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Global Economy & Development

America’s Rural Future: North Dakota and Minnesota field hearings spotlight rural innovation, connectivity, and capacity as foundations for prosperity

by Priya Shah – Business Editor December 3, 2025

written by Priya Shah – Business Editor

Rural Innovation, Connectivity Take Center Stage ⁢at Brookings Field Hearings

WASHINGTON – Recent field hearings in North Dakota and Minnesota hosted by the Brookings Institution‌ underscored the critical role of innovation, broadband connectivity, and local capacity building ⁣in fostering economic prosperity for rural⁢ america. ⁣The events, ⁢part of the “America’s Rural⁢ Future” initiative, brought together community leaders, policymakers, and residents to ‌discuss challenges and opportunities facing rural communities ⁣across the two states.

these⁢ discussions⁢ arrive at a ‍pivotal moment as rural areas grapple with demographic shifts, economic ⁤restructuring, and the ongoing need to bridge the digital divide. The Brookings Institution’s initiative ‌aims to identify actionable strategies for strengthening rural economies and improving quality of life, with ⁤a focus on leveraging local assets and fostering ‍collaborative solutions. ‌The findings from these hearings⁣ will ‍inform future⁢ policy recommendations and contribute to⁣ a⁤ broader understanding⁤ of the evolving needs ‍of rural America.

The North⁢ Dakota⁣ hearing, held in Fargo, highlighted the⁤ state’s leadership in agricultural technology and value-added agriculture. Participants emphasized the importance ‌of‌ investing⁢ in research ⁣and growth, supporting entrepreneurship, and expanding access to capital for ⁣rural businesses. Minnesota’s hearing,taking place ‍in Worthington,focused on the critical need for reliable⁣ broadband⁤ infrastructure to support economic development,education,and healthcare access in rural communities. ‍

“Connectivity is no longer a luxury, it’s⁤ a necessity,” ⁢stated ⁢a participant at the Minnesota hearing, echoing a sentiment shared across both ⁣events. Discussions also⁣ centered on ‌the importance of building local capacity - strengthening the skills and resources of rural ‍residents and organizations – to drive sustainable economic growth.

Senior Fellow Tony Pipa, pictured taking notes during the public hearing, ‍emphasized the importance of listening to and learning from rural ‌communities. The “America’s rural Future” initiative will continue to host similar‍ events in other states, ⁣culminating in a thorough report outlining policy recommendations for revitalizing rural America.The⁢ Brookings Institution is supported by ‌a diverse array of funders and maintains ‌its commitment to self-reliant research, ensuring all publications represent the sole views ⁤of their authors.

December 3, 2025 0 comments

Business

Dollar’s Safe Haven Status Threatened by Rising Tariffs

by Priya Shah – Business Editor September 25, 2025

written by Priya Shah – Business Editor

Trade Tensions and the ⁢Future of the Dollar‘s Global Role

A new study presented at the Brookings ⁤Papers on Economic Activity ‌(BPEA) conference suggests ⁢that escalating tariffs ‌and a retreat from international trade by ⁢the United States could‍ jeopardize the dollar’s long-held position ⁣as the world’s primary safe ‍haven currency. this status, the authors argue, underpins key benefits for the U.S. ⁣economy, including‌ lower interest rates and substantial foreign investment.

The research,conducted by Tarek A. Hassan of Boston University, Thomas M.⁣ Mertens of the Federal Reserve Bank of San Francisco, Jingye Wang of Renmin University of china, and Tony Zhang of⁢ Arizona State University, highlights‌ the⁣ link between the dollar’s “safe-haven property” – its tendency to appreciate during global economic uncertainty – and⁢ favorable conditions for‍ U.S. businesses and investors. This safe-haven status allows U.S. companies to secure lower borrowing rates internationally and invest⁢ more, ultimately contributing to ⁤higher wages.

the ⁤paper introduces a‌ novel quantitative model to‌ assess the ⁤potential impact of rising tariffs on the international⁣ monetary ‌system. Since World War II, ⁣the dollar has dominated ⁣international transactions, with many smaller economies pegging their currencies to it as a safeguard against financial ⁣instability.However, the authors contend that restricting trade flows through tariffs weakens the foundations ⁤of this special‍ role.

“Inhibiting trade ‌flows to and from the United‍ States through tariffs or ⁤other means, weakens the force underpinning ‍the dollar’s special role,” the authors ‌write.They predict that a loss of‍ safe-haven status could lead to increased U.S. interest rates, a decline in the global value of U.S.firms, ‌capital outflows, and reduced U.S. wages. Ultimately,they warn ⁣that the U.S. dollar-centric system could collapse or transition to a different anchor currency.

According to Hassan, tariffs announced by the ⁤U.S. on April 2nd, and subsequent retaliatory measures from other nations, currently equate to roughly 17% symmetric tariffs. The model identifies⁤ a tipping point of 26% tariffs ⁢that⁣ could trigger either the ⁤breakdown of exchange-rate management or a shift⁣ to an alternative anchor currency, most likely the euro.

While acknowledging the U.S. has not yet‌ reached this‌ critical threshold, Hassan emphasized the ⁢basic ‌connection between U.S. engagement with the global economy and the dollar’s standing. “We’re probably⁣ still a bit away from‌ the tipping point‌ but the fundamental insight stands,” Hassan said. “The dollar’s status depends on the⁣ degree that the U.S. engages with the rest of the world.”

The authors note that their model’s predictions ‌have largely aligned with market reactions following President trump’s April 2nd tariff announcement.‌ Stock prices and the dollar’s value both experienced a sharp decline, while long-term interest rates‌ rose. Although U.S. stock prices have as recovered in dollar terms, they have underperformed relative to stocks in other ⁣countries, especially when considering “the dollar has massively depreciated,” Hassan stated.

CITATION:

Hassan, Tarek A., Thomas M. Mertens, Jingye⁣ Wang, and Tony Zhang. 2025. “Trade War and the Dollar anchor.” BPEA Conference Draft, Fall.

September 25, 2025 0 comments

World

What the 80th UN General Assembly means for Africa

by Lucas Fernandez – World Editor September 3, 2025

written by Lucas Fernandez – World Editor

Africa‘s‍ growth agenda: Harnessing Opportunity and Curbing⁢ Illicit ⁣Flows – Insights from the Foresight Africa Podcast

A recent episode‌ of the Foresight africa podcast, featuring United States ‌Under-Secretary-General (USG) Duarte, highlighted critical perspectives on Africa’s development trajectory and the importance of maximizing opportunities presented by the shifting global landscape. the conversation, hosted by Professor landry Signé, centered on the need for African nations to prioritize their own development agendas, notably in light of the evolving geopolitical climate.

Duarte emphasized the importance of the African union and other regional organizations in navigating this period, ‍noting that opportunities of this magnitude arise infrequently – roughly every 150 years. However, realizing these opportunities requires strengthening governance and ⁢addressing notable financial losses. Duarte specifically cited staggering figures: $70 billion lost through inefficient ⁣public spending, $65 billion due to‍ trade mispricing, and a⁣ total of $500⁣ billion lost annually.

Signé affirmed the connection between strong national states and effective continental organizations, stating that multilateral institutions are only as powerful as their member states.Duarte’s core advice to African and global policymakers was direct: “Stop losing money.” He urged‍ a focus on controlling financial flows and breaking what he termed the “finance paradox” – the contradiction of relying on Official Development Assistance (ODA) while together losing substantial funds‌ through illicit channels. he ⁣argued that Africa cannot sustain its development relying on this model and must prioritize ⁤channeling its own resources into human capital development to build resilient societies.Looking towards the future,Duarte ⁤offered advice to African youth,particularly young women,emphasizing the importance of‌ embracing Information and Communication Technology (ICT)‍ and innovation. He encouraged them to proactively acquire skills through⁣ technology, rather than waiting for state-led initiatives, and to prioritize education in Science,‍ Technology, Engineering, and Mathematics (STEM) fields.

The podcast episode underscores a critical message: Africa’s future success hinges on⁢ strengthening internal governance,curbing illicit financial flows,and empowering its youth with the skills needed to thrive⁢ in a rapidly changing technological world.

September 3, 2025 0 comments

Business

AI Chip Export Bans: Will They Weaken U.S. AI Leadership?

by Priya Shah – Business Editor August 15, 2025

written by Priya Shah – Business Editor

Huawei‘s AI Ascent: A Strategic challenge to U.S. Leadership

Table of Contents

Huawei’s AI Ascent: A Strategic challenge to U.S. Leadership

A surge in artificial intelligence advancement within China, spearheaded by technology giant Huawei, is reshaping the global AI landscape. This advancement is occurring alongside a potential scarcity of AI chips stemming from U.S. export controls, creating a unique possibility for huawei to expand its influence. The company is substantially increasing its investments in AI,capitalizing on both domestic demand and international opportunities.

The Critical Role of the Network Edge

The future of AI isn’t solely dependent on powerful chips within centralized data centers. A vast network of “edge” devices – smartphones, laptops, connected vehicles, and industrial automation systems – forms a crucial component of the AI ecosystem. Increasingly, AI solutions will rely on a collaborative approach, distributing computing tasks between edge devices and data centers.

Huawei maintains a ample global presence, particularly in markets like Latin America, the middle East, and Africa, evidenced by widespread consumer advertising. This translates into significant penetration at the network edge worldwide. This extensive installed base of Huawei edge devices provides a distinct advantage as companies outside the U.S. make decisions regarding their AI infrastructure.

While U.S. AI chips currently maintain a performance edge, as reported by the Financial Times, this lead is narrowing. If the performance gap diminishes, Huawei’s established edge device base could incentivize the development of complete, all-Huawei AI ecosystems outside the U.S. Such a scenario could jeopardize U.S. leadership in the global AI race, even with a strong domestic chip market.

Did You Know? The network edge refers to the physical proximity of data processing to the location where data is generated, reducing latency and improving responsiveness for applications like autonomous vehicles and real-time analytics.

Strategic Incentives for a U.S.-Centric AI Ecosystem

To mitigate this risk, the U.S. should strategically allow sales of capable, though not necessarily the most advanced, AI chips to the Chinese market. This approach, coupled with broader policy initiatives to strengthen the U.S. position as a leading supplier of all AI ecosystem components – including data center chips and edge devices – is crucial. this aligns with recommendations from the Center for Strategic and International Studies regarding maintaining a competitive edge in critical technologies (CSIS, 2023).

Key Player	Area of Focus	Strategic Advantage
Huawei	Network Edge Devices & AI Integration	Extensive global installed base, growing AI investment
Nvidia & AMD	High-Performance AI Chips	Current performance leadership, established market presence
U.S.Government	Policy & Export Controls	Influence over market access, promotion of domestic innovation

Maintaining a competitive advantage requires a holistic approach, encompassing hardware, software, and policy. What role should international collaboration play in fostering responsible AI development?

Pro Tip: Understanding the interplay between edge computing and centralized data centers is essential for grasping the future direction of AI innovation.

Navigating the Complexities of AI chip Supply

The current geopolitical climate and U.S. export restrictions have created a unique dynamic in the AI chip market. While U.S. companies like Nvidia and AMD remain dominant, the restrictions have spurred China to accelerate its domestic chip development. This push for self-sufficiency, combined with Huawei’s existing infrastructure, presents a significant challenge to U.S. dominance.

The long-term implications extend beyond technological competition. Control over AI technology carries substantial economic and national security implications. How can the U.S.balance the need to protect its technological advantages with the benefits of maintaining access to global markets?

The AI landscape is rapidly evolving, driven by advancements in machine learning, deep learning, and neural networks. Key trends include the increasing adoption of AI in various industries, the growing importance of data privacy and security, and the ethical considerations surrounding AI development and deployment. The competition between the U.S. and China in AI is expected to intensify in the coming years, with both countries investing heavily in research and development.

Frequently Asked Questions about Huawei and AI

What is Huawei’s primary advantage in the AI race? Huawei’s extensive installed base of edge devices provides a significant advantage in building comprehensive AI ecosystems outside the U.S.
How are U.S. export controls impacting the AI chip market? U.S. export controls are driving China to accelerate its domestic chip development, creating a more competitive landscape.
What is the “network edge” in the context of AI? The network edge refers to the devices and infrastructure located closer to the data source, enabling faster processing and reduced latency.
Why is maintaining U.S. leadership in AI crucial? AI is a critical technology with significant economic and national security implications.
What steps can the U.S. take to strengthen its AI ecosystem? Allowing sales of capable chips to China and investing in domestic AI innovation are key strategies.

This is a pivotal moment in the global AI race. The decisions made today will shape the future of this transformative technology. We encourage you to share this article with your network, join the conversation in the comments below, and subscribe to our newsletter for the latest insights on AI and technology.

August 15, 2025 0 comments

Business

Zimbabwe Democracy: Coups, Authoritarianism, and Western Response

by Priya Shah – Business Editor July 14, 2025

written by Priya Shah – Business Editor

Here’s a breakdown of the provided text, focusing on its key arguments and structure:

Core argument:

The central argument of this text is that Western states‘ responses to the 2017 military coup in Zimbabwe, by not labeling it in this very way and focusing on the 2018 election, inadvertently enabled the coup-makers and ZANU PF to maintain and strengthen their authoritarian system. The authors contend that this Western approach prioritized a superficial democratic process (elections) over the crucial need for military reform,which is the bedrock of Zimbabwe’s authoritarianism.Key Points and Supporting Evidence:

Initial Hope for Stability (2009-2016):
Formation of a Government of national Unity (GNU) with Robert Mugabe (President) and Morgan Tsvangirai (Prime Minister) after a period of conflict.
Signs of progress towards political stability: new constitution (2013),no coups,increased economic stability,reduced political persecution.

The 2017 Military Coup and its Reversal:
Mugabe ousted after 37 years in power.
The authors argue this reversed progress in accountability (vertical, horizontal, diagonal) and set Zimbabwe back towards authoritarianism.
Crucial factor: The political role of the military, aligned with ZANU PF, sustains the authoritarian system.

International Response and its Consequences:
Initial “acceptance” or “tolerance” of the coup by international actors.
Emphasis on a “reasonably credible” post-coup election in 2018 as a condition for legitimacy and aid. Critique: This emphasis on elections downplayed the urgent need for reform of the politically entrenched military.
Result: More authoritarian continuity than democratic change since the coup and 2018 election. Factors Strengthening ZANU PF’s Hold:
Mass emigration: Caused by weakening accountability and political persecution, which the government worsened by exacerbating a socioeconomic crisis.
Weak opposition: contributes to ZANU PF’s ability to retain power.
repression of civil society: Further enables ZANU PF’s authoritarianism. Critique of Existing Scholarship:
Studies on zimbabwean politics often fail to seriously engage with the role of Western actors in sustaining ZANU PF’s authoritarianism.

Paper’s Objective:
To analyse how Western states reacted to the 2017 coup.
To argue that Western states chose not to call it a coup for complex reasons.
To demonstrate how these responses allowed the coup-makers and ZANU PF to evade condemnation and gain a “veneer of legitimacy” through a problematic election.

Structure of the Paper (as outlined):

Ancient Overview: Provides background on Zimbabwean politics since independence, highlighting the deep roots of ZANU PF’s authoritarianism.
Domestic Factors: Examines how internal issues like declining civil society and emigration contribute to ZANU PF’s longevity and authoritarianism.
Western Actors’ Responses: Focuses on how Western states reacted to the 2017 coup.
Final Section (Incomplete): The text cuts off before detailing the fourth section, but it’s likely to synthesize the arguments and offer conclusions or policy recommendations.

In essence, the text argues that a well-intentioned but ultimately misguided international focus on electoral processes in Zimbabwe, following the 2017 coup, allowed the underlying authoritarian structures, particularly the military’s influence, to remain intact and even strengthen.

July 14, 2025 0 comments