In The News

The WTO – Faltering on Its Way to Success?

Edward Gresser August 12, 2008
The recent breakdown in the Doha Round of World Trade Organization negotiations was largely described as “failure” by commentators around the globe. But the goal of eliminating poverty by opening global agriculture markets is ambitious, as negotiators tackled some very sensitive issues. The WTO requires that all 153 member nations reach consensus on any rules, yet despite that challenge, the...

The Oil Price: Nothing to Smile About

August 12, 2008
The rising price of oil throughout summer 2008 resulted in higher prices for most other products, especially food. With a dip in the price of oil, some analysts expect central banks to hold off from lifting interest rates, maintaining less expensive credit and money for business. But that cheap credit can lead to risky speculation and bubbles, some economists argue. Current interest “rates now...

Learning to Speak Climate

Thomas L. Friedman August 7, 2008
The effects of climate change are slow and pernicious, suggests Thomas Friedman in his New York Times column. Too many anticipate massive disasters on the scale of Hurricane Katrina, striking New Orleans in 2005 with broken dams and flooding. But instead, notices of climate change already arrive steadily by post, warns Danish geologist Minik Thorleif Rosing, in the form of higher bills for water...

Russia Takes Control of Turkmen (World?) Gas

M.K. Bhadrakumar August 6, 2008
Russia has signed two agreements on gas in Turkmenistan, ensuring Russian control over gas exports from the region. Russia will pay higher market prices for Turkmen gas, notes M.K. Bhadrakumar in an article for Asia Times, and that could reveal a geopolitical rather than money-making strategy. At the same time, China and Russia concluded negotiations on energy cooperation. “Suffice it to say that...

Wave Goodbye to the Invisible Hand

Steven Pearlstein August 4, 2008
An economic era centered around globalization could be fading away, argues columnist Steven Pearlstein for the Washington Post. Developing nations will continue benefiting from trade agreements, albeit without the frenetic fast growth, while developed nations will see fewer cost savings based on low wages in far-off lands. “It is not the protectionists of the AFL-CIO or CNN who are primarily to...

Shipping Costs Start to Crimp Globalization

Larry Rohter August 4, 2008
Manufacturers increasingly sought a competitive edge by subcontracting out work for all manner of parts, from batteries to textiles, to countries with the lowest wages. But that strategy was viable only with low energy costs. Companies trying to keep costs low will move more operations closer to markets to reduce fuel costs, especially for bulky or perishable items like food. “Globe-spanning...

Bailing Out Economies

Nayan Chanda August 1, 2008
Capital is mobile, seeking profit, and it moves to countries where the returns are higher, with no regard for immobile workers, explains Nayan Chanda in his column for Businessworld. Flush with cash, foreign investors in search of safe havens invested in bonds issued by US government-sponsored mortgage lenders, Freddie Mac and Fannie Mae. With the bonds not as safe as advertised, the US...