In The News

Dealing with a Declining Dollar – Part I

Jeffrey E. Garten February 7, 2005
There may be trouble brewing in the global financial system. With US external debt now over US$2.5 trillion, foreign creditors may soon demand higher interest rates in order to keep money flowing into America. In turn, this might lead to a US recession that will eventually spread globally. However, such a disaster could be averted if other countries were to allow their currencies to move...

Bush Needs Decisive Change of Course

Fred Bergsten December 14, 2004
As US account deficits deepen and global oil prices escalate, President George W. Bush will face some serious challenges in his second term. According to economist Frank Bergsten, neither the US nor world economies can afford an extension of Washington's economic and energy policy status quo. A combination of strong domestic fiscal action - deficit reduction to enhance savings - and...

Worldwide Effects of Sinking Dollar

David R. Francis November 22, 2004
As the value of the US dollar continues its dive, observers worldwide continue to debate the consequences. The gaping US trade deficit is seen as the culprit for the devaluation, which has sped up markedly since President Bush's re-election. Most recently, concerned G20 officials called for the United States to rein in its federal deficit. As Chinese citizens, fearing a revaluation of...

Microentrepreneurs' Contribution to Microcredit Too Long Ignored

Ron Luhur November 17, 2004
Banks and credit facilities have long been hailed for providing small loans, or microcredit, to the poor so they can start businesses and thus raise themselves from poverty. And indeed, thanks to these loans, 94 percent of the business entities in Indonesia are small businesses, employing over 136 million people, or two-thirds of the population. But credit institutions are not alone in igniting...

Can Arab Financial Institutions Rise to the Challenge?

Dr. Bassam Fattouh November 11, 2004
Several Middle Eastern governments face large public deficits and mounting public debts. In the midst of this mounting crisis, a logical solution might be to involve Arab banks in energy and infrastructure investments. The Arab financial sector is currently dominated by banking. However, warns this Daily Star news analysis, Arab banks are highly localized, with a stiff structure that limits their...

From Boom to Bloom

November 10, 2004
The lifting of millions of Chinese out of poverty constitutes one of the world’s greatest success stories in economic development. Yet behind the bold headlines touting this miracle remain problems that could undermine China’s success. The central government recently raised interest rates in order to prevent economic growth from overextending the country’s resources. And it has also committed...

Is Putin an Anti-Globalization Hero?

Liliana N. Proskuryakova November 3, 2004
Russian President Vladimir Putin has made few friends within the anti-globalization movement, despite government actions that – on the surface, at least – reflect goals espoused by demonstrators – from Seattle to Genoa. Liliana N. Proskuryakova argues that anti-globalization activists have held their applause, as they believe Putin's inconsistent policies betray a different agenda: His...