Tuesday, November 17, 2009

[RED DEMOCRATICA] CFR.org Daily Brief, November 17, 2009

 

From the Council on Foreign Relations

November 17, 2009

View this newsletter as a web page on CFR's website.

EXECUTIVE SUMMARY

-Obama: praise and prodding of China.
-IAEA report demands more information on Iran's nuclear program.
-Afghanistan launches anti-corruption unit.
-Somali pirates capture North Korean tanker.

Top of the Agenda: Obama in China

U.S. President Barack Obama achieved mixed results (WashPost) during his visit with Chinese leader Hu Jintao in Beijing. Hu and Obama pledged cooperation on climate change, the economy, and military relations. Obama called for "universal rights" and talks between Beijing and Tibet's Dalai Lama. There were no deals or signs of progress on issues such as China's currency, which the United States and many of China's trading partners view as undervalued and a major cause of the trade deficits countries have with China. There was also no discussion of China's massive U.S. debt holdings, which experts say limit Obama's leverage against China.

Hu called for the two countries to oppose trade protectionism, while both Obama and Hu agreed to push for (BBC) North Korea to reenter stalled talks on its nuclear program. Obama's comments indicated hope that a deal could be struck on climate change in Copenhagen, which contrasted his less ambitious statement on the matter at the Asia-Pacific Economic Cooperation (APEC) forum on Saturday.

Analysis

In the New York Times, Niall Ferguson and Moritz Schularick say "Chimerica," a term used to describe the combination of the Chinese and American economies driving global growth, is dying and serves China better than America and the rest of the world.

An editorial in the Wall Street Journal says the U.S. currency strategy is a "dangerous game" that could result in capital controls from Asian countries trying to stem the tide of "hot money," as well as political backlash from China.

CFR's Steven Dunaway writes that China's economic growth and massive imbalances with the United States have given rise to some myths about the nature of the two powers' relationship, which can impede sound policymaking.

Background

A CFR Backgrounder examines the sizeable trade and currency imbalances between China and the United States, which have fueled tensions over China's exchange-rate policies vis-à-vis the dollar and have intensified debate over the proposed remedies to the problem.

MIDDLE EAST: Iran Nuclear Sites

A report from the International Atomic Energy Agency (IAEA) demanded more information from Iran (ILNA) about the purpose of its nuclear site near Qom, which Iran revealed to the atomic watchdog in September.

Israel: The European Union rejected a plan by Palestinian officials (al-Jazeera), backed by the Arab League, to seek international recognition of a Palestinian state at the UN Security Council.

PACIFIC RIM: Cross-Strait Banking

Taiwan announced Monday (Xinhua) that it signed several agreements with China to allow Taiwanese banks and securities companies to do business in China, a significant step in improving economic relations between the two rivals.

SOUTH AND CENTRAL ASIA: Afghanistan Corruption

Afghanistan's Interior Ministry announced the formation of a unit (al-Jazeera) that will work with American and European intelligence agencies to fight graft among Afghan senior officials amid international pressure to do more to fight corruption.

Sri Lanka: Newly retired Sri Lankan General Sarath Fonseka, widely credited for the country's military victory against the Tamil Tigers, said Monday he will announce his future plans in the next few days, which many speculate (IndiaPressTrust) will include a run for president in the next election.

AFRICA: Somali Pirates

A chemical tanker carrying twenty-eight North Koreans was hijacked by Somali pirates Monday (AP); in a second incident, pirates attacked a Ukrainian cargo ship but did not hijack it, according to the EU's anti-piracy force.

Rwanda: A UN appeals court overturned the conviction of Protais Zigiranyirazo (Guardian), the brother-in-law of the former Rwandan president who was found guilty of organizing the country's 1994 genocide.

AMERICAS: U.S. Hunger

According to the U.S. Agriculture Department, the number of people who lack access to adequate food in the United States is at a fourteen-year high of 49 million (NYT), a sign of the recession's impact on jobs and wages.

Brazil: In preparation for hosting the World Cup in 2014 and the Olympics in 2016, Brazil announced it will use unmanned "spy" aircrafts (MercoPress) to fly over shanty towns in Rio de Janeiro and Sao Paulo to combat organized crime and drug trade.

EUROPE: EU Presidency

The Financial Times reports that many European leaders, uncomfortable with the idea that a fulltime EU president might overshadow their national authority, are supporting candidates who are unknown or do not speak English.

Czech and Slovak Republics: Czechs and Slovaks mark the twentieth anniversary of the Velvet Revolution (BBC), which toppled the then-Czechoslovakian Communist government in twelve days of student protest.

TRANSNATIONAL: UN Anti-Corruption Measures

The Economist reports that citizens in many countries are dissatisfied with the effectiveness of the United Nation's Convention against Corruption, which was established to fight graft.
 

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