In The News

A Race to the Top

Thomas L. Friedman June 3, 2005
According to columnist Thomas L. Friedman, while French workers – who voted down the EU constitution – strive to preserve a 35-hour work week, Indian engineers are "ready to work a 35-hour day." In Europe, workers whose 50-year system of benefits is collapsing blame capitalism and outsourcing for their problems. However, writes Friedman, the story is not so cut-and-dry. Jobs are...

Next for the West Are Cars "Made in China"

Geoff Dyer June 1, 2005
Automakers may see China as a growing market, but soon they may face unexpected competition from a number of manufacturers who are seeking to export to the West, as well. Several Chinese companies have already begun a trial run in the Middle East to prepare for the US market, the goal of more than two decades of attempts to build a competitive car industry. The Chinese companies will encounter...

Getting Greyer – and Poorer Too?

May 31, 2005
The world population is aging, due to the plummeting birthrates and increasing lifespans in both rich and poor countries – and retirement systems have been slow to adjust. In the US and Europe, pay-as-you-go pension plans are at risk, as the ratio of workers to retirees worsens: In Italy, for example, retirees will outnumber workers before 2030. And as the economy sours, private savings look...

The Payoff from Globalization

Gary Clyde Hufbauer May 27, 2005
Between 1946 and the present day, the United States has decreased its average tariff rate from 40 percent to 4 percent. Likewise, many economies worldwide have made moves to open their markets. Two analysts from the Institute for International Economics attempt to answer an obvious question: Has this trend benefited US citizens? Their answer: Absolutely. Unfortunately, the...

US Shouldn't Fear Rise of China, India

Robert Samuelson May 26, 2005
The growing wave of statistics on dwindling US competitiveness in the global economy has spooked American workers and brought blame on the heads of US manufacturers. China, India, and other developing economic superpowers are gunning for the position once occupied by mighty America – or so the wisdom goes. But the verdict on China and India's imminent rise to power may not be so clear-cut,...

A French Region Considers the Costs of a New Europe

Craig S. Smith May 18, 2005
A recent decision by a tiny transformer factory in the French city of Schirmeck to move its facilities to Romania has energized opponents of the EU constitution. As people become increasingly angered by the loss of jobs to countries new to the EU, the French government has stepped up its campaign to win support of the constitution. Arguing that France cannot match the cheaper production costs...

China Hits Out at New US Textile Quota

Richard McGregor May 16, 2005
The expiration of textile quotas on January 1, 2005, saw a slight shift in global garment trade. Though not as drastic a change as many had feared – some of the smaller producers have managed to keep pace with the quota-free market – China's exports increased significantly. Responding to the spike in Chinese exports, the European Union and United States both launched separate...