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AssessmentsApr 7, 2026 | 20:33 GMT
Japanese Foreign Minister Toshimitsu Motegi answers questions at a legislative budget committee session in Tokyo on April 7, 2026, while Prime Minister Sanae Takaichi (left) looks on.
Reviewing Japan's New Budget: Balancing Spending Hikes and Fiscal Reality
Japan's new budget will enable increases in strategic investments and defense expenditure, but future spending increases will remain constrained by relatively low economic growth and a large, if manageable, government debt burden. On April 7, Japan's upper legislative chamber approved the fiscal year 2026 budget proposed by Japanese Prime Minister Sanae Takaichi, weeks after the lower house gave its ascent. Following her decisive victory in the February lower-house elections, Takaichi is partly trying to emulate former Prime Minister Abe Shinzo's economic policies by increasing fiscal deficit spending and raising investment in critical economic sectors. Furthermore, the budget aims to accelerate strategic, state-led investments across seventeen priority sectors, including artificial intelligence, semiconductor manufacturing and shipbuilding. These investments are designed to bolster economic resilience and foster long-term productivity growth amid demographic challenges and sluggish economic growth. Following a supplemental budget passed last December, which aimed to raise defense expenditure to 2% of
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Japan
Economics
Military & Security
Politics
On GeopoliticsApr 7, 2026 | 19:42 GMT
The Geopolitics of Demographics
Adapting to Demographic Decline: Policy Tradeoffs and Global Divergences
Demographic decline, driven by falling fertility rates worldwide, is likely irreversible but will also increasingly differentiate countries based on their ability to adapt through sound immigration, labor, technological and fiscal policies.
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Sub-Saharan Africa
Americas
Middle East and North Africa
Asia-Pacific
Europe
Eurasia
South Asia
Economics
Geopolitics of Demographics
Politics
Social Issues
Situation ReportApr 7, 2026 | 18:19 GMT
Nigeria: Government Faces Conflicting Pressure Surrounding Pipeline Protection Program
A coalition of youth movements from Nigeria's southern Rivers state has urged the country's federal government to decentralize pipeline security contracts in the Niger Delta, stressing that this is essential to creating opportunities for youths and that failing to do so would be "neither equitable nor sustainable," THISDAY reported on April 7.
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Nigeria
Energy
Military & Security
AssessmentsApr 6, 2026 | 21:31 GMT
The exterior facade of the Legislative Palace of Peru is seen in Lima.
Peru's Presidential Election: Potential Outcomes and Their Implications
Peru will hold general elections on April 12, with a runoff on June 7 if no candidate obtains more than 50% of the vote. Peruvians will elect a president, two vice presidents, the 130 members of the Chamber of Deputies and, for the first time in over three decades, a 60-seat Senate, marking the return of a bicameral legislative system. The presidential race is characterized by severe political fragmentation, with a record 35 candidates vying for the top office. Leading candidates are polling in the low double digits, and many voters remain undecided, setting the stage for late swings in voter sentiment and an unpredictable outcome. The legislative election, meanwhile, will likely result in multiple center-right parties gaining most seats, especially since this year marks the end of a ban on immediate legislative reelection. Such an outcome would likely improve the governability conditions of a right-wing president but become an
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Peru
Economics
Military & Security
Politics
SnapshotsApr 6, 2026 | 14:57 GMT
A freight train carrying cargo containers rides along a railway track in Ajmer, India, on Aug. 26, 2025.
India Cautiously Opens up to Chinese Investment
India is cautiously easing select investment and import restrictions with China to address critical shortages, while maintaining safeguards and limiting sensitive exposure. However, relations are unlikely to extend beyond low-level confidence-building measures due to enduring structural and security tensions. On March 27, the Indian government allowed some state-owned companies, including Bharat Heavy Electricals and the Steel Authority of India, to import certain critical equipment from China, helping state-run power and coal companies address shortages and project delays. The decision came weeks after India's Cabinet on March 10 partially eased restrictions on foreign investment from neighboring countries sharing a land border. While the countries affected by this policy also include Pakistan, Bangladesh, Nepal, Myanmar, Bhutan and Afghanistan, the practical impact is most significant for China because of the size of its economy and its very large amount of capital available for investment compared to other neighboring countries.
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Iran
China
Myanmar
Afghanistan
India
Nepal
Pakistan
Economics
Global Trade
Politics
AssessmentsApr 3, 2026 | 19:21 GMT
Iraqi women light candles in memory of the victims of the U.S.-Israeli attacks on Iran and Lebanon during a rally in Baghdad's Tahrir Square on April 2, 2026.
Iraq Is Caught in the Crossfire of Another Destabilizing War
In Iraq, violent spillover from the Iran conflict will further strain pre-existing domestic divisions, while likely stalling the government formation process and fueling U.S. pressure for militias to disarm; reduced state revenue from disrupted oil exports will also hamper public service provision and push Iraq to increase borrowing. On April 2, the U.S. embassy in Baghdad urged Americans to leave the country, warning that "Iraqi terrorist militia groups aligned with Iran may intend to conduct attacks in central Baghdad in the next 24-48 hours." The alert followed U.S. claims that Kataib Hezbollah, an Iran-backed militia within Iraq's Popular Mobilization Forces (PMF), had kidnapped an American journalist working in Baghdad on March 31. Since the United States and Israel began striking Iran in late February, PMF militias have conducted numerous retaliatory attacks across Iraq, including against the U.S. embassy in Baghdad, U.S. military bases and hotels frequented by Americans in the
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United States
Iran
Iraq
Economics
Energy
Military & Security
Politics
SnapshotsApr 2, 2026 | 15:05 GMT
Rastriya Swatantra Party leader Balendra Shah is sworn in as Nepal's new prime minister in Kathmandu on March 27, 2026.
New Nepalese Government's Agenda Threatened by Iran War Fallout
Nepal's newly elected government faces the immediate challenge of managing energy and economic shocks from the ongoing Iran war. In the longer term, it will face enduring popular pressure to improve living conditions and reform the unstable political system. On March 27, Nepal's president swore in former Kathmandu Mayor Balendra Shah as the country's new prime minister, a day after the president swore in lawmakers elected in the country's March 5 general elections. Citizens voted overwhelmingly for the four-year-old Rastriya Swatantra Party, or RSP, in the country's March 5 polls -- Nepal's first since September 2025 anti-government protests helped oust then-Prime Minister K.P. Sharma Oli and his government. The RSP won 182 of 275 parliamentary seats, the largest single-party majority since the country abolished its monarchy in 2008, allowing it to govern without additional partners. The party's unprecedented victory and rebuke of the political establishment underscored the severity of popular
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Iran
Nepal
Economics
Global Trade
Politics
AssessmentsApr 1, 2026 | 18:09 GMT
Newly elected opposition Kuomintang (KMT) leader Cheng Li-wun delivers a speech in Taipei on Nov. 1, 2025.
The Taiwanese Opposition's Plan To Revive Talks With China Will Likely Backfire
The effort by Taiwan's opposition leader to revive talks with China will likely produce modest economic benefits, hurt the party's electoral prospects and not significantly alter U.S. policy on Taiwan, though talks could also paradoxically increase the chance of military conflict in the coming years. China's Taiwan Affairs Office (TAO) announced on March 30 that the chairwoman of Taiwan's main opposition Kuomintang (KMT) party, Cheng Li-wun, would visit China from April 7-12 at the invitation of Chinese President Xi Jinping. TAO Chair Song Tao said the visit will involve stops in Jiangsu, Shanghai and Beijing. That same day, Cheng held a press conference on the matter, accepting the invitation and pledging to uphold the KMT's policy of "adhering to the 1992 Consensus and opposing Taiwan independence," saying these policies would help avoid war. She also spoke of the efforts of current KMT elder and former Taiwan President Ma Ying-jeou from
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China
Taiwan
Military & Security
Politics
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