The EU, the world’s largest economy, is presently a source of great instability to itself and to the world economy. The policy framework put in place through the EU/IMF adjustment programmes is, in my view, inconsistent and dangerous.
Diagnosis: Nature of the crisis
Europe’s sovereign debt crisis is really a balance-of-payments and external debt crisis (Sinn 2011, Cabral 2011). While the EU as a whole does not have external imbalances to speak of, the external imbalances of numerous individual member countries have reached levels which are unprecedented in previous balance-of-payments and external debt crises. In fact, Table 1 suggests that potentially 12 member countries may have excessive net external liabilities.
Net external debt/ liabilities for 12 peripheral countries seem higher than levels considered sustainable (of up to about 40% of GDP)
Source: National Central Banks/National Statistical Offices IMF SDDS program. Data for 4Q2010, except * 3Q2010 and ** 4Q2009. Net external debt data excludes FDI debt claims. Net external liabilities is the symmetric of the International Investment Position. Ireland: non-IFSC data only. Luxembourg: Includes financial center data. See Cabral (2010) for methodology.
Many experts would argue that a country could afford to pay and sustain a level of gross external debt of up to about 40% of GDP (Reinhart et al. 2003, Manasse and Roubini 2009). Several EU member countries have levels of net (rather than gross) external debt more than twice that, much higher than historical precedents (Cabral 2010). Their external debt is on an unsustainable trajectory. Past precedents indicate that these countries’ external debt will inevitably be restructured.
The EU/IMF policy response to the crisis
In recent years, the EU and the IMF have put in place adjustment programs in 6 member countries.1 Hungary, Latvia, Romania, Greece, Ireland, and Portugal have high net external debt and, with the exception of Ireland, have or had high trade deficits. Hungary, Greece, Ireland, and Portugal also have high income-balance deficits. These arise mainly, but not only, from large interest and dividend payments on the outstanding stock of external liabilities.
A country’s public plus private net borrowing requirements are approximately equal to the sum of the trade and the income-balance deficits, plus two other smaller components. Since the intervened countries have high trade and income-balance deficits, they also have high net borrowing requirements (Ireland is again the exception).2
The EU/IMF’s focus is on measures to reduce and bring budget deficits into compliance with the Stability and Growth Pact targets. However, this is in my opinion misguided and counterproductive. To understand why, note that this formula which determines a country’s (public plus private) net borrowing requirements is an accounting identity; it is the closest thing in macroeconomics to 1+3=2+2. The EU/IMF adjustment programmes do not sufficiently target reductions in the trade and the income-balance deficits (the two largest components of the affected countries’ net borrowing requirements). Therefore, it is hard to see how it is possible to lower public sector net borrowing requirements in a sustainable manner. In such a context, budget reduction measures are unlikely to succeed.
For example, Portugal’s trade deficit in 2010 was 6.5% of GDP. Its income-balance deficit was 4.6% of GDP. Much because of these two large deficits, Portugal’s net borrowing requirements (public plus private) were approximately 8.5% of GDP. To achieve a sustainable reduction in the budget deficit, the EU/IMF adjustment programme should have targeted a reduction in the trade deficit. If done well, such a reduction would have had a marginal impact in Portugal’s economic activity (just about corresponding to the reduction in the trade deficit). In addition, the adjustment program should have targeted a reduction in the income-balance deficit through a realistic debt restructuring.
Instead, the EU/IMF adjustment programme affects the entire internal demand indiscriminately (106.5% of GDP). It is, in effect, like using a sledge-hammer to crack a nut. Only by chance or accident, or through drastic reduction of economic activity, will the adjustment programme be able to reduce the trade deficit by anything close to 6.5% of GDP and thus achieve, as necessary, a sufficiently large reduction in the country’s net borrowing requirements. Moreover, given the sheer number of measures foreseen in the adjustment programme, the likelihood for policy mistakes is very high.
In addition, the EU/IMF adjustment programmes pay insufficient attention to the income-balance deficit. Average interest rates on the peripheral countries’ external debt may rise, rather than fall.3 Therefore, the income-balance deficits of these countries may increase, putting upward pressure on net borrowing requirements and thus on the budget deficit.
In practice, the EU/IMF adjustment programmes are not likely to result in a substantial reduction in net borrowing requirements, but instead in a change in their composition. Public sector net borrowing requirements may fall in the short run, but private sector net borrowing requirements will likely increase. Since the private sector is unable to increase borrowing in the current context4, the adjustment programmes will simply result in an unprecedented and pointless destruction of private sector activity. These businesses’ failures will also reduce tax revenue, exacerbating the situation while causing unnecessary and self-defeating hardship upon the populations of these countries. This is, by the way, what we have seen in Greece and Ireland. It is what we are about to see in Portugal.
Moreover, the EU/IMF adjustment programmes, by refusing to consider the option of significant debt restructuring, allow no adjustment through the income balance. Therefore, in practice, the only “safety valve” through which the affected countries can sustainably reduce their public deficit is through massive improvements in the trade balance. This is tantamount to promoting beggar-thy-neighbour policies. By definition, not all countries can run a trade surplus. The current attempt to do so by a growing number of EU member countries is likely to throw most of the EU into recession.
A possible alternative to reduce budget deficits in the peripheral countries
The EU faces a situation where less is actually more. Implementing smaller, more targeted adjustment programs and treading more carefully is likely to yield far better results than drastic action.
The aim of the adjustment effort should be to stabilise the peripheral countries’ external debt levels by reducing these countries’ (private plus public) net borrowing requirements.
I believe the external adjustment effort for the peripheral countries should be designed to minimise the impact on domestic economic activity as well as on the economies of these countries’ trading partners in the EU and elsewhere. External adjustment by so many countries on the geographic periphery of the EU is, nonetheless, bound to have a substantial macroeconomic impact at the EU level, and to affect the peripheral countries’ economies harshly.
In Portugal’s case, for example, the external adjustment that is currently necessary to stabilise its external debt levels may be around 8% of Portugal’s 2010 GDP. A combined reduction in the trade and in the income-balance deficits of that magnitude would, all other things equal, reduce Portugal’s net borrowing requirements to approximately 0% of GDP5. Under these conditions, Portugal would be able to reduce its external debt burden slowly through nominal economic growth. A budget deficit reduction policy would then be far more effective. Moreover, the Portuguese government would be able to fund a far greater proportion of its budget deficit domestically.
About half of the adjustment suggested above should be done through improvements in the trade deficit (through fiscal devaluation policy), with the remainder accomplished through improvements in the income-balance deficit (through a debt restructuring).
Fiscal devaluation policy aims at replicating, through the rebalancing of a country’s tax structure, the effect of currency devaluation. In contrast to earlier proposals, the proposal I make (Cabral 2011) argues for a far greater rebalancing of the existing tax structure, and argues that VAT rates should be reduced, not increased. The idea is that, since tax and social security receipts represent, on average, around 40% of GDP in Eurozone economies, then they represent, on average, the largest cost factor of every single economic activity.
On the demand side, the aim would be to rebalance taxes to increase the price of imports and to reduce the price of domestic products. On the supply side, the aim would be to lower the tax costs of firms in tradable goods and services sectors, and to increase the tax costs of firms in sectors of the economy that do not face international competition.
This is accomplished through changes in tax rates, rather than through changes in the tax structure. This means that the policy measures could be put in place quickly and would yield results in the short run.
The aim of the debt restructuring would be to lower income-balance deficits to more sustainable levels. It could be based mainly on maturity extension and interest rate (coupon) reductions. However, it should be sufficiently large to ensure that the peripheral countries would be able, on their own, to return to the international credit markets, even if subject to much higher interest rates on any new loans. In addition, a US-type bank resolution process (Special Resolution Regime) should be rapidly legislated and implemented (Nguyen and Praet 2010; Strauss-Kahn 2010; Cabral 2010).
The current policy response to the crisis is misguided and dangerous. The EU/IMF adjustment programs are bound to fail to achieve sustainable budget deficit reductions. In the process, they will result in an unprecedented and pointless destruction of private sector economic activity. This will result in unnecessary and self-defeating hardship.
The peripheral countries, in practice, can only reduce their budget deficits if they are able to significantly improve their trade and income balances, and as a result, improve their economies’ net borrowing requirements. Therefore, the EU policy response to the crisis should explicitly target improvements to these balances.
It should focus on the small share of internal demand associated to the trade deficits, rather than to seek radical changes to the country’s entire public and private economic structure. It should also seek to address these countries’ high external debt directly, through debt restructuring designed to reduce the income-balance deficit.
Such an approach is far more likely to succeed by directly addressing what is, in my opinion, the main cause of Europe’s sovereign debt crisis.
Editor’s Note: This column is an adapted version of a prepared written testimony presented at the Public Hearing on “Economic Governance and Crisis Management in the EU”, October 17, 2011 in Brussels, before the Economic and Monetary Affairs Committee of the European Parliament.
Cabral, Ricardo (2010) “The PIGS’ external debt problem”, VoxEU.org, May 8.
Cabral, Ricardo (2011) “The troika should target the trade and the income balance deficits”, VoxEU.org, May 15.
Manasse, Paolo and Nouriel Roubini (2009), “`Rules of thumb´ for sovereign debt crises”, Journal of International Economics, 78:192-205.
Nguyen, Gregory and Peter Praet (2010), “Which banking resolution authority for Europe?”, VoxEU.org, 16 April.
Reinhart, Carmen, Kenneth Rogoff, and Miguel Savastano (2003), "Debt Intolerance”, Brookings Papers on Economic Activity, 1:1-74.
Sinn, Hans-Werner (2011), “How to rescue the euro: Ten commandments”, VoxEU.org, 3 October.
Strauss-Kahn, Dominique (2010), “Crisis Management Arrangements for a European Banking System: Building a Crisis Management Framework for the Single Market”, Keynote speech, European Commission conference on Cross-Border Crisis Management, Brussels, 19 March.
1 Though not yet an EU member country, Iceland has also requested a stand-by arrangement ($2.1 billion loan) from the IMF.
2 Ireland’s net borrowing requirements and budget deficit are lower in part because Ireland benefits from a large subsidy through Eurosystem liquidity providing operations. I have estimated that the Eurosystem loans resulted in improvements in Ireland’s net borrowing requirements of about 4.3% of GDP (Cabral 2011). Thus, the Irish government budget deficit is probably significantly lower than it would have been otherwise. Moreover, the impact on the IMF/EU adjustment program on the Irish economy is thereby likely softened. Greece and Portugal also benefit from Eurosystem provided liquidity at low interest rates, but in much smaller proportion of GDP.
3 The initially agreed interest rates on the EFSF loan was around 5.8%, which was much higher than the average interest rate these countries paid on maturing sovereign debt (Portugal: 3.5% in 2010; Greece: 4.4% in 2009). This issue has been to some extent addressed by the July 21st, 2011 European Council decision that lowered interest rate on EFSF loans to approximately 3.5%. However, the EU/IMF loans only cover a fraction of these countries external borrowing requirements. Some of the borrowing is done through the Eurosystem liquidity providing operations at much lower rates. But the remainder is financed at increasingly higher interest rates in the market. Therefore, it seems likely that the average interest rate on these countries external debt will rise.
4 Among other reasons, because the EU/IMF adjustment programs mandate the deleveraging of the peripheral countries’ banking system.
5 This is an approximation. Net borrowing requirements were 8.5% of GDP in 2010. However, the trade deficit has since fallen in part through robust export growth, reducing the country’s net borrowing requirements somewhat.
- Originally published by VoxEU.org
- Opinions Strong About Gaddafi's End and Libya's New Beginning
- Libyans Celebrate Gaddafi's Death
- Wall Street (Unlike)
- Animal Spirits: Shaping Patterns of Economic Growth
- Assessing the Damage of the European Banking Crisis
- Better Ways Forward for the European Union
- Solving A Deadly Eurozone Sovereign Debt Crisis
- Steve Jobs May Have Failed Abroad
- Behind Europe's Debt Crisis Lurks Another Wall Street Bailout
- Sluggish America Can Still Be a World Leader
- US Economic Woes Put China in the Political Crosshairs
- Newspaper Nostalgia
- Veterans: The Human Rubble of Our Wars
- A Devalued Renminbi Makes Wealthier Americans
- US Fears Misplaced When it Comes to China
- United States - South Korea Trade Deal Win-Win for Jobs and Economy
- Predator in Chief
- United States Accusations Turn Up Heat in Simmering Gulf
- Congress, Administration Discuss Next Steps on Iran
- Iran and The Diminishing Returns of Reasonableness
- What if Arbabsiar Was All About the Drugs, Not Terror?
- Terror Plot's Mystery Link to Iran
- What War Between Iran and Saudi Arabia Might Look Like
- Yemen's Turbulent Spring
- Dealing with the Haqqanis
- The Conservative Case Against a Border Fence
- GOP Uses Border Fence as Immigration Distraction for 2012
- Learning From Mexico's Coalition Debate
- Mexican Constitution Now Recognizes Right to Food
- Islamic Plot to Bomb U.S. Embassy Reported in Mexico
- The Suppression of Democracy in Haiti
- Colombia: Human Rights Issues Unanswered
- Chinese Investment Flows Continue to Aid Brazil's Ascendency
- Free Trade Is Not So Free: The Panamanian Case
- Arab Spring, Israeli Isolation
- Israeli - Palestinian Conflict: The Prisoner Swap
- Iran Alleged Assassination Plot: Emboldened by Nuke Program?
- The Real Nuclear Threat From Iran May Not Be Nuclear Weapons
- From the Mediterranean to the Hindu Kush: Rethinking the Region
- Price of the Libya Intervention: Surface to Air Missiles for All
- Exporters Armed Arab Spring Crackdown
- Fighting Escalates in Yemen
- Hamas Gains From Prisoner Swap Likely to Fade
- Mossad Gets Dragged Into Latest British Political Scandal
- Black Magic Widespread in Saudi Arabia
- Syria: Alawites Go On Arms Shopping Spree
- Children Man Barricades in Northern Kosovo
- Macedonia's EU Bid Still Mired in Name Issue
- Turkey Needs Further Reforms
- 'Ottomania' on the Rise in Turkey
- Turkey: Cartoonist Faces Trial for Asserting that 'Religion Is a Lie'
- Turkey - Russia Relations and Missile Defense
- The Black Sea: A Forgotten Geo-strategic Realm
- Central Asia: Russia Grapples with a Security Dilemma
- Russia: Is Moscow Heading Toward the Time of Troubles?
- China and the South China Sea Dispute
- South China Sea Disputes: Why conflict is Not Inevitable
- Burma's Junta: Can a Tiger Change Its Stripes?
- Japan: Ozawa Ichiro on Trial
- India-China Economic Dialogue: A View from Beijing
- India-Afghanistan Partnership Through the Eyes of the Pakistani Media
- India Falters in Countering Terrorism
- The Last Colony in Africa
- Beyond Good Versus Evil: Fighting Somalia's Perpetual War
- Heavy Casualties as Somali Forces Attack Rebel Stronghold
- Somali Forces Seize District in Lower Jubba from Insurgents
- Hard Times Lead Young Somalis to Delay Marriage
- Kenya's Risky Intervention into Somalia
- Children Tempted With a Phone to Carry a Gun
- African Drought Response: Lessons Still to Learn
- Rumpus Over Genetically Modified Food Aid in Africa
- Great Game in the Horn of Africa
- Crowds and Constitutions: Insights from Iceland
- Beyond the Nation-State
- The Human Rights Council: 5 Years On
- United States Prepares Sanctions Against Iran for Bomb Plot
- Iran Denies Alleged Plot to Kill Saudi Envoy
- Cyber Security as a Wicked Problem
- An Alternative Eulogy for Steve Jobs
- Americas to Become Mecca of World's Energy
- Time for United States to Think Big on Latin America
- Latin Universities Index Doesn't Tell Full Story
- Blind Eye to Colombia's Questionable Human Rights Record
- United States - Cuba Policy Staggers from Inept to Pedestrian
- Rick Perry Proposal of American Troops in Mexico Stirs Criticism
- GOP Candidates Look at Narco-Terrorism Risks
- Dexia Bank's Collapse and the European Financial Crisis
- European Crisis: Precise Solutions in an Imprecise Reality
- Slovakia Thumbs Down on Euro Bailout Fund Hike
- Greek Anger and Greece's Survival
- A Win-Win Strategy for Investors in Greece
- Amid Strikes, Greek Workers are Hurting
- Without Textbooks Greek School Year Starts in Confusion
- Putin's Comeback: Fast Forward to the Past
- NATO and Russia: Missile Defense Sticking Point?
- Russia's Arctic Embrace: Cold War Reloaded
- Putin Calls For Eurasian Union In Former Soviet Space
- United Kingdom Riots: State of Denial
- UK Unemployment Rises to 17-year High
- Study Estimates 3 Million British Children in Poverty by 2013
- Bank of England Pours More Money Into Quantitative Easing
- Britain Shuts Down Family Access Immigration Route
- EC Recommends Serbia Gain EU Candidate Status
- Spanish Court Won't Let Cameraman Couso Killing Die
- Poland's Tusk Wins Historic Second Term
- Turkey: Making Room for Religious Minorities
- Cyprus: Waters Roil in Eastern Mediterranean
- A Nuclear Retaliation Alternative for India
- Strategic Partnership with Afghanistan: India Showcases Soft Power
- The India - Bangladesh Border: A New Beginning
- Pakistan's Sponsorship of Terrorism Is Undeniable
- Energy Crises and Riots in Pakistan
- Dante in Karachi: Circles of Crime in a Megacity
- Children in 2005 Pakistan Earthquake Zone Still Lack Schools
- Afghanistan: The Regional Complex
- Afghanistan's Energy War
- Afghanistan War Marks 10th Year Quietly
- Bono's African Philanthropy Could Use a Remix
- The Dadaab Camps: The Daemon in the Detail
- Dadaab Camps: A Day in the Life of a Refugee
- Senegal: Demining Machine Clears Path For Better Future
- Somalia: African Union Forces Attack Al Shabaab's Strongholds
- Worst Forms of Child Labor Still Widespread in Africa
- South Africa: Deportations of Zimbabwean Migrants Set to Resume
- Uganda: New facility to Concentrate on Cancer
- Africa: Why Involving Men is Crucial
- Zimbabwe: Poverty Alleviation Program Targets Kids
- The Economics of the Arab Spring
- Many Arabs Stay Hopeful Even as Economies Sag
- Arab World Poised for Economic Growth Spurt
- Fear of an Islamic Planet
- Riots in Cairo
- Egyptian Army Turns Guns on Its Citizens
- Timeline of Egyptian Sectarian Violence
- A New Phase in Post-Mubarak Egypt
- Boycott Looms as Egyptian Elections Near
- Anxious Campaign Season Opens in Tunisia
- Saudi Security Force Ramps Up
- Sectarian Rifts Erupt Again in Saudi Arabia
- Libya: Winning the Peace Collectively
- Concerns Over 'Rampant Torture' Rise in Syria
- Syria: Redrawing the Political Foundations
- Lieberman Calls for No-Fly Zone Over Syria
- Syrian Crackdown Reaches London and Paris
- Anwar Al Awlaki Death Doesn't Solve Yemen's Problems
- Yemen: Fallout from the al-Awlaki Airstrike
- Why America Should Pay Attention to Egyptian Elections
- Boxed in on the Middle East
- Even Non-Violent Palestinian Intifada Seems Unlikely Now
- Art Comes to Jerusalem Open Market
- Israel: Bittersweet Reunion of Righteous Gentiles
- Jewish Extremists Burn Mosque in Israel
- Israeli 'Price Tag' Vandals Mark Up Violence
- Rise of the Renminbi as International Currency
- China: Significance and Implications of Tiangong 1
- China Orders Closure of 13 Wal-Marts for Selling Mislabeled Pork
- China Launches Own Iron Ore Price Index
- South Korea's Naval Base on Ulleung Island
- Why 2012 Will Shake Up Asia and the World
- Rights Groups Moves High Court on Beheading of 8 Bangladeshi
- Bangladesh World's 5th Most Vulnerable Country for Climate Change
- Bangladesh's Grameenphone and Teletalk Partner on Cell Phone Early Disaster Warning System
- How Space Technology Aids Flood Response
- Philippine Supreme Court Reverses Ruling Favoring Fired PAL Cabin Crews
- Malaysia Refugee Swap Deal Gets Support from UNHCR
- Australian Alps Could Be Bare of Snow by 2050
- Qantas Orders 110 Jets from Airbus
- Coal Exports Boost Australian Trade Balance
- Hard Facts: The World Is Getting Better
- United Nations Can't Save the Oppressed, But It Can Give Them a Voice
- Obama's International Outsourcing
- Radical Islamist Cleric Anwar al-Awlaki Killed in Yemen
- Anwar Al-Awlaki's Death Major Victory For Counter-Terrorism
- United States Gaze Turns to Uzbeks
- Fiscal Union for the Euro: Some Lessons from History
- German Parliament Approves Hike in EU Loan Guarantees
- Preparing for Greece's Failure
- Despite Austerity Measures Greece Will Still Miss EU Budget Cut Targets
- Greece Working to Convince EU it Can Meet Austerity Demands
- Greek Parliament Approves New Property Tax
- Greeks to Face Further Tough Measures
- Albania's Unsettled Past
- Balkans Summit Extols Regional Co-Operation
- Erdogan Pushes for Common Future with Balkan States
- Turkey's Sinking Lira Defies Soaring Economy
- Kukan: Dialogue Not Barricades
- Arab Spring Turkish Harvest
- Iran at a Crossroads
- Iran's Support of Syria Is Backfiring
- The Mottled Relationship: Iran and Latin America
- Is It a Mistake to Draw Solace From Iran's Long Bomb Gestation Period?
- Arab Spring Added Pressures to Middle East Peace Process
- Israel Accepts Quartet Proposal to Resume Peace Talks
- Blocking Palestinian Statehood
- The Occupation That Time Forgot
- Israeli Parliamentarians Call for Annexation of West Bank
- U.S. Congress: Standard Bearer for Israeli Expansion
- Michele Bachmann 'Blames' Obama for Arab Spring
- Saudis Tussle Over Textbook
- Saudi Arabia Grants Women Limited Right to Vote
- Egypt Eyes New Arms Suppliers
- Saleh Return Deepens Crisis In Yemen
- Other Leaders Should Copy Brazil's Anti-graft Measures
- Obama's U.N. Omission: The War Next Door
- The Drug War Spreads the Bloodbath South
- Mexican Cartels and Pan American Games: A Threat Assessment
- Mexico: Death by Social Media
- Big Agriculture's Latin American Exploits
- Is Free Trade Good for Colombia
- China in Search of Energy Security
- Cuba's Domestic Reforms Surge Past Immobilized United States
- Fears Over Environmental Affects Prompt Court To Halt Mega-Dam Project
- Bolivian Workers Strike to Protest Controversial Highway
- Afghanistan is Obama's Gordian Knot
- Why Are Pakistan's Militant Groups Splintering?
- Questions Raised About Haqqani Network Ties with Pakistan
- Russia Strives to Clarify Vision for Central Asian Alliance
- Azerbaijan Faces Difficult Choice Between Turkey and Israel
- Azerbaijan Wrestles with Iranian Predicament
- In Post-Soviet Central Asia Russian Takes Back Seat
- Stabilizing Congo
- The Balkanization of Somalia
- Refugees Still Vulnerable in Southern Kordofan
- Al Shabaab Attacks Kill 16 at Key Somali Border Town
- Is Africa New Breeding Place for Terrorism?
- Somali Media Press on with Work Despite Deadly Challenges
- China-Indian Trade: Smoothening the Rough Edges
- The Survival of North Korea
- The 'Orchid Revolution' in Singapore
- Counterinsurgency and 'Op Sadhbhavana' in Jammu and Kashmir
- Indian Foreign Policy in Search of a Balance
- Philippines Struggles After Two Typhoons
- Typhoon Nesat Death Toll Rises to 20
- Obama's Dilemma: Foreign Policy and Electoral Realities
- The Theology of Armageddon
- Why Al-Qaeda Won
- Anti-Globalization Movement Endures
- WikiLeaks: The Game Changer
- Israel's Truths and Omissions on Vote for Palestine State
- How to Save Israel and the United States from Themselves
- Obama's Middle East Dilemma
- Palestinian Leader: Obama Wrong to Take Israel's Side
- Israeli Settlers: Never Shy About Taking Law Into Own Hands
- Israel: The Cost of Arrogance
- For Israeli Tycoons: New Strings Attached
- Israeli Innovation on Display
- Saudis to United States: You're Sleeping on the Couch Tonight
- Over 5,000 Killings In Syria Since March
- Iran Arrests Six for Supplying Information to BBC
- Iran: Naval-Gazing More Political Than Military
- Oman Assisting United States to Release Hikers in Iran
- Al-Jazeera: You're Not Alone
- Controversial Comeback For Egypt's Emergency Laws
- Turkish PM Erdogan Encounters Two Egypts on Historic Visit
- Turkey: Violence Casts Pall Over Constitutional Reform Efforts
- Turkey: How Much of a Safe Haven for Political Dissidents?
- Turkey's Neo-Ottoman Foreign Policy
- Libya to Have a New Government within 7-10 Days
- Libya Could Break Up Like Somalia
- Libya and the Bully Problem
- The Difficult Bit: The Arab Spring After Libya
- Middle East and North Africa Face Shortfall of Affordable Homes
- Lean Season Awaits Migrants Escaping Libya
- Kenya: NCDs and HIV Fight for Limited Resources
- Kenya: Thousands of Children to be Immunized Amid Polio Outbreak
- Horn of Africa Migrants Beaten, Deported, Imprisoned
- Rights Groups Report on Somalia Downplayed
- Congo Refugees Unwilling to Return Home
- The New Scramble for Africa
- Japan's PM Must Quell China's Fears About His Nationalism
- Fukushima Evacuees Slam Compensation Requirements
- Nuclear Data Feared Stolen in Hacks of Japanese Sites
- Second Lovers' Shooting Hits Largest Philippine Mall Operator
- Aquino Off to U.S. for Open Government Partnership Launch
- Aquino Orders Imprisonment of Former Philippine Military Comptroller
- Timeline of Australian Asylum-Seeker Debate
- Australia's Military Capabilities Up in the Air
- Islamist Rampage Blamed in Bangladesh Riots
- United States to Help Bangladesh Combat Bird Flu
- Indian Earthquake Prompts 'Wake-Up Call'
- Germany and the US: Toward a 'Special Relationship'?
- Britain - Russia: Beyond Politics
- Central Banks Lend Dollars to European Banks
- Eurozone Pushes Greece to Speed Up Economic Reforms
Copyright 2011, iHaveNet.com