In The News

The Future Path for an East Asian Community

Kavi Chongkittavorn October 26, 2009
Southeast Asian countries known as ASEAN have agreed on the need to form a broader East Asian community and increase regional cooperation, despite the many challenges that such integration faces. Among these is the disagreement over how to deal with human rights violations, the differences in economic development and political systems of member states, diverging opinions on US involvement, and...

Down But Not Out

Krishna Guha October 21, 2009
With the US caught in a deep recession and mired in deepening debt, the status of the US dollar as the world’s reserve currency is in question. Should these questions appear warranted, a crisis of confidence could create a “self-propelling spiral” weakening the dollar further. And if the dollar were to plummet, intervention by not only the US, but also other economies could be the response. But...

Dollars Without Borders

Dilip Ratha October 20, 2009
For many countries, a significant source of national income comes from remittances sent by family members working abroad. Remittances play a crucial role in the economic health of poor countries, providing funds for social services and capital for new businesses and investments. While the global economic crisis and high levels of unemployment are forcing many migrant workers to remain in the host...

Global Crisis: Bangladesh Bucks the Trend

Zafar Sobhan October 14, 2009
Conventional wisdom would expect export-dominated, monoculture economies like Bangladesh to suffer badly from the recent financial meltdown. But that has not happened. According to Daily Star opinion page editor and 2009 Yale World Fellow Zafar Sobhan, there are four reasons why Bangladesh escaped unscathed. First, the government kept its head by holding only safe US Treasuries when everyone was...

US, The New Saver

Nayan Chanda October 14, 2009
The recent bleak unemployment report for the US suggests that the economic recovery is likely to be W-, rather than, V-shaped. But the 9.8 percent unemployment rate is only part of the picture: when including the “underemployed”, the rate is roughly double. What this means is that the US isn’t going to be consuming that much during what is normally the biggest spending period of the year –...

Germany’s Boring Election Masks Troubles Ahead

Bruce Stokes October 12, 2009
Chancellor Angela Merkel’s win in the recent German election could bring trouble for Berlin’s allies both in Europe and abroad. Though the elections were some of the dullest in history, according to commentator Bruce Stokes, the make-up of the new government – Christian Democrat and Free Democrat – is likely to lead to divisions with international allies over jumpstarting the economy and...

China Rising: Have Cash, Buy Oil

Dilip Hiro October 9, 2009
While the global financial crisis has left much of the Western world in disarray, China’s position remains strong with a stockpile of cash ready to acquire cheap assets. In many cases, these assets are natural resources, especially hydrocarbons. According to author Dilip Hiro, Beijing’s acquisition strategy seeks to insulate itself from the vagaries of raw material price fluctuation while...