In The News

Apple Finds No Forced Labor at iPod Factory in South China

John Markoff August 19, 2006
A team of investigators sent by Apple Computer to review practices at a factory in the Chinese city of Longhua found no evidence of child or forced labor. The group conducted 100 interviews with randomly selected workers, combed through thousands of documents and investigated the factory site run by Foxconn, a Taiwan-based company. The Apple report did, however, identify several violations of...

Time for India to Reduce Inequality

Pranab Bardhan August 16, 2006
Inequality is relative, depending on how it is measured. Most countries tend to have greater inequality in terms of income rather than consumption – because the citizens of any one country must eat and buy basic necessities, while the wealthy tend to save more. Citizens with more education may have less wealth, yet can better weather economic changes that may eliminate specific jobs. India,...

Economic Patriotism – Blind Alley in a Globalized World?

Patricia Wruuck August 8, 2006
The successful takeover of Europe’s biggest steel company, Arcelor, by Mittal Steel, whose owner was born in India, is a setback for economic nationalists and protectionists. Shareholders, who saw monetary and strategic worth in the Mittal-Arcelor merger, bucked a board of directors that resented any hint of foreign control. Such resistance is not limited to non-European partners. Cross-border...

Commerce Department Report on Offshore Outsourcing Finally Sees the Light of Day

Richard McCormack August 4, 2006
The US Commerce Department released its 336-page report on offshore outsourcing of labor in the information-technology job sector, after holding on to the analysis for two years. The report provides a grim projection for future employment prospects of IT workers in the US. Rising pressure for low costs from customers, consultants and financial markets has led to outsourcing of high-level...

Managing Globalization: Why Trade Talks Do Little for the Poorer Countries

Daniel Altman July 31, 2006
With failure of the Doha Round talks, many ask whether free trade really benefits developing countries. Two studies suggest no, though each differ on the root cause of such a global dilemma, according to “International Herald Tribune” columnist Daniel Altman, and that reveals the complexities of trade. Sandra Polaski of the Carnegie Endowment for International Peace argues that lowering tariffs...

Megaplayers Vs. Micropowers

Moisés Naím July 12, 2006
The globe has entered an era of instability according to Moisés Naím, editor in chief of “Foreign Policy,” and that has opened opportunities for small, but highly competitive forces in the business, political and financial worlds. Some examples: Multinational corporations like Royal Dutch Shell no longer protests movements toward nationalization of oil supplies in small Latin American countries...

Why Globalization Isn’t a Win-Win Situation

Stephen Roach July 12, 2006
A bilateral US-China trade relationship poses some dangers, according to global economist Stephen Roach. US policies encourage over-consumption and under-production in the global economy, resulting in a low saving rate and stagnating wages for middle-class workers. China’s policies focus on rapid over-production, a massive surplus of goods, a high savings rate, as well as wage inflation of...