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.
The violent struggle between rival Mexican drug cartels and other criminal groups has left tens of thousands dead and towns across Mexico paralyzed with fear. With overwhelmed police forces relatively powerless to control drug-related murders and kidnappings, a growing number of vigilante organizations, or self-defense
groups, aim to restore order — but now even they are fighting, and killing, among themselves.
Joe Barnes, the institute's Bonner Means Baker Fellow, blogs on concern in Kyiv, Washington and European capitals — not too far-fetched, given Russia’s seizure of Crimea last month — that Moscow might invade Eastern Ukraine on the pretext of protecting Russian speakers.
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.
There is a curious imbalance in energy markets in the Persian Gulf region: Five of the six Gulf monarchies exhibit shortages in domestic supply of natural gas. Meanwhile, Qatar holds the world's third-largest conventional reserves and is the world's No. 2 gas exporter. Why is Qatar, given its enormous resources and relatively small domestic needs, unwilling to supply gas sufficient to meet its neighbors' demand?
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.
Cancer drug shortages are almost uniquely associated with generic drugs (small profit margins) and rarely with patented drugs (large profit margins). They are common in the U.S., but uncommon in Europe and elsewhere, where generic drug prices are on average higher than in the U.S. This suggests the main cause of drug shortages is economic.
Despite mounting efforts toward achieving gender equality, the MENA region continues to rank the lowest worldwide in women’s economic participation and opportunity.
The situation in Ukraine is the most serious foreign policy challenge ever faced by the Obama administration, writes Rice faculty scholar Richard Stoll.
