In The News

Europe Fears Civil Unrest

Peter O'Neil January 26, 2009
Angry street protests in Bulgaria, Lithuania, Iceland and other nations, combined with economic recession, have unnerved European leaders, who met to talk about how to handle civil unrest. An abrupt drop in living standards, high unemployment rates, loss of homes, vanishing savings could spur protests far more disruptive than those that shut down capitals in 1968. “A more apt comparison for...

Outsourcing’s Appeal Grows During Volatile Times

Melanie Rodier January 23, 2009
The purpose behind most outsourcing is to increase efficiency and reduce costs. Firms can go to agencies that provide specialized and time-limited support in investor reporting, analyst research, legal research, regulatory oversight or information technology. “Outsourcing providers often invest in the latest technology, offsetting the expense by sharing the technology among several clients,”...

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...

Global Downturn Dooms Prestige Construction Projects

Uwe Klußmann January 20, 2009
Architecture reflects a society’s values and aspirations for how governments, businesses and families might make use of space. With the 21st century emerged a desire around the globe to display wealth and power quickly, explains an article prepared by staff of Spiegel Online, and “Yearnings for pomp and prestige were transformed into architecture.” But the global credit crisis and recession, as...

American Power Is on the Wane

Paul Kennedy January 16, 2009
The US has the most to lose in the current economic crisis, with growing debt, as Washington continues to churn out so-called stimulus packages. Yale historian Paul Kennedy warns that, in addition to the risk of wasting these fiscal packages on aging industries and dubious lobbyist causes, there is little chance that domestic investors can afford to cover the debt. The stimulus packages rely on...

Chinese Exports and Imports Continue to Shrink

Keith Bradsher January 14, 2009
China’s exports and imports continue to decline, setting up a scenario for more job losses and possible social unrest, reports Keith Bradsher for the New York Times. The sharp decline follows reduced consumer spending in the US and the West, down even for the holiday month of December. The global credit crunch also contributes to the decline: “Chinese suppliers have become more wary of shipping...

Russian Gas Politics

Yoo Chul-jong January 14, 2009
Russia began supplying gas via pipeline to Western Europe during the Cold War, a result of the contract between n Leonid Brezhnev, chairman of the Soviet Communist party, and Willy Brandt, chancellor of West Germany. “Despite consistent pressure from the United States, Brandt, who received the Nobel Peace Prize in 1971 for his ‘Ostpolitik’ policy of reconciliation with socialist countries in...