China-South Korea tensions rose with the announcement of the U.S.-South Korea alliance decision to deploy the THAAD missile defense system in South Korea and South Korean protests against illegal Chinese fishing. Exclusive economic zones (EEZs) remain another point of China-South Korea tension. Although China and South Korea seek to advance trade within various frameworks, such efforts only highlight a widening gap between the economic and political aspects of their relationship. Current security priorities require effective approaches to both immediate differences over THAAD and EEZs and longer-term preferences over how to effectively promote lasting stability on the Korean Peninsula, write Snyder and See Won Byun, PhD candidate in political science at the George Washington University.
New Census data shows promising increases in median household income and the Trans-Pacific Trade Partnership would boost national income. Yet, U.S. politicians disparage rather than celebrate this tangible progress. What happened to American optimism?
A new Council on Foreign Relations (CFR) Independent Task Force report, A Sharper Choice on North Korea: Engaging China for a Stable Northeast Asia, finds that the United States’ policy of “strategic patience” with North Korea will neither halt that country’s recurring and dangerous cycle of provocation nor ensure the stability of Northeast Asia in the future. To the contrary, the Task Force warns, “If allowed to continue, current trends will predictably, progressively, and gravely threaten U.S. national security interests and those of its allies.”
Steven A. Tananbaum Senior Fellow for International Economics Robert Kahn argues that at the Group of Twenty (G20) Summit in Hangzhou, China, leaders called for governments to do more to support growth, but offered little in the way of new measures. Quietly, and away from the G20 spotlight, fiscal policy is becoming more expansionary, but current policies are unlikely to provide a meaningful boost to growth or soothe rising populist pressures.
“Although short-term debt poses one of the greatest threats to the financial stability of the United States, Dodd-Frank has done little to mitigate it. Fortunately, several experts have proposed ambitious ways of dealing with the problem, including expanding federal insurance of bank deposits, allowing the Federal Reserve to lend money to more firms in the case of a panic, and banning unregulated financial institutions from issuing runnable liabilities,” writes Robert E. Litan.
U.S. officials should accommodate a larger role for emerging countries, particularly China, in the multilateral development bank system, but from a position of strength and with ambition for MDBs in U.S. policy.
Given the spectacle of this year’s presidential race, it is easy to overlook the parallel drama in the world of central banking. But when the monetary priesthood gathers Thursday for its annual seminar-cum-summer camp in Jackson Hole, Wyo., heretics will stalk the halls.
Steven A. Tananbaum Senior Fellow for International Economics Robert Kahn argues that markets have absorbed the initial economic shock from Brexit, but navigating the new landscape will remain a challenge. Two months after the vote, the politics of Brexit is producing a lengthy and uncertain renegotiation of Britain’s place in Europe and the world. Such extended uncertainty is likely to produce a long-lasting drag on both UK and European economies, which could ultimately threaten the viability of the European Union (EU).
Jane Nelson and Sarah Thorn will discussstrategies to grow women’s entrepreneurship worldwide, with a particular emphasis on the role of the private sector. They will address the importance of public-private partnerships to train female entrepreneurs and facilitate the integration of women-owned businesses into global supply chains. This meeting is part of a high-level series on women and development, generously sponsored by the ExxonMobil Foundation.
Learn more about CFR’s mission and its work over the past year in the 2015 Annual Report. The Annual Report spotlights new initiatives, high-profile events, and authoritative scholarship from CFR experts, and includes a message from CFR President Richard N. Haass. Read and download »