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2831. Iran — Khatami Landslide

Author:
Caspar Fithin
Publication Date:
06-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
President Mohammed Khatami was re-elected on June 8 by a huge margin. Khatami's supporters are already talking about a renewed campaign for reform under a reorganised cabinet and a reinvigorated Majlis. However, the obstacles to such a programme remain formidable. Khatami is likely to press a little more strongly for reform, especially in the economic field. However, doubts remains that he or his parliamentary colleagues have the means to use the renewed mandate provided by the election to press for radical change. Any change is therefore likely to modest and incremental, though, in the Iranian context, significant.
Topic:
Government and Politics
Political Geography:
Iran and Middle East

2832. Nepal — Royal Murders

Author:
Caspar Fithin
Publication Date:
06-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The new King of Nepal, Gyanendra Shah, promised an inquiry into the massacre that killed almost the entire royal family on June 1. Given the former king's legacy as adored head of state and symbol of stability, his violent death has created extreme political uncertainty. It has occurred at a time of general political unrest in the form of strikes and demonstrations in the towns and an increasingly violent Maoist insurrection in the countryside. In the short term, violent demonstrations over the unsatisfactory nature of official explanations of how the royal family died will continue. They may do so even after the findings of the independent inquiry into the deaths are announced. A return to calm depends largely on King Gyanendra's ability to govern in the same manner as his murdered brother.
Topic:
Government and Politics
Political Geography:
South Asia and Nepal

2833. European Union — Takeover Tensions

Author:
Caspar Fithin
Publication Date:
05-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The proposed takeover bids directive may be lost unless the differences between the European Parliament (EP) and the Council of Ministers are resolved by June 6. The ongoing negotiations between the Council and the EP in the conciliation committee may be made more difficult by Germany's recent decision to renege on the Council common position on the directive. The move was received with incomprehension in other EU member states. Germany so far stands alone in its attempt to change the directive. Nevertheless, its decision could give MEPs enough ammunition to avoid a compromise in the conciliation committee, and hence to allow the directive to fail. More importantly, Germany's decision also draws attention to the various level-playing field issues still to be addressed in the area of corporate control through greater harmonisation of company law.
Topic:
Government and Politics
Political Geography:
Europe and Germany

2834. Italy — Berlusconi Victory

Author:
Caspar Fithin
Publication Date:
05-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The outcome of last Sunday's general election is now clear. Although the centre-right has won substantial majorities in both houses of parliament, both the Alleanza Nazionale and the Northern League suffered setbacks. The League failed to pass the threshold needed to qualify for a share of the quarter of seats in the Chamber of Deputies allocated by proportional representation. For the time being, Forza Italia, and therefore Berlusconi, who dominates the party, is in firm control of the centre-right coalition. If Berlusconi can retain his authority over the coalition for the next five years, it could assist in stabilising a still highly-fractured and potentially unstable party system.
Topic:
Government and Politics
Political Geography:
Europe and Italy

2835. Japan — LDP Prognosis

Author:
Caspar Fithin
Publication Date:
04-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The ruling Liberal Democratic Party (LDP) will elect a new president on April 24. Given that the LDP is the largest party in parliament, its president will also become the country's prime minister. While the media and the public are demanding genuine leadership from the government, the LDP's structure militates strongly against forthright policy-making.
Topic:
Economics, Government, Political Economy, and Politics
Political Geography:
Japan and East Asia

2836. United States — Medical Marijuana

Author:
Caspar Fithin
Publication Date:
04-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The US Supreme Court heard oral argument last month on whether 'medical necessity' should override the federal government's blanket prohibition on the use of marijuana. If the Court were to accept this argument, it would provide a powerful boost to the medical marijuana movement and hamper the federal government's ability to pursue its current drugs policy. A ruling in favour of the federal government, however, would constrain the ability of states to formulate independent drug policies. The Supreme Court is likely to sidestep the substantive issue of whether 'medical necessity' allows the distribution of marijuana to seriously ill patients. Its inclination will be to decide the case on a narrow procedural ground which would leave the federal government to decide if it wishes to pursue criminal prosecutions.
Topic:
Security, Government, and Science and Technology
Political Geography:
United States

2837. India — Arms Scandal

Author:
Caspar Fithin
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
On March 15, Defence Minister George Fernandes resigned. Fernandes' resignation follows last week's revelations about cash-for-influence exchanges with journalists posing as arms dealers. Although the Union coalition government is likely to survive the affair, its prestige has been severely damaged. The most serious potential of the Tehelka scandal is the government's loss of the moral authority to forge ahead with its economic reform programme. Opponents of liberalisation, both on the right and the left, are attempting to draw political capital from the affair.
Topic:
Economics, Government, and Politics
Political Geography:
South Asia and India

2838. Japan — Monetary Easing

Author:
Caspar Fithin
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The Bank of Japan (BoJ) announced a new approach to monetary policy which effectively targets money supply growth and inflation on March 19. The BoJ has indicated that the immediate consequence of its measures to boost financial system liquidity will be to push short-term interest rates back to zero or virtually zero. It has pledged to maintain rates at this level until deflationary pressures are reversed and the consumer price index becomes positive. The BoJ's actions have the potential to lead to a revival in share prices, corporate activity and bank lending. If the initiative results in a sustained weakening of the yen, the economy may also benefit from stronger export growth. However, the effect of all of these measures will be blunted unless they are accompanied by the structural reforms which the government has for some time foreshadowed, but which have suffered from delay and indecision.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
Japan and East Asia

2839. Indonesia — Kalimantan Consequences

Author:
Caspar Fithin
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
President Aburrahman Wahid yesterday visited Central Kalimantan, the scene of violent clashes between local Dayaks and Madurese settlers. The crisis has its origins in the ill-conceived transmigration policies of the Suharto era. Despite its localised and specific nature, there is a significant risk that it will embolden other outer-island communities to move more decisively against non-indigenous sections of local populations. This would place further strains on the thinly-stretched security forces. With Wahid's authority already weakened, the crisis in Central Kalimantan will strengthen the position of hard-line elements in the military who are opposed to the president. Nonetheless, Megawati's ability to gain political capital will be limited by the fact that she herself has a leading role in formulating policy towards the regions.
Topic:
Conflict Resolution, Ethnic Conflict, Government, Migration, and Politics
Political Geography:
Indonesia and Southeast Asia

2840. Moldova — Communist Government

Author:
Caspar Fithin
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The Party of Moldovan Communists (PCM) has won full control over parliament following the February 25 general election. The decisive result has broken the country's political stalemate and allows the PCM to select the president, premier and parliamentary speaker without needing to form a coalition in the chamber. However, uncertainties over the PCM's economic policy and political priorities persist. While the PCM has a monopoly on power, this could be undermined by continued economic decline, internal party splits and a nationalist backlash against its pro-Russian orientation. The PCM will seek allies in domestic politics, and will seek to find the external partner, whether Russia or the IFIs, best able to assist in the long-term revival of the economy.
Topic:
Communism, Government, Political Economy, and Politics
Political Geography:
Moldova and Eastern Europe