Iran nuclear deal: from nationalism to diplomacy

2017 ◽  
Vol 6 (1) ◽  
pp. 2-16
Author(s):  
Mehdi Fakheri

Purpose Selected countries in the world have the technical capability of creating nuclear energy. Iran has striven to acquire the know-how to harness nuclear power and has been scientifically successful. However, it was sanctioned by the foremost world powers for doing so. The purpose of this paper is to analyze how the Iranian nuclear dossier came about and how it became a global issue, how it was resolved and who will benefit from its resolution. Design/methodology/approach The paper is designed to review the antecedents, to study the international community’s position, to analyze the outcomes and to make some recommendations. The study’s methodology is therefore analytical. Findings Access to nuclear technology is a political matter and those who are allowed to use it might be subject to the ideological preferences of those that have long had it. The holders of nuclear technology normally interact with allies to provide them with help to fulfill a nuclear power program under certain circumstances. If an individual country decides to go its own way and develop an indigenous technical capability, it will come under scrutiny and measures will be taken to control it. If those measures fail, sanctions and pressures will be employed to hamper the achievement of nuclear independence. In the absence of tangible results, negotiations will start and agreement may be reached based on the expertise of the two sides’ negotiators. A peaceful agreement could be a win-win solution if it respects the rights and responsibilities of the parties involved. Iran’s nuclear deal, if implemented properly, would be a success story and will shape future policies in the Middle East. Research limitations/implications The first prerequisite for research is to have access to credible literature. When dealing with a new phenomenon, researchers face the challenge of not having sufficient material to develop a hypothesis or respond to all the questions that they have to pose. For Iran’s nuclear deal hundreds of articles have been written, but few books. Furthermore, because of the delicacy and confidentiality of the negotiations undertaken, one cannot interview the authorities involved either. Practical implications There are some Asian, Latin American and African countries with similar plans concerning nuclear energy. The paper will provide food for thought to evaluate the cost of their decisions and make suggestions for how they should proceed so that they can be perceived to be acting properly. Social implications Although nuclear themes are largely political and a part of the security arena internationally, access to nuclear technology as a power source could have a significant impact on the social development of the countries pursuing nuclear energy programs. The paper studies the effect of the Iranian deal on health, education, social networks and civil society. Originality/value The author has been involved in part of the negotiating process and has, thus, been in a position to verify different information discussed in the global mass media. The subject is also a brand-new issue in international relations, since a peaceful solution was found for a scenario that had previously been solved by military intervention, without exception. Finally, it is interdisciplinary research with an innovative analysis approach.

2016 ◽  
Vol 16 (5) ◽  
pp. 831-848 ◽  
Author(s):  
Emanuele Teti ◽  
Alberto Dell’Acqua ◽  
Leonardo Etro ◽  
Francesca Resmini

Purpose This paper aims to investigate the extent to which corporate governance (CG) systems adopted by Latin American listed firms affect their cost of equity capital. Several studies on the link between the two aforementioned dimensions have been carried out, but none in the context of Latin American firms. Design/methodology/approach A CG index is created by taking into account the peculiarities of each country and the recommendations given by the corresponding CG institutes. In particular, to assess the level of CG quality, three sub-indexes have been identified: “Disclosure”, “Board of Directors” and “Shareholder Rights, Ownership and Control Structure”. Findings The results indicate a negative relationship between CG quality and the cost of equity. In particular, the “Disclosure” component is the one mostly affecting the cost of equity. Research limitations/implications This study contributes to the literature by adding knowledge on the relationship between CG and cost of capital considering, for the first time, the overall Latin American market. Practical implications The paper proves that institutional investors all over the world are disposed to pay a premium to invest in firms with effective CG standards; moreover, this premium is higher in emerging countries such as those analyzed in this paper, rather than in developed countries. Originality/value To the authors' knowledge, this is the first paper empirically investigating the relationship between CG and cost of capital in Latin America.


Subject Impact of the Iran deal on civil nuclear energy. Significance The deal between Iran and the P5+1 powers (five permanent UN Security Council members plus Germany) will have little effect on the global deployment of nuclear power technology. The agreement could pave the way for new civil nuclear power generation in Iran. Elsewhere, civil nuclear power's prospects are restrained by high costs compared to alternatives, safety risks and political acceptance. Impacts Advanced nuclear power countries will encourage newcomers to meet their needs for nuclear fuel by relying on existing suppliers. Countries investing in new civil nuclear power are unlikely to also seek weapons capability. Low oil and carbon prices and the apparent reluctance of countries to mitigate climate change will constrain nuclear power investment.


Subject Slow cuts to global steel overcapacity. Significance In 2015, global steel output fell 2.8% compared to 2014, reaching 1.62 billion tonnes. China's production dropped by 2.3% to 804 million tonnes. In 2015, European benchmark steel prices fell by 27%, from 480 dollars/tonne to 350 dollars/tonne, while Chinese prices suffered a 41% drop, from 440 to 260 dollars/tonne. Margins at many steel-making groups contracted, as steel prices fell faster than the cost of raw materials. Large-scale job losses intensified in Europe, with the United Kingdom and Spain enduring the most of the capacity cuts. Impacts Latin American production could suffer from Asian competition unless sector-specific safeguards are introduced. Renewed dollar appreciation could make dollar-denominated debt unsustainable for many emerging-market steel-makers. BRICS exporters will suffer tariffs imposed by the US Department of Commerce. India will remain the industry's best hope for growth, due to its urbanisation and still low per capita steel consumption.


2017 ◽  
Vol 19 (4) ◽  
pp. 287-301 ◽  
Author(s):  
Peter Curwen ◽  
Jason Whalley

Purpose The purpose of this paper is to examine in a fully up-to-date manner the position in respect of the licensing and launch of long-term evolution (LTE) (4G) in a region that attracts relatively little attention in academic work and the media. The purpose is also to examine the role of incumbency and to assess to what extent the licensing of LTE can make a difference to the structure of mobile markets in the region. Design/methodology/approach The first step has been to compile extensive databases with respect to the licensing and launch of high-speed networks in the region, arranged so as to emphasize the position of the dominant incumbents. A distinction is drawn between the larger, mainly Latin American, countries and the smaller, mainly Caribbean, islands. There is a discussion of new entry and its potential to disrupt incumbents. Findings The position of dominance held by two operators – América Móvil and Telefonica in the larger countries and by Digicel and Cable & Wireless Communications (Liberty Global) in the islands – is brought to the fore, and the analysis demonstrates that this is unlikely to be more than marginally affected by regulatory attempts to restructure markets by, for example, fostering new entry. Research limitations/implications This is necessarily an overview paper as more than 50 countries/islands are covered, so detailed individual country studies are precluded. Practical implications The way forward, such as it is, can only be illuminated by first clarifying the current state of play. Originality/value The databases that underpin the analysis are author-compiled and entirely original.


Author(s):  
Savannah Fitzwater

This chapter provides an overview of nuclear power around the world, the fundamentals of nuclear technology, and nuclear energy’s costs and benefits. Nuclear energy accounts for 10.6 percent of energy produced for electricity globally. Although a relatively small percentage of production, it has often been in the spotlight for its great potential, both good and bad. As of 2018, there were 451 operational commercial nuclear reactors globally and many more under construction. This chapter explores some of the key arguments made for and against nuclear energy and examines future areas of nuclear power development, including small modular reactors, advanced Generation IV reactor designs, and the expansion of non-electric applications, in light of the current state of nuclear power.


Subject China's nuclear programme. Significance China has the world's largest fleet of new nuclear plants and plans to increase its nuclear energy capacity more than fivefold over the next 15 years. It is one of the few countries to be adding to capacity, while expansion has largely stalled in Europe, the United States and Japan. Chinese companies have also started to sign deals with other countries to build plants there. Impacts Nuclear energy will enhance security of electricity supply in the economically crucial coastal provinces. Success in its domestic programme would position China to rival Russia in the international market. Nuclear power will help China tackle air pollution, currently a greater political liability than concerns about nuclear safety. Public opinion seems unlikely to become a barrier to expansion unless there is a serious nuclear accident.


Significance The government's decision to delay its approval has raised questions about how and whether nuclear power will be developed further in the United Kingdom. The renewed uncertainty will do little to bolster the fortunes of the technology elsewhere in Europe. Impacts The high cost of new nuclear plants often makes government support necessary, which could lead to conflict with the European Commission. With investor confidence already low, the loss of Hinkley Point would adversely affect other proposed nuclear projects. The falling cost of renewable energy could make nuclear a less attractive option in the long term.


Subject The expansion of low-cost airlines in Latin America. Significance In late October, the first tickets for flights with Wingo -- a new no-frills carrier running routes between Colombia, Central America and the Caribbean -- went on sale. The new Colombia-based company is competing directly against several traditional and budget airlines for a share of the growing market for domestic and international air travel within the region. Wingo's creation, together with that of Viva Air Peru in November, highlights the continued disruption to a sector long dominated by a small number of high-cost carriers. Impacts Greater availability of reasonably priced international flights will boost Latin American tourism to the Caribbean. Cheap air travel may also help expand and consolidate regional trade ties, reducing the cost of business trips. Increased flight frequency and passenger numbers will help regional airports which have often operated below capacity.


Significance Rosatom’s nuclear energy contracts with Iran, Egypt, Turkey and Jordan signal a growth in Russian soft power in the region. Meanwhile, the United States is conspicuous by its absence in both reactor sales and nuclear cooperation. Impacts Russian hegemony in regional uranium supplies could offer political leverage. Nuclear energy programmes will give leaders further justification to strengthen state security mechanisms. The presence of nuclear material in the Middle East region will increase Western concerns over regime security and survival. Civil nuclear power could contribute to anxieties over a nuclear arms race. US disengagement from civil nuclear power in the Middle East may weaken its influence over non-proliferation.


Significance Since its first nuclear test in 2006, North Korea has made steady progress in nuclear weapons technology. The July 4 ICBM test reflects its progress on delivery systems with longer ranges and increased sophistication. Pyongyang routinely claims to possess the status as a full nuclear power with the ability to retaliate with strategic nuclear arms against a US attack. Impacts Beijing is likely to share Washington’s concerns about nuclear technology transfer by a more secure North Korean regime. However, Washington is likely to position more rapid-strike conventional forces in the region, over China’s vociferous objections. Once North Korea is confident in its deterrent, it may be willing to offer a cessation of testing in exchange for sanctions relief.


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