South Asia

Rather than revolutionizing war, drones demonstrate its evolution. The principle of air warfare remains avoiding exposure to the enemy. Drones are unlikely to shift the offense-defense balance toward the offense because they are vulnerable to attacks from the ground and air.

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

Nathaniel L. Moir writes of historical cases in which a U.S. tendency to over-rely on military capabilities and American economic strength proved unwise and how such power eventually proved to be irrelevant. In addition to the Vietnam War as an example, the rapid collapse of the Republic of China and its large military forces in late 1948 and 1949 offers some parallels with the collapse of the Afghan National Army and the Afghan Government, despite the United States investment of trillions of U.S. dollars.

From trade disputes to digital governance to multilateral institutions in need of reform, the incoming Biden Administration faces a full international economics policy agenda. Rising U.S.-China tensions will exacerbate these policy challenges as the world’s two largest economies compete for economic power and global influence. This fall, the Belfer Center’s Economic Diplomacy Initiative, led by Aditi Kumar, Nicholas Burns, and Lawrence H. Summers, hosted a series of discussions examining the U.S.-China economic relationship.  

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

Ambassador Nicholas Burns addressed the Confederation of Indian Industry's Annual Session 2020.

Juergen Braunstein and Sachin Silva argue that sovereign wealth funds may be central to governments' efforts to balance public responsibility with private interests in post-pandemic economies.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.