US and Allied Tariffs Could Democratize China

Posted on March 14, 2025 by admin

Journal of Political Risk, Vol. 13, No. 3, March 2025

By Anders Corr

President of the United States Donald Trump speaking at the 2025 Conservative Political Action Conference (CPAC) at the Gaylord National Resort & Convention Center in National Harbor, Maryland. Source: Gage Skidmore via Flickr.

The Chinese Communist Party is reacting to the Trump administration’s revolution in U.S. foreign policy with a full-court press in the media. President Donald Trump’s overtures to Russia’s Vladimir Putin are put front-and-center by Beijing so China can appeal to Europe, which sees Mr. Putin as anathema due to his invasion of Ukraine. And, the CCP is using Mr. Trump’s tariffs, against not only foes like China, but friends like Canada and the European Union, to criticize the United States as returning to the “law of the jungle.” In such a world, Chinese foreign minister Wang Yi said on March 7, small countries are disadvantaged relative to large countries. However, Mr. Trump’s tariffs against China, if adopted by all U.S. allies, would so threaten China’s economy as to potentially increase public disapproval with the CCP and encourage China’s democratization. This would remove the CCP’s support for Russia, killing the two biggest authoritarian birds with one stone. It is the one policy around which the United States, Europe, and Japan can best unite to bring down America’s traditional adversaries. Continue reading →

DeepSeek’s Collision Course with Xi

Posted on March 5, 2025 by Assistant Editor

Journal of Political Risk, Vol. 13, No. 3, March 2025

By Vaibhav Panwar

President Xi Jinping of the People’s Republic of China in Beijing, 5 September 2024. Source: President Paul Kagame via Flickr.

Fresh from the highs of DeepSeek’s ‘Sputnik moment’ in the AI race, Xi Jinping hosted a rare meeting with the titans of industry — notably the tech sector — in Beijing on February 16th. The event was attended by heads of BYD, Huawei, Deepseek, and other stalwarts. However, amidst these giants stood a tiny man with a big pedigree: Jack Ma. The tech baron from Hangzhou, who once pulled the strings of one of China’s largest tech conglomerates, The Alibaba group, is renowned for his influence. The company had its fingers in profitable pies like online wholesaling, e-commerce, and online transactions. Its fintech arm, Alipay, had racked up north of a billion users by the end of 2020. Ma was having a dream run: in October 2014, he found himself on the front page of newspapers around the world when the recently concluded Alibaba IPO breached the $25 billion mark – the biggest ever— leaving the world in awe of his role as the symbol of Chinese entrepreneurial spirit and China’s sprawling economy. Ma’s empire was firing on all cylinders; on single’s day 2019 — China’s answer to Black Friday — Alibaba and its subsidiaries did $38 billion in sales in 24 hours. Now, fast-forward to fall 2020: another Alibaba entity, ANT Group, was about to go public, all set to raise north of $35 billion based on the pre-subscriptions. The largest stock-offering in history was set to take place in Shanghai, creating a landmark moment for the Chinese economy, and cementing Ma’s status as one of the world’s most successful entrepreneurs. Beijing, however, was not so comfortable with the market consolidation of the tech giant from Hangzhou — or for that matter — the public criticism lobbed by Ma against Chinese banks at Shanghai’s Bund Conference. To nobody’s surprise — besides, perhaps his own — Jack Ma was called in for regulatory meetings by the Chinese central bank (PBOC) shortly after his remarks. Soon, the Chinese regulators would go on to pull the plug on the IPO right before the launch day, which was widely believed to be a disciplinary move against Ma over his comments. Ma was subsequently gone from the public eye, until he popped up in Japan a couple of years later.

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Youth Employment in Uzbekistan: Challenges and Opportunities

Posted on February 25, 2025 by Assistant Editor

Journal of Political Risk, Vol. 13, No. 2, February 2025

By Adkhamjon Janobiddinov

October 23, 2023 - USAID Administrator Samantha Power conversed with students at a secondary school in Tashkent, Uzbekistan. Administrator Power listened to the youth speak about what motivates and encourages them to be active participants in society and their country’s development. The Administrator announced a new initiative to help improve the quality of instruction, materials, and support that every child needs to succeed in school, with an initial-year investment of $4.5 million. Photo by Isaac Blake/USAID.

October 23, 2023 – USAID Administrator Samantha Power conversed with students at a secondary school in Tashkent, Uzbekistan. Ms. Power listened to the youth speak about what motivates and encourages them to be active participants in society and their country’s development. She announced an initial $4.5m towards improving quality of instruction. Photo by Isaac Blake/USAID.

Uzbekistan is a country with a huge youth population. According to latest reports, more than 60% of Uzbekistan’s population is composed of those below the age of 30. According to 2021 World Bank data on youth employment in Uzbekistan, the country’s population will remain young for the next 30 years. Although this can increase Uzbekistan’s economic potential, it may also bring employment challenges due to a higher demand for jobs. This article addresses the main challenges in youth employment in Uzbekistan and offers possible solutions.

According to the Youth Affairs Agency of Uzbekistan’s 2024 briefing on youth affairs, there are 342,000 unemployed youth across the country. The rest of the youth are employed in various sectors, including agriculture, textiles, construction, and services. It is also important to highlight that Uzbekistan has a huge informal sector, where 5.5 million people are employed. An additional 6.8 million people are engaged in the official sector. There is also a considerable number of youth working abroad. Although official data shows that the number of Uzbeks working abroad is 2 million, it is said that the actual number could be twice as high.

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The Concentration of Power: Book Review

Posted on February 24, 2025 by admin

Journal of Political Risk, Vol. 13, No. 2, February 2025

Concentration of Power Cover - Anders Corr.jpg

Concentration of Power Cover.jpg

By John Gardner

The Concentration of Power: Institutionalization, Hierarchy & Hegemony
By Anders Corr
291 pp. Optimum Publishing International. $19.95

I believe the present and future are best interpreted through the lens of the past. Dr. Anders Corr’s book, The Concentration of Power: Institutionalization, Hierarchy & Hegemony, is that lens for those devoted to a broader understanding of historical hierarchies and their effects on the rise and fall of civilizations. This dissection of the “enduring conflict between those at the bottom who seek freedom, those in the middle who seek to protect the benefits of their own position at the top of sub-hierarchies, and those at the top of meta-hierarchies seeking to institutionalize and aggregate (power),” is worthy brain food for big-thinkers.

Dr. Corr’s work on “the steady institutionalization of power over time” delves deep into how the power structures of civilization, good or bad, form; and acts as a road map and warning for mankind. It is a profound thought on human nature to ask why humans typically seek to expand their institutions and power, even when that power is no longer necessary. Why did the French Revolution, which started with admirable ideals, turn barbaric while the American Revolution did not? Relinquishing the grip on power is the answer from Dr. Corr, but that is antithetical to human nature. Growing up, my dad told me numerous times of how Americans wanted George Washington to be “President for life,” but he declined to, and in that “set an example for future Presidents”. My dad admired his integrity. Continue reading →

Modelling Country Risk of Zambia

Posted on August 16, 2024 by Assistant Editor

Journal of Political Risk, Vol. 12, No. 8, August 2024

Simon Muwando¹
University of Lusaka

Victor Gumbo²
University of Botswana

Gelson Tembo³
University of Zambia

Abstract

The world has experienced a dramatic increase in the flow of transnational investments following increased internationalization and globalization of firms in the previous decade. Country risk exposure is a cause for concern for all the institutions that are engaged in multinational trade and finance. The main objective of this study was to model the Zambia’s country risk. A mixed method with concurrent research design was employed. An autoregressive distributed lag technique was employed on annual data from the 1994 to 2018 period. Country beta was used as a proxy for indicating country risk. The findings of the study revealed that the main determinants of country risk of Zambia in the short run are beta, current account balance, political risk, unemployment rate, and short-term interest rates. In the long run, country risk of Zambia is mainly influenced by current account balance, betas, political risk and unemployment rate. Effective policies need to be implemented by authorities to manage persistent current account deficits and political risk.

Key Terms: country risk; country risk analysis; internationalization; globalization; autoregressive distributed lag; Zambia; globalization

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