Party divisions will overshadow Angola elections

Significance The court ruled that Costa Junior had not relinquished his Portuguese nationality at the time of his election, as the constitution mandates. This has sparked a political crisis in the run-up to next year’s general election. Impacts Accusations of election meddling could compromise President Joao Lourenco’s international reformist credentials. Protests could become more violent and political instability could become an obstacle to economic recovery. Lourenco’s authority within the MPLA may be challenged from the inside, as military veterans see him as too weak to control UNITA.

Subject Norway's economy. Significance Even as the global price for oil recovers slowly, Norwegian Prime Minister Erna Solberg's government hopes to encourage Norway to transition to a post-petroleum economy. The main contours of the 2017 budget suggest that the Norwegian economy has turned two significant corners: the prognosis for economic recovery is promising, and the Norwegian economy will slowly transition to a broader base. Impacts Spending rules for the GPFG could be tightened next spring. The expansive budget may help Solberg's Conservative Party win back votes in the run-up to the 2017 general election. The Christian Democrats could emerge as kingmakers from the 2017 election and possibly facilitate a centre-left coalition.


Subject Spain's upcoming general election. Significance Socialist Prime Minister Pedro Sanchez has called a snap election for April 28, following the rejection of his budget by right-wing opposition and Catalan nationalist parties. The election comes as twelve of Catalonia’s pro-independence leaders face high-profile public trials for their involvement in the unconstitutional referendum on Catalan independence in 2017. Impacts Political instability is unlikely to have a significant influence on the economy in the near term. A right-wing government would take a more hostile approach to immigration. It is doubtful that the trials will convert many pro-Spanish Catalans to support independence.


Significance The closing of internal and external borders in response to COVID-19 has heightened a longstanding skills deficit in key industries, with implications for wage levels, prices and broader economic growth. However, a general increase in immigrant numbers may not provide the skills that are needed. Impacts Labour shortfalls may delay government infrastructure projects that were designed to lead the post-pandemic economic recovery. Foreign investment may be affected by skills shortages in key areas such as mining and metallurgy. Debate on immigration levels could influence voting in the general election that is now likely to be held in April.


Subject Denmark's immigration impact. Significance Denmark's opposition Social Democrat party has adopted a hardened stance on immigration, reflected by its support for several populist policies implemented by the government. The party will use its toughening position on immigration as a campaign strategy ahead of Denmark's general election in 2019. Impacts Increased competition over the leadership of the incumbent Venstre party could undermine its chances of retaining power. A Social Democrat government backed by the DPP would mark an unprecedented political realignment. A government involving the DPP would be marked by popular protests and political instability.


Subject Bosnia’s election aftermath. Significance Political parties must now start talks to form coalitions at various levels after elections that strengthened hard-line nationalists. A dispute over the Croat seat in the state presidency has deepened the rift between Bosniaks (Bosnian Muslims) and Croats, further complicating government formation. Impacts Lacking its upper parliamentary chamber, the Federation be unable to pass the 2019 budget, signalling the start of institutional collapse. Little may be expected from the EU in the deepening political crisis. Continuing chaos will boost emigration, especially among the young and educated.


Significance However, the prospects of a sustained recovery are clouded by fiscal weakness, a precarious balance-of-payments position, a deteriorating business environment and the threat of international sanctions on the financial sector. The country's most vulnerable communities are yet to recover from the damage wrought by Hurricanes Eta and Iota. Impacts An accommodative monetary policy will be maintained in an effort to support economic recovery. Ortega’s control over the judiciary will heighten legal uncertainty and erode the ability of investors to enforce contracts. The prolonged depreciation of the Cordoba will increase servicing costs of public and private dollar-denominated debts. Refugee outflows will intensify after November’s elections, with knock-on effects for the rest of the region.


Significance It also looked at government-proposed amendments to another law aiming to reduce the scope for tax evasion in the Aqaba Special Economic Zone. Recent developments including the pandemic, an April political crisis between King Abdullah and his half-brother Prince Hamzah and now the Gaza conflict have highlighted popular dissatisfaction driven by economic grievances. Impacts Tourism should start to recover in late 2021, but revenue is unlikely to return to pre-pandemic levels until 2024 at the earliest. Forecast economic growth of 2-3% over the next four years leaves little scope for improvement in living standards. Without a strong economic recovery, the government will struggle to bring down an unemployment rate that has reached 24%.


Significance Despite the crackdown, FNDC-led protests are likely to intensify to try to disrupt the October 18 poll. However, Conde’s main concern is not the recurring protests, but rather ensuring a first-round victory. Impacts Conde’s regional and international standing will be further damaged after the polls. Conde’s re-election would polarise the country and risk intensified protests and political instability. Increased political unrest raises the risk of disruption to the mining and agriculture sectors, hampering economic recovery.


Significance Crackdowns against the political opposition have increased as the government tries to stifle political dissent. The constitution mandates presidential and national assembly elections by late November, but the incumbent, President Joseph Kabila, appears unwilling to leave office despite reaching his term limit. Impacts Tshisekedi's return will raise the stakes in the country's political crisis. Instability or political violence risks shattering DRC's fragile economic recovery. The UN could expand the mandate of its mission in the DRC depending on the outcome of the political process.


Significance Khoza has openly called on ANC MPs to vote against President Jacob Zuma in a parliamentary motion of no confidence scheduled for August 8. Despite many ANC members privately agreeing with Khoza, most ruling party lawmakers have kept silent ahead of the crucial vote. Instead, the race to succeed Zuma as leader at December's national conference is prompting fierce internal contestation among the party and its alliance structures, threatening to undermine its 2019 general election performance. Impacts Intra-ANC violence could grow in the run up to, and after, December’s national conference. Ongoing corruption allegations involving officials at state-owned power utility Eskom could implicate members of the government. Relations between the minister of mines and the Chamber of Mines are likely to deteriorate further following new government restrictions.


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