Under proposed legislation to implement Mexico’s energy reforms, Pemex will remain a privileged state operator supporting exploration and production in most of the country's proven onshore and shallow water fields. It is not known if energy reform will effectively turn Pemex into a firm able to compete without policy bias against private investors.
In this article, Peter Hotez, fellow in disease and poverty, summarizes 10 of the worst global “hotspots” where neglected tropical diseases predominate.
President Obama’s commencement address at West Point on Wednesday was clearly aimed at deflecting rising criticism of his administration’s foreign policy. In particular, the speech was designed to address complaints that U.S. foreign policy under Obama has lacked strategic coherence and signaled a U.S. retreat from the international arena. The administration promoted the address as a platform for the president to describe his “vision” for U.S. foreign policy during the remainder of his term. To the extent that the speech did present a vision, it was not a particularly new one.
Narendra Modi was sworn in as India’s new prime minister on Monday, a little over a week after a landslide victory at the polls. The resounding win gives Modi much greater freedom to implement his agenda than any Indian leader in recent years, says international economics fellow Russell Green. What will Modi’s India look like, and how will it affect the U.S.? Green, who spent four years in India as the U.S. Treasury Department’s first financial attaché to that country, explains.
Talk of a “pivot to Asia” that supposedly would mark President Obama’s second term is “misplaced and even simplistic,” writes fellow Kristian Coates Ulrichsen. In a globalized world, “key U.S. relationships with strategic and commercial partners … cannot be addressed in isolation from one another. The convergence of U.S. ties and Asian ties with the Middle East is a case in point highlights how regions and issues are interconnected as never before.”
Mexico's organized crime groups have expanded into areas that include the theft of crude oil, gas and gasoline. The impact of organized crime on the energy sector is a real threat to the intended effects of Mexico's energy reforms.
Fossil fuel subsidies have allowed energy exporting countries to distribute resource revenue, bolstering legitimacy for governments, many of which are not democratically elected. But subsidy benefits are dwarfed by the harmful consequences of encouraging uneconomic use of energy. Now, with consumption posing a threat to long-term exports, governments face a heightened need to raise prices that have come to be viewed as entitlements. While reforms of state benefits are notoriously politically dangerous, previous experience shows that subsidies can be rolled back without undermining government legitimacy — even in autocratic settings — given proper preparation.
As Israeli-Palestinian peace talks "stumble toward collapse," blogs fellow Joe Barnes, the U.S. "needs a thorough rethink" about its role in negotiations.
Kenneth B. Medlock III, James A. Baker, III, and Susan G. Baker Fellow in Energy and Resource Economics, testified about crude oil production and energy trade policy before the Committee on Foreign Affairs of the U.S. House of Representatives.
Mexico’s 2013–2014 energy reform promises to bring the country’s economic drivers and regulatory institutions in line with the global practices of free market democracies. If successful, this development would be a 180-degree turn. The accomplishment of such realignment is hardly assured, however.
