In The News

Don't Be Fooled by This Reform: The IMF Is Still the Rich World's Viceroy

George Monbiot September 7, 2006
The IMF has proposed giving a greater voting percentage to China, Turkey, Mexico and South Korea – all strong and emerging economies. Yet the body of 184 members would remain in control of its strongest members: The US controls 17 percent of the vote; Japan, Germany, the UK and France control 22 percent; while the 80 poorest countries control 10 percent. IMF decisions, most of which require an...

Managing Globalization: Reducing Inequality – It's Not So Simple

Daniel Altman September 7, 2006
It’s only because of inequalities of wealth or skills that people, products and ideas shift around the globe. Such shifts influence individual communities with increases or decreases in jobs, crime or education – either reducing or exacerbating the inequality. Economists suggest that increased trade should reduce inequality at all income levels. But instead, author Daniel Altman argues, the major...

Globalization Tames the Left in Brazil

Thomas I. Palley September 5, 2006
Brazil elected a progressive president, yet failed to tackle a long legacy of economic injustice. Instead, President Lula da Silva, a trade union activist born into poverty, was timid with economic policies: Playing it safe, Brazil embraced its traditional role of exporting resources abroad and allowing other countries to manufacture and innovate. For example, the nation’s trade patterns with...

Chinese Take a Turn at Turning a Sub-Saharan Profit

Lydia Polgreen September 1, 2006
The country with the highest growth rate in the world targets Africa for development, as evidenced by its strong presence in nations both rich in oil and not. Trade between Africa and China nearly quadrupled since 2001. Some economists suggest that China offers the continent practical benefits, not patronizing lectures on religion, politics or economic systems. For example, in Senegal, China...

Fruit of the Boom Threatens to Push China's Economy Out of Control

Jonathan Watts August 31, 2006
China has had spectacular growth, so spectacular that consumers cannot keep up. Luxury apartments in Shanghai remain vacant. Overbuilding and overvaluation, combined with increased debt, have contributed to an overheated economy. Not accountable to voters, provincial governments compete to create building booms and demonstrate accomplishments. Supply exceeds demand for about 70 percent of China’s...

Why Globalization Is in Trouble – Part II

Branko Milanovic August 31, 2006
Globalization has spurred inequality – both among citizens in the wealthiest countries as well as among nations of the developing world. The second of this two-part series by Branco Milanovic explores the growing resentment as only a few poor countries adjust to globalization. China and India compete globally, and yet only a fraction of their citizens prosper. Increasing inequality between rural...

Pakistan's Awkward Balancing Act on Islamic Militant Groups

Pamela Constable August 30, 2006
Pakistan presents itself as an ally in the US war on terror, but looks the other way when it comes to groups who instigate attacks in Afghanistan and India. But that two-sided approach could become more challenging as more evidence emerges of Pakistani links to recent cases: the July bombing of a commuter train in Bombay and the August arrest of British citizens who planned to bomb airlines over...