Rubrics » Bridging News
The Grand Ethiopian Renaissance Dam and the Collapse of Colonial River Governance
No. 53, May-Jun. 2025 The Nile River has long been governed more by politics than hydrology, with its control imposed by foreign powers, not equity. The Nile Water Agreements, signed in 1929 and 1959, were negotiated by colonial powers who deliberately excluded upstream-state Ethiopia, giving Egypt control over 66% of its waters and effective veto power over upstream development. On the contrary, Ethiopia, whose highlands supply approximately 85% of the Nile’s volume, has been relegated to the margins of a system designed to entrench dominance, not foster shared control. Now, after decades of foreign monopoly, Ethiopia’s construction of the Grand Ethiopian Renaissance Dam (GERD) has shattered the status quo, a move viewed by Egypt and Sudan as destabilizing, though long seen by Ethiopia as a necessary correction to decades of imposed marginalization. More
The Tariff War and the Future of the Dollar
No. 53, May-Jun. 2025 The chaotic decisions of the Trump administration, the unpredictable tariff measures that are likely to affect even the most important economic partners of the US – Canada, Mexico, China and the EU – as well as the equally disorderly reconsideration of American geopolitical interests in relations with Russia, Ukraine and Europe have triggered a new series of debates on an old issue: the role of the dollar in the world. More
Rethinking Tariffs: A Critique Through the Lens of Strategic Trade Theory
No. 53, May-Jun. 2025 In recent years, particularly during the Trump administration, we’ve seen a revival of protectionist policies that have sparked lively discussions about the role of tariffs in a nation’s development strategy. While people often support these policies as a way to boost domestic industries, protect jobs, or address unfair trade practices, classical economic theory—especially David Ricardo’s Theory of Comparative Advantage—provides a thoughtful critique of this approach. Yet modern trade dynamics captured in New Trade Theory, Global Value Chain analyses, and theories of Weaponized Interdependence suggest that today’s policymakers face a far more complex environment than Ricardo ever envisioned. To unpack the modern logic behind these tariff strategies, we must bridge historical trade theory, modern strategic trade models, and insights drawn from Sun Tzu’s The Art of War and Donald Trump’s The Art of the Deal. More
Hala Fatigue! Real’s Crown in Crisis
No. 53, May-Jun. 2025 Wait—what? Bigger than politics? Yes. Because this isn’t about some passing political scandal. This is about the club. The biggest, boldest, most-decorated institution in the most beautiful game of all: football. It’s about Real Madrid. The Real Madrid. More
Romania, Largest Increase in Labour Cost Last Year
No. 53, May-Jun. 2025 In 2024, compared with 2023, hourly labour costs at whole economy level expressed in euro rose by 5.0% in the EU and by 4.5% in the euro area. Within the euro area, hourly labour costs increased in all countries. The largest increases were recorded in Croatia (+14.2%), Latvia (+12.1%) and Lithuania (+10.8%) and the lowest in Czechia (+1.3%), followed by Finland (+1.8%) and Luxembourg (+2.1%). More
Nuclear Energy’s Economic Impact: A Balance Between Long-Term Gains and Accident Risks
No. 53, May-Jun. 2025 More than before, people have become aware in an in-depth manner regarding global issues which not only define the present, but have also impacted recent decades, such as political instability, wars, pandemics, climate change, and, on top of these, a growing energy crisis, which is fueled by the rising demand of consumers and producers (with large corporations serving as both). The world has seemingly accepted the need for a less polluting, low-carbon intensive source of energy, as the fossil fuel usage declined by 2-3%, a modest percentage considering that the global energy demand has surged by 15% in the same period. Roughly 40% of this growth consisted of the so-called “clean” or “green” energy, which included sources like hydropower, wind, solar and also nuclear energy, which will be our main topic for this article. More
Offshore Wind Energy: A Solution for the Revival of the Black Sea Region?
No. 53, May-Jun. 2025 The need for a transition to a green economy is a debate that should have been settled long ago so that the world’s countries could focus on making clean production technologies not only environmentally friendly but also cost-effective. Today, in an age when truth feels more subjective and interpretable than ever, this debate has become increasingly ambiguous and has taken on political connotations that are far too strong for a field as technical as this one. More
Bridges Are Built Not Only with Steel, Concrete, and Asphalt, but with Trust, Vision, and Economic Freedom
No. 53, May-Jun. 2025 In the age of “infrastructure diplomacy”—and we may place under such label the Three Seas Initiative (3SI)—, it is tempting to think that connectivity is just a matter of tracks, pipelines, and wires. But the true lifeblood of regional cooperation does not flow through stone, steel or silicon—it pulses through institutions, as, inter alia, last year’s laureates of the the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel—Daron Acemoglu, Simon Johnson and James A. Robinson—convincingly demonstrated. “Societies with a poor rule of law and institutions that exploit the population do not generate growth or change for the better” —this is how the Royal Swedish Academy of Sciences justified the award. It is common sense, before anything else, yet “command and control” does persist in governments’ fantasies. In the “Trimarium”—as 3SI is sometimes nicknamed, a reminder of Józef Piłsudski’s interwar geopolitical plan, Intermarium/Międzymorze—, where strategic geography meets political ambition, economic freedom emerges as “the” indispensable condition for durable connectivity. More
Protectionism: Solution or Problem? (III)
No. 52, Mar.-Apr. 2025 One might think that any market imperfection is a good reason to adopt protectionist measures. Indeed, a number of economists have fallen into this trap for almost two centuries: from the beginning of the modern history of international trade, in the first decades of the 19th century, to the 1950s, the solution of protectionism was repeatedly tried. Today, most economists argue, on the contrary, that protectionism is an inadequate and ineffective way of correcting internal market deficiencies. For example, if wages do not adjust quickly enough to the decline in demand for the products of a particular branch, a reduction determined by foreign competition, some contemporary economists argue that the appropriate government policy is to intervene – or, possibly, to cease intervention – in the labor market, where remedial measures can indeed be adopted that directly target the causes of the problem. More
The Tariff Man Strikes Again
No. 52, Mar.-Apr. 2025 Ideas have consequences. Wrong ideas have disastrous, deadly consequences. Adam Smith got the theory of value wrong. Starting from the mistaken premise that prices are causally explained by costs and identifying labor as the homogeneous element that is present at different stages in the production chain of a good, he developed the labor theory of value. A flawed theory that had very serious consequences in the real world. More
Protectionism: Solution or Problem? (II)
No. 52, Mar.-Apr. 2025 The fact that preventing free trade affects the economy has been known for a long time. The idea is as old as economics itself. Thus, in his book, The Wealth of Nations, which marks the birth of economics, Adam Smith justifies free trade at the international level, showing that, by specializing in the production of certain goods, all nations benefit from freedom of trade. Just as, within a national economy, the division of labor, specialization and free exchange of goods lead to increased productivity and, therefore, general well-being, at the level of the entire world economy, free trade leads to increased wealth of all nations and to world peace. However, Smith admits the establishment of customs duties in two situations: in the case of industries that are of strategic importance for national defense and in reaction to duties imposed by other countries on imports of goods from that country. According to Smith, protectionism is, therefore, an exceptional measure, which, as a general rule, hinders the proper functioning of the economy. More
Trump, the Tariff Man, and the Necessity for a Distinction: Economist vs. Entrepreneur
No. 52, Mar.-Apr. 2025 The dispute between Trump and the rest of the world regarding custom duties calls back into question a fundamental issue: the distinction between economist and entrepreneur. Furthermore, it shows us the fact that being a businessman, an entrepreneur or a capitalist (I shall use these three terms interchangeably), does not imply having a correct understanding of what is happening in/to the economy. Sometimes, simple economic consequences, such as the ones brought about by imposing a customs duty on imports, can pass you by. The way Trump, the Tariff Man, gives credit to certain Mercantilist principles of seeing international trade, enables us to take a deeper look into this distinction between economists and businessmen/entrepreneurs. More
