International Relations

Mariana Budjeryn reflects on the tenth anniversary of her native Ukraine's Revolution of Dignity.

Mariana Budjeryn writes: War never stops at the border, especially on a continent like Europe. The European Union absorbed millions of Ukrainian war refugees and poured billions of euros into Ukraine's defenses and economic survival. The war permanently reshaped Europe: its demographics, political economy, and energy architecture are shifting in ways that will have irreversible long-term consequences. All of this is because in a very real sense Ukraine already is inextricably woven into the fabric of Europe: Ukraine’s pain is Europe’s pain and Ukraine’s gain will inevitably be Europe's gain, too.

For many, integrating “decarbonization” into public policy, corporate and financial strategies has become a requirement, not an option — yet, what happens when the critical link between climate stability and decarbonization breaks?

Capital Choices analyzes the creation of different SWFs from a comparative political economy perspective, arguing that different state-society structures at the sectoral level are the drivers for SWF variation. Juergen Braunstein focuses on the early formation period of SWFs, a critical but little understood area given the high levels of political sensitivity and lack of transparency that surround SWF creation. Braunstein’s novel analytical framework provides practical lessons for the business and finance organizations and policymakers of countries that have created, or are planning to create, SWFs.

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.

It is a critical first step that the financial policymakers of the United States have acknowledged the need for a CBDC, but that realization is not enough. 

The Covid-19 pandemic has drastically disrupted people’s lives, livelihoods, and economic conditions around the world. The global shock has resulted in a tourism standstill (Djankov 2020), significant capital flight (Djankov and Panizza 2020), and a slowdown in remittances (Nonvide 2020), resulting in an urgent balance-of-payments need. Egypt responded to the crisis with a comprehensive package aimed at tackling the health emergency and supporting economic activity. The Ministry of Finance acted swiftly to allocate resources to the health sector, provide targeted support to the most severely impacted sectors, and expand social safety net programmes to protect the most vulnerable. Similarly, the Central Bank of Egypt adopted a broad set of measures, including lowering the policy rate and postponing repayments of existing credit facilities. The next section highlights the experience of firms in Egypt following these policies.

Joseph S. Nye writes that America's friends and allies have come to distrust it in the wake of Donald Trump's presidency. Joe Biden will do all that he can to repair the damage, but the deeper problem is that many are asking whether Trump was merely a symptom of the decline of American democracy.

Stephen M. Walt advises presidential candidate Joe Biden to embrace nationalism while reaffirming liberal values: They are an election-winning combination.