In The News

In Africa, Mortgages Boost an Emerging Middle Class

Michael M. Phillips July 26, 2007
A growing middle class in Africa requires housing, but political and economic instability often contribute to shortages. The wealthy can pay cash for homes, but financing home purchases is difficult in a country where only 16 percent of the population holds salaried jobs. In Zambia, the Lilayi project tackles the problem with a suburban development, funded by public and private investors, that...

Britain and Russia to Minimize Economic Fallout

Mark Tran July 18, 2007
Great Britain expelled four Russian diplomats, after Russia refused to hand over a suspect, a former KGB agent, in the radioactive poisoning death of Alexander Litvinenko. Both countries claim that they do not want to harm overall relations. British investors and firms value the Russian market, and Russia contributes to international diplomatic efforts, for example, preventing nuclear ambitions...

Congress Set to Tighten Scrutiny of Foreign Deals

Greg Hitt July 16, 2007
In the wake of the public backlash against the proposal that would have allowed Dubai Ports World, owned by the government of Dubai, to manage some US ports, the US Congress is expected to pass legislation that will tighten scrutiny of such investment deals. The legislation includes an extended 45-day examination period of companies owned by foreign governments and also requires the Committee on...

Taking Stock

July 5, 2007
As shares on the Chinese stock market fall due to a government decision to raise share transaction taxes, experts warn that the decline is only temporary. China’s share prices quadrupled over the past 18 months. Furthermore, the World Bank predicts that China’s economic growth for 2007 will reach 10.4 percent. But the Chinese market is not invincible. Perhaps the greatest risks to the Chinese...

South Africa's Exodus

June 20, 2007
The South African government’s strategy for economic stability, pushing annual growth to 6 percent and controlling inflation, is threatened by spending outpacing productivity. A substantial shortage of skilled workers could lead to a rise in prices. The public sector bears most of the burden, with infrastructure crumbling, power outages becoming a common occurrence, and the need to import basics...

Capitalism with Special Chinese Characteristics

Gustav Ranis June 19, 2007
On the surface, China’s fast-growing economy looks superb. However, growing income inequality and the massive inflow of foreign funds can pose problems that often go unrecognized. International economics professor Gustav Ranis categorizes China’s economic problems as a type of “Dutch Disease,” a phenomenon when rapid growth in one export can lead to pockets of excessive wealth, weakening of other...

$12 Trillion Monster Threatens Globalization

William Pesek June 12, 2007
Some countries control great pools of wealth, building funds from oil or other natural-resource revenue, according to William Pesek, Bloomberg news columnist. But with funds growing by leaps and bounds, their owners look to make good use of these savings – and in the process could transform global financial markets. The funds together, many based in Asia, could outgrow the entire US economy by...