May 17, 2013
The agreement between the United States and Russia to hold an international peace conference on Syria next month could very well undermine the Syrian opposition’s recent gains and set back the support that had been growing in Washington and Brussels for arming the rebels. As such, it has raised suspicions among some observers that the West is not leading on the issue of Syria: It is selling out.
Is the West Selling Out on Syria?
US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov speak at a joint press conference in Moscow on May 7, 2013. Kerry and Lavrov agreed to push both the Syrian regime and Syrian rebels to find a political solution to the two-year-old Syrian civil war and to hold an international peace conference. (KIRILL KUDRYAVTSEV/AFP/Getty Images)
Libya Struggles to Find Way Out of ‘Militia Problem’
May 6, 2013
Militias remain a major threat to stability and democracy in Libya and there is little chance the government will be able to rein them in. Instability is likely to increase over the next several months as militia members attempt to influence the political process and the government remains powerless to bring them under civilian control.
Turkey: Strong Start for Peace with PKK, But Obstacles Remain
May 6, 2013

After three decades of conflict, peace could now be possible between the Turkish government and the Kurdistan Workers Party (PKK) due to an odd mix of negotiations with the PKK’s long-imprisoned leader and a common interest in ousting the regime of Syrian President Bashar al-Assad. Prospects for the agreement are good but there is much that both sides must do to ensure the success of the peace process.

Israel Throws in with Syrian Rebels with Strikes on Damascus
May 5, 2013
SITUATION REPORT
 
A second round of Israeli airstrikes on Syrian targets in three days could indicate that Israel is not just attempting to stop weapons transfers to terrorist groups but is trying to bolster the Syrian rebels. The attacks also probably indicate Israel sees a rapid deterioration in Syria that is increasingly threatening its security.
Italy: A New Prime Minister, But Maybe Not a New Day
May 3, 2013
Markets may have been relieved by the formation of a national government in Italy two months overdue, but there is still plenty of reason for worry. If the new prime minister, Enrico Letta, reverses the budget cutting done by his predecessor as he has promised, Italy could quickly become economically unstable.  If he does not, Italy could quickly become politically unstable. It does not seem likely that Letta can succeed unless Europe's situation sees significant improvement.
China: Is Debt Spinning Out of Control?
May 3, 2013
Special Economic Analysis
by Peter Warburton, PhD
 
The Chinese government has a love-hate relationship with domestic credit expansion. For the past two years, Chinese authorities have sought to clamp down on credit excesses that helped fuel a property boom. Now, as the economy is struggling to regain the desired momentum, it seems that the credit spigots have been opened wide again. Last month, both Fitch Ratings agency and Moody’s Investors Service expressed their concerns, downgrading China’s credit rating and lowering its outlook, respectively.
US-South Korean Military Exercises Proved US Resolve
May 3, 2013
The eight-week annual U.S.-South Korea military exercise ‘Foal Eagle’ that ended quietly this week was considered successful and sent a strong message to North Korea. Although tensions with the North rose to extremely high levels during the exercise, the situation has eased over the last few weeks and diplomatic talks look likely by the end of the year.
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