In The News

The World Bank's China Delusions

Weijan Shan September 29, 2006
The World Bank has suggested that substantial earnings by China firms, not debt, have fueled the nation’s growth. But that assumption could be wrong, argues a private-equity analyst, who examined the same data from the National Bureau of Statistics. Reported profits in China often include government subsides and are released before payment of income taxes, a rate of about 30 percent in the...

Be Careful What You Wish For

September 28, 2006
A global economy closely binds the prosperity of the US and China, points out Henry Paulson, US treasury secretary. The US has been among the loudest clamoring for China to increase the value of its currency – but appreciation in the yuan may not necessarily ease US economic woes. China’s competitive advantage is not linked to currency differences alone, but also labor costs as well. A rising...

Economic Forum Warns US of Budget Deficit's Ill Effects

Marcus Walker September 27, 2006
Mired in debt, the US has lost its competitive edge, dropping from first to sixth place in one year, according to the World Economic Forum. While debt decreases the nation’s flexibility and ability to sustain economic growth, the US still leads in innovation, as demonstrated by patents and quality of university of research, notes a chief economist for the forum. However, an $8.49 trillion debt...

On India’s Farms, a Plague of Suicide

Somini Sengupta September 19, 2006
More than 17,000 farmers in India committed suicide in 2003, and the government admits that, from all appearances, the despair continues to rise. Market-oriented economic reforms in recent years gave farmers access to global competition and genetically modified seeds that withstand extreme drought or pests. But the new seeds are costly, and lenders charge 5 percent monthly interest and take...

Making Globalization Work

Joseph Stiglitz September 8, 2006
Joseph Stiglitz, winner of the Nobel Prize for economics in 2001, complains about unfair trade, excessive debt and poverty, yet still argues that globalization offers enormous potential if managed properly by nations. He compares complaints about globalization to complaints about unemployment during the Great Depression of the 1930s: If governments had ignored economist John Maynard Keynes’ call...

Don't Be Fooled by This Reform: The IMF Is Still the Rich World's Viceroy

George Monbiot September 7, 2006
The IMF has proposed giving a greater voting percentage to China, Turkey, Mexico and South Korea – all strong and emerging economies. Yet the body of 184 members would remain in control of its strongest members: The US controls 17 percent of the vote; Japan, Germany, the UK and France control 22 percent; while the 80 poorest countries control 10 percent. IMF decisions, most of which require an...

US Seeks Bigger China Role in IMF

Steven R. Weisman September 4, 2006
The old saying claims, If you can’t beat them, then join them. In a bid for cooperation, the Bush administration pushes for China and other developing nations to have more power in the International Monetary Fund (IMF). The institution with 184 member countries promotes financial and monetary stability, international trade and poverty reduction. Europe, which could lose voting shares, resists the...