In The News

Half of Investments Channeled Through Tax Havens

Steve Anderson May 24, 2013
Each year many of the world’s developing nations lose out on billions of dollars through corporations’ use of tax havens, notes a report from ActionAid. Companies increasingly focus on tax reduction. According to the report, nearly half the money invested in some nations goes through tax havens, a move that ultimately costs the developing nations a sum triple the amount of annual aid. Developed...

OECD Sounds Fresh Warning on Japan

Ben McLannahan April 23, 2013
Controlling debt should be a top challenge for Japan, the world’s third largest economy, suggests the OECD. Stimulus spending offers potential for economic growth but “should be accompanied by a detailed ‘blueprint’ to put the country’s finances on a more stable footing,” reports Ben McLannahan for the Financial Times. Japan’s debt is predicted to be well more than double its gross domestic...

Instead of the State, Globalization Has Withered

Julie Novak April 19, 2013
Nations are keen to control globalization, welcoming the best ideas and talent and keeping away the problems, a task much easier said than done. Most nations appreciate a large choice in trendy products, hard-working and innovative immigrants, and a reputation for being cosmopolitan. The 2008 financial crisis enlarged rather than destroy government, fueled by fiscal stimulus spending, maintains...

World Markets Roiled as Cyprus Bailout Deal Stalls

Eric Reguly March 18, 2013
Cyprus, with a population just over 1 million, is posing big challenges to global financial markets. The government failed to pass a €10-billion package that would have taxed bank deposits to pay for the rescue – 6.75 percent for deposits less than €100,000, 9.9 percent for those with more. “None of the euro zone’s sovereign and bank bailouts, from Ireland to Greece, has insisted that bank...

The Financial Crash Will Not Bring About “Globalization on Steroids”

Joshua Kurlantzick March 11, 2013
Despite the international outlook of the leaders of the world’s two biggest economies – the US and China – Joshua Kurlantzick argues that there is a new trend of deglobalization. The precarious state of the world economy is contributing to the prominence of national boundaries in shaping economic policies. Foreign investment has dried up as national legislatures reject takeovers or funding for...

UK Will Find EU Bank Bonus Cap Hard to Lift

John O'Donnell March 6, 2013
Europeans are impatient with the pace of economic recovery. The European Union surprised the financial industry by imposing a cap on bonuses for banks’ senior managers and traders, and the mood was also reflected by Swiss voters who approved of shareholders having a say on board and executive salaries. The plan is to reduce excessive pay and end the practice of rewards for crisis. How many...

Is This the End of Globalization?

David Francis March 4, 2013
Investors are less intent on pursuing cross-border profits, investing in overseas endeavors. A McKinsey Global Institute report measured money in the global financial system before and after the 2007-2008 financial crisis: In 2007, $11.8 trillion in investments and loans crossed borders; the figure for 2012 is $5 trillion. “McKinsey hedges the report by saying that some of the capital removed...