Economics & Global Affairs

Mohammad Tabaar argues that the attacks on Red Sea ships unintentionally advance the Houthis agenda by allowing it to claim that it is fighting imperialism, and the attacks help Iran by fortifying its political foothold in the Middle East. Washington should therefore cease the strikes. It should, instead, work to halt the war in Gaza. The United States should also try to strengthen the region's diplomatic agreements and shore up its security framework. Otherwise, the Houthi-Iranian partnership will only grow stronger, as will Tehran's leverage in the region.

The U.S. position in the global value chain puts it at a disadvantage, and Washington's confrontational policies are making things worse.

Joseph Nye writes that Washington's strategy towards Beijing should be to avoid either a hot or cold war, co-operate when possible and marshal its assets to shape China's external behaviour. This can be done through deterrence and a strengthening of both alliances and international institutions.

Power transitions affect a state’s ability to exercise economic statecraft. As a dominating and a rising power approach parity, they face structural incentives to decouple their economies. This decoupling affects business-state relations: high-value businesses within the dominant power tend to oppose their state’s economic statecraft because of its costs to them, whereas low-value businesses within the rising power tend to cooperate because they gain from it. 

Mohammad Tabaar analyzes Iran's strategy to weaken Israel and divide the Middle East.

Oil prices have been persistently high over the past two years , at times breaking above $120 a barrel. According to economic theory, that should be good news for climate change. But the political reality is more complicated. Climate policies are increasingly the casualties of high oil prices.

Johson and Wolfram argue that imposing a price cap on Iranian oil exports will diminish the benefits petrostates have in times of conflict. 

Joseph Nye writes that if the United States maintains its alliances, invests in itself, and avoids unnecessary provocations, it can reduce the probability of falling into either a cold war or a hot war with China. But to formulate an effective strategy, it will have to eschew familiar but misleading historical analogies.

China leverages its market in a form of “predatory liberalism” that weaponizes the networks of interdependence created by globalization. ne response to China’s bullying would be for its targets to form an alliance to retaliate against China’s high-dependence trade should Beijing act against any alliance members. 

Stephen Walt analyzes the priority that the United States should place on competing with China by asking and answering five questions.