In The News

No Walls In This Street

Nayan Chanda August 31, 2009
One of the greatest fears facing the world as it entered the financial crisis a year ago was the potential aftermath of protectionism in the form of rising trade barriers. But, while many cited the beggar-thy-neighbor policies that spawned the Great Depression as the next shoe to drop, these prognostications largely did not come to pass. True, there have been some “Buy [place country here]”...

Globalization – A Setback

Fahed Fanek August 28, 2009
Globalization, once hailed as the solution for economies seeking to grow through free-markets, has suffered a setback in the current crisis. Many countries have enacted inward-looking policies that threaten to reverse globalization or foster protectionism. Meanwhile, some countries less open to the world seem to have weathered the storm better than the rest, challenging the notion of the benefits...

A New Path for Japan

Yukio Hatoyama August 27, 2009
Yukio Hatoyama, the leader of Japan’s Democratic Party and potential prime minister if his party wins the election, holds a skeptical view of the benefits of globalization. Human and environmental costs are discounted in favor of economic value. “People are simply personnel expenses,” with the global economy destroying “traditional economic activities” – e.g., agriculture – and communities. Such...

China Racing Ahead of U.S. in the Drive to Go Solar

Keith Bradsher August 25, 2009
China is striving to become the world’s leader in production of solar panels not unlike Japan’s drive for dominance in automobiles in the last century. And just like Japan, China plans to build factories in the US in the hopes of circumventing protectionist legislation. Beijing can afford to foster such an industry not only because it is a quasi-command economy, but also because of the size of...

Japan’s Coming Election Could Mean Its Withdrawal from the World

Ko Mishima August 25, 2009
The result of Japan’s upcoming election could be more than a test of confidence for the ruling Liberal Democratic Party (LDP). It might determine the nature of the country’s engagement with the world. According to Professor Ko Mishima, the Japanese doubt the LDP has a handle on the nation’s economy, and thus a win by the opposition Democratic Party of Japan (DPJ) looks close to certain. Though...

The Dragon in the Backyard

August 20, 2009
New economic cooperation between Latin America and less traditional trading partners is having a significant impact on the region both economically and politically. Top on the list is China’s increasing visibility as a strategic economic partner of the continent, much to the US’ discontent. While China’s cheap manufacturing has hurt countries such as Mexico, its demand for commodities has driven...

An Unlikely Marriage

Nayan Chanda August 20, 2009
The notion that China and America have fused into one economy, termed “Chimerica”, is now likely a chimera, according to the co-creator of the phrase, economic historian Niall Ferguson. This does not mean the two countries are not ineluctably linked; perhaps even to the degree that loosening the ties might precipitate unforeseen, but negative consequences. But it does call into question the idea...