Global Challenges
Trade, Economics & Finance
The sad truth of the matter is that global income distribution in the year 2010 looks not so very different from that under the Apartheid regime in South Africa. In spite of a myriad of development projects, there is still a great chasm …More
The financial crisis demonstrated that economic difficulties arise as a result of misguided financial as well as monetary policies. With the crisis a recent memory, the chances are good for tackling the root of the problem and …More
What used to be inconceivable, is today desirable and even essential. ++ As mentioned by the President of the EU, a European economic government should be the centre of all the EU efforts and attention for three reasons. ++ First, the crisis …More
Empowering women in Asia is not only a requirement for basic human rights but also an economic asset in recovery form the global recession. ++ It remains the best way to lower the illiteracy, malnutrition and child mortality rates in the long term. ++ A …More
Last Monday, Head of State Sarkozy hosted Russian President Medvedev in order to seal the biggest arms sale ever from a NATO country to Russia. ++ In return, France increases its dependence on Gazprom pipelines, undermining all prior American and European …More
The Greek deficit revealed two major flaws in the European integration machine: firstly the sheer absence of a budget deficit watchdog and secondly the lack of either support or sanction if one member state eventually goes bankrupt. ++ Germany, …More
Robert Hutchings: The globalised economy and the rise of new economic giants demand a radically reformed international system. But it will nevertheless fall to Europe and America to fashion these new structures for global governance. …More
For its 20th birthday, post-apartheid South Africa has little to celebrate. ++ SA is doing better than anticipated, but expectations were very low. ++ The country has some of the highest murder and AIDS rates in the world as well as one of the …More
Unlike the US, the EU is not a federal union and therefore cannot afford to bail out one of its members. ++ Comming to the aid of individual members of the currency union is simply forbidden. ++ The ongoing debate about the possible Greek …More
Sylvester Eijffinger and Edin Mujagic: The euro is currently dividing the euro zone more than uniting it. The “One size fits all” policy increased tensions both internally with inflation and externally as a rebuffed currency. The 10 year-old euro is far from holding its promises. …More
Outstanding records in all fields prove again that 2010 will definitely be the year of China. ++ Beside the 10 Chinese growth rate outrunning the timid 3,9 world GDP, China is surprisingly enough the world’s first importer in almost all raw …More
Spanish and Greek deficits are a godsend for advocators of fiscal discipline. ++ This is just one aspect of the problem. ++ European elites are being blamed for ignoring signs that proved Europe was not ready for one currency. ++ The …More
Joerg Wolf: How should the euro zone members deal with the PIIGS? Portugal, Ireland, Italy, Greece and Spain have big budget deficits and other economic problems that lead to speculation against the euro. How serious is it? What should be done? …More
The global financial crisis has had severe repercussions in the new Eastern European EU-member states, as well as in the three former Soviet Republics of Belorussia, Ukraine, and Moldavia. The following lessons can be drawn from the manner in which the …More
The Spanish gov’t. is doing damage control to combat the belief that the country is holding back the rest of the eurozone. ++ Spain is the only G-20 country still to be in a recession as of the 4th quarter of 2009. ++ “The eurozone …More
President Obama has projected that it will take at least ten years to eliminate America’s budget deficit. ++ The US could face a situation similar to the one Japan did—as its debt rose, its influence worldwide declined. ++ …More
The Davos Economic Forum 2010 reaches very little outcome regarding the current economic and financial challenges. ++ Still, what strikes most is the surprisingly widening gap between fast-recovering emerging economies and old struggling transatlantic …More
The EU will bail out one of its fellow members for the first time in its 11 year-long honeymoon with the euro. ++ After Greece and Portugal, Spain is likely to ask for support as well. ++ What should be done in order to prevent the eurozone from …More
China’s foreign exchange reserves rose to $2.4 trillion in 2009, two-thirds of which are held in US dollars. ++ The dollar will likely not be dumped by China due to the probability of another economic collapse, which would …More
World hunger and poverty have risen over the past decade as the wealth gap has widened due largely to the World Food Crisis of 2008 and the Global Financial Crisis of 2009. ++ Developing countries have tried to liberalize and globalize …More
Wall Street was the first to recover from the financial crisis as opposed to 10% of the American population still struggling to find a job. ++ The pay controversy is more relevant than ever before. ++ Yet the New York Stock Exchange evolves in a different …More
Jay Thomas Chittooran: This paper focuses on the relationship between economic growth and income distribution. Previous attempts to study this relationship have ignored, for the most part, government social spending aimed at the redistribution of wealth. …More
China’s merciless economic strategy exacerbates the global economic downturn and international tension. ++ This process of manipulating the currency markets and drowning the world with Chinese exports makes global economies defenceless. …More
Americans fear the heathcare plan is a sign of a shift towards the “lousy” European social democracy. ++ Statistics prove the “Old Continent’s” model to be an economically dynamic one, challenging both the current financial crisis and long-run …More
Tobias P. Fella: Competing regulatory rules and policies pose a major challenge to transatlantic relations and to the further development of the multilateral trade order. The EU and US must institutionalize a framework, which supports enhanced liberalization, thus preventing the development of competing regionalism. …More
Though the economy is showing signs of recovery, we should not repeat the mistake of 1937, when the Fed and Roosevelt’s administration decided the Great Depression was over and “it was time for the economy to throw away its crutches.” ++ Occasional good numbers …More
China’s undervalued currency and huge trade surplus threaten the world economy and risk engendering backlash from Europe and the US. ++ The situation is not as simple as many pundits would have us believe. ++ Undervaluation is the government’s main …More
Reese Alan Neader: Burma is fully dependent on Chinese aid without any requirement to improve human rights practices. Since Washington ignored tyrannical regimes, China has been allowed to move in unchecked. Thus, by re-engaging Burma, the Obama administration is putting pressure on China to conform to international norms. …More
Europe must lead the way in forging a new financial consensus, as fundamental issues must be addressed globally. ++ We live in an age where national economies have been eclipsed by global structures, so financial standards must be likewise …More
In order to deal with massive deficits and US debts, international governments must press for a “permanently and greatly weakened” dollar. ++ Otherwise, to close the gaping holes in the American economy, taxes would have to be raised to sky-high levels while …More
Daniel Korski and Richard Gowan: The potential rewards the EU might reap from improved trade in Iraq are huge, but the risks of instability remain highly problematic. By coordinating efforts, both within the Union and with NATO, Europe will win gratitude in Washington and a fruitful market in Baghdad. …More
According to established financial and economic theories, the three “Baltic tigers” were the ones who got everything right, prior to the international financial crisis. Estonia, Latvia, and Lithuania kept their state sectors …More
Marcin Szwajkajzer: China must recognize that the global financial crisis is recalibrating the international economy. This realization is quickly dawning on the CCP as they drive to boost domestic consumption and promote the Yuan internationally. Can this sustain growth? …More
Johannes Klocke: In principal, the G20 process is right. Yet, the emphases of the G20 agenda remain questionable and problematic. It is becoming more and more likely, that even the deepest crisis since the Great Depression will not suffice to initiate fundamental reforms of the financial system. …More
Editorial Team: The experts of our Atlantic Task Force “Global Green Recovery” offered fresh ideas on what measures should be taken within the G20 framework to support green technology markets. The next step will be the concrete implementation of selected recommendations. Which initiatives should obtain priority in this process? Your vote counts! …More
A US-China trade war would be dangerous prospect, as it encourages resource nationalism and hoarding of important minerals by Beijing. ++ Through monopolizing the supply of resources vital to the construction of batteries, LED’s, and lightbulbs China is …More
Anne Deter: Despite the harsh lesson the banks obviously haven’t learnt. As Sarkozy, Obama and Brown all rail against the excesses of the CEO’s and huge bonus payments the trend continues. A return to the basics of the social market economy could provide the perfect solution and hopefully lead to self regulation. …More
It seems the moment when China becomes the world’s largest economy is getting closer every day. ++ However, before China will finally become number one, the country has to find a way to manage its two biggest challenges: the democratic and economic …More
Editorial Team: Will G20 governments support recent calls from Germany to introduce a global tax on all financial transactions? Your assessment is needed prior to the upcoming G20 summit in Pittsburgh. …More
Last year, the US government made the right decision in letting the Lehman Brothers go belly up. ++ Lehman’s crash stated an example, that the banking house cannot count on government aid at any price. ++ As long as bank managements can trust on taxpayers’ …More
With 8 percent growth rate for the second quarter of 2009, China appears to be the miracle of the global economy in these times of recession. To boost domestic demand Beijing enacted a massive stimulus package at the end of …More
Jakob Schirmer: Chancellor Merkel and President Putin recently saved the insolvent German shipyards Wadan by supporting its selling to a Russian investor. The media speculated about large scale orders by Gazprom and its affiliates. Although so far, Gazprom has not ordered any ship and the fate of Wadan is still unclear. …More
China’s stock market continues to fall as the Shanghai Composite fell 5% on August 31st. ++ “The jitters in Asia and the rest of the world are rooted in fears that China will not be able to help pull the global economy from …More
Until now, leaders from the G20 countries have not shied away from grand declarations as to how the world of finance must change. ++ Most statements involve deep cuts in executive bonuses and the granting of state credits for corporations. ++ President Nicolas …More
The US President’s decision, to nominate Ben Bernanke for another term as head of the Federal Reserve Bank was right. ++ Bernanke remains the most qualified for the position, as the Princeton Professor is an expert in theory and praxis. ++ Although, …More
“Poor but resource-rich countries tend to be underdeveloped not despite of their hydrocarbon and mineral riches but because of their resource wealth.” ++ Thus, oil, gold, diamonds and other natural resources make a country poorer. ++ …More
Asia is leading the global financial recovery this summer, pulling away from the US and towards an independent path. An Economist analysis states that the regions growing economies hit hardest during the crisis, such as Thailand and …More
After the 13th round of border talks, India and China have still not found a solution to their territorial dispute. ++ Despite the ongoing conflict China has become a crucial trading partner for India, even surpassing the US. ++ Failure …More
The Turkish-Russian relationship has improved immensely since Turkey’s setback in its EU accession plans. ++ Despite supporting Europe’s Nabucco pipeline project Ankara also cooperates with Russia over gas supplies. ++ “If Turkey still had …More
China to use its foreign exchange reserves to accelerate overseas expansion bringing tax revenues and employment to Europe. ++ However, “it can be at odds with the national interests of the host country.” ++ Europe should therefore develop …More
Through investment in infrastructure projects China is quickly gaining influence in Russia’s Far East and Central Asia. ++ Beijing lent $25billion to Russian state-owned oil company Rosneft and pipeline manufacturer Transneft in order to complete …More
Ira Louis Straus: Despite widespread belief in a decline of the West and obsolescence of G7-G8, the actual statistics show that G7-8 remains overwhelmingly important, both as a vehicle for mutual cooperation and a guide for the world economy. A G14 or G20 could not provide an adequate substitute for it. …More
The US and India should increase their defence partnership to offset the rise of China and secure further nuclear technology for New Delhi. ++ During a successful visit, Secretary Clinton left the capital to embrace India’s “societal linkages” and …More
Experts said last year’s economic breakdown was “the end of the world as we know it… there are new values that we will need to adopt and adapt.” ++ But as memories of the financial turmoil begin to fade, bankers are right back where they started. ++ …More
Rudi Guraziu: The demise of the Cold War seems to have boosted the salience of regionalism across the globe, and RTAs have blossomed since then. But is regionalism a help or a hindrance in the process of globalization? …More
Last week Rio Tinto, the Australian mining giant, saw four of its executives arrested in Shanghai on spying charges. ++ The arrests took place directly after a deal between Rio and a Chinese state-owned company was cancelled. ++ Dirty …More
Despite controlling some of the most extensive oil resources worldwide, Iran is heading towards an economic crisis. ++ In order to use its oil reserves, the Islamic Republic needs new technologies for oil production and further …More
A decline in the Russian economy caused by the global financial crisis could set off an authoritarian agenda change in the Kremlin. ++ Worker protests and societal riots against company closings are just the beginning. ++ …More
As a worldwide logistics and transport company,
Deutsche Post must grant particular attention to global developments. For this
reason Deutsche Post has conducted a comprehensive study regarding energy, raw
materials, climate …More
Investment, not charity, is the key to ensuring food security. ++ Japan will make a new proposal to “promote responsible foreign investment in agriculture, in the face of so-called ‘land grabs’ - the growing trend for large-scale …More
Irina Aervitz: The purchase of a slice of car company Opel by a consortium consisting of Magna, Canada’s largest automobile parts manufacturer, and Sberbank, Russia’s state-owned bank, may be another step in Moscow’s plan to revive the nation’s automotive sector.
…More
Lekshmi Rajasekharan Nair: Although financial liberalization can enhance the efficiency of channeling saved resources into productive use, it is also possible that it leads to a sharp decline in saving ratios in industrial and developing countries. In India this phenomenon resulted in a significantly lower household saving rate. …More
A landmark agreement by all 192 UN states on the financial crisis last week was a small but important step forward as it acknowledges our global interdependence. ++ The UN said “we have allowed economic globalisation to outpace political …More
C. Fahrholz, J. Börner and C. Wójcik: The current global financial crisis is creating new challenges for the European Monetary Union (EMU) that may threaten its credibility, its enlargement through the addition of member nations and even put the long-term stability of the euro at risk. The European Union must create new institutions that can balance short term needs during the crisis with long term sustainability. …More
The meeting of the six-nation Shanghai Co-operation Organisation this week will discuss the creation of a new type of financial institution that will challenge the dominance of US-style free markets. ++ This is an opportunity for China, Russia …More
The current economic
and financial crisis is often compared to the worldwide crisis of 1929. At the
time many countries reacted with increased tariffs and currency depreciation,
which resulted in severe international consequences. …More
Jens F. Laurson & George A. Pieler : The recent deal to save Opel in Europe, which was backed by the US, German and Russian leaders and included a 1.5 billion euro investment from Germany, is not the end of the story. The deal blithely gave the state control of a major industry - putting free markets themselves at stake. …More
The transition in Zimbabwe to a unity government has not been smooth. ++ Western governments have remained “standoffish” despite the progress made by the new government, such as lowering inflation. ++ Human Rights Watch argue that …More
The economic crisis has reminded China of the fragility of an export focused economy. ++ As a result China must consider wealth management alternatives and the “initial stage of industrial development is crucial to value creation in the …More
There are increasing calls from economists to use inflation to solve the financial crisis by keeping US interest rates artificially low. ++ They say it would reduce the real level of debt, and allow a faster recovery. ++ But …More
The Obama Administration must get rid of a “cold war fossil” - the Jackson-Vanik amendment - which makes normal trade relations with Russia contingent on free emigration. ++ Russia has allowed such freedom for years, but the law remains
in force …More
Florian Kuhne: The global financial crisis is just one of many issues the West is facing which could mean it has met the “limits of growth”. Capitalism is overstretched and finite resources are running out. Affluence will start to level out across the world and the west could face a decline in living standards.
…More
The EU directive which aims to impose new regulation on hedge funds and private equity is a politically driven effort to place obstacles in the way of an industry that is almost exclusively based in the US and the UK. ++ The …More
The US - China relationship remains the most important in world politics. ++ “China’s response to the financial turmoil has been forthright” and has impressed governments across the world. ++ The US supports China’s membership in the …More
China’s £2 trillion of foreign currency reserves could help fix the financial crisis. ++ China is already the sixth largest outward investor. ++ “The era of Made in China is drawing to a close, the era of Owned by China is starting …More
The US must improve its relationship with Russia as well as supporting the fledgling democracies on its border. ++ Introducing a free-trade agreement with Georgia is a good first step and will not hurt Washington-Moscow relations. ++ …More
Entrepreneurship, not aid, is the best way for poor nations to end poverty and improve development. ++ Aid engenders poverty, instability and reliance. ++ Help is welcome, but rich nations must have “a head for poor countries, not just a …More
Less than one year
ago reservations in Europe and the US about Arab sovereign wealth funds were
rampant. The goals of the Arab oil states were contemplated, and fear grew that
their aims were directed towards …More
The economic recession demands crisis management that
incorporates not only spontaneous aid measures, but also lays the foundations
for long-term growth. Poor crisis management could have fatal effects on the
long-term prospects …More
In
an attempt to control the economic crisis and stabilize global financial
institutions, the world has quickly become tied up with billions of dollars in
bailout packages. In the meantime it
seems things are almost back to …More
Economic indicators show that the recession in the US could end as early as this month. ++ Consumer spending has increased, and claims for unemployment insurance have peaked. ++ Container imports and exports are both up at two major ports. ++ …More
Despite decades of institutional development seeming to create a more integrated Europe, the continent remains more divided than united. ++ Europe’s different cultures are not spoken of because it is politically incorrect to do so. ++ …More
Germany’s economic stimulus efforts are comparable to the US’. ++ Strong financial, social welfare and regulatory systems have allowed Germany to absorb the shockwaves from the crisis and the nation is now boosting the global …More
The IMF estimates the fiscal costs of rescue efforts to be high and difficult to obtain. ++ Still, the solid logic remains: the fiscal costs of deep recessions are greater than those of rescuing finance. ++ Choices of how to fix the …More
Georgios Drossinos: This thesis analyzes, from a practical and a theoretical approach, the resurgence of Somali piracy and the threat it poses to international trade. Furthermore, it explains how piracy challenges both realist and international regime theory. …More
The US and China need to seize the opportunity to be more open and cooperate to deal with the slump in trade between the two nations. ++ “Regrettably… trade measures by the US against China are on the rise.” ++ US pleas for the WTO …More
Health bureaus and the WHO have swung into action to deal with the Mexican swine flu outbreak. ++ The public health community has learnt to cope with pandemics after an ill-handled outbreak in 1976 and recent avian flu threats. ++ …More
Bijan Daniel Khezri: Blind faith in democracy is coming to an end. Rather than introducing more regulation, democracies should become more corporate and results-oriented. Until such reform happens, increasing numbers of ambitious citizens will abandon democracies for other nations. …More
The global financial crisis has highlighted both the decline of the US and the dependence of the world on China’s economy. ++ Given that reform is inevitable, China will be a central player in whatever new global financial architecture …More
A push for Wall Street banks to be turned into heavily regulated, “talent-deficient” public utilities would see them take fewer investment risks, leading to lower economic growth and higher long-term unemployment. ++ A no-risk system fails to …More
Governments must cooperate to stimulate their economies and resist protectionism in response to the economic crisis. ++ Protectionism is short-sighted and could destroy the positive aspects of economic globalization which have encouraged …More
While the recent pledge by the G20 to increase the resources of the IMF is welcome, the organisation desperately needs to restructure and reform if it is going to play an effective role in solving this current economic crisis. ++ Countries …More
Shashi Tharoor: India seems to be immune from the global economic recession. The November terrorist attacks against the commercial capital did not hinder the country’s speedy growth rate and the prompt return of investors and Foreign Direct Investments. …More
Editorial Team: Does one achievement stand out as a significant development at the infancy of the Obama presidency’s foreign policy, or have the early signs of progress been exaggerated out of context? Take part in our poll and vote what you think Obama’s greatest achievement has been. …More
President Obama’s “deferential diplomacy” cannot surmount fundamental transatlantic differences, as exemplified by the failure of a wider fiscal stimulus. ++ Demographic patterns dictate policy responses to the economic …More
Memo 14: The challenges faced in an increasingly globalized world demand a change in the approach required to tackle them. The current economic crisis has shown that no one country alone can solve the world’s problems. The “superpower” age is now at an end, and the world must adapt accordingly. …More
Despite the agreement at last week’s G20 meeting, concerns exist that protectionism will come to the fore. ++ The Chinese proposal to replace the US dollar as the international currency is emblematic of this. ++ For decades the …More
Jeffrey D. Sachs: Long term economic growth will only be achieved if accompanied by sustainable investments in green technologies. Yet developed countries ought also to understand that they need to guide and help developing countries towards sustainability. …More
Both climate change and the increasingly perceptible scarcity of primary commodities are responsible for the current economic crisis. Endlessly rising energy and food prices have also played their role in destabilizing …More
In China signs of the crisis are highly visible: abandoned factories and container ships, bankruptcies, massive migration to the Chinese countryside, and ironically clean air. Due to the large quantities of goods …More
Some 85% of Russian exports are based on energy and raw materials. Falling prices in the international market mercilessly expose these vulnerabilities of the Russian economy: no other newly industrialized country is so dependent on …More
The United States is considered the destination of choice by immigrants the world over. Especially highly skilled immigrants regard the US as a land of endless possibilities and ever attractive prospects. However, more and more immigrants are …More
The Indian Ocean is well on the way to becoming the location of global conflict in the 21st century. Today the third largest body of water on the Earth is already considered the most important cross national sea route. …More
The conflict with Israel and the inner political crisis have set back the Palestinian autonomous areas a long way. Furthermore, the promise of the international community at the most recent donor conference in Sharm el-Sheikh to support …More
Is de-globalization the magic solution to escape the economic crisis? No, it would be the biggest mistake. ++ Protectionism and nationalism are false friends and, as history has proven, responsible for poverty and conflicts. …More
Developing countries —even if not located at the at the center of the crisis— will feel the impact of the financial crisis’ “second wave.” ++ As remittances decline and demand for exports falls, poor households will …More
Matthias Stephan Fifka: Recent comments made by Mirek Topolanek concerning the US approach to the global economic downturn have cast a shadow ahead of the G20 meeting in London. Finding solutions to the current crisis will not be easy, and Topolanek’s remarks may make future agreements even harder to acheive. …More
The upcoming G20 meeting will determine the future path of the global economic system. ++ The camps are divided into two: Obama, Brown and the IMF (who speak of depressed demand and push for stimulus plans) vs. Sarkozy and …More
The economic crisis has hit the world as a surprise but was it truly unexpected? Krugman, Economic Nobel Prize Winner in 2008, had issued warnings since 2000 on the fragility of ultraliberalism. ++ Yet, when it comes to hearing pessimistic predictions …More
The economic crisis has highlighted the failure of the US imposed model of deregulation, at least for the financial sector. ++ What a perfect occasion for the Left, whose mantra is state regulation, to re-enter the political scene. ++ …More
Brazil, Russia, India and China, the “BRIC” countries, have called the IMF to implement sweeping reforms “to adapt to the ever-changing global financial situation.” ++ To give the IMF greater legitimacy, reforms should “give proper representation to and increase …More
Romanticism has something to say in the upcoming G20 meeting concerning the “limits of universal rationalist solutions.” ++ While globalization demands co-ordinated responses, national or perhaps regional solutions might be effective as “only …More
Nobel Prize Winner Gary Becker argues that the current economic crisis is born out of big government, the Fed’s low interest rates policy, and the “bubble mentality” meaning the reckless borrowing based on “expectations that …More
The idea guiding the upcoming G20 Summit in April to address the financial crisis should be that “every crisis embodies a chance to change things for the better”. ++ On the one hand, the opportunity of the current crisis is the promotion of the …More
Another obstacle was placed in the way of free trade last week as the US Congress abolished the US-Mexico trucking demonstration system. ++ This is not a new development; in 1995 the US Congress unilaterally vetoed NAFTA’s cross-border …More
Johannes Gunesch: The lack of a commonly accepted global approach means that alternative regional approaches outside of traditional organizations such as the UN will become more common. …More
Kyle Robert Coppin: In the future, nations will devolve into smaller, homogenous states that are united into regional organizations that take on responsibilities of foreign affairs, national defense, and others. …More
The December 2008 events in Greece were spurred by the shooting of a teenager by the police, yet have deeper roots in the dismal social, economic and political conditions in which the Greek youth finds itself. ++ As the …More
Noble Prize winner Amartya Sen argues that the current global crisis does not signal the end of capitalism, but rather calls for rethinking the nature of capitalism. ++ Sen refers to Adam Smith to argue that the pioneer of the …More
Today’s politics is global as well as local. ++ A global effort is required to “reduce the impact of the downturn and support a sustainable recovery.” ++ Problems in emerging markets and developing countries should not be …More
Editorial Team: Which sections of Atlantic Community are of most interest and use to you? …More
Since the economic downturn began as a mortgage crisis, the focus should be on mortgages in order to find a solution to the financial crisis. ++ Mr. Obama and his administration seem to be aware of this; the Homeowner Affordability and …More
Christoph Suess: Instead of forging ahead with its separation from General Motors, German affiliate OPEL should be kept within the GM group. German politicians must engage with their American counterparts in trying to find a transatlantic solution to the auto crisis on both sides of the Atlantic. …More
Judith Richards: China’s grand strategy aims to enhance its trade and investment interests. Its rhetoric on peaceful attitudes is nothing more than a means to an end. …More
The economic crisis could result in an outbreak of nationalism across Europe. ++ It would be a retrograde step to roll back the successes that have been made in the areas of free movement of goods, people, services and capital. ++ These are …More
In his State
of The Union Address
in January 2002, George W. Bush warned us of the infamous “Axis of
Evil.” Iran, North Korea and Iraq were accused of harboring
terrorists, building weapons of mass destruction and threatening world …More
The
inauguration of US President Obama was overshadowed by the financial crisis,
which for the time being will set the agenda in the White House. High on the
list of priorities is the nearly 800 billion US dollar stimulus package. In …More
The financial crisis was not a total shock; some economists - Stiglitz - warned of the dangers which inhabited the global economy. ++ Currently, the use of public funds to revive the economy will only succeed if done in an ethical way which …More
Barack Obama’s first budget has seen him deliver the promises he set out in his campaign, without any signs of a bipartisan approach. ++ Sought after healthcare reform will be delivered by tax reforms, with greater tax contributions being made …More
The White House’s comparisons between the US’ current financial situation and the Great Depression have created a necessary climate of fear in the country. ++ This crisis is both alarming and systemic and America must face up to its …More
Eastern Europe is acutely hit by the economic crisis and WB President Zoellick estimates that the region would need $120bn to recapitalize its banks. ++ Western Europe, as the main investor and credit provider in the region, is however …More
Obama is the only man who can bring about effective change and make the financial crisis a passed nightmare: “he is untainted, popular and leader of the country that, for good and ill, remains central.” ++ On the occasion of the G-20 he must …More
The financial crisis is bad, but eurozone members still have some hope given the bail out guarantees. ++ It’s in Central and Eastern Europe that the catastrophe scenario seems too real to escape; the provision of mortgages in foreign …More
Tobias Wolny: Do not be misled by President Klaus’s speech to the European Parliament. The Czech EU presidency has done a good job so far, managing a number of unexpected international and domestic issues over the last two months. And the Czechs deserve more credit from fellow European leaders in the current debate on protectionism. …More
Quotas for federal housing loans to poor Americans led to a huge increase in subprime loans. ++ Regulators could have stepped in, but thought that housing prices would increase steadily. ++ The crisis shows that we cannot help …More
Leaders of the three largest economies should meet up in Hawaii. ++ There has never before been a summit for the US, Japan and China, but the time has come. ++ Japan needs to break its political marginalization towards China, Americans must stop trying …More
Japan’s experience in the 1990s is no longer seen simply as a terrible recession but has become an example of how to recover from the current financial crisis. ++ What conclusions can be drawn to rescue our economies? ++ The …More
“Misshapen economic codependency of the US and China” lies at the heart of the economic crisis. ++ E. Asian exports are being left to gather dust in US warehouses whilst the US is paralyzed by debt accumulated to compensate for …More
Chavez’s victory at a national referendum that will end presidential term limits is no big surprise considering that he controlled all aspects of the electoral process. ++ This success does not however mean that Chavez’s position will remain …More
Niketa Kumar: Global governance will introduce a range of actors beyond the Westphalian state and will be based on interconnectedness. In the governing globally model the traditional nation-state will remain in control and formulate policy responding to global interactions. …More
The financial crisis spares none as it rains down economic havoc around the globe. ++ Dubai, the “shrine” of capitalism, is now in the heart of the storm, and extravagant projects costing billions of dollars are quickly being abandoned. …More
When comparing the recession-prone capitalist system to the recession-free communist system, it is surprising that it is the latter which has collapsed. ++ Despite numerous predictions of its demise, capitalism continues in the …More
John Dalziel Frew: The trend that will define the future of global governance is the globalization of decision-making: when decisions made in one place increasingly affect the lives of those living in another, hopes of security rest on recognising the far-reaching consequences of apparently parochial actions. …More
The EU responded to the financial crisis in an uncoordinated fashion. ++ When stimulus plans are implemented on the national level, governments will go out of their way to keep the money in the national economy and bend competition …More
Soyen Park: The financial crisis will bring about critical changes to the global order. New markets will emerge, the ECB may disappear, and leading financial institutions may become obsolete. Whatever the case, prudent, coordinated government policy is imperative. …More
The curious case of Henrietta Hughes shows American attitudes towards social assistance. ++ Before, she was unemployed and homeless, living in a small car with her adult son. ++ Now, she lives in a spare home of a Republican representative and has …More
Mansur Seddiqzai: Nation states threaten to only further dominate local and regional organizations in the future. A decentralized system of global governance which incorporates regional associations is required if disorder and crises are to be prevented. …More
The motor force behind the development of the EU has been economic interdependence and the creation of a common internal market. ++ If member states respond to the crisis by putting their national interest first, measures like state aid — …More
Davos provided the starting point of the way out of the financial crisis by bringing together G-20 leaders. ++ Climate change can become part of the economic revival, with the job and technology opportunities that sustainable energy offers. …More
If the international community acts carefully, the economy and the climate can be healed in tandem. ++ Incentives to cut greenhouse emissions could “kick-start private investment and refuel the economy.” ++ To coordinate …More
Whether or not the current economic situation is a depression depends on one’s definition of the term. ++ What is certain is that global trade and growth have been in freefall for the last couple of months. ++ The expected …More
Tyson Barker: Biden’s historic first visit to Germany underscores a new reality in trans-Atlantic relations when the US is looking for partners on the tough economic and political questions, the road to Europe goes through Berlin. …More
André Budick: Thinking the Unthinkable: What if private banks, who have to work to jumpstart the global economy once again, can’t be saved for the time being? What if only the wholesale nationalization of entire national banking systems is the chance for a fresh new start? …More
The response to an economic crisis which is very reminiscent of the Great Depression needs to reflect the urgency of the situation. ++ The stimulus plan now standing before Congress will bring the change hoped for because it is …More
People are sick and tired of having to pay for their governments’ mistakes; the time has come for elites to take responsibility. ++ It is customary in crisis times for “extraordinary politics” to enable politicians to adopt unpopular …More
The financial crisis has put the brakes on a sustainable energy market for now. Investment in the last half of 2008 was only half of what it was in 2007. “Green investment” during financial crisis will be considered an ever …More
Protectionist measures, like the proposed Buy American provisions in the US stimulus package, will not be taken lightly by other countries. ++ Even if measures followed WTO rules, China and India can retaliate. ++ Americans will …More
The Obama administration’s plan for rescuing the banking system is not the appropriate response to saving the financial system. ++ The problem goes beyond fairness considerations, “where taxpayers bear the cost if things go …More
Sino-US relations have not got off to a good start. ++ US Treasury Sec. Tim Geithner has branded China a “currency manipulator,” a careless move. ++ China is the US’ largest creditor and it is entirely plausible that it will act …More
The long proclaimed transatlantic divide
between bloated European welfare states and a lean US government is mythical at best. A
closer look at the facts shows that the social expenditures of the United Sates
and Europe are very similar …More
Last seen clutching on to power by the skin of his teeth in the Fall, Canadian PM Harper has come back with a massive $2.5m bail-out plan. ++ “Can there be any greater act of capitulation for a former head of the anti-government National …More
The debate over the ways to revive the US economy has an explicit focus on the immediate and short-term: save the economy now. ++ But in the absence of a medium-term strategy, the stimulus plan will simply add to an already large deficit …More
Republicans are very slow to understand that their policies have worked against America. ++ Their illusions are reflected in their doubts over the President’s stimulus plan: they argue that it legitimates excessive spending at a time when …More
The economic and political divisions between a “hard core” Northern Europe and a crumbling South are re-emerging in the midst of the economic crisis. ++ Euroskeptics argue that this will eventually lead to a departure of the “South” …More
It is a case of too little, too late for British PM Brown’s second banking-bail out. ++ The current halfway measures are a recipe for failure and “risk turning recession into slump.” ++ The solution is clear: nationalize the …More
Obama spoke of sacrifice, but the only ones sacrificing are the Chinese, Japanese and Saudis who fund America’s debt. ++ These countries are the sole creditor nations able to buy bonds to finance the spending expected by Americans. ++ …More
Soon-to-be US Treasury Secretary Geithner has declared to the Senate that speed and force are necessary to deal with the financial crisis. ++ Meanwhile, Bank of America has faltered. ++ Plans to set up a “bad bank” are advancing in …More
The solution to the financial crisis — probably the product of excess supply and demand due to “huge asset price bubbles” — may lie with a simple economic equation: “at world level, supply must equal demand.” …More
From the Editorial Team: We are hosting a 5 day run-up to the WEF Conference (conference begins Jan 28) and focusing on two of the major issues: the Global Economy and Climate Change. We are asking you, our readers, to contribute. …More
Worldwide, the state has recently reassumed a greater role in the economy, including firm sustainers of the neoliberal philosophy. ++ The adoption of Keynesian measures has been seen as an unavoidable step to counteract the …More
The new US government has opted for raising taxes in an attempt to exit the financial crisis: a necessary step indeed considering the dangerous state of the economy as a result of the huge budget deficit accumulated during the Bush …More
The poor should not be beggared to bail out speculators. ++ Housing, health care and education are so expensive they are creating misery comparable to the ills of imperialism, feudalism and bureaucratic capitalism that once afflicted China. …More
The US Congress is critical of the way money from the Trouble Asset Relief Program has been used, and adds that the remaining amount should be made conditional on more loans being granted. ++ However, analysts argue that as the financial …More
The Great Depression hindered the democratic progress; the current crisis could advance it. ++ Authoritarian countries like China, Russia, Venezuela and Iran will suffer more than democratic competitors. ++ Political legitimacy based …More
China’s deployment of two Chinese destroyers in Somalia as a response to the piracy threat opens a new chapter in Chinese security policy. ++ Although at face value the move is not threatening, it portrays China’s …More
The Fed’s decision to pour tons of new dollars into the US economy has not staved off recession. ++ The government is in fact the main beneficiary of the huge increase in the monetary base: deposits which the public are too …More
President-elect Obama’s stimulus package, now roughly $800 billion, includes “politically expedient” tax cuts which “are widely recognized as packing very little bang for the buck” - $150 billion in business tax breaks and the promised …More
2009 will be a challenging year for EMU and Franco-German relations regarding which economic policies to adopt. ++ The two countries traditionally differ on their stance vis à vis the role of the ECB, namely its degree of …More
India’s corporate image is at stake as the truth behind the Satyam scam has yet to be uncovered. ++ Ramalingas Raju’s arrest is “only the start of a long process of dispensing retributive justice.” ++ Satyam was already under scrutiny for a failed deal with …More
When President Obama speaks of the current state of the US economy, his rhetoric reveals the gravity of the situation. ++ Yet, his actions fall short of his words, with US analysts arguing that his stimulus plan will do little to …More
A key topic a few months ago, the food crisis has now disappeared from the headlines. ++ Unfortunately this does not mean that the situation has improved; on the contrary, the financial crisis is likely to bring a series of …More
Berlin witnessed the end of a stalemate between the Christian and Social Democrats on a 31-billion-euro economic stimulus package, but “Germans may find that the chances of their country’s economic recovery were higher when …More
The stimulus package needed to combat the economic downturn is a source of concern as its experimental character deprives it of any guarantee of success. ++ Due to the acuteness of the crisis, measures taken ought to be immediate …More
The financial crisis has proven that there is still a major role for the state to play in our global era. ++ New challenges, such as intense capital transactions, have increased pressure on the state and require it to complement its …More
President Obama has introduced a new stimulus plan to revive the US economy. ++ While the plan aims to reduce tax payments by $300 and provide relief to both families and business, US officials warn against the unnecessary spending …More
Germany is getting ready for a year rich in elections at every level, concluding with the September legislative duel between Chancellor Merkel and FM Steinmeier. ++ A recent survey places Merkel in the lead; however, the financial …More
Originating in the US, the economic recession has gradually affected all economies. ++ International responses vary from smooth European behavior, where the Bundesbank still plays a key role in shaping the ECB policies, to an aggressive …More
One of the conditions of Germany’s rescue package stating that salaries of top management ought to be limited to €500,000 a year found itself at the origin of several critiques. ++ Contested is the fact that “one cannot give the banks the …More
Van Jones: It’s time to bailout the American people, the planet and the economy. We need to create millions of new jobs that can’t be outsourced, wean the country off its dependence on foreign oil, take bold steps to address the climate crisis and make America an innovation leader again. …More
“We need a financial system that operates with less leverage, has stronger oversight, and is more transparent.” ++ Already existing regulators have been under pressure from top-earning bankers to not use their powers. ++ The US …More
Maie-Brit Rüter: As the financial crisis threatens to also become an economic one, the recent Carlo Schmid Network conference left its most lasting impressions on topics addressing the crisis and possible remedial action. The conclusions: the international economic order is in urgent need of revision. Nevertheless, existing institutions should not be thrown out with the bathwater. …More
Energy independence would be a disaster for America. ++ Not buying oil from despotic regimes will not topple them. ++ If Obama moves towards real energy independence it would mean “$20 per gallon and true depression.” ++ Off-shore …More
The criteria for joining the euro “make little economic sense for euro-zone candidate countries in Central and Eastern Europe.” ++ Inflation targets are “flawed” and keep Poland and the Czech Republic from joining quickly. ++ “Accession for all …More
Protests and strikes have taken place among laid-off workers across China as the financial crisis begins to hit. ++ Global demand for Chinese goods is likely to plummet in 2009, creating heightened tension between the US and …More
The myth of decoupled markets is all but shattered. ++ Asian countries, especially China, who benefited from trade imbalances and western overconsumption, will have difficulty adjusting. ++ In reaction to these new economic conditions trade deficit …More
German Chancellor Angela Merkel and her economic officials are standing in the way of a much-needed rescue plan for the EU’s economic woes. ++ “If there is to be a rescue of the European economy, Merkel wants no part of it, telling a …More
Bankruptcy is the right path for Detroit car companies. ++ Under “Chapter 11” proceedings they will be able to continue and restructure production. ++ This will not undermine trust in American cars -the company executives of GM and …More
Barack Obama’s approach towards China is unlikely to be confrontational in view of the current global situation. ++ The US has plenty of conflict to deal with elsewhere and needs Chinese cooperation in dealing with North Korea. ++ …More
Santa Claus may need a federal capital injection or Christmas could fail. ++ “I’m OK with bailing out Christmas,” said a government spokesperson. ++ Why? There is systemic risk to the nation’s “intricately related system of holiday …More
The European Central Bank has cooperated with major central banks to expand its liquidity provision, making it easier to access central-bank money. ++ Fundamental measures to protect economies have been carried out by euro-zone governments, …More
Markus Drake: What do you do when your research yields clear results, but business interests and politicians pick up only a narrow part of the message? Shouting louder is certainly not an option. Professor Daniel S. Hamilton faced this dilemma when presenting his research on Germany and globalization at the event The Global Marketplace 2020: Where Will Germany Be? …More
The European Central Bank is forecasting annual inflation rates for 2009 at 1.1 to 1.7% and for 2010 at 1.5 to 2.1%. ++ Yet, Interest rates are being cut below these markers. ++ Banking officials claim that “twenty per cent inflation is …More
Globalization has rendered the G-8 increasingly insignificant; a new world order is at hand, in which emerging economies and the G-20 will play a key role. ++ Obama’s election will facilitate the reorientation of US foreign policy towards a more …More
The recent meeting of the Asia-Pacific Economic Cooperation (APEC) in Peru drew worldwide attention. This was due less to the presence of President George W. Bush in his last international appearance as to the decision on the …More
Falling auto prices, bank crashes, mass layoffs: the economic crisis has taken full hold of the United States. Current prognoses predict that the crisis will persist for at least another year. In addition, climate change …More
Pouring Fed money into the car-makers of Detroit is tempting. ++ If they slip, “a myriad” of other companies depending on them will fall. ++ But if the Fed bails out car companies, credit card companies will come begging, after which come …More
Interview with John C. Kornblum: The former US ambassador to Germany outlines the role of states, institutions and high-level political leaders in the transatlantic relationship at a conference hosted in Berlin by the American Institute for Contemporary German Studies (AICGS). …More
China Investment Corporation, a fund that manages foreign exchange reserves for China, says it does not dare invest in western financial institutions. ++ When “government policies change every week, how can you expect that to …More
Tomorrow the fifth Sino-US Strategic Economic Dialogue will start and will focus on how the two economies will face the ongoing financial crisis ++ Other topics on the agenda include energy, environment, trade and investment. ++ …More
A downward spiral of stagnation and deflation - “stag-deflation” - is threatening the US and the world. ++ Central banks are no longer lenders of last resort, having to give direct loans, or even becoming the sole lenders on the …More
Public spending, especially on infrastructure and new technologies, is needed to build up steam in this stagnant economy. ++ Building up more state debt and increasing the budget deficit is nothing to worry about right now. ++ Cutting …More
Markus Drake: The opportunity for structural change that the economic crisis offers cannot be overlooked. With climate change no longer a “left” question, but rather in the center of society, business is realizing that there is profit to be made. But is it European companies that will benefit from Obama’s policies? …More
Germany’s persistent boycott of a coordinated European response to the economic crisis has serious implications both nationally and for the EU. ++ There will be no decision about a German stimulus package until February 2009 at the earliest …More
As EU banks have been stabilized, east European subsidiaries have been discarded because some don’t want to use taxpayer money abroad. ++ As a result, investors are fleeing the “wrong side of a financial Iron Curtain.” …More
Central banks should go on an internationally coordinated shopping spree. ++ They should target not only municipal bonds, but buy up bank shares on the open market, the price of which are down to as low as a tenth of what they were two …More
Keynesian economics prevail in times of economic turmoil. ++ Britain should “expect plans for higher borrowing, tax cuts, and more spending in Monday’s pre-Budget statement.” ++ While economists and politicians differ on intervention policies, Keynes emphasized …More
In view of the economic crisis rocking the international community, the G8 has lost its right to exist. ++ Emerging nations like India took part in the G20 summit, discussing new finance regulation structures. ++ G8 nations have to understand that in a world …More
A bailout for the Big Three automotive companies could damage US engagement in the global economy. ++ Foreign investment and job insourcing would take a major hit, costing jobs and devaluing the dollar. ++ By expanding protectionist policies …More
By passing an economic rescue package, Congress intended to stabilize the banking system by “purchasing illiquid mortgages and mortgage-related securities.” ++ Rising unemployment, falling house prices and European economies in crisis have …More
The largely unknown British oil industry was one of the largest in the world, but is now running dry. ++ The drilling platforms off the shore of Scotland gave Prime Minister Thatcher a one-time economic boost that funded her economic policies. ++ The …More
To answer the G20’s calls for budgetary stimulus, Europe needs a three-part recovery program. ++ EU member states must pledge to equally share the burden of recovery. ++ Because many countries will exceed EU deficit limits, …More
The Bush administration destroyed American goodwill abroad. ++ Obama is a welcome change, but there are limits to what “soft power” can achieve. ++ White House glamour will be useless if Asia stops buying US treasury bonds. ++ As the …More
In 2006 president Bush signed a free-trade agreement with Colombia that Congress has yet to pass, arguing Colombia’s state of human rights is unacceptable. ++ Most Colombian exports are free of tariffs, in view of efforts to combat the …More
Great challenges await the 44th US president, especially economic ones. The Brookings Institution lists the ten most important:
Restoring Financial Stability: Strengthening the global financial system is a priority …More
This weekend’s G20 summit was a mixed bag: Obama did not attend, lame-duck Bush cannot make any serious commitments, and yet, the G20 may be jockeying its way into an important position. ++ National governments promised to focus on macroeconomic …More
Pakistan should be grateful for IMF supervision. ++ President Zardari seems to think he can add 61 people to his government and magically create money. ++ With a marginal parliamentary opposition and a heterogeneous government, …More
General Motors is on the brink of bankruptcy with Ford and Chrysler not far behind. ++ The government must bail out the auto industry as hundreds of thousands of jobs are at stake. ++ A gas tax is the answer. ++ Gas prices should be set to $3.50 per gallon with a …More
Luke A. Nichter: With this weekend’s G-20 meeting in Washington, calls for the return to a Bretton Woods-like system can be heard around the world. However, before getting caught up in the momentum of “reform,” the incoming administration of President-elect Obama should carefully heed the lessons of history. …More
Washington’s handling of the Wall Street bailout is incompetent, maybe illegal. ++ The Democrat response is to either defend the Bush administration or refuse to intervene. ++ Bush is violating the conditions of the original …More
The financial relevance of the G7 has diminished, from 65% of production in 2002 to 52% now, and will continue to fall. ++ In 2009 all growth will happen in developing nations. ++ The support of China, India, and Brazil is needed …More
Uninsured drivers need to save big for car crashes; nations have done that to prepare for financial crashes. ++ However, every-country-for-itself policies are wasteful and inflate credit bubbles. ++ The IMF was everyone’s insurance …More
China can revive the world economy by strengthening its consumption. ++ Its industrial development has been shaped by US consumer demand and “US consumption has in turn been fueled by Chinese lending that kept interest rates low.” ++ This …More
In the upcoming lame duck session of Congress, Bush and Obama should insist to vote on the outstanding free trade agreements with Colombia, South Korea and Panama. ++ The election put these pacts on the back burner, but the sooner …More
The G20-meeting may harm the economy if conflicts surface and the US is blamed for the crisis. ++ The IMF lacks legitimacy due to an under-representation of Asian powers and over-representation of Europeans. ++ Obama must agree to the …More
Jens F. Laurson & George A. Pieler: The first dangerous results from governmental overreaction to the financial crisis are beginning to show. Bailout bills have counterproductive effects as political pressure is even brought on institutions that do not need the governmental help. Following protectionist approaches could lead to a harmful and tragic economic outcome. …More
A “fire hose, not [a] feather duster” is needed for Republican Party reform, even if it means taking risks. ++ The Fed’s task should be limited to stopping inflation; the financial system also needs overhaul. ++ The GOP, meanwhile, …More
French President Sarkozy is rushing on with demands for the upcoming G20-meeting, at the expense of diplomacy. ++ His harsh call for multilateral action, blaming Wall Street for the crisis, is explained by a feeling of support from public …More
Although little can be done until the financial crisis is over, it is time to think about exchange rate reform now. ++ Asian countries devalued their own currency while hording US dollar reserves to boost employment and growth. ++ This …More
Deflation is the financial threat that might catch us unaware. ++ Relief from high food and oil prices is pleasant, but extreme price drops could signal economic havoc. ++ For now, falling prices will suppress inflation (5% in the US and 9% in Asia in 2008), and …More
Actions undertaken by governments and central banks won’t be able to adress the financial crisis as other huge risks are threatening the financial system. ++ The world has benefited from over-consuming America, but the “US engine of …More
The Czech government is ready for the EU presidency.++ “In the past two decades, the central and east European (CEE) economies have done their homework, introducing reforms, with bank bail-outs and privatizations.” ++ The Czech presidency must …More
China’s economy is changing from a centrally planned to a market oriented system. ++ Its GDP has increased tenfold compared to 1978, not without creating causes of concern. ++ The government faces “imbalance of economy, …More
Germans now lament eschewing the “glorious era” of state ownership of banks. ++ They are missing a cardinal fact, though: The European Central Bank’s independence “enabled it to serve as a corrective to governmental policies …More
With the financial crisis still in full progress, political leaders are ready to cooperate. ++ As politicians negotiate next week, they have to realize that the economy is still too unstable to carry out extensive reforms. ++ Discussions are needed …More
Last week, the EU held talks with Syria, but refused to set a date for signing a partnership agreement. ++ After multiple attempts to please the EU, Syria is vexed by what it saw as European inflexibility; however, Syria has made little …More
Commodity prices are falling, Western credit has dried up, and Russia has failed to diversify its economy. ++ Russia’s dazzlingly successful economy turned out to be just make-believe. ++ Despite the professionalism of the finance …More
Japan’s central bank has reacted to last weeks rise of the yen as well as to the falling stock market by cutting interest rates. ++ If Japan decides to move towards “zero interest” it would become the “source of almost free money for anyone …More
International Monetary Fund resources are limited and might not handle all those requests from new, strategically located democracies like Pakistan, Ukraine and Hungary if things get too severe; however, the US, Japan and Europe should still borrow …More
European financial schadenfreude and finger-pointing directed at the US might be premature crowing. ++ Not all roots to the crisis stem from New York, rather mainly from London and Frankfurt. ++ Blaming the US and calling for a new …More
A US recession is inevitable but stopping global downturn should be political leaders’ top priority. ++ Expansionary policies by the surplus economies of Asia and the Middle East could offset demand decline. ++ Coordinated …More
Nicolas Sarkozy wishes to remain “president of the eurozone” for another year. ++ Chances are this coup will work, given the current situation. ++ The financial turmoil will likely require another eurozone summit meeting to address lingering problems; …More
Financial turmoil has provoked leading nations to recognize the need for economic cooperation, yet fierce nationalism has reared its head amid the calls for global unity. ++ “Economics and finance may be global, but politics is still …More
Financial bailout plans enacted by governments help to revitalize market confidence but do not address the fundamentals of the financial crisis. ++ Governments have failed to closely check banks’ balance sheets – they should learn a lesson …More
Crying to re-found democratic capitalism and create a new global economic order, world leaders are simply trying to divert attention away from their own helplessness and cover the confusion they have been thrown into by a crisis they …More
National governments of the EU have dealt with the financial crisis, ignoring the power of EU institutions. ++ State aid laws have been neglected aiming to “prevent EU governments from subsidising national companies.” ++ …More
The financial crash will have serious geopolitical consequences. ++ Russia will reassert itself as a global player. ++ As its stock market does not play as crucial a role as in Western markets, and as Russia has a lot of money due to …More
Developing countries are cut off from global prosperity; climate change has decreased the world food supply; and energy shortages often promote environmentally damaging solutions. ++ A Bretton Woods II summit is needed. ++ First, the IMF should have global …More
The US has to face a reduction in its super-power role and an “era of financially induced isolationism.” ++ Spending on foreign policy challenges has increased, and the times in which a strong dollar used to provide stability to the …More
It is clear that it was the free-market fundamentalism and reckless stewardship of the US government that led to the current financial crisis. ++ The US will pay a high price for its sins. ++ The bailout, which is likely to end up …More
The financial crisis is the consequence of a democratic deficit. ++ “Market capitalism only works when it can feed off democratic social capital” and the lack of political trust, which is a form of social capital, …More
It’s tempting to use the economic slowdown as an excuse to dodge ambitious declarations for cuts in greenhouse gas emissions. ++ We mustn’t forget that our current economic problems are small compared to the possible …More
The Brown-Darling rescue package for British banks not only provided a template to follow for the rest of the EU, but was also adopted by the US. ++ The British PM did not rest on his laurels and is leading international action even further by …More
While reports from stockmarkets dominate the news, what we should really worry about is the shape of our nonfiscal economy. ++ In the US retail sales and industrial production are falling quickly, and it seems like we are in for a …More
Global commerce has dramatically changed in the last fifteen years. The opening of new markets, growing competition, and the struggle for attracting the world’s brightest minds are all responsible for such a change. On the basis of substantial …More
When it comes to the economy, the West and China are becoming more and more alike. ++ The Chinese are moving towards private ownership and crave the kind of dynamism that only a capitalist system can provide. ++ Western economies, on …More
Jens F. Laurson & George A. Pieler: The economic crisis has brought harmony to trans-Atlantic affairs. Europeans might secretly blame the calamity on US “Casino Capitalism,” but they know they are rowing in the same boat and so cooperation is the order of the day. The stock markets treat this as good news now, but it could easily do more harm than good. …More
Deregulated markets are to blame for the financial crisis; likewise, only governments can salvage the wreck. ++ We will not see another great depression, but rather a recession. ++ Neo-liberal economics will go the way of the dinosaur in favor of a …More
The monetary meltdown is partly the result of collapsing consumer and business spending. ++ The assumption that banking sytems could be left alone has proven to be false. ++ There needs to be state-financed banking systems. ++ While spending …More
Europe has a plan to bail out the banking system, but it might be hard to convince European taxpayers to pick up the bill. ++ In reality gross debt will increase, not taxpayer debt, and by saving banks we save million of jobs - yet strong opposition from …More
Merkel’s uncertainty regarding the financial crisis is becoming increasingly evident. ++ Recently, three “Merkel myths” have been dispelled: the CSU loss in Bayern ended the idea of Merkel’s electoral invincibility; her rejection of an …More
G20 nations represent 85 percent of the world’s economy. ++ The forum is essential for addressing the financial meltdown. ++ Developed nations urgently need liquidity; the vast reserves of foreign capital held by emerging economies are the remedy. ++ Bush’s first …More
Though the UK economy has become more “European,” one area of contrast endures: the euro. ++ UK capitalism has been discredited and the credit crunch will be a test that may prove independent currency is bad for financial stability, reviving …More
Gordon Brown and Alistair Darling “have shown us the way through this financial crisis.” ++ The British Prime Minister and his officials lead the world in assessing the financial crisis and quickly enacting an apt solution. ++ The problem: lack …More
It will not suffice if the G7 only saves the financial systems of its own members. ++ The wealthiest nations can afford to shore up their banks, but emerging countries won’t be able to do the same on their own. ++ Steep …More
World’s financial systems are increasingly interdependent, and solutions to economic slowdown that used to be relevant are now “outworn dogmas.” ++ Cross-continental flows of capital make regional systems of supervision …More
The current breakdown in financial markets is driven by unjustified panic. ++ Restoring confidence in the financial systems should be the priority for American and European governments. ++ EU countries should offer a time-limited …More
Even those inimical to US policies “have reason not to gloat over America’s comeuppance.” ++ Hugo Chavez has warned of the impending force of “one hundred hurricanes” about to be unleashed on the world’s markets. ++ European nations are …More
With the financial crisis teetering on the verge of global contagion, a coordinated, worldwide effort is needed to avert a further calamity. ++ “There is inherent tension as finance becomes global but its regulation remains national.” ++ Solutions …More
To date China can, through financial repression - state regulation, which undermines market mechanisms in the financial system - sustain the costs of an undervalued currency. However, by adhering to these financial policies, China’s …More
It is time for the “globar” - or “global dollar,” a collective Asian bond that could revitalize the world economy by catering to US currency-stabilization needs and simultaneously recycling massive Asian surpluses back into tangible assets in Asia itself. ++ …More
Economically speaking,
Arab states have developed at a strikingly slower pace in the last 20 years
than most other regions in the world. This is particularly true for the Arab Mediterranean, including Jordan, Egypt, Tunisia, …More
Despite the success of some initial bank bailouts granted by the EU, such as Fortis, Europe is still short of an overall financial strategy. ++ Three things are needed: first, money to recapitalize the banking sector; second, a …More
The nationalization of Fannie Mae and Freddy Mac was “clean socialism.” ++ The Wall St. bailout, on the other hand, has exposed deep divisions in the US. ++ Both sides of Congress had serious doubts when passing the bill. ++ This is dirty socialism. …More
The Laevan and Valencia study of 42 recent bailouts shows they can work, yet the current Paulson plan may not. ++ “Paulson and Bernanke should use bailout money to recapitalize the banks, not buy bad assets.” ++ Furthermore, the …More
Asia’s role in the financial crisis shouldn’t be underestimated. ++ Endless liquidity coupled with cheap goods fueled America’s “buy-now pay-later consumption,” inflating the housing bubble in the process. ++ The overextension is as much a story of …More
The possible regime crisis in N. Korea poses a threat of loose nukes, floods of refugees, and long-term economic upheaval, but is also a great chance to reunite the Peninsula under democratic rule. ++ The US-South Korean Forces may …More
The US is following a pattern similar to Japan’s financial crisis in the 1990s, but ignoring the principles and method with which to handle it. ++ Unlimited liquidity in the market is needed and the world should help share the burden. ++ …More
“It is a glorious day for democracy.” ++ With all members of the House up for re-election in November, the rejection of the Paulson plan is a clear indication of the American public will - Wall Street must be accountable, not the tax payers. ++ Americans …More
By talking about terrorism instead of the financial crises in front of the UN, Bush has staged himself as “yesterday’s man.” ++ Even Germany - one of America’s closest allies - is distancing itself from the US and blames the state for opposing tighter …More
Anger stemming from the financial mess is ubiquitous; the biggest backlash comes from outside the Anglo-American world and is directed at their unique type of capitalism. ++ The disparity between individualism and solidarity is the …More
The rejection of the rescue package, led by Republicans, proved the incompetence of US leadership. ++ Most members of the G.O.P. still believe socialism poses the biggest threat and disregard that today’s economy experiences huge cycles of bubble and burst …More
We are witnessing the very “bankruptcy of modern economics.” ++ While we have long understood demand-oriented macroeconomics, the current financial crisis does not conform to any previous economic model or known solution. ++ The previous $152 billion …More
From the Editorial Team: The current financial crisis has sent economists, politicians, and citizens alike scrambling to find solutions. In the US and Europe, expert opinion is divided on how to revamp the economy. How should the United States, the EU, the private sector, and others respond to this international situation? …More
The financial crisis evinces the exigent need for a “Global Monetary Authority.” ++ No international framework exists for dealing with such crises; the vacuum is perilous. ++ Financial wealth is shifting to the East; the result will be a …More
The impact of the current financial crisis on India will be minimal. ++ Indian institutions, such as ICICI Bank, have relatively little exposure to Wall Street, and due to a good regulatory system, should escape fairly unscathed. ++ However, Tata AIG …More
It’s a critical question: Is the financial crisis on Wall Street going to damage the US’s image of good finance and business expertise? ++ Actually, the answer is no. ++ The image of the US from a global perspective is still …More
The Bush administration’s financial bailout package is not well received by Congress – and rightly so. ++ There should be no “blank check,” given Henry Paulson’s maladroit leadership. ++ Obama has outlined four cardinal …More
In the late 80’s and early 90’s the government-owned Resolution Trust Corporation (RTC) was charged with overseeing $400 billion in assets, most from failed banks and loan institutions. ++ The lessons learned then are applicable …More
Thomas Speckmann: To Western democracies, the idea of war privatization is still largely associated with the reign of warlords in Africa and Afghanistan. However, privatization is also sneaking into Western warfare. This new financial aspect of war needs to be regulated on a national and global scale. …More
Urgent action to save the financial system is good, but current draft legislation is risky. ++ Congress should not rush into a decision but needs to concentrate on three things: quickly restoring financial stability with low cost, punishing …More
Unemployment in Britain will rise by 2 million by the end of the year. ++ Just last month 81,000 more British citizens were without jobs, causing the unemployment rate to rise from 5.3% to 5.5%. ++ Job activity is on a sharp decline. ++ …More
Washington is bankrupt, fiscally and morally. ++ Socialism is in full swing, proving the free-market Republicans hypocrites. ++ Paulson wants Congress to grant the Fed $700 billion to buy private assets. ++ Such a move will only create …More
The US has done the right thing when it launched a rescue plan. ++ Those who argue how vast the initiative is are wrong because they underestimate the extensiveness of the US economy. ++ However, the true impact of the expansion of public spending lies in …More
The demise of the shadow banking system began last week. ++ This is the financial crisis of the century. ++ Shadow banks are not protected from bank runs, as commercial banks are. ++ A run on hedge funds is highly probable. ++ If these institutions are to …More
Historically, reformers have always tried to stabilize activity through control of interest rates and money supply, but these are not consistently correlated. ++ The current crisis was foreseeable; booms cannot be eternal. ++ The world’s …More
It has been unchallenged that export-led growth is the way to go for developing countries. ++ In light of the global slowdown, however, it is likely that the EU and US will become less hospitable to developing nations’ exports. ++ South-south …More
The G7 finance ministers endorsed an approach to regulation in April, which stipulated transparency, disclosure, and strict risk management, i.e., nothing new. ++ This hackneyed approach will fail again. ++ Regulation hasn’t kept …More
Oil prices spiked to US$147 per barrel and then dropped to $90, demonstrating their dangerous volatility. ++ The US approach to oil price regulation is ineffective. ++ Global oil price benchmarks are now largely based on Black Sea …More
This is not the end of capitalism, but “the global financial system will never be the same again.” ++ Those responsible for the mess are now entrusted with cleaning it up. ++ Politicians had little choice: socialize the debt or …More
Andreas Kern: This research note by Christian Fahrholz and myself depicts a new line of argument for the current global financial turmoil and especially the recent American financial crisis. …More
Due to the financial crisis, the attack on the US embassy in Yemen, and the latest tropical storms, the tone of the US presidential campaign has become nervous and angst-ridden. ++ Even if people who consider the economy to be the most …More
We are witnessing the worst economic conditions since the banking shutdown of 1932. ++ After rescuing Fannie Mae and Freddie Mac, and reluctantly doing so with AIG, the Fed declined to bail out Lehman Brothers or Merrill Lynch; the Fed had to draw …More
US sanctions on Iran have caused an influx of Iranian trade with nearby Dubai. ++ Visits to the UAE by US officials have resulted in drastically fewer business licenses for Iranians there. ++ This policy has hurt many Iranians who are at odds with …More
Three of the top five Wall Street investment banks are no longer independent or no longer exist. ++ The US financial system is “melting away.” ++ Undue faith in unregulated markets led to dubious risk taking in the US as well as …More
For a long time it has been thought that world markets are decoupling, enabling the emerging economies of the BRIC group to thrive regardless of the economic slowdown in the Western world. ++ The emerging countries were predicted to quickly …More
The Euro is not yet ten years old, but its success to date has been unquestionable. ++ Despite numerous exogenous shocks - ranging from the specter of terrorism to the subprime mortgage meltdown in the US - the Euro is still going strong. ++ Without a …More
Due to high oil prices that make transport more expensive, US companies might stop outsourcing to Asia and give Mexico another chance. ++ China’s export taxes are rising, its workers are demanding higher wages and the Chinese currency is rapidly …More
The downturn of economic activity in the Eurozone has come as a surprise. ++ The twin shock of the exchange rate of the euro and oil prices squeezed profits from exporting firms. ++ The opposite has happened in the US, where the export …More
Meeting in Singapore, 10 southeast Asian nations along with India confirmed yet another FTA that clearly indicates the waning influence of the WTO and the US in the region. ++ Many such countries, especially India, prefer small-scale …More
Azerbaijan and Kazakhstan lead the region as two countries
that have successfully harnessed their natural resources allowing them to grow
their economies and avoid the apparent “natural resource curse” that plagues
many …More
International investors were already troubled by Russia’s economic problems, but Russia’s recent actions toward Georgia have created diplomatic tensions, which may scare off investors. ++ The outcome of the US election could be a major factor in …More
At the moment when most of the industrial world is in or near recession, a lot of global economic momentum comes from authoritarian regimes that concentrate on accumulating wealth rather than on raising the standard of life of …More
A sharp consensus between Europe and the US emerged at the NATO summit that they can not deal with Russia as usual. ++ Regarding the question what to do instead, one answer could be: concentrate on Russian oligarchs. ++ They have close …More
In times of elections, it becomes obvious that both the right and the left promise the same thing which is economic growth. ++ However, the growth strategies and the ideas about the role of the state differ from each other. ++ The right-wing assumption …More
For those who live in hunger, long-term solutions cannot come fast enough. ++ The US, donor of half of the world’s food aid, is highly criticized for its unique practice of monetization that disrupts commercial markets and can cause, albeit temporarily, …More
The financially emerging world cannot be ignored by rich nations in economic negotiations. ++ Because emerging nations play an increasingly large role in world consumption and growth, the G7/G8 is not the appropriate forum for …More
Even though the European Central Bank reassures the investors that the euro has great prospects, business activity on the Old Continent is falling and consumer confidence is plummeting. ++ On Friday, the euro had its worst day against the …More
After 1945, the US was clearly the world’s leader but it took its supremacy for granted and became complacent. ++ Since then, the US has become dependent on foreign oil and relied on debt to finance its economy. ++ American …More
The Doha round was constructed on the myth that a negotiating agenda focused on agriculture would make it a “development round” and could help reduce global poverty. ++ But the underlying assumption that the trade regime can only legitimize itself by …More
With regard to the global slowdown, it would be wise if China privatized state-owned assets in order to transform China’s growth model from being export-driven to being stimulated by domestic consumption. ++ Even if the country’s assets …More
The problem of modern capitalist markets in times of global warming is that we do not have to pay the true environmental costs of the products we buy. ++ There are two possible solutions: either we apply green taxes to reflect a …More
Food security is increasingly an issue in many parts of the developing world. ++ In countries that are net importers of food, e.g. Egypt or the Philippines, soaring prices lead to economic and political crises. ++ To help solve the …More
Because of the transatlantic dispute about the Iraq war, the transatlantic know-how exchange has been neglected. ++ But with the high oil prices it becomes obvious to the US that it can learn from the EU: Europe, due to higher gasoline taxes had …More
The relations between Russia and the EU are shaped by mistrust which poses a threat to trade and investment between both regions. ++ Although they still rely on each other economically - especially Russia whose economy depends on oil and …More
Common efforts to reform the financial system are on the agenda and one step towards this aim is the wide dissemination of the final report of the Institute of International Finance’s committee on market best practices which contains …More
Tomorrow China’s new antimonopoly law takes effect. ++ At a formal level, it is comparable to the laws in the US and the EU, but its implementation will not be as simple. ++ The US encourages competition in the marketplace; EU, on the …More
The global trade negotiations known as the Doha Round broke up yesterday without an agreement. ++ Despite expectations of a new international plan to cut tariffs, members of the WTO proved themselves unready for such a deal. ++ While the US and the EU had made some …More
The deepening financial crisis may seem a rationale for expansionary global macroeconomic policy. ++ Individual countries may see some short-term growth benefit to US-style macroeconomic stimulus, albeit these vantages will be minimal compared …More
The ascendancy of Anglo-American capitalism has been an illusion - as proven by the credit crisis which originated in the US. ++ Apart from this model, there are different forms of state capitalism developing in China, Russia, the Middle East, and South …More
This week the WTO gathers trade ministers to try and salvage the Doha round. ++ Decisions are tough and stakes are high: whereas success would boost the global economy and be “a historic achievement for multilateral …More
We live in a global economy, yet we have no effective system to manage a global economy. ++ The G8 leaders like to think they can handle global challenges such as global warming. ++ Yet, the dispute between industrial and emerging market economies …More
Anna Wojnilko: Changing economic and political realities are forcing the G8 to rethink its goals, mandate, and membership. The debate on the shape of a potential G8 reform divides the political world. Should the G8 be enlarged to include new major international players or contracted to ensure effectiveness? We invite you to vote. …More
China shocks the world and keeps adding record sums to its foreign currency reserves, already the largest in the world. ++ Such reserves are not sustainable: they are a strain on the global balance of payments, fuel rising …More
The prospects for a global agreement to slash subsidies and tariffs at the WTO meeting in Geneva next Monday are dim. ++ At stake is the Doha Round of trade liberalization talks. ++ The latest threat to the Doha Round comes from an …More
Despite warnings of their imminent collapse, with the help of US government, Fannie Mae and Freddie Mac should be able to survive and stock market panic can be avoided. ++ Since the two companies have $5.3 trillion in …More
Outperforming the dollar and the yen, the euro is a resounding success. ++ Still, Eurozone policymakers should allow for more economic freedom and encourage competition. ++ Europe should stop supporting national enterprises and give the …More
Since the first use of sanctions against Italy in 1935, suspending trade with corrupt regimes has proven to make the poor poorer and the evil richer. ++ Even with supposed success, sanctions were either accompanied by other internal problems …More
Though Africa still accounts for only a fraction of the global private equity market, the spread of stable democracy and rapid economic evolution make it increasingly attractive for US and European investors. ++ Private capital flow into …More
With European inflation at its highest ever since the introduction of the euro, many countries are tightening their credit reins in an effort to curb inflation. ++ The world’s central banks are slowly realizing the magnitude …More
According to a report by the Bank of International Settlements, the ongoing financial crisis has revealed the folly of lax monetary policy during periods of rapid credit growth and asset prices. ++ Central banks and financial …More
Recent shifts in the behavior of key SWF’s has led to the fear that state-controlled investors may now be “aiming primarily for strategic rather than purely financial returns.” ++ In response, both the IMF and EU Commission are encouraging …More
Once upon a time in the West, the notion of globalization brought to mind new commercial outlets, the international exchange of goods and new post-industrial job opportunities. Yet, the integration of highly populated emerging economies, …More
Foreign direct investment is slowing down worldwide due to nations’ fears of losing control of what they call “critical infrastructure.” ++ Markets have recently experienced FDI coming from non-traditional sources such as China …More
Nouriel Roubini: The Financial Times recently interviewed economist Nouriel Roubini regarding the current US housing market problem and the potential for an extended US recession. Roubini addresses the outlook of the US economy, mortgages, potential policy action—The Frank-Dodd bill, Fed policy, and the outlook of financial markets. …More
Gao Xiqing, the president of China’s sovereign wealth fund expressed his frustration concerning the political opposition his fund sometimes faces when it attempts to invest in the West. ++ From the economic point of view, this is …More
Given inevitable economic and demographic shifts, European countries will not be able to remain agenda setters in the global system, unless they cooperate more effectively and speak with one voice. ++ Despite Ireland’s vote …More
In the debate regarding climate change and the shortage of fossil fuels, biofuels were for a long time considered to be the ideal solution. However recently, they have increasingly come under fire. Critics denounce the fact …More
Surprisingly, it is some of the fastest developing countries such as China and India, that are slowing down the Doha development talks. ++ Protectionism in one country triggers a chain reaction that blocks free trade in several …More
US President George W. Bush’s final visit to Europe is likely to be only ceremonial and of little real substance. ++ The EU and the US are deeply divided over issues of trade, especially the import ban on American poultry. ++ Meanwhile, …More
The future world energy order will have China, India, and Middle Eastern countries rather than OECD countries at its helm. ++ Conventional oil is likely to peak soon, and unconventional oil will then play an important role. ++ Since global oil …More
International tourism is undergoing very rapid changes. New travelling habits, an increased awareness of price, short notice and short term holidays - and the wish for more flexibility and individuality as well as rising energy prices …More
Europeans and the United States fear that CIC - owned by the Chinese government -, turns into a political tool enabling investment decisions to be based on political motives. ++ The head of the Chinese sovereign wealth fund says they are trying to …More
Almost two-thirds of humanity live in high-income or high-growth countries, while the remaining two billion live in countries with stagnant, or declining incomes. ++ The main increase in global population expected by 2050 will occur in countries …More
The US dollar was for a long time the leading global currency against which all other foreign currencies were measured. The downside of this is that as a result, the USA has accumulated a huge trade deficit. In 2006, foreign …More
Over the last few years, the annual G8 summits have attracted more attention than ever before in the history of this group of states originally known as the “Library Group.” The rise in power of Brazil, China or India …More
President Sarkozy has announced that citizens of the 2004 EU accession countries will be permitted to work freely in France beginning in July. ++ This development contrasts sharply with Germany where “borders will remain firmly shut …More
In the current discussion about the response to high fuel prices one point was missed: the world is producing one barrel of oil for every three we consume. ++ Although the price of petrol has increased by 4.7% a year, in real terms the price …More
Tim H. Stuchtey: The Germans’ limited understanding of contemporary economics is responsible for their lack of enthusiasm for entrepreneurship. Seriously addressing the challenge of global competitiveness will require Europe to inform and educate its citizens with respect to the benefits of the market economy. …More
There are three factors underlying the current rise in oil prices: rising global demand, increased costs for oil producers, and the relatively short time span in which supply has yet to adapt to these increased pressures. ++ Timely and …More
Why do free trade promoters believe they can convince the “Joe Sixpacks” of the world that temporary, however painful, economic adjustments will lead to overall gain? ++ This argument requires a trustworthy system of …More
High oil prices are tied to a weak US dollar. ++ The single-currency pricing of the oil market means that in the long run, a weak dollar reduces production while simultaneously increasing consumption. ++ This increase in demand …More
The Wall Street Journal: Recent research has found that consumers actually are willing to pay slightly higher prices for ethically produced goods than for unethically produced ones. …More
US Federal Reserve officials continue to insist that recent price increases have almost nothing to do with monetary policy. ++ Yet their claim that only global supply and demand for corn and oil are responsible for the soaring of …More
Michele Rioux & Susan Ariel Aaronson: Strategies to Link Trade Agreements and Real Labor Rights Improvements: …More
India’s slide by two places in the global competitiveness ranking from 2007 to 2008 reveals the country’s infrastructural deficiencies. ++ “The government is unable to create infrastructure needed to sustain …More
The defense of the European economy “against unfair international trade policies” needs to be critically examined. ++ In reality, defensive measures such as anti-dumping duties often negatively affect European companies. ++ The …More
Due to unilateral export restrictions imposed by grain producing countries, the Japanese government recently raised the price of imported wheat it sells to flour-milling companies by 30%. ++ The surge is expected to be passed on to the …More
Loretta Napoleoni: The truth is that terrorism is a political phenomenon and, as long as it remains in the domain of politics, there are few chances to win. …More
Foreign direct investment by sovereign wealth funds from oil-producing and Pacific Rim nations has many Americans worried about the impact on financial markets. ++ However, the lack of transparency poses a greater problem for the country of …More
A 30-year lease of the Afghan copper deposits was sold to the China Metallurgical Group for $3 billion, making it the biggest foreign investment in Afghanistan’s history. ++ While critics argue Afghanistan is too …More
The Indian Ocean will be a strategic bridgehead for the big players of the 21st century. This relates to the Indian sea doctrine, which has been determining India’s policies in the region since its release in 2004. China’s advance in …More
Eckart von Klaeden: The “strategic partnership” between the EU and Latin America must be followed up with concrete and substantive political initiatives. The European Union, Latin America, and the United States must work towards a trilateral dialog. …More
Former Fed chairman, Paul Volcker, blames this year’s financial crisis on the lenders’ and investors’ attempting to revise the age-old fundaments of finance. ++ Despite the euphoric effect of bubbles, parties …More
Some highly developed nations with bourgeoning service sectors are experiencing difficulties in adapting out-dated education policies to a more competitive, business-oriented world. ++ Scandinavian countries are leading a new trend in …More
The current problems of the US financial sector are often compared to those of Japan in the 1990s. ++ While there are many similarities, there are significant structural differences that suggest that a different remedy is required in …More
Samantha Ferrell: Combating Human Trafficking requires systematic worldwide action. In a rapidly globalizing world, organized crime groups are operating transnationally. Unless there is an increased effort on the part of international agencies, the US, and the EU, to coordinate efforts, human trafficking will only continue to expand. …More
Susan Aaronson: Much more than a marriage of convenience, America and other industrialized nations, should examine their trade policies to see how it might encourage and ultimately form a coherent union with human rights abroad. …More
President-elect Dmitry Medvedev realizes that high economic growth cannot be sustained as long as Russia relies primarily on macroeconomic policy and rising oil prices, and inequality and corruption remain widespread. ++ His rhetoric …More
India’s agricultural sector remains nearly stagnant at a time when global food production faces five major challenges: population growth, changing consumption habits in emerging markets, declining agricultural production capacity, …More
The US market is experiencing the unprecedented inflow of large- and medium-size European investors. ++ Because of the extremely cheap US dollar, it became affordable for many European companies to relocate their production to the much more …More
Susan Aaronson: This article takes a closer look at the Bush administration’s policy concerning trade and human rights; a policy area that has, in recent years, been inconsistent. As the Olympics approach, how the US responds to China’s human rights violations with respect to trade negotiations could set a very important precedent. …More
Western politicians should avoid spreading alarm concerning the size and wealth of SWFs and turning their regulation into a restriction of foreign investment in general. ++ Caution is advisable but SWFs have till now been apolitical model …More
Internationalist economic policy is no longer perceived to be in the interest of the working population in the US. ++ A new internationalism that mitigates adverse effects – inequality and insecurity – is required to …More
David Francis: Why is everyone outside of Germany worried about Nord Stream, while people in Germany seem okay with it? By looking at the United States, it’s apparent that it’s easier to ignore reliance on imported energy than it is to confront the problem. …More
The appointment of a Chinese Professor, Lin Yifu, to the post of chief economist at the World Bank reflects the changes in the global balance of powers. ++ In the past, the World Bank, like the IMF, was traditionally …More
It is important that high crop prices are not equated with world hunger since the well fed rather than the truly hungry are dependent on international food markets. ++ In South Asia and Sub-Saharan Africa, where hunger is the worst, the …More
The Fed is undermining global confidence by flooding the economy with new dollars while it should in fact be pursuing direct and targeted intervention. ++ Since US global purchasing power is used for humanitarian, economic or military …More
Cereal stocks have not been this low since 1980, but the food crisis can be explained by human greed. ++ To avoid mass hunger, climate change and trade protectionism must be addressed. ++ If international cooperation is brokered …More
The mortgage crisis emphasized that even sophisticated market players were “clueless about new financial instruments that emerged” and general reconditioning that needed to be done. ++ Economists distinguish 3 schools of …More
Not the US but the new big globalizers are responsible for renewed global tensions since the 1980s. ++ BRIC countries, – Brazil, Russia, India and China – terrify because they compensate for weakness by projecting power. …More
Restrictions on food exports worldwide are causing destabilizing
shortages in some of the world’s most populace nations. ++ Suggestions for increased productivity include: liberalization of agricultural trade; a boost in …More
To their disadvantage, Europe’s leaders are divided regarding China. ++ A visit from the Dali Lama to a European Parliament session has disgruntled one of Germany’s and most of Europe’s largest trading partners. ++ The presence …More
Thanks to its massive
workforce and low labor costs, China
has become the twenty first century’s leading global production plant. Even for
German companies, China
has long been a fundamental market for supplies. Yet an inquiry …More
As potentially non-economic agents, SWFs are threatening to affect the efficiency of the global market economy and distort the allocation of risk and resources. ++ Governance should remain adapted to the fund’s purpose and specific …More
The rise of American philanthropy and foreign investment, as well as the need for raw materials are protecting Africa’s frontier economies from international economic volatility. ++ Yet a slowdown in the US and EU could lead …More
Since they help increase productivity and develop economic potential, efficient services are fundamental to modern economies. ++ Because the service sector is expanding rapidly and contributing to sustainable growth, liberalization could …More
The IMF might have prevented the US crisis if it had detected mortgage market vulnerability sooner. ++ Since IMF governance is organized according to the “money for influence” model - most influential members have most leverage - US policies and …More
CBS: In an exclusive interview with Lesley Stahl for “60 Minutes,” the head of China’s new sovereign wealth fund, Gao Xiqing, pledges more transparency to allay fears that China will try to use its vast investment ability to exert economic or political control in the United States. …More
The three largest Asian Powers China, India and Japan have good reason to hope for a Republican US President. ++ China and India see the world more in terms of classic balance-of-power equations. ++ Balancing a rising China is …More
The current financial crisis demands strong governmental actions, particularly in the US. ++ The US’s financial problems can be explained through the debt crisis, credit crunch, and housing bubble which lead to a consumer binge. ++ The government …More
The IMF’s need for governance reform points to the EU’s lack of management of its external monetary policy. ++ Consolidating the representation of Eurozone members on the board - currently 15 members are awkwardly split among 8 chairs - …More
Andreas Kern: This research note by Christian Fahrholz and myself depicts arguments for lending boom-bust cycles in emerging market and transition economies. …More
Benjamin Lucas Schoo: McCain is the only true free trader among the remaining presidential candidates. The economic policy positions of Clinton and Obama are similar. Unlike McCain, both Democratic candidates support ending the Bush tax cuts. …More
An increasing number
of governments are becoming global economic players - and this in the form of
state-controlled companies or gigantic sovereign wealth funds. The global
economy used to be dominated by the democratic West but the …More
The current housing mortgage crisis points to a general problem in finances. ++ Financial authorities and institutions are guided by market fundamentalism. ++ Their success has reinforced the misconception that markets are …More
Russia could benefit from the US financial crisis if Americans transfer their excess liquidity to currencies such as the ruble which are likely to appreciate. ++ Russia is enticing to foreign investors: the ruble is undervalued, …More
The significant and growing contribution of emerging markets to the global economy demonstrates the strategic importance for the OECD to cooperate and engage with them, with an ultimate view to membership. ++ Countries like Turkey …More
The differences in transatlantic mortgage systems are causing the Fed and the ECB to deal with housing crisis in contrasting ways. ++ While the Fed keeps cutting interest rates to make up for the huge losses in capital of US banks, the …More
The world economy depends upon China. ++ The US in particular can’t afford to criticize China - it depends too heavily upon Chinese foreign exchange reserves, above all in this time of financial
crisis. ++ The West will not act on the …More
Ulrike Guérot: I just signed an urgent petition calling on the Chinese government to respect human rights in Tibet and dialogue with the Dalai Lama. This is really important, and I thought you might want to take action. …More
With Fidel Castro gone, the US has the chance to lift the embargo on Cuba, but should only do so in exchange for an independent and democratic Cuba. ++ The new ruler of Cuba should have a clear choice: hold free and fair elections, or be responsible for prolonging Cuba’s suffering. ++ History proves that neither tourism nor open trade are enough to democratize a country.
Frederik C. Köncke: In an increasingly complex global environment, businesses are seeking a greater understanding of how they are at risk. …More
The Bear Stearns collapse forces Wall Street to finally face reality and end the culture of easy lending. ++ US recession combined with a Democratic president in November will spell protectionist legislation. ++ The biggest …More
Survey by Wall Street Journal: Economists are now debating the extent of the recession rather than its existence. Recent statistics seem to confirm concerns. …More
As a reserve currency, the US dollar’s value was only sustainable while the economy was growing. ++ As many economists expect a recession, the Fed is moving aggressively to pump more liquidity into the US banking system. ++ This and increasing …More
Europe and Japan’s deafening silence in the face of the US’ market crisis is exacerbating the credit turmoil. ++ US policymakers should alter contracts for mortgage holders and/or use the government’s balance sheet to support …More
The growth of Sovereign Wealth Funds requires vigilance to “ensure they continue to be the positive force in the global macro-economy that they have been.” ++ Greater transparency rather than investment protectionism is needed. ++ Robert Kimmitt made these comments at a panel discussion of the Brussels Forum organized by the German Marshall Fund of the United States.
Soaring oil prices are the result of underestimation of demand, overestimation of supply, depressed production outside OPEC, and the latter’s recent regulation of supply. ++ OPEC’s actions are preventing using oil prices to correct …More
It is wrong to think that China has supplanted America in driving the global economy - the US still contributes 5 times more to the world’s GDP than China. ++ Banks around the world are learning that the US has lived beyond its means and debt may not be repaid. ++ Though a US tax cut may help, it won’t be enough to prevent recession. ++ The extent of the damage may not be known until 2009.
The world financial
markets’ present bout of turbulences should not hide the long-term and often brighter
trends:
Despite
occasional crises, global financial assets have expanded continuously over the
last decades. In 2006 …More
Maximilian Müngersdorff: Resource-based growth poses a risk to the broader economy. With oil prices hitting record highs, Russia, the world’s largest fossil-fuel exporter, has seen rapid growth. The question is, whether this growth is used to transform Russia into a diversified and sustainable economy. …More
The fear of several analysts that oil prices will rise if Brazil joins OPEC is not justified. ++ This would only happen if all OPEC states cut production by more than the amount Brazil would produce. ++ This is unlikely as OPEC states’ wealth mainly depends on oil revenues. ++ Examples are Venezuela and Saudi-Arabia. ++ History shows that lower prices are the more probable consequence.
The US economy is facing a post-bubble recession rather than a cyclical downturn. ++ As homebuilders and consumers - a sector representing 78% of GDP, are being hit the hardest, the Fed’s monetary easing policies which favor …More
The global credit crisis calls for cautious monetary policy. ++ Central banks need to take the risks of inflation seriously and avoid unnecessary interest-rate cuts. ++ The ECB should serve as a model for other central banks - it …More
In recent years, the Democratic Party has tended to gravitate towards protectionism. ++ The denigration of freer trade is characteristic of Democratic candidates during the primaries. ++ Obama’s trade policy credentials however, suggest he is likely to be a friendlier president to multilateral free trade. ++ “Hope,” “change” and an international outlook are incompatible with protectionism.
Anna Nadgrodkiewicz: When in Washington, Tusk will need to address the role of Polish troops in Iraq and Afghanistan, the necessity of easing visa requirements, and the proposed missile defense shield. Most importantly, Tusk should use his visit to build name recognition and focus on issues important to Poland. …More
Farmers are among the few beneficiaries of skyrocketing global food prices. ++ Governmental subsidies for producing biofuels combined with droughts and a growing demand for animal feed account for the high prices. ++ Food and energy issues are beginning to collide. ++ Speculation accounts for some of the price escalation, but as arable land becomes scarcer, prices are likely to remain high.
Europe is well on the way to fall short of the ambitiously formulated targets of the Lisbon Agenda of 2002. We remember: all EU member states wanted to increase R&D expenditure from an average 1,8% of GDP in the late …More
Investors outside the EU and the US are increasingly shaping trends in global financial markets. With the tripling of oil prices since 2002, petrodollar investors in particular have increasing influence and are in fact the fastest …More
Viktor Friedmann: This paper provides a summary of a V4 conference with young researchers which identified the type of information which could be transferred from the Visegrad civil sector to the neighboring countries who would also like to be members of the EU. …More
The current membership of the G-7 no longer reflects the changing reality of the global economy. ++ Leadership in the global economy has been shifting from the old industrial countries to the emerging market countries over the past decades. ++ Instead of 4 European countries, there should be one EU representative, China, India and one African country. ++ The G-7 must adapt or become irrelevant.
The so called “next billion” consumers come from Brazil, China, India, Eastern Europe and even parts of Africa and Asia and represent the largest untapped consumer market in the world. The Boston Consulting Group estimates that these new …More
Leon Hadar: The EU should put its money where its mouth is and work towards inviting both Israel and Palestine to join the EU. With the election of a new US president, Europe could gain more control in the Middle East, but only if it simultaneously accepts more responsibility. …More
Sascha Wagner: The Middle East Free Trade Area (MEFTA) as a Juggernaut for Economic Development – is the US-Morocco FTA a Good Example for Overcoming Trade Barriers? …More
Michèle Schmiegelow: Asia’s integration has advanced considerably. Europe could benefit from Asia’s strategic pragmatism.
…More
50% of respondents to a BBC World Service Poll feel “economic globalization” is growing too fast while 35% say it is growing too slow. ++ Two thirds say that the benefits and burdens of economic development had not been shared fully. ++ In …More
The African, Caribbean and Pacific (ACP) group of states have enjoyed a privileged access to the European market and benefited from Economic Partnership Agreements (EPAs) with the EU since the 1960s. However, these trade agreements have …More
Despite the much-discussed rise of emerging markets, the transatlantic economy remains the foundation of the global economy. ++ US foreign direct investment into Europe rose to $1.2 trillion, that’s nearly three times larger than …More
Ted R. Bromund of Yale University explains that liberal US think tanks (and their budgets) are expanding rapidly and notes that the Brookings Institution “has grown by 50 percent over the past two years.” Conservative American think …More
Tobias Bock: In order to answer the question What is Political Risk?, I will focus on a report assembled by the Political Risk Services Group, a commercial provider of political risk analysis to businesses. …More
Robert Zoellick: The president of the World Bank expresses his concern regarding the German focus on bilateral aid programs in an interview with Rüdiger Lentz, head of the Deutsche Welle studio in Washington and executive director USA of the Atlantic Initiative. …More
Christian Andreas Morris: On balance the economic decisions of the EU benefit the world economy, despite the fact that some its policies could be interpreted as protectionist. …More
The coping mechanisms which have kept US middle-class families afloat since the 1970’s are no longer sufficient. ++ Wages, adjusted for inflation, have barely increased in three decades, so Americans have moved more women into the …More
The struggling US economy has become a critical issue for America’s current and future leadership. Robert Reich, a professor of public policy at the University of California at Berkeley and a former US secretary of labour, …More
The subject of Asia has become a common source of criticism in US politics. Many Republicans want to see an end to cooperation with Peking because of China’s alleged attempt to displace the US in Asia, its defense budget, missile buildup, …More
Andrew Moravcsik of Princeton University says that 2008 could be a “year of destiny for transatlantic relations”. Regardless of the outcome, the American elections are likely to spark a change in US foreign policy and the European Union …More
Confronting some of the protectionist calls during the ongoing presidential nomination process, Steven E. Landsburg, a professor of economics at the University of Rochester, reminds us of the huge benefits of free trade we benefit from everyday.
Thus, even …More
In a speech before business leaders, UK Prime Minister Gordon Brown stressed the need for the UK to remain engaged with the EU, in order to push for “reforms that are essential for Europe’s, and Britain’s, economic future.”
Brown, delivering a very …More
With China’s economy predicted to double over the next decade — and surpass the United States’ economic leadership by 2020 — there is no question that China is on the rise. The question is not if or …More
The desire for growth essentially drives the globalization of these companies. Having realized that a strong presence on their home market is not sufficient to secure their long term sustainability, they move abroad, in search of continued growth …More
The time has come for the United States and Europe to formally unite, postulates John Vinocur of the International Herald Tribune. Referring to former French prime minister Edouard Balladur’s recent essay on a “Union of the West,” …More
A Missed Opportunity The economic backwardness of the Arab World is striking. Its poor record is second only to Sub-Saharan Africa. In a region of 250 million people, more than 50% of whom are under 35, more than 40% of whom are …More
The international interest in the development of Central Asia increased sharply during the last two decades. Johannes Linn identifies in his article “Central Asia: A New Hub of Global Integration” the main reasons for this renewed …More
Stryker McGuire laments that the days of real ideological battles between Europe’s major parties are over. Thus, be it in Britain, Denmark, Spain, Portugal or Germany, parties from left and right agree on almost everything, bar …More
The Economist reports that the Sino-American trade talks have achieved very little, despite US Treasury Secretary Hank Paulson’s impressive links with China.
Thus, the economic meetings, dubbed “Strategic Dialogue,” although producing …More
The inner-workings of the sub-prime crisis in the United States are explored by the BBC. Scrutinized are its origins and its effects, but particularly the role of the mortgage bond market in the outcome and …More
At the recent EU-Africa two day summit in Lisbon, the EU not only failed in securing formal trade agreements with Africa but also in combating China’s growing influence in Africa according to Andrew Grice of the Independent.
Only 15 of the 76 …More
Jose Ignacio Torreblanca of the European Council on Foreign Relations (ECFR) criticizes Sarkozy’s proposal of a committee of the wise, to address the future of Europe, but discusses how it might eventually come to be seen …More
For all the criticism globalization receives today, the diversity it has brought about offers a range of benefits. And these are not only social and cultural benefits. There are also tangible economic benefits.
Legrain points towards the research …More
Anders Åslund of the Peterson Institute for International Economics argues that citizens of paternalistic regimes stand to lose most from Sovereign Wealth Funds (SWF).
Even though by 2015, assets accumulated by SWF will equal the size …More
A new report by the Boston Consulting Group reveals that developing world firms are growing fast and spreading into foreign markets. The list of 100 firms consists of multinationals which are expanding overseas aggressively.
So why …More
A new survey by the German Marshall Fund finds that further transatlantic trade and investment are seen by majorities on both sides of the Atlantic as crucial to the economic stability of the region. While …More
Most economic indicators in the United States look disappointingly opaque today, with the exception of an acceptable 4.6% unemployment rate. Yet Dr. Joseph Stiglitz argues in his article, “The Economic Consequences of Mr. Bush,” that …More
As the prices of basic food staples soar, the world’s poor are getting ever-hungrier and increasingly vulnerable. Furthermore, the World Food Program (WFP) is experiencing exponential growth in expenditures, informs the Economist. While 850 …More
Casey S Butterfield: Income mobility in the United States is not as high as people think. If the US economy is so excitingly dynamic, why do children in Canada and Europe have a better chance of surpassing their parents’ incomes? …More
The McKinsey Global Institute (MGI) report for October 2007 explores the rise of petrodollar investors, Asian central banks, hedge funds, and private equity funds as the “new power brokers,” so called because of the increased …More
Katharina Gnath: I laud the ongoing Heiligendamm Process as an important step in involving emerging countries in global economic governance. Five months after the summit, there are still challenges to be met, and the two-year Process is only the first stage in increasing cooperation with China, India, Brazil, South Africa and Mexico. …More
Background
The Energy Watch Group (EWG) initiated by German MP Hans-Josef Fell, is a group of independent scientists and experts who investigate sustainable concepts for global energy supply. The experts at EWG use …More
Eckart von Klaeden: India has become a new global player. The broadening and deepening of relations with Western powers such as Germany and the United States in recent years has been welcomed in Berlin and Washington. …More
Debunking five traditional myths about the European economy, Steven Hill from the Washington Post, reassesses Europe’s economic position vis-à-vis the United States and the World. The “eurosclerotic” European Union is …More
Despite tough rhetoric from Chancellor Angela Merkel, Germany continues to play a role in Iran’s nuclear program, writes Benjamin Weinthal in Haaretz. Germany’s official public stance looks shaky in the face of the $5.7 …More
Robert M. Kimmitt:, U.S. Deputy Secretary of the Treasury, applauded Germany’s efforts at forging transatlantic economic bonds during a media breakfast hosted by the Atlantic Initiative in conjunction with the DGAP and Bohnen Kallmorgen & Partner. Kimmitt’s stop in Berlin was part of an extended trip through European capitals aimed at promoting common transatlantic policies towards financial and economic issues. …More
Control of the world’s oil is in a smaller and smaller number of hands, writes Sacha Kumaria on Yale Global Online. Rising oil prices — analysts predict $100 per barrel by the end of 2007 — has fuelled increasing competition between independent oil …More
Education is a vital part of the UK economy, says Donald MacLeod in response to a report by the British Council. The report, compiled by Dr. Pamela Lenton of the University of Sheffield, reveals that the educational sector is worth more to …More
The conclusions made in the World Bank report Where Is the Wealth of Nations?, first published in 2006, have been largely overlooked in the policy world and offer valuable information on how to evaluate the changing global …More
Maria Rankka: I urge Europe to look beyond Sweden’s mythic welfare state and learn from the country’s history of free trade and free enterprise. Protectionism and social safety nets will not forestall the wave of competition from globalization. …More
Christine Otsver: Labor mobility in the EU-25 is shamefully low. One of the EU’s core concepts is freedom of movement, but getting more workers to resettle will take some radical rethinking. …More
Washington Post columnist Joel Achenbach takes a look back at the history of world empires and makes some bets on America’s future. The list of empires is extensive and some enjoyed great longevity, …More
The cloud of secrecy surrounding India’s long-standing secret nuclear submarine program is finally clearing up, reports Guardian columnist Maseeh Rahman from Delhi. India has been racing to create alternative …More
Princeton Lyman, former US ambassador to Nigeria and South Africa, writes together with Council on Foreign Relations director Patricia Dorff that the United States must recognize Africa’s growing significance and improve the …More
Philipp S. Mueller: Mexico is the ignored elephant on the transatlantic agenda. This OECD country of 105 million people is an economic heavyweight that both Europe and the US have underestimated. What are you waiting for, policy entrepreneurs? …More
Louis G. Schirano: The US Congress reacted to the wrong Chinese threat: Sovereign Wealth Funds pose a far greater danger than devalued currencies. The West must pay attention to the leverage that China, Russia and others are building up. …More
Mia Farrow and Jody Williams provide possible explanations in Opinion Journal for the ongoing violence in Darfur. According to Ms. Farrow and Ms. Williams, one of the primary reasons is the investment of US-based investment funds …More
If the US continues pressing China to float its currency, Beijing will start selling its dollar reserves, warns Ambrose Evans Pritchard of the Telegraph . Although Chinese officials assert …More
Rewards For A New Way of Doing Business
More and more banks are embracing sustainable banking as a strategy to gain a competitive advantage, reports Williams. This is no mere Western phenomenon – the FT Sustainable Banking …More
Memo 2: Members of the Atlantic Community commented and wrote articles on energy and development policy as well as G8 enlargement at the time of the G8 summit. …More
The Productivity Gap
Europe still lags behind the US in per capita productivity by as much as 32%. Worse still, a transatlantic comparison by sector indicates that official statistics overstate European labor …More
Rising financial and economic interdependence across the globe has generated new opportunities and challenges that exceed the limits of individual nation states and traditional treaties. Six years ago the International Accounting …More
William L. Silber: I find that the “currency without a country” may owe much of its rise to serendipity. Past experience, however, shows that the dollar has further to fall. …More
The US global merchandise trade and current account deficit in 2006 was the largest ever recorded by one country, amounting to $857 billion in 2006. On the opposite side of the spectrum, China’s current account …More
The Good
Sovereign Wealth Funds (SWFs), schemes to invest the growing foreign exchange reserves of nations, have mushroomed in size over the last five years. Morgan Stanley estimated in March that the total funds at the disposal of SWFs amount to …More
Thomas Palley: China is not the only Asian economy perpetuating trade deficits. Japan’s rock-bottom interest rates also play a part. …More
Mainstream investment banks are pitching into the increasingly popular and profitable business of Sharia-compliant financial services, and the trend is moving to Europe. The industry has experienced annual growth of about 35 …More
Representatives of the McKinsey consulting group in China sit down with Hong-Kong based Lenovo’s CFO Mary Ma for a conversation about the company’s 2005 acquisition of IBM’s …More
Sylke Tempel: I look at the ever-present globalization bogeyman at the top of this year’s G8 protest agenda. But are concerns justified? Many of the more fuzzy arguments of globalization critics can be easily discarded. …More
J. Paul Horne of the European Institute reports that, after decades of US financial dominance, economic developments in Asia have driven down American GDP’s percentage scale of the global market. He …More
A Roland Berger Strategy Consultants’ survey offers perspectives on transatlantic relations from senior European and American business managers. The survey indicates that while European …More
The March 2007 Bruegel Policy Brief reveals that imbalances in global current account positions are not sustainable and need adjustment. A 15% depreciation of the dollar and an appreciation of …More
John Turner: The “new Silk Road” between the Middle East and Asia has brought major economic changes to the Persian Gulf region. Oil and trade flow between the Middle East and Asia has increased 25%, outstripping the increase in trade between Asia and the United States. Together Asia and the Middle East provide more than 50% of total net capital to the world. …More
David Vickrey: German businesses should take a cue from the vibrant start-up culture in the United States and be more open to the radical change that innovation can bring. There is no room for fear of failure if Germany is to achieve the sustainable economic growth that it so desires. …More
The current conventional wisdom on hedge funds—which have rapidly emerged as a major force in the world economy—is that they are dangerous and should be subject to much broader regulation. Sebastian Mallaby, economist for the American Council on Foreign …More
Sonja Bonin: The United States and Europe should unify their policies on China. Both currently have separate strategies on how to deal with China’s growing economic and military might. This division shows other rising powers that the West lacks a plan to keep its place in a new world order. …More
India is no longer simply the world’s “back office,” and has moved beyond its perceived role as provider of data processors and call-center workers. A study of the Boston Consulting Group and Knowledge@Wharton …More
With the 50th anniversary of the Treaty of Rome approaching, journalist Rosemary Righter suggests that Angela Merkel stop worrying about the EU constitution and instead help Europe stimulate growth by “joining forces” with the …More
If Japan intends to preserve its status in world trade, it must negotiate an economic partnership agreement with its biggest trading partner, the US, warns journalist Kiroku Hanai. Japan already lags behind South …More
Cheaper access to capital, successful business models and sizable assets are helping Latin American companies—especially from Brazil and Mexico—to take over OECD-based firms. Javier Santiso of Deutsche Bank Research analyzes how …More
If an agreement can be reached in the WTO dispute between Airbus and Boeing, it will be achieved only after a long and costly process, writes Eric Heymann of Deutsche Bank Research. Since the original agreement of 1979, the …More
Protection of intellectual property rights has become increasingly important since China’s admission to the WTO, reports Mei Ying Gechlik of the Carnegie Endowment for International Peace. Foreign companies …More
A Transatlantic Free Trade Area (TAFTA) could provide new momentum for the transatlantic relationship, reports Mirela Isic of the Center for Applied Policy Research in Munich. An alliance that handles one third of world trade and …More
The dollar should be much weaker relative to America’s competitive position, according to Kenneth Rogoff of Harvard University. In 2006, interest payments for US debt amounted to 6.5% of GNP. US borrowing makes up more than …More
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