Gwadar Port

Author:
Rizwan Naseer, Qiubin Wang, and Ahmad Ali
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Gwadar has been an underdeveloped city in Baluchistan but CPEC has addressed problems of education, health and electricity for local populace. The vision to convert Gwadar into a hub of trade is reaping benefits for Pakistan. China‟s investment and loans in Gwadar under the CPEC are termed as Debt Trap by the India and U.S. media outlets. Majority of the Western media, academia and policy making circles deliberately established the narrative of Debt Trap Diplomacy (DTD). Gwadar port is likely to unlock potential of connectivity with regional trade partners in West Asia-Central Asia and South Asia. This project is a win-win situation for China and Pakistan. China‟s investment in Gwadar port will improve Pakistan‟s economy, uplift Baluchistan‟s living standards by offering attractive opportunity to potential investors in Gwadar‟s free zone. China‟s investment in Gwadar is promising to bring real change in Gwadar and Pakistan in particular. Due to massive propaganda against Gwadar, desired results have not been achieved yet. This paper is based on primary as well as secondary data. Primary data has been collected from Planning Commission of Pakistan on the condition of anonymity. The main argument of the paper is that the narrative of debt trap diplomacy is false. Connectivity of Gwadar with regional countries will be a game changer in the region.
Topic:
Debt, Foreign Direct Investment, and Prosperity
Political Geography:
Pakistan and South Asia

7. The Challenges of Redressing Violations of Economic and Social Rights in the Aftermath of the Eurozone Sovereign Debt Crisis

Author:
Giulia Ciliberto
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
The Goettingen Journal of International Law
Institution:
The Goettingen Journal of International Law
Abstract:
The Eurozone sovereign debt crisis represented an occasion to assess whether the international, European Union, and national systems provide adequate remedies for violation of socio-economic rights caused by austerity measures. Victims of these violations tried to obtain a remedy by lodging complaints before national judicial organs, the Court of Justice of the European Union, international human rights bodies (such the UN Committee on Economic, Social and Cultural Rights, the ILO Committee on Freedom of Association and the European Committee on Social Rights), and the European Court of Human Rights. This article addresses whether one (or more) of these venues indicted adequate remedies of violations of socio-economic rights and whether these mechanisms could have adopted a different (and more human rights- oriented) adjudicative approach with the view of enhancing the effectiveness of socio-economic rights enshrined in international treaties. The paper assumes that the adequacy of the relief depends on two elements. The first is the collective nature of socio-economic rights, which requires structural or systemic remedies rather than individual ones. The second is the need to preserve States’ economic soundness in order to allow Countries to satisfy their international obligations, namely securing a minimum essential level of socio- economic rights and their progressive realization. Against these assumptions, remedies should benefit the victimized class as a whole, alongside avoiding major distributional or unintended consequences to the detriment of public finances. The investigation focuses on the case law and pronouncements concerning Greece, Portugal, and Spain. The paper reaches the conclusion that constitutional review of austerity measures is the most adequate and effective venue to address such sensitive matters. This is especially true where constitutional courts rely on international conventions protecting socio-economic rights as per se parameters of constitutionality or through consistent interpretation – viz. by construing the national bill of rights in line with treaty-based socio-economic rights.
Topic:
Debt, European Union, Economic Cooperation, Socioeconomics, and Economic Rights
Political Geography:
Greece, Spain, and Portugal

8. Belt and Road Initiative of China: Implications for South Asian States

Author:
Khushboo Ejaz and Fiza Jamil
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Belt and Road Initiative is China’s global infrastructure program. This long-term investment strategy is aimed at improving regional cooperation, increased trade and economic integration by linking Asia with Europe and Africa through maritime and land networks. South Asia is vital for Belt and Road Initiative of China. China views South Asia as a priority zone because its geostrategic location will contribute a lot in the preferment of the BRI. This research intends to highlight the geo-strategic and geo-economic implications of BRI on security and economy of South Asian states. This study is carried out using qualitative research methodology. Data was collected through primary and secondary sources including books, journals, research papers, articles and videos of seminars and conferences on the concerned topic and interviews of experts of BRI and CPEC were also conducted. According to the research, BRI is the manifestation of Mackinder’s heartland theory. BRI fortifies intra-state transport connectivity, improves international connectivity, will help to ease power shortages and facilitate economic modernization and industrialization in South Asia. The findings of this research show that China is expanding its diplomatic influence through its economic presence in South Asia causing serious challenges to India’s power in the region and USA’s status of global hegemon. Along with the opportunities of BRI, there are a number of risks of political instability, poor law and order situation, corruption, terrorism and extremism in South Asia, hindering the smooth functioning of BRI projects. Also there is a fear of Chinese debt trap and loss of sovereignty in South Asian states making them reluctant to fully permit the execution of Chinese led projects on their land.
Topic:
Foreign Policy, Debt, Sovereignty, Infrastructure, and Belt and Road Initiative (BRI)
Political Geography:
China and South Asia

9. U.S. Debt Sustainability under Low Interest Rates and after the Covid‐​19 Shock

Author:
William R Cline
Publication Date:
10-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The worst pandemic in 100 years has hit the United States at a time when economic thinking has become more comfortable with high public debt, facilitating an aggressive response in public spending for relief that has reached a remarkable 27 percent of GDP.1 One reason for the receptiveness to large spending has been the perception that the fiscal stimulus in the Great Recession of 2007–2009 erred on the side of excessive caution and left an aftermath of unduly slow growth. More fundamentally, low real interest rates in recent years have shifted the center of gravity in macroeconomic analysis away from concern about chronic deficits and rising debt toward a certain benign neglect of debt as a problem.
Topic:
Debt, Interest Rates, Sustainability, and COVID-19
Political Geography:
North America and United States of America

10. Comparing the Perceptions of Indonesians and Malaysians toward the China’s Belt and Road Initiative: Facts and Trends

Author:
Yasmi Adriansyah and Yin Shi Wu
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
This article examines public perceptions in Indonesia and Malaysia regarding the China’s Belt and Road Initiative (BRI). In order to get a comprehensive picture of the subject matter, the article applies three perspectives, namely International Politics, Economy and Debt Trap, and Public Acceptance. The attachments of Indonesia (under Joko Widodo administration) and Malaysia (under Najib Razak administration) are analyzed, mainly by observing the perceptions of the political elites and opinion polls in these most populous Muslim countries. The findings show that both governments in the two countries had exhibited high inclination toward the BRI. Interestingly, their public show different attitudes and many people are against or at least critical of these policies. It therefore suggests that the pro-BRI policies of the governemnts must be managed with high care in order to balance the different interrests with the popular interests.
Topic:
Foreign Policy, Debt, and Belt and Road Initiative (BRI)
Political Geography:
China, Indonesia, and Malaysia

11. Mind the Trap: What Basing Rights in Djibouti and Sri Lanka Reveal About the Limitations of Debt as a Tool of Chinese Military Expansion

Author:
Scott Wingo
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 24, 2019, Sri Lankan President Gotabaya Rajapaksa told reporters during his first interview as president that he hoped to renegotiate the terms of the deal that gave a Chinese firm a 99-year lease over the Hambantota Port (Strategic News International, November 24, 2019). The port had been handed over as Sri Lanka struggled to make loan payments on the loss-making Chinese-built facility—thereby leading to debates as to whether the People’s Republic of China (PRC) had set a “debt trap” by intentionally lending Sri Lanka more than it could afford to repay, in hopes of eventually foreclosing on the port (China Brief, January 5, 2019). The subtext was that with a leasehold in hand, the PRC could use the port as a naval installation geared toward patrolling Indian Ocean shipping lanes. As can be observed by the Sri Lankan government’s desire to renegotiate, this has not happened. To the contrary, Sri Lankan security policy has trended against China since the debt-equity swap occurred. A comparison with Djibouti, where the PRC has established its only overseas military base to date, illuminates how this came to pass. In both Djibouti and Sri Lanka, Beijing has used infrastructure loans as a means to entice political leaders to allow naval access. However, three factors led to very different outcomes: 1) the recipient countries’ inherent willingness to host a base; 2) the degree of political competition faced by recipient leaders; and 3) the degree to which recipient leaders can diversify toward different sources of funding to reduce overreliance on China.
Topic:
Debt, Imperialism, International Cooperation, Military Strategy, and Hegemony
Political Geography:
China and Asia

12. Do Private Sector Short-term External Debt Have Impact on Credit Default Swap Premiums In Turkey? An Analysis with Asymmetric Threshold Cointegration Approach

Author:
Esra N. Kilci and Burcu Kiran
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
Journal of Academic Inquiries
Institution:
Sakarya University (SAU)
Abstract:
A country’s capacity to pay short-term external debt, which reflects the fiscal strenght of an economy against adverse shocks, is significantly taken into consideration by international investors in their decision making process. It has been seen that Turkey has experienced a gradually increasing private sector short-term external debt especially in the last twenty-year period. The objective of this study is to investigate the long-run relationship between private sector short-term external debt and CDS (credit default swap) premiums in Turkey for the period of 2000:Q4-2017:Q4 by using asymmetric threshold autoregressive (TAR) and momentum threshold autoregressive (M-TAR) procedures of Enders and Siklos (2001). The results indicate that CDS premiums and private sector short-term external debt in Turkey are cointegrated. After finding cointegration, the null hypothesis of symmetric adjustment is tested against the alternative of asymmetric adjustment and the evidence of symmetric adjustment is found, suggesting that the relationship between the private sector short-term external debt and CDS premiums has the same effect in expansion and contraction periods.
Topic:
Debt, Private Sector, and Credit
Political Geography:
Turkey and Middle East

13. Money, Stability, and Free Societies

Author:
Steve H. Hanke
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Monetary instability poses a threat to free societies. Indeed, currency instability, banking crises, soaring inflation, sovereign debt defaults, and economic booms and busts all have a common source: monetary instability. Furthermore, all these ills induced by monetary instability bring with them calls for policy changes, many of which threaten free societies. One who understood this simple fact was Karl Schiller, who was the German Finance Minister from 1966 until 1972. Schiller’s mantra was clear and uncompromising: “Stability is not everything, but without stability, everything is nothing” (Marsh 1992: 30). Well, Schiller’s mantra is my mantra. I offer three regime changes that would enhance the stability in what Jacques de Larosière (2014) has asserted is an international monetary “anti-system.” First, the U.S. dollar and the euro should be formally, loosely linked together. Second, most central banks in developing countries should be mothballed and replaced by currency boards. Third, private currency boards should be permitted to enter the international monetary sphere.
Topic:
Debt, Foreign Exchange, Monetary Policy, Developing World, Inflation, and Currency
Political Geography:
Europe, United States of America, and European Union

14. Economic Growth, External Debt and Export Relationship: The Case of Bhutan

Author:
Jigme Nidup
Publication Date:
04-2019
Content Type:
Journal Article
Journal:
Journal of Bhutan Studies
Institution:
Centre for Bhutan & GNH Studies (CBS)
Abstract:
Bhutan depends mostly on external debt for economic development. Most of its external debt is related to hydropower construction, which in total overshot its GDP by more than 100 percent. This has worried some sections of the society. However, Johansen’s cointegration test suggests that there is no long-term relationship between economic growth, external debt, external debt service and export in Bhutan. Further, findings from the unrestricted VAR indicate that even in the short-term, external debt and external debt service have insignificant relationship with economic growth, while it is the export that substantially helps the economy to grow. The Impulse Response Analysis (IRS) suggests that over a mediumterm period, a shock from external debt, external debt service can positively influence economic growth at least up to four and half years after initial negative effect. Whereas, export is found to positively impact growth all the way up to fourth year. Therefore, Bhutanese government should focus more into producing export-oriented goods and services in order to spur economic growth.
Topic:
Debt, GDP, Economic Growth, and Economic Development
Political Geography:
South Asia and Bhutan

15. Modern Monetary Theory: Cautionary Tales from Latin America

Author:
Sebastian Edwards
Publication Date:
10-2019
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
dea has emerged in economic policy circles in the United States: “Modern Monetary Theory” (MMT). The central tenet of this view is that it is possible to use expansive monetary policy—money creation by the central bank (i.e., the Federal Reserve)—to finance large fiscal deficits, and create a “jobs guarantee” program that will ensure full employment and good jobs for everyone. This view is related to Abba Lerner’s (1943) “functional finance” idea, and has become very popular in progressive spheres. According to MMT supporters, this policy would not result in crowding out of private investment, nor would it generate a public debt crisis or inflation outbursts.
Topic:
Debt, Monetary Policy, Populism, Banks, Economic Policy, and Inflation
Political Geography:
Latin America

16. The Greek Crisis and Its Repercussions on the Balkan Neighbourhood: The End of the Myth

Author:
Marilena Koppa
Publication Date:
10-2018
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
This article explores the role of Greece in the Balkans since the end of Communism and the impact of the sovereign debt crisis that followed. Since the beginning of the 1990s, while Greece failed to accomplish its vocation at the political level, at the level of the economy the country acted as an important regional actor. The article examines the dynamics of the Greek crisis on the Balkan economies and analyses the major challenges for Greece in this new reality. At the same times, it tries to identify the triple crisis faced currently by Greece: at the level of credibility and status, at the level of mediation between the region and the EU and, finally, at the level of the gradual peripherisation of the country.
Topic:
Debt, Economics, Migration, European Union, and Crisis Management
Political Geography:
Europe, Greece, and Balkans

17. When the Greek Political System Clashed with Europe: Why the Greek Sovereign-Debt Crisis is Taking so Long to End

Author:
Constantine A. Papadopoulos
Publication Date:
10-2018
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
The central argument of this essay is that, in order to understand the reasons behind the Greek economy’s inability to recover sooner from its 8-year recession, analysis must focus on the institutional, political and cultural traits of the country rather than take a primarily “economistic” approach and simply blame “excessive austerity” and/or the euro. In fact, it will be argued that Greece’s positive performance under the euro (until government actions derailed the economy) is generally underappreciated, suggesting that if the country’s institutional weaknesses are addressed, the economy will grow. If they are not, the country’s long-term economic potential will almost certainly remain unfulfilled.
Topic:
Debt, Economics, Financial Crisis, Reform, Global Financial Crisis, and Austerity
Political Geography:
Europe and Greece

18. 'Broken and Can't Be Fixed': The Impact of the Economic Crisis on the Greek Party System

Author:
Susannah Verney
Publication Date:
03-2014
Content Type:
Journal Article
Journal:
The International Spectator
Institution:
Istituto Affari Internazionali
Abstract:
The Greek election of May 2012 failed to produce a government, resulting in repeat elections six weeks later. This shock outcome was a symptom of a broader delegitimation of the national political system. Over the past decade Eurobarometer data show a much more extensive loss of confidence in political institutions in Greece than in the European Union as a whole. In a first phase, rising political discontent was managed within the traditional political framework through alternation in power between the two major parties. In contrast, the second phase, following the outbreak of the Greek sovereign debt crisis, led to the dramatic fragmentation of the party system and changed the mode of government formation. This process is not reversible and entails serious democratic dangers.
Topic:
Debt, Economics, and Government
Political Geography:
Europe and Greece

19. The Great Deformation: The Corruption of Capitalism in America

Author:
Robert Garmong
Publication Date:
12-2013
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
When the U.S. economy collapsed in 2008, most economists, policy analysts, and government advisers were caught flat-footed. For more than a decade, the experts had assured Americans that such a catastrophic economic event had become impossible. In 2004, Ben Bernanke (now chairman of the Federal Reserve), declared a “Great Moderation,” beginning in the mid-1980s, during which “improvements in monetary policy” at the Federal Reserve had led to “a substantial decline in macroeconomic volatility” (Fed-speak for a taming of the business cycle).1 Robert Lucas gave a presidential address to the American Economic Association in 2003, declaring that the “central problem . . . of macroeconomics”—maintaining recession-free growth without runaway price inflation—“has been solved, for all practical purposes.”2 Yet the seeds of the so-called Great Recession, David Stockman argues, were already there for anyone to see. The Great Deformation is Stockman's attempt to explain and diagnose the economic crash, connect it to historical trends, and warn against policies that will bring worse economic disasters in the future. Stockman presents a compelling case, based on economic theory and exhaustive research. His warnings for the economic future are chilling but powerfully argued. The “Great Deformation” named in Stockman's title is the distortion of the economy brought about by the Federal Reserve's credit expansion since 1971, when Richard Nixon ended the last vestiges of the gold standard. Stockman reviews several major financial developments of the 20th century. Prior to Nixon's move, he recounts, the developed world was governed by the Bretton Woods Agreement, signed in 1944. Although not a full-fledged gold standard, Bretton Woods kept the world economy tethered to gold. All major currencies were pegged to the U.S. dollar, which in turn was redeemable in gold at $35 per ounce. Bretton Woods limited any country's ability to inflate. For America, it meant that any inflation by the U.S. government—creation of money to cover government debt—led investors to trade value-losing dollars for value-retaining gold. Thus, the effects of creating new money would show up immediately and painfully in the banking system. Chafing under this fiscal restraint, on August 15, 1971, Richard Nixon unilaterally reneged on the agreement, ended the convertibility of U.S. dollars to gold, and laid the groundwork for an unprecedented series of financial crises. Nixon's move had an immediate, dramatic effect, Stockman writes: skyrocketing prices for oil and other commodities in the 1970s. In four years, the price of oil increased from $1.40 to $13 per barrel. A ton of scrap steel went from $40 to $140, and even such a humble commodity as coffee went from 42 cents to $3.20 per pound. Abandonment of the gold standard enabled unfettered deficit spending without immediate consequences in the capital markets, Stockman writes. . . .
Topic:
Corruption and Debt
Political Geography:
America

20. Why Ireland's Luck Ran Out and What This Means for the Eurozone

Author:
Shalendra D. Sharma
Publication Date:
03-2011
Content Type:
Journal Article
Journal:
The International Spectator
Institution:
Istituto Affari Internazionali
Abstract:
Given its impressive economic performance over the past two decades, Ireland earned the title, the 'Celtic Tiger'. However, as the contagion from the subprime-induced global financial crisis spread, Ireland's boom went bust. In short order, Ireland (like Greece before it), had to seek financial assistance from the EU and the IMF to stave off sovereign default and national humiliation. How did Dublin and the eurozone respond to the crisis and what lessons can be learned from Ireland's experience? While Ireland grapples with its huge public debt, the EU needs to instill confidence in the markets before the current rolling debt crisis becomes a systemic threat to the eurozone.
Topic:
Debt and Economics
Political Geography:
Ireland and Dublin

21. The state of development in Africa: concepts, challenges and opportunities

Author:
Mills Soko and Jean-Pierre Lehmann
Publication Date:
01-2011
Content Type:
Journal Article
Journal:
Journal of International Relations and Development
Institution:
Central and East European International Studies Association
Abstract:
Africa's marginalisation and development challenges are extensively documented. Africa's underdevelopment is a product of the interplay of external and domestic factors including slavery and colonialism, economic mismanagement, ill-conceived structural adjustment policies, inter-state and intra-state conflicts, failed regionalism, unfair trade terms, foreign debt, aid dependence, poor governance, weak states, and institutional decay.
Topic:
Debt
Political Geography:
Africa

22. Globalization and the Politicization of Muslim Women: Consequences for Domestic Violence in the Netherlands and the United States19

Author:
Mishal Khan
Publication Date:
03-2011
Content Type:
Journal Article
Journal:
Macalester International
Institution:
Macalester College
Abstract:
Globalization as a theoretical lens guides us toward a greater understanding of some of the most turbulent transformations that are taking place in the world today. Anthony Giddens provides a compelling definition of this phenomenon, framing it as―the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. Nothing demonstrates this more sharply than the impact of global events on those Muslim populations residing in what can be broadly defined as the―Western‖ world. This ironically termed―reverse colonization entails an unprecedented number of people from Muslim countries migrating to the Global North, laying the foundation for a myriad of challenging negotiations and novel circumstances. However, there are a number of concurrent transformations that are taking place within Muslim populations that have become the subject of increased scrutiny. The rise of radical Islam, the enhanced religiosity of Muslim youth, and the increased wearing of headscarves by women are all aspects of a global Islam that has attracted the widespread attention of policymakers, scholars, and ordinary citizens alike.
Topic:
Debt
Political Geography:
United States and Netherlands

23. Iran-GCC Relations under President Ahmadinejad: 2005-2009

Author:
Mohammad Hossein Hafezian
Publication Date:
01-2011
Content Type:
Journal Article
Journal:
Iranian Review of Foreign Affairs
Institution:
Center for Strategic Research (CSR)
Abstract:
The election of Mahmood Ahmadinejad in Iran in June 2005 came to have an enormous impact on Iran's foreign relations, including Iran's relations with the Arab states of the Persian Gulf. The present article looks into the state and dynamism of bilateral relations between Iran and the GCC during the 2005-09 period. Placed in the context of the background of relations between the two sides since the 1979 Islamic Revolution in Iran and specifically the 8 years of confidence-building and détente under Khatami, the article discusses the factors that affected these bilateral relations during the period under review. It is argued that such factors as Ahmadinejad's peculiar foreign policy outlook and discourse, relations with the U.S., diverging postures towards Israel, threat perceptions, Iran's rising regional stature and influence in the post-2001 period, and also dispute on the three Iranian islands in the Persian Gulf and the name of the waterway, have each affected the state of relations. The review also shows the resilience of economic and trade ties between the two sides beyond the mere political realm and the outstanding issues and disagreements. Considering the inevitable negative impact of the continuing tension and conflict between Iran and the U.S. on the state of relations between Iran and the GCC, the paper emphasizes the imperative of confidence-building measures and policies by all the parties concerned–within the region and beyond. It concludes that any meaningful improvement–and ultimate rapprochement–in the U.S.-Iran relations, even though far-fetched or illusive at the time, would help these relations and the mutually-beneficial establishment of regional security arrangements in the Persian Gulf.
Topic:
Debt
Political Geography:
United States, Iran, Israel, and Arabia

24. Both a Borrower and Lender Be Can Islamic Microfinance Bring Peace to Palestine?

Author:
Kenneth E. Barden
Publication Date:
05-2010
Content Type:
Journal Article
Journal:
World Policy Journal
Institution:
World Policy Institute
Abstract:
RAMALLAH, Palestine—Mahmod Ismail Oda is a farmer, raising a variety of leafy vegetables in a small greenhouse in the northern part of the West Bank outside of Jenin, some 25 kilometers from the border with Israel. The land here is rocky and hilly and a great amount of effort is required to turn this land to productive use. Two years ago, Oda needed money to obtain some plastic housing to protect his vegetables from the elements. Unfortunately, the $5,000 he needed was not an amount that commercial banks were particularly interested in servicing, nor did Oda possess the collateral typically required in conventional loan arrangements. Oda, a devout Muslim, is in his mid-40s and still full of energy. But, as the father of a young family, he feared being encumbered by a debt he could not readily repay. Oda found his answer in a new model of financing, one that blends micro-loans with respect for Islamic law, or shariah. In stepped Reef Finance, just one of a number of nascent institutions that may play a major role in bringing a level of prosperity, even peace, to the rural communities of the West Bank.
Topic:
Debt

25. The Contribution of Energy Diplomacy to International Security; with Special Emphasis on Iran

Author:
S. M. Hossein Adeli
Publication Date:
06-2010
Content Type:
Journal Article
Journal:
Iranian Review of Foreign Affairs
Institution:
Center for Strategic Research (CSR)
Abstract:
This article discusses how energy diplomacy is used in today's world to secure and promote the national and international security of nations. It focuses on the case of Iran as a major energy power. It will be argued that the emergence of energy as one of the main global concerns on the one hand and the emergence of multi-polarity in the wake of the demise of the Cold War on the other, have provided a foundation for the use of energy resources as a new means to pursue the international diplomacy of nations. In this context, the isolationist outlook in international politics advocating hard power as the main anchor for a nation's security is rejected; instead a new approach based on the principles of engagement, participation, and partnership in the world's mega trends is emphasized and, in fact, recommended. It is argued here that the level and degree of the meaningful role a country plays in the current world affairs and also in contributing to shaping the prospective international system is directly correlated with the level and degree of safety and security it would be able to secure for itself. In this vein, the traditional as well as modern outlooks in Iran's energy diplomacy will be briefly examined. While the former views oil and gas resources as a source of income to be utilized – primarily – to bankroll current activities and hence, ignoring the political economy considerations of energy, the latter, fully cognizant of such considerations, is based on the new vision of engagement and partnership with global partners and calls for adoption of a comprehensive energy plan that addresses both domestic and international concerns of this sector.
Topic:
Cold War and Debt
Political Geography:
Iran

26. Is Russia Cursed by Oil?

Author:
Daniel Treisman
Publication Date:
06-2010
Content Type:
Journal Article
Journal:
Journal of International Affairs
Institution:
School of International and Public Affairs, Columbia University
Abstract:
Russia is often thought to be a classic case of the resource curse—the idea that natural resource wealth tends to impair democratic development.1 Some see the country as doomed to authoritarian politics by its enormous endowments of oil and gas. “Russia's future will be defined as much by the geology of its subsoil as by the ideology of its leaders,” writes Moisés Naím, editor-in-chief of Foreign Policy magazine and former trade and industry minister of petroleum-rich Venezuela. “A lot of oil combined with weak public institutions produces poverty, inequality, and corruption. It also undermines democracy.” New York Times columnist Thomas Friedman sees a close relationship between world commodity prices and the extent of liberty in resource-rich states: a higher oil price means less freedom. Friedman suggests that Russia, from Gorbachev to Putin, fits this relationship perfectly.
Topic:
International Relations and Debt
Political Geography:
Russia and New York

27. Of nomadic unities: Gilles Deleuze on the nature of sovereignty

Author:
Julian Reid
Publication Date:
12-2010
Content Type:
Journal Article
Journal:
Journal of International Relations and Development
Institution:
Central and East European International Studies Association
Abstract:
This paper develops Deleuze's critique of the political ideal of sovereignty by examining his philosophy of nature. In their exultation of the ideal of sovereignty, traditional forms of political theory reflect only one aspect of nature. That is, its tendency toward unity. As such, they obscure what is most 'true' of nature, and what is most 'true' of peoples and individuals, which is their tendency toward multiplicity. While Deleuze's work has received significant attention in IR, the value of his philosophy of nature for the more concretely political problem of sovereignty is still to be fully realised. Beyond its under-representation in debates concerning political problems, Deleuze's work also suffers from misrepresentation. There is an abiding misconception of Deleuze as a theorist of the possibility of a 'world without sovereignty'. This paper dispels that particular misconception by demonstrating Deleuze's attention to the necessity of the recurrence of the problem of sovereignty as a condition for an understanding of political agency.
Topic:
Debt and Sovereignty

28. On the transformation of warfare: a plausibility probe of the new war thesis

Author:
Monika Heupel and Bernhard Zangl
Publication Date:
03-2010
Content Type:
Journal Article
Journal:
Journal of International Relations and Development
Institution:
Central and East European International Studies Association
Abstract:
This article intends to contribute to the debate on the emergence of so-called new wars by reconstructing the new war thesis in a way that allows an empirical assessment of the plausibility of the thesis. It makes explicit the defining criteria implicit to the new war thesis which claims that a fundamental transformation of modern intra-state warfare has taken place due to the end of the Cold War. It also lays out the causal mechanisms that underpin the alleged transformation of warfare. Based on the reconstructed conceptual framework and drawing on case studies of the wars in Cambodia, Afghanistan, Angola, Somalia and Sierra Leone, the article then lends support to the new war thesis. The cases demonstrate that, in the 1990s, war economies based on criminal activities became more important and triggered the fragmentation of warring parties and the economisation of their war motives. Moreover, in combination, the fragmentation of warring parties and the economisation of their war motives facilitate the application of brutal violence against civilians.
Topic:
Cold War and Debt
Political Geography:
Afghanistan, Sierra Leone, Somalia, and Angola

29. Debt and Systemic Risk: The Contribution of Fiscal and Monetary Policy

Author:
Benn Steil
Publication Date:
06-2010
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The story of the financial crisis will be retold endlessly as one of widespread corruption and incompetence, enabled by a policy agenda fixated on deregulation. But to accept this story, one would have to believe that if the marketplace had been confined to ethical and informed individuals, and if their activities had been carefully scrutinized by diligent regulators, we would have avoided a major financial boom and bust.
Topic:
Debt

30. Bad Debts: Assessing China's Financial Influence in Great Power Politics

Author:
Daniel W. Drezner
Publication Date:
10-2009
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
China has challenged the United States on multiple policy fronts since the beginning of 2009. On the security dimension, Chinese ships have engaged in multiple skirmishes with U.S. surveillance vessels in an effort to hinder American efforts to collect naval intelligence. China has also pressed the United States on the economic policy front. Prime Minister Wen Jiabao told reporters that he was concerned about China's investments in the United States: “We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” The head of the People's Bank of China, Zhou Xiaochuan, followed up with a white paper suggesting a shift away from the dollar as the world's reserve currency. China's government has issued repeated calls for a greater voice in the International Monetary Fund (IMF) and World Bank. To bolster this call, Beijing helped to organize a summit of the leaders of Brazil, Russia, India, and China (BRIC) to better articulate this message.
Topic:
Security, Debt, Government, and Intelligence
Political Geography:
Russia, United States, China, India, and Brazil