In The News

Lenders Losing Battle of “Basel”

Victoria McGrane, Dan Fitzpatrick December 22, 2011
The US Federal Reserve may have little choice but to follow Europe’s lead and require US banks to add more capitalization. US banks had argued that guidelines need not be so strict, report Victoria McGrane and Dan Fitzpatrick for the Wall Street Journal. Banks described as “too big to fail,” ones that pose risk to the global financial system, are the target. “Basel regulators last month...

Turks Enjoy a Little Schadenfreude at EU's Expense

Peter Kenyon December 14, 2011
Many Turks are now thanking their lucky stars that Europe delayed Turkey’s accession into the European Union. Turkey, associate member of the European Economic Community since 1959, applied for full membership to the EEC in 1987 and was recognized as an EU candidate in 1999, undergoing many reforms along the way. The insult felt by Turkey over delay was keen after rival Greece’s accession in 2000...

From Local to Global

Nayan Chanda December 13, 2011
Had the government proposal not run into a buzzsaw of opposition, foreign investors might have given India’s retail industry a jumpstart. The government tried to limit the potential impact on at least 20 million traders by limiting the big-box stores to cities with more than 1 million people, allowing state governments the right of refusal, mandating that 30 percent of manufactured and processed...

From Brussels to Durban: Debt and Climate Crises Spotlight Free Riders

Scott Barrett December 9, 2011
Europe’s rapid response to the debt crisis may have overshadowed the long-planned negotiations on climate change in Durban, but the contrast throws light on the problem of global governance, explains economist Scott Barrett. Both crises demonstrate the limits of collective action in the face of known dangers. In Europe, poor fiscal discipline by any euro member threatened other countries, he...

Why Can't Europeans Get Along?

Pankaj Ghemawat December 9, 2011
Forging strong trade connections enriched the European economy, but administrative measures alone did not ensure economic or political integration, cautions management professor Pankaj Ghemawat in an essay for Fortune. While short-term intervention is needed, he argues, Europe must also strive for cultural and political cohesion and build greater trust among 27 nations. He contrasts the EU with...

Market-Economy Status for China Is Not Automatic

Bernard O’Connor December 8, 2011
As the euro flounders, China considers coming to Europe’s rescue in exchange for receiving immediate market-economy status – so that the value of its exported goods won’t be subjected to outside costs and prices. Armed with such status, China would be subjected to fewer anti-dumping charges. And many global leaders say why not, since China is set to automatically achieve market-economy status by...

India Halts Wal-Mart Entry Amid Protests

Bibhudatta Pradhan, Andrew MacAskil December 8, 2011
Prime Minister Manmohan Singh’s government could not overcome fear and opposition that modern big-box stores from the west would overwhelm the country’s small family-run stores – and suspended plans to let foreign retailers open stores in India. The change in plans reflects an inability to boost foreign investment and end policy paralysis, reports an article from Bloomberg. “In an attempt to kick...