In The News

The Virtual Middle Class Rises

Thomas L. Friedman February 5, 2013
The poor around the globe may still live on a few dollars per day. But price pressure on electronics like smart phones and computers have lowered costs of education and communications and increased the ranks of a virtual middle class. Expanded numbers of people connecting via the internet will have political and economic repercussions, notes Thomas L. Friedman in his column for the New York Times...

Nations Can Try Promotion – Not Protectionism

Anthony P. D’Costa February 4, 2013
Competition among national governments to promote their markets in the global economy is increasingly intense. Governments are expected to regulate markets to reduce instabilities. In their pursuit of growth, many governments are timid, failing to govern their economies – missing global challenges and opportunities while neglecting social protections. Anthony D’Costa, professor and research...

Growth Without Equity Roils South Africa

Haroon Bhorat, Morné Oosthuizen, Anne Kamau February 1, 2013
Labor unrest does not attract foreign investment. South Africa must subdue strikes in its mining industry before unrest spreads to other sectors while addressing the challenges of a high unemployment rate and dire poverty, argue researchers Haroon Bhorat, Morné Oosthuizen and Anne Kamau. South Africa is the world’s biggest producer of gold and platinum. The strikes are both reducing gold and...

America’s Fiscal Policy Is Not in Crisis

Martin Wolf January 31, 2013
The angst of some US politicians would suggest the country is in terrible economic shape, close to bankruptcy and the inability to pay on its obligations. The view is false, contends Martin Wolf of the Financial Times. The US does have fiscal challenges, he maintains, largely due to its inefficient healthcare system and the inability to say no to special interests. The country is on the path for...

Portuguese Flee Economic Crisis

January 30, 2013
Struggling with debt, Portugal is losing its youngest, most educated citizens. More than 2 percent of the country’s population have emigrated during the past two years, reports the BBC News. The emigrants head to Switzerland or Angola rather than France, once a traditional destination. Other destination countries include Germany, Mozambique, the Netherlands and the United Kingdom. The Portuguese...

The Price of Globalization

Nayan Chanda January 23, 2013
The interconnected world is not so different from a small community in that the greed or lack of foresight of a few can bring quick ruin. The US has $16.5 trillion in debt and a reduced revenue stream due to the global recession. Some conservatives demand harsh cuts in exchange for lifting an artificial debt ceiling, devised to control government spending. Delays in approving the debt ceiling...

Biggest Growth Story? Outside the US

Russ Koesterich January 21, 2013
The gridlock in US Congress, its reliance on last-minute, short-term fixes for well-documented problems, is reducing confidence, threatening credit ratings and low interest rates for borrowers, worrying investors and decreasing tax revenues. So far, opposing parties in Congress refuse to compromise on substantial reform of the US tax code or costly entitlement programs, especially costly health...