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How Cutting Subsidies Will Make Indonesia Richer

June 19, 2013
EAST ASIA FLASH

Indonesia, the world's 16th largest economy, is taking a great risk by moving to cut fuel subsidies for its 251 million people. The government predicts that inflation will spike and protests are likely. But over the longer term, this fast-emerging economy stands to benefit by cutting the subsidy, one of the last vestiges of its authoritarian past and, with a price tag of $21.4 billion a year, a deadweight on economic growth.
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How Cutting Subsidies Will Make Indonesia Richer
A protester listens to speakers during a demonstration in front of the Indonesian parliament against a proposed rise in fuel prices on June 17, 2013 in Jakarta, Indonesia. Thousands of Indonesians protested around the country against the controversial fuel price hike which is set to be decided by parliament Monday. (Ed Wray/Getty Images)
Japan: How Abe's Crescent Strategy Will Benefit the US

Japan: How Abe's Crescent Strategy Will Benefit the US

June 3, 2013
In an exclusive interview with LIGNET, a senior adviser to Japanese Prime Minster Shinzo Abe described how Japan is countering China’s increasingly assertive foreign policy using diplomacy. The so-called "crescent strategy" has one aim: to mitigate Chinese influence in Asia. It appears to be working, and working to the advantage also of the United States.
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Mandatory Military Service Could Break Israel's Government

Mandatory Military Service Could Break Israel's Government

June 3, 2013
Israeli Prime Minister Benjamin Netanyahu is facing the first crisis of his new governing coalition after it recommended eliminating the exemption that has allowed ultra-Orthodox Jews to avoid serving in the military. Navigating the country’s culture war is likely to be perilous for Netanyahu as one wrong move could splinter the coalition and bring down his government.
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‘Money Mules’ Pose a Serious Threat to Online Banking

‘Money Mules’ Pose a Serious Threat to Online Banking

June 3, 2013
The U.S. government is warning about a new type of cyber crime that uses so-called “money mules” to either launder money or aid in a large-scale theft that cannot easily be traced. The “mules” are often recruited online by an offer of employment and end up having money stolen funds move through their personal bank accounts. They often become the victims of theft themselves.
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China's Trade Agreement with Switzerland Is a Win-Win

China's Trade Agreement with Switzerland Is a Win-Win

June 1, 2013
In signing a free-trade agreement with Switzerland, the first trade agreement with a European nation, China is taking a first step towards trade talks and a much broader trading relationship with the European Union. Fears are spreading in Europe that cheap Chinese products may soon flood the market. But there are a few reasons these fears are unlikely to be realized, at least in the near term.
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Algerian Terror Boss Belmokhtar Taking on the World

Algerian Terror Boss Belmokhtar Taking on the World

May 31, 2013
One-eyed Muslim terrorist leader Mokhtar Belmokhtar is on a roll after masterminding two major terror operations in the Sahara this year, but he is not motivated by the usual radical Islamist dogma. His steely pragmatism combined with an indifference to religious ideology makes him a different breed of terrorist. He may lack intellectual purity and spiritualism, but he has no shortage of military prowess and tactical genius.
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Will the Bank of England Follow the US Fed’s Lead?

Will the Bank of England Follow the US Fed’s Lead?

May 31, 2013
Special Economic Analysis
by Peter Warburton, PhD

The appointment of a new governor of the Bank of England has prompted speculation in financial centers around the world of a shake-up at the bank. The appointee is a Canadian who favors an aggressive monetary policy to stimulate growth. He may want the Bank of England to follow in the footsteps of the U.S. Federal Reserve. But will he be able to make that happen?
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