In The News

The End of Switzerland

Denis MacShane February 17, 2010
Switzerland has traditionally been known for its neutrality, the secrecy of its banks, and for being the center for resolving international conflicts. But these are different times for Switzerland: banks cannot guarantee secrecy and Switzerland’s neutrality is more of a curse than a cause for praise. British Labour MP Dennis MacShane argues that “Switzerland’s nonalignment has rendered it...

Globalization in Trouble – Part II

David Dapice February 15, 2010
Globalization appears to have weathered the storm of the financial crisis, but it may be poised for a tumble. According to economist David Dapice, many developing nations, whose economies often depend heavily on exports, cannot sustain themselves without the willing consumption of their goods by the developed world. But with a pullback in aggregated demand among developed nations, the prognosis...

A Very European Crisis

February 8, 2010
Greece’s entry into the euro zone nine years ago benefitted the country but also masked significant structural problems. The stability of the euro allowed Greece to borrow at lower interest rates; but it papered over a more serious lack of fiscal discipline. That is, while GDP was growing, Greece could take on more debt without appearing over-leveraged. But any drop in GDP would expose the...

Who Needs Whom More?

Philip Bowring February 5, 2010
Recent US arms sales to Taiwan met a sharp Chinese response that unnerved US business interests. So far, the Obama Administration has preferred accommodation to confrontation with Beijing. Business concerns, of course, fear any disruption to growth in China. But is what is good for business necessarily good for the US in the case of China? According to the author, the US should recognize that...

Beijing Sanctions Over Arms Sales Could Backfire

Jamil Anderlini, Kevin Brown February 4, 2010
China threatened to impose sanctions on US defense companies, including Boeing, following their participation in the Obama Administration’s intended arms sale to Taiwan. But China could be shooting itself in the foot. Boeing enjoys a dominant presence in the Chinese commercial aviation industry. In addition, China’s hopes to develop its own jumbo jet by 2020 depend on continuing technical...

Will Japan Emerge from its Shell? – Part I

Edward J. Lincoln February 3, 2010
For the world’s second largest economy, Japan takes a decidedly backseat approach to involvement in global affairs. While there are no rules to force global intercourse, Japan-specialist Edward J. Lincoln believes that as a key beneficiary and user of global public goods, Japan should become more involved. But the hurdles preventing greater interchange between the world and the Japanese are many...

The Global Debt Bomb

Daniel Fisher January 25, 2010
Countries around the world took on massive amounts of debt in in the last two years to help fend off economic disaster by bailing out banks and fostering growth. But in many cases, this has worsened a pre-existing debt problem and raised debt-to-GDP ratios to astronomical levels. How all this debt will be paid off remains uncertain: an economy needs to grow fast enough to allow the government to...