In The News

Is This the End of Globalization?

David Francis March 4, 2013
Investors are less intent on pursuing cross-border profits, investing in overseas endeavors. A McKinsey Global Institute report measured money in the global financial system before and after the 2007-2008 financial crisis: In 2007, $11.8 trillion in investments and loans crossed borders; the figure for 2012 is $5 trillion. “McKinsey hedges the report by saying that some of the capital removed...

The Europeanization of America

Mark Leonard February 26, 2013
The United States and Europe each are coping with heavy debt and the prospect of decline, argues Mark Leonard, co-founder and director of the European Council for Foreign Relations. Polarized electorates and clumsy austerity programs add to uncertainty and compound economic woes. Leonard suggests that the Obama administration admires the Germany economy and pursues policies of “energy...

Is the US Ready To Be Number Two?

Kishore Mahbubani February 11, 2013
In 1980, the US economy was more than 10 times larger than China’s, yet by 2017, China with its rapid growth could have the largest share of global GDP, more than 18 percent, according to International Monetary Fund projections. US leaders have not prepared their citizens for this “great convergence,” suggests Kishore Mahbubani, author and dean of Lee Kuan Yew School of Public Policy. Still, much...

Growth Without Equity Roils South Africa

Haroon Bhorat, Morné Oosthuizen, Anne Kamau February 1, 2013
Labor unrest does not attract foreign investment. South Africa must subdue strikes in its mining industry before unrest spreads to other sectors while addressing the challenges of a high unemployment rate and dire poverty, argue researchers Haroon Bhorat, Morné Oosthuizen and Anne Kamau. South Africa is the world’s biggest producer of gold and platinum. The strikes are both reducing gold and...

America’s Fiscal Policy Is Not in Crisis

Martin Wolf January 31, 2013
The angst of some US politicians would suggest the country is in terrible economic shape, close to bankruptcy and the inability to pay on its obligations. The view is false, contends Martin Wolf of the Financial Times. The US does have fiscal challenges, he maintains, largely due to its inefficient healthcare system and the inability to say no to special interests. The country is on the path for...

Portuguese Flee Economic Crisis

January 30, 2013
Struggling with debt, Portugal is losing its youngest, most educated citizens. More than 2 percent of the country’s population have emigrated during the past two years, reports the BBC News. The emigrants head to Switzerland or Angola rather than France, once a traditional destination. Other destination countries include Germany, Mozambique, the Netherlands and the United Kingdom. The Portuguese...

The Price of Globalization

Nayan Chanda January 23, 2013
The interconnected world is not so different from a small community in that the greed or lack of foresight of a few can bring quick ruin. The US has $16.5 trillion in debt and a reduced revenue stream due to the global recession. Some conservatives demand harsh cuts in exchange for lifting an artificial debt ceiling, devised to control government spending. Delays in approving the debt ceiling...