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The Labour Party’s landslide victory in the 2024 British elections was driven not only by economic struggles, high taxes, and scandals that plagued the previous Conservative government but also by a bold clean energy agenda. Pledging to transform the United Kingdom (UK) into a clean energy superpower, the new government, led by Prime Minister Keir Starmer, reaffirmed its commitment by announcing ambitious climate targets at COP29 in Baku, Azerbaijan—just five months after taking office. However, as the UK seeks to reclaim its global climate leadership, it faces mounting economic pressures and extreme weather events. For the first time in decades, national debt has surged to 100% of GDP, while the economy has contracted for two consecutive months. The Labour Party’s 2024 manifesto had warned that delaying action on prosperity and security could nearly triple the national debt as a percentage of GDP. Meanwhile, Storm Darragh is causing widespread disruption across the country, coming on the heels of severe flooding from Storms Bert and Conall. As the government navigates economic recovery and climate resilience, the challenge will be balancing long-term green commitments with short-term fiscal stability.

When Anura Kumara Dissanayake (AKD) was elected as Sri Lanka’s 9th Executive President in September 2024, the nation anticipated sweeping political reforms and a rapid economic turnaround. Given Sri Lanka’s precarious economic and geopolitical position, the new government had little choice but to adopt a pragmatic foreign policy, carefully balancing relations with India and China—both critical partners in IMF debt restructuring and economic recovery efforts. Five months into AKD’s presidency, Sri Lanka is experiencing a new wave of strategic competition between India and China, with both nations increasing their grants and investments. However, maintaining equilibrium is proving to be a challenge, especially after AKD’s recent visit to China, which has brought greater clarity to his foreign policy direction—but also raised concerns in India.

At a time when the newly elected U.S. President, Donald Trump, is making a pitch to re-shore manufacturing to America, its companies operating out of China are having second thoughts about what was considered a miracle economy. Speaking at the World Economic Forum in Davos in January, Trump made a simple pitch that if companies invested in American manufacturing capabilities, then they would be subject to the lowest taxation. While Trump has not made good on his campaign pledge—a 60% blanket tariff on Chinese merchandise—he has threatened imposition of a 10% levy from February 1 if Beijing does not act on the exports of ingredients for fentanyl, a harmful synthetic opioid. Among the first Presidential orders that he signed was a comprehensive review of trade with China, including supply chains that use other countries to evade exposure to tariffs. Given these rising geopolitical tensions, a record number of American corporates—as many as 30%—are either contemplating shifting out some operations from China or are already in the process of relocating elsewhere, revealed the annual survey by the American Chamber of Commerce in China. This exodus of America Inc from China is twice as big as in 2020, when the Covid-19 pandemic had led China to impose strict lockdowns as a response to the contingency.

On January 5, 2025, New York City became the first in the United States to implement a congestion charge for vehicles entering Manhattan’s central business district (CBD)—a 13-kilometer stretch from 60th Street to Battery Park. Under the new system, vehicles entering the zone must pay a fee between 5 AM and 9 PM on weekdays and 9 AM to 9 PM on weekends: Passenger cars: Up to $9 Small trucks & non-commuter buses: $14.40 Large trucks & tourist buses: $21.60 Off-peak hours: 75% discount on all charges The congestion fee applies once per day, regardless of the number of trips. However, exemptions exist for emergency and government vehicles, school and commuter buses, low-income drivers, and individuals with medical conditions preventing public transit use. Congestion Pricing: A Global Practice Congestion pricing, also known as value pricing, is not a new concept. Singapore pioneered it in 1975, followed by cities such as: Durham (2002) London (2003) Stockholm (2006) Valletta (2007) Milan (2008) Gothenburg (2013) Notably, Edinburgh proposed congestion pricing but scrapped it after a 3:1 rejection vote in a public referendum. New York’s Congestion Charge: Goals & Expectations In urban traffic management, congestion pricing is a strategy to reduce road overcrowding and vehicle emissions by discouraging excessive use of high-traffic roads during peak hours. Typically, cities establish one or more congestion zones, where vehicles must pay to enter. New York has designated a single congestion zone in Manhattan. The Metropolitan Transport Authority (MTA) estimates that the new policy will cut traffic in the area by approximately 10%, improving air quality and reducing commute times.

The National Budget 2025-26, presented on February 1, 2025, by India’s Finance Minister (FM), builds upon the financial and policy roadmap set in the July 23, 2024, budget. Throughout her speech, the FM frequently referenced the July 2024 budget, underscoring its role in shaping the government’s fiscal strategy and priorities. As a result, the latest budget serves as a continuation of those foundational decisions. This article examines the budget’s proposals related to urban development, critically analyzing their implications for cities and urban settlements. Paragraph 8 of the budget outlines transformative reforms essential for India’s economic progress, structured across six key domains. Among them, Urban Development emerges as a critical pillar, reaffirming the significance of well-planned and thriving cities in India’s growth trajectory. Notably, Urban Development was also a focal point in the July 2024 budget, which identified seven key urban priorities: Cities as growth hubs Creative city redevelopment Transit-oriented development Urban and rental housing Water supply, sewerage, and sanitation Street markets Stamp duty reforms Many of these priorities have been reiterated in the February 2025 budget, signaling a sustained commitment to urban transformation.

The 2025-26 gender budget introduces a pivotal initiative to empower first-time entrepreneurs, including women, by offering term loans of up to INR 2 crore over the next five years. However, women’s workforce participation remains a critical challenge. The Female Labor Force Participation Rate (FLFPR) saw a modest rise to 41.7 percent in 2023-24, reflecting ongoing efforts to enhance economic inclusion. Entrepreneurial support programs like the PM Employment Generation Programme (PMEGP) aim to foster business opportunities, yet its funding has declined from INR 1,012.50 crore in 2024-25 to INR 862.50 crore in 2025-26. Meanwhile, rural employment under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), where women account for 57.8 percent of person-days worked, received an increased allocation of INR 40,000 crore, up from INR 37,654 crore in the previous year. However, only 33.6 percent of this funding is reflected in the gender budget, raising concerns about the comprehensive acknowledgment of women’s contributions in gender-responsive budgeting. Additionally, while 80 percent of women are engaged in agriculture, only 13.9 percent own land. Despite this disparity, agricultural programs like the Krishonnati Yojana—allocated INR 2,550 crore for 2025-26—fall under Part B of the gender budget, lacking dedicated provisions for women farmers. These trends highlight persistent gaps in funding and policy execution, underscoring the need for more targeted gender-inclusive measures.