North Korean fireworks, Venezuelan Parliament stormed and Macron goes monarchical
North Korea’s 4 July “Fireworks”
While America was watching the fireworks on 4 July, North Korea was launching a rocket of its own. This was the first time the country successfully tested an Intercontinental Ballistic Missile (ICBM), whose trajectory led international observers to suggest that it could reach as far as Alaska. The test prompted international condemnation. The US and South Korea responded with military exercises, although this latest display shows that Pyongyang is still undeterred by sanctions and threats, given that Trump had previously said he wouldn’t allow North Korea to have ICBMs. Threatening as it may be, there is no easy way to respond to Pyongyang’s bellicosity, given the difficulty of convincing China to tighten the screws on its ally or engaging in military action in the peninsula without posing an existential threat to South Korea.
Abe’s Defeat
Japan’s ruling Liberal Democratic Party suffered an impressive defeat at the hands of the newbie Tokyo Citizens First party in Tokyo’s local legislative elections. The problem for Abe is that this was a bellwether vote, as national results usually reflect the results of the capital to a great extent. The result can hardly be seen as an Abe-rration, in no small part because the PM’s trademark policies, known as Abenomics, have fallen in popularity recently. But this is also a reaction to allegations that the premier is involved in an influence peddling scandal. The defeat represents a setback for Abe’s plans to revise the Japanese constitution, and the PM may have to change his election plans, if he intends to change his fortune.
Haiti’s New Army
Haiti’s defense minister Herve Denis said that the country will start the process of recruiting for a small army of around 500 soldiers. It doesn’t sound like much, but it is just a force intended for border patrol and post-disaster management efforts. The move comes 27 years after the President Bertrand Aristide disbanded national armed forces following an attempted coup against him — bear in mind that it was not the first of its kind in the country’s history and it’s not hard to see why Haitians are a little suspicious of their military. Additionally, MINUSTAH, the UN’s peacekeeping mission in the country, is coming to an end, with international contingents gradually being reduced. The move is controversial nonetheless, with critics saying that the money could be better spent on other things, like maintaining the country’s 15,000-strong police force.
Venezuela Parliament Stormed
Venezuela really knows how to make its way into the news. This time, nearly 100 supporters of embattled President Nicolás Maduro invaded the building of the opposition-controlled National Assembly and physically confronted lawmakers, some of whom were wounded in the struggle. Maduro called the action unacceptable and called for an investigation into the incident. The opposition wasn’t so convinced of the president’s rhetoric, with the speaker of the parliament saying that Maduro was himself the personification of violence in the country.
Good and Bad News: The DRC
Good news first. Congo has declared the end of an Ebola outbreak that lasted only 42 days and led to four deaths — less than the many thousands of casualties in the Western Africa epidemic of previous years. That counts as one less problem for the troubled Central African country to face. Don’t throw a party just yet, though. Congo’s political problems show no signs of abating, as the country finds itself on the brink of renewed armed violence if Kabila doesn’t call an election soon.
South Africa’s Reserve Bank’s Independence
The ANC, South Africa’s ruling party is proposing a full nationalization of the country’s Central Bank. The announcement, which raises serious questions as to the central bank’s independency, has sent the Rand tumbling by as much as 2 percent in a few hours, also prompting the de-listing of the bank’s shares from the Johannesburg stock exchange. This comes just two weeks after a Public prosecutor questioned the bank’s mandate and instructed Parliament to change the constitution to make the Reserve Bank focus on the “socioeconomic well-being of the citizens, not macroeconomic indicators.”
The King’s Speech: Macron at Versailles
After consolidating power in last month’s legislative elections, Macron seized the chanced to make a further impression in his state of the union address. But the place and tone of the ceremony had more than a hint of Macron I, the Centrist. This is because it is very unusual for French president to use the old palace of French kings to deliver speeches talking about their policy agendas. More often it is used in cases of national emergency or commotion. Regardless of all pomp, his address to the Estates General — sorry, the National Assembly was indicative of his will to push for important changes in the country’s political system, including reducing the size of the parliament by a third. Le réformiste, c’est moi.
Free-Trading With Myself: India’s Tax Reform
India rolled out its biggest tax reform in seven decades. It has replaced indirect central and state levies, criticised for harming economic competitiveness and fostering corruption, with a Goods and Services Tax. The ambitious reform aims to simplify the country’s byzantine (and nearly bizarre) fiscal system and boost tax revenues. In the long run, the new tax reforms could add about 40 basis-points to India’s economic growth, according to HSBC. However, ensuring small-and-medium businesses are tax-compliant is crucial, since informality is still high. At last, trade across India will finally be simple than trade with foreign countries.
Cars for Food: Japan and EU Trade Deal
Speaking of free trade, there is still hope for the tariff-averse. Officials from Japan and the European Union announced a new agreement that will allow Japanese carmaker to export their vehicles duty-free towards Europe, whereas European farmers will be able to send many products, including food, under the same condition towards the East Asian country. The deal is not yet finalized due to some technicalities that will be thrashed out within the next months, but the agreement is a blow to growing protectionist sentiments worldwide.
What you shouldn’t have missed on the Raddington Report this week:
Blood and Oil: An Uncertain Future for Iraq After ISIS
ISIS is on the verge of defeat in Iraq. With its most recent advances, Iraqi and coalition forces have retaken what’s left of the Great Mosque of al-Nuri and is advancing quickly to drive Islamists out of the Old City. But how will the country look like when ISIS is finally out, asks Emma Sky.
The Brazilian President faces another battle to stay in power. For now, he has enough parliamentary support to avoid being investigated in the Supreme Court and seems still likely to finish his term. But how many scandals will it take to force his exit?
Five Eyes Wide Shut: GCHQ Withdraws From the World?
The Five Eyes alliance is the world’s most powerful intelligence-sharing partnership, but in the UK, GCHQ is beginning to undermine the alliance’s international mission, writes Cameron Colquhoun.
Battle Lines: Lebanon and Israel Face Off
Since 2006, an uneasy truce has held between Israel and Hezbollah, but as Neil Thompson reports, action in Syria has strengthened Hezbollah’s hand, and the truce could soon come to an abrupt halt.
Swathes of America are being ravaged by the ongoing opioid abuse epidemic, affecting the poorest areas of the country hardest, and costing the US economy some $80 billion every year. Bipartisan action is needed to solve the crisis, writes Anthony Tipping.
The Iranian regime has been steadily ramping up its military and political efforts in the Middle East, with the aim of stymieing the US’s interests in the region and damaging Washington’s dominance.
Enough with words, here’s our chart of the week.
Following Volvo announcement this week that the Swedish carmaker will produce only electric and hybrid cars by 2019, we thought it would be interesting for you to see this projection of electric cars sales. Get used to the serene humming of electric engines.
Finally, if you had to see just one “Non-Netflix” video:
https://www.youtube.com/watch?v=4roHEncN9X4
We bet you’d like to see this Bloomberg backgrounder on the rise and mindset of Vladimir Putin. Statements of value aside, Russia’s president is undeniably one of the greatest influences in global affairs today, and his perceptions have molded the modern Russian foreign policy to a set of ambitious and expansionist goals.
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