In The News

Global Crisis Spurs Long-Needed Change in China

David Dollar February 20, 2009
As the global economy sinks deeper into recession, political leaders look to any country with hefty surpluses and a strong manufacturing sector, such as China, to restore growth. But China’s economy is lagging, too, and World Bank economist David Dollar points out that a decline in imports, particularly parts and materials, as well as declines in steel and electricity sectors signal no quick end...

Job Losses Pose a Threat to Stability Worldwide

Nelson D. Schwartz February 19, 2009
Jobs vanish around the globe as people worry more and countries struggle to enact policies to stabilize local economies. A UN agency estimates that job losses could total 50 million by the end of 2009, reports Nelson Schwartz for the New York Times. Many jobseekers could be bitter and prepared to protest and seek new political leaders. Economic instability has replaced terrorism as the biggest...

Will Services Provide Our Salvation?

Hamish McRae February 18, 2009
Some industries center on necessities and conventional wisdom might suggest that those companies might be less devastated by economic crisis. Even as auto manufacturers lay off workers, companies like Domino’s Pizza hire extra employees. Unfortunately, many of the new service jobs pay less than the old manufacturing positions, explains Hamish McRae in a column for the Independent, adding there is...

A Source of Energy Hiding in Plain Sight

Marilyn A. Brown February 18, 2009
Countless dollars in energy from limited fossil fuels are wasted – a result of aging and inefficient factories, homes not being insulated and vehicles manufactured without any regard for conservation. The cost of oil is down now because global demand is down, but energy-importing nations could continue to control prices by conserving more energy, argue professors Marilyn Brown and Benjamin...

Testing Times: Collapse of European Industry Worse than Expected

February 13, 2009
An onslaught of bad news continues to hit Europe, with protests about economic troubles on the rise. Some European leaders, like French President Nicolas Sarkozy, resort to nationalist and protectionist approaches. Meanwhile, the European Union’s current president, Czech Republic Prime Minister Mirek Topolanek, stresses the need for “adherence to the rules,”including continued trade among the EU...

A Global Credit Squeeze Is Felt Unevenly

Floyd Norris February 11, 2009
A “downside” to globalization struck when the US credit crisis had a global effect that neither Europe nor Asia could diminish or avoid. Many countries cannot borrow money to stimulate their economies as the US does and lack the savings of China, and some government leaders fear that the big economies will focus on domestic investments at the expense of poorer nations. Greater government...

Beijing Puzzle

January 21, 2009
China is the world’s biggest economy, after the US and Japan, and almost became the world’s biggest exporter when global credit shrank and importing nations abruptly reduced demand. Yet the country still runs a record high trade surplus, as its exports remain competitive with those from South Korea or Taiwan. The Economist reports, “a more worrying reason why China bought less from the rest of...