In The News

Connecting Across Oceans

Nayan Chanda February 18, 2010
The global economic crisis inspired cries of globalization’s demise, but economic data from the past two years paints a more complex picture. Developed countries generally suffered through negative GDP growth, while developing countries largely stayed in positive territory. Trade collapsed, with shipping indices sinking to surprising lows, but has since recovered. And total international travel,...

The End of Switzerland

Denis MacShane February 17, 2010
Switzerland has traditionally been known for its neutrality, the secrecy of its banks, and for being the center for resolving international conflicts. But these are different times for Switzerland: banks cannot guarantee secrecy and Switzerland’s neutrality is more of a curse than a cause for praise. British Labour MP Dennis MacShane argues that “Switzerland’s nonalignment has rendered it...

Globalization in Trouble – Part II

David Dapice February 15, 2010
Globalization appears to have weathered the storm of the financial crisis, but it may be poised for a tumble. According to economist David Dapice, many developing nations, whose economies often depend heavily on exports, cannot sustain themselves without the willing consumption of their goods by the developed world. But with a pullback in aggregated demand among developed nations, the prognosis...

A Very European Crisis

February 8, 2010
Greece’s entry into the euro zone nine years ago benefitted the country but also masked significant structural problems. The stability of the euro allowed Greece to borrow at lower interest rates; but it papered over a more serious lack of fiscal discipline. That is, while GDP was growing, Greece could take on more debt without appearing over-leveraged. But any drop in GDP would expose the...

The West Owes Haiti a Bail-Out

Gary Younge February 4, 2010
Last month's earthquake in Haiti may have been a natural disaster, but the devastation extends to the country's unfortunate position in the global political economy. Many Western experts say Haiti's underdevelopment stems from internal factors like government mismanagement and corruption. Yet Haiti's struggles are also due to centuries of destructive external pressures. For...

The Global Debt Bomb

Daniel Fisher January 25, 2010
Countries around the world took on massive amounts of debt in in the last two years to help fend off economic disaster by bailing out banks and fostering growth. But in many cases, this has worsened a pre-existing debt problem and raised debt-to-GDP ratios to astronomical levels. How all this debt will be paid off remains uncertain: an economy needs to grow fast enough to allow the government to...

The Bonds Of Debt

Nayan Chanda November 24, 2009
President Obama’s first visit to China has understandably drawn wide attention. Observers have scrutinized the visit – from the symbolic town hall meeting to the unprecedentedly detailed Joint Statement – trying to gauge the extent of cooperation between the two countries. On the face of it, China clearly enjoys some advantage over the US. It is the largest foreign creditor to the US and is...