Zone 3- Euro-Americas Summary Week # 135

WESTERN EUROPE

Political Issues

European Commission chief Jose Manuel Barroso has thrown the blame of low confidence in EU on member states, he alleged that member states are yet to personalize EU projects as theirs and are simply trailing for the benefit of their own state. He further holds that Euro is a success story and member states would not be able to manage global financial crisis independently.

The consensus by EU members to have a pan-European financial supervisor was referred to as a crucial political landmark. The European Commission, the European Parliament and the EU member states reached a political deal to set up a European Systemic Risk Board and three separate agencies to monitor securities, banks and insurance companies as measures to guard against the repetition of another financial crisis.

The European External Action Service (EEAS) is expected to nominate competent diplomats for its missions abroad, but Catherine Ashton is still vetting diplomats to be chosen and also waiting for parliament approval.

EU-Russia visa regime is now shouldered on the proposal of Poland, although Warsaw agreed to Russia being incorporated into the visa-free travel scheme but only if the EU at the same time promises in future to lift visas for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine as well.

The European Union has dropped plans to offer Israel data sharing access after pressure from the Irish government. The reservation by the latter owes to the complicity of the Israeli government in eight forged Irish passports alongside a number of falsified passports of other EU states.

In a new book by former UK PM Tony Blair, he refuses to regret his Iraq policy but is remorseful for the death count the war produced. The book shows Blair also insinuated military action on Iran over its nuclear issue. He also accuses ex-PM Brown of terminating Labour rule because of zero ‘emotional intelligence’. Meanwhile in Dublin thousands staged protest against Blair, accusing him of war crime.

The new leadership of the British Labour party is yet to be determined, but the Miliband brothers along with other candidates are struggling to hold the seat left by former PM Gordon Brown. There has been much speculation that David Miliband is more likely to be chosen.

Economic Issues

Production level in Eurozone during the month of August went down in comparison to the industries in China, India and Russia. Although there was little push in retail sales in the Eurozone, nonetheless, retail sales fell by 3.0 % in Spain and 0.3 % in Germany.

Meanwhile the EU is venting its concern over China’s protectionist policy and the inability of China to keep to open market promises as EU companies are denied access to the airline reservation, automotive, construction, insurance, oil refinery, research and innovation and telecommunications sectors in China.

British oil giant BP revealed that the devastating Gulf of Mexico oil spill disaster has cost it eight billion dollars so far. Meanwhile, BP is complaining against the intended suspension on offshore drilling, a move that will further affect BP’s finance.

The French government is either recruiting enemies or shutting door on friends, the streets of France is expected to see another wave of protest against government plan to increase the retirement age from 60 to 62. This will add to the already present frenzy over Roma expulsion.

Social/Humanitarian Issue

Immigration remains a debatable issue in Europe, the Council of Europe recently slammed Greece for its immigration practices. Asylum seekers in Greece face enormous difficulties trying to gain access to the asylum procedure and not being granted basic safeguards.

The European Commission is investigating the legality of forceful expulsion of Roma by the French government. The EU is concern about the implication of such development which could add to the increasing trend of xenophobia and racism in Europe.

Amid the huge criticism surrounding the Roma expulsion, French far-right politicians as well as their counterpart across Europe believed the expulsion was right in order to create social order.

Geostrategic Issues

EU's trade chief has apologized for his comment about the Jewish lobby stating he believed them to be very powerful and road blocking the Middle East peace process. The comment irked Jewish organizations in Europe terming it is another form of anti-Semitism.

The European Union is expected to examine the proposal of Libya and the whole of North African seeking handsome EU funds in order to help reduce the tendency of using North Africa as transit route into Europe.

The arrest of two Yemenis accused of conspiring to commit terrorist acts has further raised security concern between Washington and Amsterdam.

The British government has debunked the press rumor that London and Paris are about to end their centuries rivalry and pool together resources in the area of military vessels. The authenticity of the rumor remains unclear till both parties meet in an October summit.

International Atomic Energy Agency has repeated request to Israel to join the nuclear regime (NPT) but Israel believes the new plea is tailing the desire of Arab states and particularly Iran and Syria to distract attention from their nuclear issue.

EAST EUROPE

Political Issues

Albania will have to prove to the rest of the region and to EU in particular that it is politically mature. The ruling and opposition parties have been in a year old deadlocked over election irregularities and the move to reform electoral rules is yet accomplished. Despite its political problem, Albania is still struggling to fulfill certain EU requirements before it could be incorporated into EU visa liberalization scheme.

If the political and economic uncertainty in Bosnia and Herzegovina (BiH) remains same, the ethnically divided country might continue to lose its human resources in the form of its youth’s exodus from the country. BiH like Albania is still waiting for EU approval on its request to join the visa liberalization scheme.

Romanian government has received the appreciation of the EU for its judicial reform geared at combating organized crime and structural corruption in the country. Meanwhile, ethnic Roma in Romania are prepared to boycott French products in response to the expulsion of Roma from France.

Poland and the league of ex-communist EU members Hungary, Slovakia and the Czech Republic called on the EU not to slash European Union funds for poorer member states.

Meanwhile Ukraine's parliament has approved amendments to the Law on Local Elections proposed by President Viktor Yanukovych to allow all political parties to participate in local elections set for Oct. 31.

Economic Issues

Robert Zoellick, president of the World Bank, has praised the Bulgarian government's efforts to fight corruption and organized crime, and to fully integrate the country into the EU. Such praise will also be true for Serbia from IMF that has appreciated the pace of Serbian economic reform.

Although Poland’s gross domestic product rose at an annual rate of 3.5% in the second quarter, yet the government is proposing levying banks in order to reduce the burden of deficit on state. Indo-Polish economic ties have grown beyond $1 billion, since the opening up of Indian economy in 2001. Both countries further cemented bilateral ties during Polish-Indian Investment Forum jointly organized in Bangalore by Confederation of Indian Industry.

It is a political action but with economic undertone. The Czech government has decided to close its embassies in Congo, Venezuela, Kenya, Yemen and Costa Rica and consulate in Mumbai will also be affected as part of the Foreign Ministry's budget saving plan. Meanwhile, the government is pursuing a plan to attract Czech researchers living abroad back to their home country and to stop migration of Czech labour forces.

The prime minister of Slovakia said overly indebted countries should be forced into bankruptcy, not bailed out, in a sign of the tensions roiling the European currency bloc in the wake of the Greek crisis. He said the so-called stability fund set up this year in case other European countries need financial rescue, is likely to cause more problems than it will solve. Meanwhile, Slovakia's economy expanded by 4.7 % year-on-year in the second quarter of 2010 and the government is working towards extinguishing the menace of unemployment.

Recent Ukrainian President Viktor Yanukovych’s visit to Berlin depicts that Ukraine is not solely dependent on Russia but equally open to the west. Yanukovych urged Germany to increase investments in his country, although Germany is currently a leading investor to Ukraine. Meanwhile if the national parliament approves the new tax code, it is likely that Ukrainians will have the lowest taxes in Europe.

Hungary's Prime Minister Viktor Orban believes it was in the country’s interest to sign loan agreements with the IMF if necessary but it was not in the country's interest to have economic policy agreements with the Fund. Unemployment in Hungary is a concern and the government has pledged to create one million jobs over the next ten years, an ambitious plan that would help bring the country’s employment rate up to 70% by the year 2020.

Investments in Belarusian food and drink sectors are showing sign of growth as the economy shows signs of recovery.

Estonia hosted the world through its Estonia's Friends International Meeting. The initiative was an avenue for world dignitaries in all fields of life to discuss how Estonia could survive in the increasingly expanding global economy and to improve its chances for success in the global marketplace.

Lithuanian central bank said in a recent report that rising food prices and a recovery in consumption is likely to push-up Lithuanian inflation rate this year and the figure would surpass the previously estimated mark.

Latvian economy has received a new rating from the financial rating agency Fitch, according to the latter, Latvian economy now stand at stable away from it previous negative status. This is a boost for Prime Minister Valdis Dombrovskis ahead of October 2 general election. Yet, data from Latvia’s State Employment Agency (SEA) last week showed that registered unemployment rate in the country stood at 15%.

Recent remark by Ukrainian Prime Minister Mykola Azarov that Russia’s gas prices to Ukraine are too high and unfair has been met with astonishment.

Social/Humanitarian Issue

Giving the social implications of alcohol on the society, Russian authority has been on a debate whether to ban the sales of alcohol beverages, including beer, at night time. If such ban becomes a reality, Russia will be reversing to Gorbachev's Dry Law. However, Russia's Finance Minister Alexei Kudrin has offered rather unconventional advice saying citizens should smoke and drink a greater deal, as higher consumption would help lift tax revenues for spending on social services.

Unabated violence in Chechnya and other Caucasus regions of Russia and redhead hooliganism are terrorizing moments for the people.

The small Baltic state of Estonia is not holding back from participating in humanitarian effort in the flood affected areas of Pakistan; two Estonian experts have been sent by the foreign ministry on a rescue mission to this effect.

Social/Humanitarian Issue

In the Balkans cases of ethnic cleansing continue to be revisited and last week prosecutors at The Hague Yugoslav war crimes tribunal concluded that Croatian forces intentionally killed and expelled Serb civilians during the 1995 campaign.

The Serbian government is assuring Austria for an investigation over the activities of Austrian Hypo Alpe Adria Bank which is suspected of laundering money for an alleged drug boss.

Geostrategic Issues

Already 69 countries have recognized Kosovo’s independence but that is not enough for Pristina waiting for the CARICOM, an organization of 15 Caribbean nations. Kosovo’s independence remains a matter of contest with Serbia.

Serbia is expected to open NATO’s mission in Brussels, however Serbia’s membership of NATO is still in the pipeline

The new Polish leadership is geared at reviving the Weimar Triangle (Poland, Germany and France), where Polish President Bronislaw Komorowski has made it one of his top foreign policy goals.

The Czech Foreign Affairs Minister Karel Schwarzenberg was among those whose attention was captured by the repatriation of Roma from France. As a member of EU, the foreign minister has voiced his concern against Paris’s tough policy

RUSSIA

Political Issues

According to reports public harassment of political demonstrators in Russia indicates that Russian authority is not ready to accept the freedom of expression of political opposition. Prime Minister Putin holds a clear view, no permission no demonstration

Economic Issues

It was a good week for the Russian stock market seeing a gain in the oil sector. Oil, Russia's main export earner advanced as much as 1.7 % to $73.76 a barrel in New York. Same good news will be true for Gazprom with a net income reaching 325 billion rubles ($10.6 billion) from 103.7 billion rubles a year earlier. Gazprom also plans to continue lowering its debt burden.

Comparably, the gap between the rich and poor is said to be closing up in Russia when measures with other BRIC countries. The trend is associated with the growth in Russian economy in the last decade which is more pronounced by Russia energy predominance.

Food, Environment and Energy Issue

The aftermath of wildfire in Russia forced the government to propose a ban on wheat export, but according to PM Putin that could be changed and lifted if the 2011 harvest is forthcoming. President Medvedev is worried that current hike in food price could affect public participation in 2012 presidential election.

It is a fulfillment of promise and a contract accomplished as Russian engineers have started fueling Iran’s Bushehr nuclear plant for the next 10 years.

The expansion of crude oil pipeline from Siberia to China by Russia greases the relations between the two BRIC members. Russia is the world's biggest energy producer and China is the world's largest energy consumer, both statues show they have to be energy responsible countries. Similarly Azerbaijani has agreed to increase its gas supply to Russia for the next two years after a meeting in Baku of the leaders of both countries.

Geostrategic Issues

Armenian government has approved the elongation of Russian military base in the country till 2044. It is also good news for Russia as Turkey’s new foreign policy of “zero problems with neighbors” drops Moscow from Turkey’s threat list.

US/CANADA

Political Issues

Once again poll conducted by Associated Press-GfK shows the strong disapproval for the way President Obama is handling issues that matter most to Americans. The state of the economy is the heart of the issues, even though nine of 15 issues examined show that the November election will be difficult for Democrats. Among potential issues for the November midterm elections is income tax, the president intends not to extend tax cut but to increase it for wealthy Americans, while at the same time reducing tax for the middle class.

The commanding tune of the tea party amid midterm election is driving the view that the tea party is the new Grand Old Party. They are simply against the establishment, wanting a change, unhappy with huge federal spending and above all against tax on the rich. The rhythm of the tea party is forcing the republican establishment to change their policy in order to suit the mantra of the moment. .

Despite the usual fluctuation in rating, none of the Canadian political party leaders are ready for parliamentary elections. The minority conservative government has frequently seen agitations from the liberal opposition and had a popularity drop over vital issues.

Economic Issues

Preceding the midterm elections Obama recently announced that his administration will bolster the economy with new initiatives. Meanwhile the general economic statistics could be troubling but New York is proving to be different with substantive sign of recovery. Joblessness, housing and business as usual are picking up, though the scar of the recession is not totally out of the picture.

Full Canadian economy recovery is still underway if the latest report of the country’s GDP is true. Canada recorded a gross domestic product grew 2.0 % at annual rates, sharply down from 5.8 %, coupled by weaker consumer spending and trade performance and a fear of interest rate hikes by the Bank of Canada.

Meanwhile the take over of a Canadian company by a Chinese company is foaming a great concern in Canada even though the deal is favorable. The concern evolves around customers’ jobs and government revenue.

Social/Humanitarian Issue

Tolerance, independence and leniency are the traits that strike the difference among Canadian, Italian and French parents. The assertiveness of the two latter makes them distinctive from the tolerant and individualistic oriented Canadian parents as suggested by a receive study.

According to an analysis of 2009 census data by the Pew Hispanic Center, illegal immigration into the United States has dropped in two decades. The report indicated that illegal immigration from Caribbean, Central America and South America declined due to the souring American economy, violence across the border and tougher enforcement of immigration rules.

Food, Environment and Energy Issue

BP is warning Congress that if lawmakers pass legislation that bars the company from getting new offshore drilling permits, it may not have the money to pay for all the damages caused by its oil spill in the Gulf of Mexico.

Geostrategic Issues

As the White House restarts peace talks between Israeli and Palestinian, President Obama believes the atmosphere should be filled with cautious hope, owing to the sensitivity of the protracted conflict. But more importantly Washington will be a participant than just a facilitator in the talks so as to ensure constructive talks.

LATIN AMERICA

Political Issues

In Brazil it is increasingly evident that Ms. Dilma could replace President Lula when he leaves office in January. Available polls suggest that Lula’s candidate has outmatched other aspirants in popularity for the forthcoming Brazilian election.

The importance of Brazil in regional politics was highlighted by the visit of the Colombian President Santos, his first after having been sworn in as president, to Brazil.

Political unrest in Mexico is increasingly turning out of balance. The cycle of violence is severely hampering socio-economic and political life of the country.

Venezuelans are preparing for parliamentary election and the election results will determine if Chavez’s socialism still carries weight among the people.

Economic Issues

Planning ministry of Brazil has displayed figures which further points to the bubbling trend in the Brazilian economy. 2011 is expected to witness greater economic growth around 5.5%.

Food, Environment and Energy Issue

Argentine’s JBS, one of the largest beef exporters in the country is concerned about the new government policy to increase tax on cattle and beef export. JBS believes the new tax could affect the beef export if the government is bent on pursing the policy.

President Lula has finally approved the controversial $11 billion Belo Monte Mega Dam at Xingu River in Amazonian state of Para. This is probably the largest project of Lula’s administration and has raised the eye brow of Amazon’s environmental, religious and Indian peoples’ organizations over the environmental implication of the dam.

The reconstruction of Chile after the devastating earthquake remains a worry for the government; the latter is struggling to rebuild houses and other social infrastructures.

Geostrategic Issues

The Argentine government is strengthening ties with Armenia, as the new Latin America country opens it embassy in Armenia.

Brazil and New Zealand have inked agreement on visa free regimes that permits citizens of both countries to travel, do business and stay for duration of one year.

BRIC members are beginning to vet the possibility of South Africa’s membership after President Zuma requested to join the group. Johannesburg is believed to be a potential candidate as well as Mexico and South Korea.

Cuban leadership while lauding President Chavez’s effort of repairing ties with Colombia and Havana has voiced its hope that Chavez will continue to rule the country owing to the benefit his socialism has brought about.

AUSTRALASIA

Political Issues

Latest Australian survey suggests that most Australians want the country to be a republic but that number has slumped to a record low in 16 years. The survey suggests that Australians will want their country free from the British monarch after the reign of Queen Elizabeth II

Meanwhile the Australian political deadlock moved into another week, without the two bigger parties forming the government. However, now the labour party has gained the support of two smaller parties, giving Australia a coalition government.

Economic Issues

Despite the cloudy political weather, Australian economy clocked a remarkable growth as consumer spending and mining exports soared. The latest economic status gives room for a better forecast in months to come.

Social/Humanitarian Issue

The Australian government will have to take cautious and quick decisions in resolving its present immigration processes for asylum seekers due to the frequent outbreak of disturbance at Australian’s refugee camp on Christmas Island. §

________________________________________________________

Business and Politics in the Muslim World (BPM)refers to the project entitled, "Globalized Business and Politics: A View from the Muslim World.' The blog development project has been undertaken and jointly developed by the Gilani Research Foundation and BPM as a free resource and social discussion tool.

Please Preview your comments before posting.

Zone 3- Euro-Americas Summary Week # 134

WESTERN EUROPE

Political Issues

According to the latest Euro barometer survey, almost half of EU citizens believe their countries membership of the EU has yield little as unemployment and a troubled economy grips the bloc. The survey showed that the dissatisfaction for EU is issue centered; disappointment was astonishingly less salient among countries relatively hit by the economic crisis. Nonetheless, the EU still sees its confidence level much higher than national governments and parliaments.

The extent to which EU should meddle in national affairs of its members is one of the troubling debates within the bloc. EU integration though success has not be immune from contentious issue of red line between the EU and member state. In a recent ruling by the German constitutional court, the court ruled that EU decisions may only be checked if European institutions seriously overstep their powers.

Roberto Maroni, Italy's interior minister projected the anti-immigration policy of his government as he wanted the EU to grant Italy permission to deprive Roma from free movement in Italy. His argument revolves around the economic burden posed by the illegal immigrants, yet it is unlikely the EU would consent to such a demand.

Meanwhile the EU is concerned over recent expulsion of Roma by the French government. Viviane Reding, the European commissioner for justice is set to investigate whether France has violated EU law. This same concern is shared by UN anti-racism panel asking Paris to avoid collective and mandatory repatriation, discriminatory statements and should rather address the Roma issue on individual circumstances. The Roma issue did not fail to capture the attention of the Vatican, asking France to be modest in its action, Paris however reminds the Vatican of separation between religion and the state.

Iran is not just under the UN or western radars for its nuclear activity but it is once again criticized for ill treatment of minority ethnic groups. According to the U.N. Committee on the Elimination of Racial Discrimination, minorities in the Islamic republic are not on same page with ethnic Iranian in term of freedom of expression and access to social services.

The death of three Spaniard troops in Afghanistan has reawakened the public resentment towards the Afghan war. The public wants Spaniard troops out of Afghanistan, even though the Socialist government has not yet revealed any timetable for such public bidding.

Economic Issues

Last week recorded a strong European market after months of market drops. The rebound could be linked to the soaring German economy and at the same time due to the recovering trend of equities in Asia and on Wall Street.

In an economy just rolling out of recession and still relying on foreign financial assistance, payment of pensions has been largely paid to ghost pensioners. Greece’s Deputy Labour Minister George Koutroumanis disclosed that hundreds of wrongful pension are paid to dead names still on pension list..

The new levy about to be introduced by the German government is a clear message to financial institutions that they can always help themselves in times of crisis if they had prepared for the unexpected. The German government wants to start levying banks and to use the proceeds of the levy in bailing out banks during crisis instead of leeching taxpayers.

Social/Humanitarian Issue

Humanitarian efforts by the EU for the flooded people of Pakistan remains ringing news, as EU fears that its huge effort is being undermined by threat of Taliban and inaccessibility of the most needed to its aid. EU’s effort has once been challenged as meager. The EU has donated more than half of the benchmark stated by the UNO.

There might be certain concern from Washington on the need for transparency in the funds for flood crisis in Pakistan, but exigent approach to the crisis in more a concern for U.N.'s International Telecommunication Union asking donors to wire money to the National Bank of Pakistan or Switzerland's UBS AG to "assist the flood-affected victims" and rebuild telephone networks.

The British government is pondering on how to resolve the increasing number of prison inmates in the country. Some policymakers hold the view of short time prison sentence while other believe community sentences will better reduce the tendency for re-offending. Meanwhile, Royal United Services Institute is also alerting the British government of how British jails are potential breeding ground for terrorists.

Net migration to the UK rose by more than 20 percent last year to 196,000 from 163,000 in 2008. The figures from the Office for National Statistics showed the number of immigrants arriving in the UK in 2009 fell by 4 percent to 567,000, from 590,000 in 2008. However, the number of people leaving the country last year dropped further by 13 percent to 371,000, from 427,000 in 2008.

Geostrategic Issues

German foreign minister Guido Westerwelle visited Serbia and restated EU stance that Kosovo’s independence is a dawn reality, asking Serbia to see that the map of southeast Europe is completed. EU wants Serbia to mellow down her rhetoric after the ICJ’s ruling though Belgrade still wants UNO to debate on the contentious issue.

The imprisonment of a non violent Palestinian activist by the Israeli government has raised the eye brow of the EU foreign policy chief Catherine Ashton. Her critical assessment of the judgment was resented by Israel as unusual and unworthy of a foreign dignitary to interfere in domestic affair of a foreign country.

EAST EUROPE

Political Issues

The Dutch government rejects any complicity in the Srebrenica massacre, on the pretext that during the war Dutch troops were only acting under the banner of the UN; however a new investigation sponsored by the relatives of Srebrenica massacre victims is about to begin in the Dutch city of Arnhem to investigate the role of UN-Dutch troops in the massacre.

The US officials in the region are not desisting from dissuading Bosnian Serb authority not to make a parallel between Kosovo and Republika Srpska (RS). Washington insists that as an entity of BiH, it has no right to secede.

Romanian government has thrown its support behind the territorial integrity and sovereignty of Moldova, against the secessionist Transdniestr. Transdniestr is a breakaway territory between the Dniester River and the eastern Moldovan border with Ukraine. Transdniestr is trying to use Kosovo as a case precedent to secede from Moldova.

The European Commission shows its appreciation at the pace of Croatia-EU accession. Zagreb has managed to close 22 out of 33 chapters and there is a forecast of Croatia being the next EU member.

In the wake of the ICJ ruling in favor of Kosovo there has been huge condemnation for the independence rumors aired within Serb dominated north of Kosovo. The Kosovar government has pledged to extend 13m euros to the municipalities run by Kosovo Serbs, an effort expected to bait the north from the unruly conduct.

The fight against corruption and organized crime has become a joint effort across the region; it has led to different extradition agreements. Serbia and Montenegro inked similar agreement and hope solving cross border crime through it. Meanwhile, Montenegrin NGOs are resenting the new drafted anti-corruption strategy and action plan by the government on the ground that they were not consulted in making it and the draft does not really address ground reality.

Similar action was seen in Romania, as the Romanian parliament passed the state anti-corruption bill, which was adopted in the 137-seat senate by a vote of 78-0, with one abstention.

Economic Issues

IMF mission head Albert Jaeger praised Serbia’s government prudent fiscal policy and stressed the importance of adopting a law on fiscal responsibility. However, Jaeger rejected Economy Minister Mladjan Dinkic's proposal to raise public wages and pensions as early as next month due to the lower than expected government deficit.

Social/Humanitarian Issue

People across the religion commemorated the 100 years birthday of Mother Teresa, acknowledging her dedication to humanity. In Kosovo, authorities released a postage stamp in her honour.

According to reports an Albanian song praising Osama bin Laden in Macedonia resonates the view that there is a soft corner for extremism in the region.

Food, Environment and Energy Issue

Albania is facing its share of the global climate change as wildfire grips the country. The fire is reported to have engulfed hectares of vineyards and olive groves.

Geostrategic Issues

Bulgarian and Romanian government do not find the forceful expulsion of ethnic Romas from France satisfactory. Both countries have shown their resentment and the European Commission is urging Bucharest and Sofia not to allow the incident to influence their ambitions to join Schengen.

RUSSIA

Political Issues

President Dmitry Medvedev has rejected the proposal by Chechnya president, who wanted the title of president to be limited only to Moscow rather than being a common title for all regional heads. Medvedev holds that such an issue would be better decided by the federation themselves.

Economic Issues

As part of the general economic policy, Prime Minister Vladimir Putin intends to raise import duties on foreign cars to encourage international car producers to build new plants in Russia and to boost the local market. Meanwhile, The Russian presidential council for financial market development believes that making Moscow an international financial hub is only possible through federal, state and private support. The council rejected an initiative put forward by the Moscow Mayor to spend some 4 trillion rubles ($130 billion) over the next 10 years to be shouldered alone by the federal.

Social/Humanitarian Issue

Russian authorities are still struggling with piracy which has turned itself to threat for the economy and at the same time denting the country’s image.

As people around the world celebrate the 100 years birthday of Mother Teresa, Russian authority has planned to erect her monument as recognition for her dedication to life and the helpless.

Food, Environment and Energy Issue

Russia-Iran relations have been a bit sour recently but putting a finishing touch to Bushehr nuclear plant by Russia has reduced that sour rapport. As Russia fuels the plant there has been angry resentment from western and Israeli observers which Russia is trying to water down.

Russia is expected to further extend its gas tentacles to Asia as Moscow and Beijing enter into a multidimensional pipeline project, while Novatek also finding direct route to export its liquefied natural gas to Asia.

The summer heat wave might be subsiding, but the havoc created by the natural disaster is something that Russians will have to over come in due course of time.

Geostrategic Issues

Washington has again lauded the support given by Russia for the new UNSC sanctions on Iran. According to a report both capitals believe they share similar concerns over Iran and the latter having nuclear bomb is more dangerous for Russia as a neighbor. Meanwhile Israel is also not comfortable with sale of Russian weapons to Syria.

Russia and Armenia in recent times are ganging up in finding solutions to the protracted border issue in the region and more importantly to increase bilateral ties. Leaders of both countries met during the Collective Security Treaty Organization (CSTO) informal summit held in the Armenian capital on August 20-21. meanwhile according to reports the French President Nicolas Sarkozy is proposing a new cooperation that will include Russia, EU, NATO and the Organization for Security and Cooperation.

Despite its two years support for South Ossetia and Abkhazia’s independence, the secessionist state has not been able to sustain peace. Georgia remains irked at Russia’s 2008 attack and its support for South Ossetia’s independence, which Georgia still counts as its part.

US/CANADA

Economic Issues

American public and political opponents are asking President Obama about the extent to which his stimulus package has brought a change to the economy. Americans bearing low purchasing power and facing housing crisis as well as irked wealthy equally complaining of tax hike have voiced issues that are expected to be flared up by republicans as the midterm elections draw in.

American National Center for Health Statistics declares a striking figure pointing at the declining rate of birth rate in the country. According to the centre, birth rate dropped for the second year in a row since the recession began in 2007. Births fell 2.6 percent last year even as the population grew. Interestingly, the uncertainty economic is said to be accountable for the drop.

Canadian banks recorded a profit fall more than expected due to weak trading income, a signal that recovery is still underway.

Social/Humanitarian Issue

The proposed mosque near Ground Zone in the US is expected to be listed as part of a tax-free financing institution, if the mosque could demonstrate an ability to pay off borrowed bonds and comply with the laws concerning tax-exempt financing, which requires that such institution will benefit the general public and their religious activities are funded separately.

The American mosque debate has raised questions across the globe. For some the debate further reiterates America’s hatred for Islam, while some in Europe believe America is now waking up to its own debate of Muslim visibility in public sphere. But Americans are still confident that their society gives room for debate in comparison to other societies.

Food, Environment and Energy Issue

The oil spill on the Gulf of Mexico has brought gain and loss simultaneously. For some the cleanup processes increased their sale tax revenue and boosted their businesses, while other remained shattered by the growing fear that the areas around the Gulf is un-conducive for business as usual. But the greatest concern for both parties is the uncertain moratorium on oil drill; if it becomes effective, it will further exacerbate the level of unemployment and hikes energy price for the areas and country at large.

Meanwhile the inquiry panel asked to investigate the spill on the Gulf of Mexico was not satisfied with BP’s response. The company is not ready to single out anyone as responsible for the accident instead stood by a company-wide safety culture that ensured every employee is responsible.

LATIN AMERICA

Political Issues

The Internet has taken Brazilians to another level of electioneering process as presidential candidates avail Internet social networking sites for campaigning. The new avenue is adding to the print and electronic platform for political participation as more youth are indulged. Meanwhile, Ms. Dilma Rousseff is still riding on President Lula’s popularity though Lula himself is criticized for one sided support of a particular candidate.

For newly elected Colombian President Santos many issues would need streamlining in order to place the country on a right track. After Colombian constitutional court ruled against having US military base in the country, the president has started contemplating reviewing the military agreement and at the same time trying to find a soft negotiation platform between the state and the troublesome FARC rebel group.

If the survey result that only 36 percent people of Venezuela wants Chavez once again in power should be trusted then that is an indicator of fall in Chavez’s popularity. Chavez’s policies have been widely criticized as undemocratic and tramping on private ownership.

Economic Issues

Being the largest Soy oil exporter, and 75% of its Soy oil worth $1.4 billion remained un-purchased by China, this will be devastating to the Argentine economy. Both countries have been at trade loggerhead, Argentina has been blocking China from dumping its textile and edible into local market, leading China to stop the import of Soy oil.

Brazilian finance minister envisages an economic growth up to 7%, but not without a controllable inflation. Meanwhile a bi-partisan speculative report by the US Congress supports the plea of South Africa asking for the membership of BRIC.

Venezuela’s central bank reported that the economy of Venezuela shrunk 3.5 percent in this year as compare to the previous year and its oil sector and private sector is further speculated to have decline.

Social/Humanitarian Issue

The Brazilian government has extended its humanitarian hand to Pakistan’s flood affected victims; a total of $1.2 million in aid has been donated through UNHCR to Pakistan.

Food, Environment and Energy Issue

Argentine President Fernandez Kirchner is tussling with Royal Dutch Shell PLC. The company is challenging the government for trying to take its prerogative right of oil price increase, as reported agreement between Shell and the government only grants such right to Shell.

In Brazil, Petrobras is set to commence a deepwater oil exploration with 5 billion barrels of oil shares which is opened to investors. Meanwhile, Brasilia is intensifying effort to make its environment cleaner, sustainable and manageable through a climate fund, which enjoins all stakeholders benefiting from environmental resources to pay into the fund.

The Chilean government is seeking NASA’s help to authenticate the fate of trapped Chilean mine workers.

Despite Mexico being in the spotlight for drug related crimes, El Salvador, Honduras and Guatemalan have been singled out by a UN report as countries having top murder cases.

Cancun state of Mexico is expected to host the world for another round of talks on climate change, where Mexico is wooing neighbors to take active role in the conference.

A report by the UN and a New York Times’ article alleges that Chavez’s government is clamping down on opposition and there is little or no freedom of expression in Venezuela.

Geostrategic Issues

Brazilian President Lula is increasingly expanding his diplomatic clout in global affairs. Yet again Tehran is asking him to mediate with Council of Vienna over its nuclear impasses. This could be another chance for Lula to further engrave his statesmanship status.

Colombian President Santos will be credited for friendly policy towards neighbors. The new administration is geared at resolving Colombia’s long brawl with Venezuela as both countries have entered different levels of agreement under the auspices of UNASUR and active role of Argentina and Brazil

The tempo of drug war is increasingly becoming a regional menace and Mexico is at the top of the issue. The recent rampage in Mexico intensified this concern and Mexico is calling on regional governments for consolidated effort at rooting the menace out of the region. Meanwhile Mexicans are still grappling with the debate of drug legalization.

AUSTRALASIA

Political Issues

It has been 70 years since Australia has had a hung parliament, as major political parties have failed to secure 76 majority votes needed to form a government. Both labour and liberal parties are now wooing minority parties to form a government. Nonetheless the inconclusive elections saw the election of the first Aboriginal and Muslim lawmakers in the lower house, as well as its youngest (20 years) with university student.

Economic Issues

Amid an uncertain elections outcome, Australian financial system was gripped with fear with a drop in Australian dollar and bond. Investors were reported to be cautious of how to invest as the country faces a hung parliament in 70 years.

Social/Humanitarian Issue

A part of Western Australia was irked by a terrorist assignment students were expected to do. The school board has withdrawn the assignment owing to the sensitivity of the matter, but the teacher argues that the task wanted to help the student better understand the trend and manner terrorism affects the live of people. §

________________________________________________________

Business and Politics in the Muslim World (BPM)refers to the project entitled, "Globalized Business and Politics: A View from the Muslim World.' The blog development project has been undertaken and jointly developed by the Gilani Research Foundation and BPM as a free resource and social discussion tool.

Please Preview your comments before posting.