Canada's Liberals have slow start to election campaign

Headline CANADA: Liberal election campaign starts slowly

Significance At the same time, the June 18 presidential election campaign is beginning, with top judge Ibrahim Raisi registering as a favoured candidate. Heading a high-profile anti-corruption campaign, Raisi has been a strong advocate of Supreme Leader Ali Khamenei’s ‘resistance economy’ policy to undermine sanctions by supporting domestic production. Impacts Effective legislation to manage conflicts of interest, including of officials’ family members, will likely remain blocked. Local business interests that would benefit from more global links may have a strong voice even under a conservative government. The Islamic Revolution Guard Corps will keep a firm grip on the infrastructure sector.


Subject Logistics performance. Significance Morocco's aspiration to become a trade and industrial hub for the Atlantic and Mediterranean basins has received a setback with the publication of the World Bank's 2016 Logistics Performance Index on June 28. Morocco's ranking fell to 86th place, from 50th in 2012. Impacts Morocco's fall in logistics performance and corruption rankings could be used to attack the government in the election campaign. It could also provide an incentive to reform the business environment, which the IMF has highlighted as a policy priority. Morocco's advantages compared to its regional peers will outweigh investor concerns over the rankings.


Significance Presenting his government's programme on November 25, Prime Minister Ahmet Davutoglu promised to keep his election campaign pledges, complete major infrastructure projects, maintain fiscal stability and implement structural change. Impacts Domestic demand will strengthen in the short term. However, firms in labour intensive sectors may face financial difficulties, and new job creation may be slow. Currency and capital markets are likely to remain volatile and overreact to trends in monetary policy and the current account. Opportunities exist for those investors able to tap into the government's priorities and avoid political risks.


Significance The claims follow the ANI’s announcement on February 22 that it would cancel the contract of an Odebrecht-led consortium to build the Ruta del Sol 2 highway, linking central Colombia to the Caribbean coast. Impacts The risk of potentially intrusive investigations will remain high for firms with commercial or contractual links to Odebrecht. Delays in completion of infrastructure projects could bring Colombia’s GDP growth rates for 2017 below the current forecasts of 2.7%. Later in the year, new infrastructure investment opportunities will open as corruptly awarded contracts are resubmitted for tender. Allegations that Santos’s 2014 election campaign received Odebrecht funding could harm his Party of the U in the 2018 election.


Subject Political and economic consequences of austerity in the Netherlands. Significance The popularity of the Dutch governing parties has declined steadily since they came into power in 2012. The absolute winner in the polls continues to be the far-right Freedom Party (PVV) led by Geert Wilders. There are signs, however, that mainstream parties are coming back into favour, thanks to a combination of promising economic prospects and relatively stable immigration levels. Impacts The EU, healthcare provision, integration and care of the elderly are likely to be key themes during the election campaign. Calls for a referendum on the withdrawal of the Netherlands from the EU -- a 'Nexit' -- are likely to intensify. Prospects for the Labour Party in the next election will depend on whom the party elects as its leader.


Subject The president's anti-corruption campaign. Significance In the lead-up to presidential elections scheduled for March 26-28, President Abdel Fatah el Sisi’s re-election campaign has focused on his anti-corruption efforts. Campaign posters promise to ‘purify the country of terrorism’ and ‘wage war on corruption’. Since his first presidential bid in 2014, Sisi has championed anti-corruption as a central pillar of his presidency. His multi-year campaign, which includes state-sponsored television advertisements, has targeted several businessmen and high-ranking officials. Impacts The role of the Administrative Control Authority (ACA) will expand as Sisi channels state resources to the body. The ACA is likely to assume an increased presence in conducting business deals. Efforts by foreign governments to support the anti-corruption campaign will strengthen the military’s rising influence.


Subject Poverty. Significance President Enrique Pena Nieto on September 29 signed declaratory decrees for three ‘Special Economic Zones’ (SEZ) in deprived areas in four southern states. SEZs are designed to address nationwide poverty imbalances by attracting investment and jobs to some of the country’s poorest regions. Though some progress has been made, poverty alleviation efforts have had limited impact. Nearly half of Mexicans still live in poverty. Impacts Should NAFTA renegotiations adversely affect Mexico’s auto industry, poverty could quickly rise in central states. Failure to properly implement education reforms in southern states will cripple their long-term economic prospects. Poverty will strengthen the 2018 election campaign of leftist presidential frontrunner Andres Manuel Lopez Obrador.


Subject The recent presidential election in Mongolia. Significance With the victory of Khaltmaa Battulga in the presidential election on July 7, the Democratic Party (DP) has held onto the presidency. The legislature and cabinet remain in the hands of the rival Mongolian People’s Party (MPP). The election of an MPP president would have signalled continuity and stability; a Battulga win introduces uncertainty. Impacts Battulga may push to scale back austerity and provide the public with more immediate benefits from the resources sector. Despite the anti-Chinese sentiment evident during Battulga's election campaign, he is more likely to be pragmatic than confrontational. Battulga may use the presidency's foreign policy powers to reach out to Russia.


Subject Canadian provincial and federal politicial dynamics. Significance As Ontario Premier Doug Ford’s term gets underway, Quebec is beginning its election campaign, running to October 1; the centre-right Coalition Avenir Quebec (CAQ) will likely perform well. Prime Minister Justin Trudeau faces a fractious final year, as relations worsen between the Liberal federal government and various new right-wing provincial governments. Leading issues are migration, carbon taxes, cross-border trade and right-wing provincial governments’ socially conservative and fiscally austere agendas. Impacts Failed NAFTA renegotiations would hurt Trudeau’s administration before 2019 and necessitate further post-2019 negotiations. Right-wing provincial premiers will still cooperate with Trudeau to mitigate the effect of US trade tariffs on Canada. Currently, Trudeau and the Liberals are likely to win in 2019, but opposition parties will gain votes.


Subject Germany’s election campaign. Significance Germany's general election campaign has so far seen a staggering lack of debate over substance and hard policy choices. This, combined with fine-tuned coalition tactics and a complacent electorate, could trigger a delay of necessary reforms regardless of what the next government looks like. Impacts The CDU/CSU will run a toothless campaign based on continuity and stability and focusing wholly on Merkel. Serious coalition negotiations are likely to wait until after a regional election in the swing state of Lower Saxony on October 15. Negotiations will be more complicated than usual as the CDU is likely to hold all the trump cards, having several coalition options. The large proportion of undecided voters -- over 40% according to recent polls -- makes credibly predicting the results impossible.


Sign in / Sign up

Export Citation Format

Share Document