In The News

Ivy League Investors

Robert J. Shiller November 30, 2006
For more than 20 years, one man has supervised Yale University's endowment portfolio, which regularly posts high annual rates of return, averaging more than 16 percent. Surrounded by academics and holding a doctorate degree himself, David Swensen invests for the long term and defies the conventional wisdom that individual investors cannot beat the markets. Yet a track record such as Swensen’...

One World…Many, Many Government Policies

Irwin M. Stelzer October 26, 2006
In a globalized world, corporations often pursue business deals in the countries with the least costs, not just from wages or property – but also in terms of policy regulations or taxes. Corporations look to low-tax nations to avoid all manner of taxes. And in some cases, corporations lobby their governments to erect barriers and prevent regulatory polices from other countries creeping into their...

Micro-credit Pioneer Gets Nobel for Peace

Amelia Gentleman October 13, 2006
The Grameen Bank of Bangladesh and Muhammad Yunus, its founder, have won the latest Nobel Peace Prize in recognition for their work using microcredit loans to lift millions of women out of poverty. In the past, banks in the developing world rarely lent to the poor, trapping farmers in a cycle of poverty and depriving economies of small businesses. Yunus realized that even poor borrowers could...

The World Bank's China Delusions

Weijan Shan September 29, 2006
The World Bank has suggested that substantial earnings by China firms, not debt, have fueled the nation’s growth. But that assumption could be wrong, argues a private-equity analyst, who examined the same data from the National Bureau of Statistics. Reported profits in China often include government subsides and are released before payment of income taxes, a rate of about 30 percent in the...

Be Careful What You Wish For

September 28, 2006
A global economy closely binds the prosperity of the US and China, points out Henry Paulson, US treasury secretary. The US has been among the loudest clamoring for China to increase the value of its currency – but appreciation in the yuan may not necessarily ease US economic woes. China’s competitive advantage is not linked to currency differences alone, but also labor costs as well. A rising...

Economic Forum Warns US of Budget Deficit's Ill Effects

Marcus Walker September 27, 2006
Mired in debt, the US has lost its competitive edge, dropping from first to sixth place in one year, according to the World Economic Forum. While debt decreases the nation’s flexibility and ability to sustain economic growth, the US still leads in innovation, as demonstrated by patents and quality of university of research, notes a chief economist for the forum. However, an $8.49 trillion debt...

Wolfowitz Corruption Drive Rattles World Bank

Steven R. Weisman September 15, 2006
The World Bank’s goal is to alleviate poverty by providing low-interest loans to some of the poorest countries in the world. Yet those poorest countries also have high rates of corruption. Critics of World Bank leadership question whether the fight against corruption will take priority over the fight against poverty, eventually diminishing assistance to the countries most in need. Critics express...