In The News

How the West Came to Run Islamic Banks

Owen Matthews October 29, 2005
It may come as a surprise to some that when wealthy Muslims have millions of oil dollars to invest they are increasingly turning to subsidiaries of giant Western banks like Citigroup to manage their money. Attracted by oil money and the desire to participate in the Middle East’s fastest growth in a generation, Western banks have successfully established Islamic subsidiaries that are dominating...

Chávez Moves Reserves Out of US Treasuries

Andy Webb-Vidal October 7, 2005
President Hugo Chávez has liquidated about half of Venezuela's US$30.4 billion holdings of US Treasuries, confirmed a director at the country's central bank. The bank director attributed the transfer to financial reasons: Venezuela's foreign reserves have benefited from high oil prices, and Chávez might have wanted to shift some of the winnings from securities to social programs....

US Shouldn't Fear Rise of China, India

Robert Samuelson May 26, 2005
The growing wave of statistics on dwindling US competitiveness in the global economy has spooked American workers and brought blame on the heads of US manufacturers. China, India, and other developing economic superpowers are gunning for the position once occupied by mighty America – or so the wisdom goes. But the verdict on China and India's imminent rise to power may not be so clear-cut,...

Argentina or the "Principles"?

Ernesto Zedillo May 10, 2005
Financial instability in emerging market countries has been a major concern for the international financial system. Argentina's debt crisis, during which the country's entire financial sector collapsed, triggered serious discussions on how to improve the world's response mechanisms in times of crises. After several years of negotiation and consultation, an association of private...

Poverty – Not Ideology – Must be World Bank's Focus

David Dickson March 24, 2005
When Bush administration-favorite Paul Wolfowitz was nominated last week to head the World Bank, much of the international community recoiled in shock. Many critics fear Wolfowitz's lack of economics credentials and his ideologically charged reputation make the neo-conservative unfit to head the World Bank. Yet David Dickson argues that Wolfowitz can prove the world wrong for crying, "...

HSBC to Double Offshore Jobs

Mark Bendeich March 16, 2005
Global banking giant HSBC plans to shift a large number of Western clerical and call-center operations to lower-cost areas, according to a top executive. In the next three years, HSBC may employ as many as 25,000 workers in Asia, offshoring thousands of jobs in a move that would save the company over US$1 billion. Though outsourcing has raised many eyebrows among skeptics – US and European...

Dealing with a Declining Dollar – Part II

David Dapice February 9, 2005
If today's US budget deficit raises concerns, then tomorrow's projections should sound an alarm, writes economist David Dapice. As the United States descends further and further into debt – by several trillion dollars over the next ten years – the value of US currency will decline. Should a worldwide "run on the dollar" result, shockwaves would resonate throughout the global...