In The News

World Bank Fund Will Pay to Leave Forests Standing

December 14, 2007
The World Bank will establish a fund to compensate developing nations to protect forests, with the hope that preserving forests will slow climate change. "The Forest Carbon Partnership Facility signals that the world cares about the global value of forests and is ready to pay for it,” said Robert Zoellick, World Bank president. Deforestation is responsible for about one fifth of total carbon...

The Global Poverty Trap

Robert J. Samuelson November 27, 2007
Prior to 1800, Asia and Europe enjoyed similar technological capabilities and advances, but economies were generally stagnant. After 1800, the Industrial Revolution gave England a decided competitive edge. A supportive culture, not religion, was a factor behind that surge of innovation, theorizes Gergory Clark, author of “A Farewell to Arms: A Brief Economic History of the World.” Middle-class...

The Limits of a Smaller, Poorer China

Albert Keidel November 26, 2007
“Purchasing power parity” is a complex economic theory that suggests identical goods cost the same in different countries and allows economists to account for the influence of exchange rates and inflation on prices. Relying on that system of measurement, an Asian Development Bank report this summer included Chinese participation in price surveys for the first time. As a result of that...

Venezuela Scrambles for Food Despite Oil Boom

Rory Carroll November 15, 2007
Venezuelan President Hugo Chávez has gained both prestige and notoriety for his use of oil diplomacy throughout Latin America. An oil boom combined with Chávez’s socialist policies has had two consequences: a surge of imported luxury goods and a shortage of food staples. According to the research group Datanalisis, as much as a quarter of the supply of food staples is “disrupted,” and any stock...

Exploiting Thailand’s Burmese Refugees

Jürgen Kremb November 12, 2007
The recent pro-democracy protests in Myanmar’s major cities overshadow the ongoing civil war raging near the border. Forcible conscription and the devastation of war have prompted an influx of refugees into neighboring Thailand. These illegal immigrants face formidable challenges, including corrupt police, unemployment and organized crime. Because of their illegal status, they cannot secure work...

Child Sweatshop Shame Threatens Gap's Ethical Image

Dan McDougall October 31, 2007
Western consumers enjoy inexpensive, yet intricate fashions – and don’t pay close attention who might be supplying the bargains. Reputable firms promise to monitor workplaces for any hint of abuse, yet children as young as 10 leave their homes and toil long hours in Indian sweatshops, sewing clothes for popular chains like the Gap. The children receive no pay other than the quick fee that goes to...

The Free-Trade Paradox

Moisés Naím October 19, 2007
The collapse last year of the Doha Round has had little apparent impact on global trade. Worldwide merchandise exports increased fivefold in the quarter century following 1980, and two thirds of the global reduction in tariff barriers may be attributed to unilateral decisions as opposed to regional or international trade agreements. Economic growth has spiraled skyward, thanks largely to...