In The News

Foreign Dollars for an American Dream

Coeli Carr May 6, 2011
To create jobs, governments typically invest in local businesses. But Ecuador looked beyond its borders and invested in Runa, a small New York–based firm that markets guayusa, a caffeinated drink. The investment tackles numerous policy goals: The drink is made from leaves of holly, native to the Amazon; developing a commercial product could preserve rainforest and aid indigenous communities. Napo...

China Bubble: Empty Mega Mall and Million Dollar Pooch

Vikram Mansharamani April 6, 2011
China remains one of the world’s fastest growing economies, yet numerous signs point to a speculative mania underway. While investors anticipate China’s economic growth to continue apace at 8 percent – reinforcing the flurry of demand, easy money and excessive building – a slowdown to 5 percent is not outlandish, explains Vikram Mansharamani, Yale lecturer and author of a book on spotting...

How Speculators Are Crippling the Copper Industry

Jens Glüsing, Alexander Jung, Thomas Schulz November 4, 2010
Volatility in copper prices – and commodity prices more generally – is a product of financial speculation. Expansion of internet market trading, ravenous Chinese demand, and large financial firms looking to diversify portfolios contribute to demand. Copper is an essential component for cables, plumbing and electronic devices, and the limited nature of natural resources like copper piques the...

Chinese Bank Chief Urges Push Overseas

Jamil Anderlini October 28, 2010
Crisis provides opportunity, the old Chinese saying goes, and the Bank of China's chairman sees economic opportunities as banks of other nations struggle to recover. His comments could signal an end to a government ban on offshore mergers and acquisitions by Chinese financial groups, notes Jamil Anderlini for the Financial Times. The informal ban has been in place since 2007 as recognition...

Europe Frets Over Foreign Investments in Defense Industry

Clara Marina O’Donnell October 15, 2010
Sovereign wealth funds are estimated to manage close to $4 trillion of assets. European governments are increasingly concerned about such powerful investors, the bulk of which are from Asia and the Middle East, showing interest in their defense industries especially at a time when Europe must curtail its own defense investments. EU member states acknowledge that their national industrial bases...

Demonizing China: Pundits Get its Role in Africa Wrong

Barry Sautman and Yan Hairong February 10, 2010
China’s growing trade with, and investment in, Africa have been much decried of late. It exploits African resources, critics have charged, makes shady deals with despots and warlords, and leaves the population no better, perhaps worse, than the Europeans before. But according to professors Sautman and Yan, China’s role in Africa has been much maligned. Though China mainly imports oil and other...

China Helps the Powerful in Namibia

Sharon LaFraniere November 30, 2009
The daughter of Namibia’s president, Hifikepunye Pohamba is studying at the Beijing Culture and Language University under a scholarship provided by the Chinese government. Several other scholarships have also been awarded this year, and only to the children of top Namibian officials. With national elections drawing near Namibia’s anticorruption commission has begun an inquiry into how the...