sanctions

  • Playing the bad boy in Latin America is no longer the easy game it was: the FT welcomes the return of economic rationality.
  • Overfishing and pollution may be behind a rise in violent piracy and kidnapping for ransom in southeast Asia.
  • Sleeping arrangements in first- and business-class cabins are the competitive weapon of choice as airlines vie to woo the global one per cent.
  • On the anniversary of the Rana Plaza catastrophe, a Guardian interactive traces the journey (and human cost) of the shirt on your back.
  • Moscow is playing a new ‘great game’ Ukraine in which the primary tools are local assets, in the shape of Ukraine’s political and security elites.
  • The WSJ is tracking the fallout of the latest wave of sanctions in real time.
  • Nato’s eastern European members are nervous about the alliance’s ability, or even willingness, to counter Russia.

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  • François Hollande, under pressure about his private life, tried to steer the media towards his plans for the economy. See also Le Monde’s take on how he has shaken the left and disoriented the right.
  • Martin Wolf argues that it is the failure of the elite, both historically and today, that creates disaster and leads to the collapse of political order.
  • Policy should focus less on the jihadis and more on the conditions that engender them, argues David Gardner.
  • See what it is like to seek refuge in Europe with this Guardian interactive.
  • European intelligence agencies secretly met Bashar al-Assad’s delegates to share information on European extremists operating in Syria, the Wall Street Journal reports.
  • Executives from some of France’s biggest companies will fly to Tehran next month – signaling a wave of corporate interest as the west eases sanctions.
  • A “whirlwind of reversals, about-faces, and false starts has locked Egypt into a revolving cycle, if not a downward spiral”, say Peter Harling and Yasser El Shimy.

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(Getty)

Hassan Rouhani, Iran’s centrist president, last week marked his government’s 100th day in office by releasing a report on the economy. It painted a grim picture, but rather than blame this on international sanctions Mr Rouhani said the populist policies of his predecessor, Mahmoud Ahmadi-Nejad, were largely responsible for the mess.

Mr Ahmadi-Nejad’s government enjoyed a record $600bn in oil revenues during eight years in office – the equivalent of what the country had earned in the century since it first discovered oil.

Despite the boost in income, Mr Rouhani said he inherited an empty treasury, at least $80bn in debt and a combination of high inflation (40 per cent) and economic stagnation (the economy shrank by 5.8 per cent), which was unprecedented in the past 50 years. “The previous government was the wealthiest and most indebted government,” he said.

Many economists are asking how any government can inflict such damage on an economy during an oil boom, with some saying Mr Ahmadi-Nejad’s policies should be taught in economics courses to show how a populist president can turn golden opportunities into disasters. Read more

Gideon Rachman

Tajrish Bazaar in Tehran (Getty)

Whenever there has been talk of bombing Iran’s nuclear programme, the hawks have been urged to “give time for sanctions to work”. This appeal always had a slightly desperate sound since, for the past decade, there has been precious little sign that international pressure was capable of making the Iranian government re-think. But, finally, things may be changing.

Following the EU’s oil sanctions and America’s financial sanctions — as well as the various UN packages — the Iranian economy really seems to be buckling. Yesterday saw angry demonstrations on the streets of Tehran, amidst more or less open infighting among the top leadership. The official inflation rate in Iran is only 23.5 per cent. But this article argues convincingly that Iran is already suffering from hyper-inflation.  Read more