In The News

Managing Globalization: “You like tomato and I like tomahto”

Daniel Altman October 6, 2006
Agreement on standards allows people to understand or use a product in more locations. Standards – such as the shape of an electric plug or the height of a chair – are the “glue” that hold the global economy together, according to journalist Daniel Altman, and cover engineering, manufacturing, packaging and transportation. Because of standards, manufacturers know how to design a product and...

How to Fix the Global Economy

Joseph E. Stiglitz October 4, 2006
The world has many imbalances, including ballooning debt held by the US and China’s growing trade surplus. World leaders recognize the problems – but tend to place blame on policies from other countries. Economist Joseph Stiglitz suggests that the problems are interconnected in many ways, systemic in nature, and therefore require a global effort. He urges every country to examine its own...

Globalization Hits Road Bumps in India

Pranab Bardhan October 3, 2006
The economic integration of a country requires that it open to foreign investment, adhere to flexible labor laws and practice careful fiscal policies. In a country with severe poverty and economic inequality, however, such reforms do not win many votes for politicians. Well aware of this fact, India’s politicians play to what economist Pranab Bardhan calls “anti-reform populism.” Many voters...

Is Russia Ready for a Shipping Boom?

Sarah J. Wachter October 2, 2006
The trans-Siberian pipeline is Russia’s largest infrastructure investment at $17 billion. When completed, it will stretch from Lake Baikal to the Sea of Japan, more than 4,000 kilometers and allow Russia to ship oil to China, Japan and even the US. Yet the pipeline has become the focus of debate for Russia, neighboring countries, international oil companies and conservationists who worry that...

Industrialization in Saudi Arabia: A New Paradigm

Jean-Francois Seznec October 2, 2006
In the 20th century, Saudi Arabia embraced crude oil and the Western powers demanding it. For the 21st century, Riyadh is turning away from both, as the government hopes to translate its wealth of raw resources into lasting industrial development. The plan is for the Saudis to use their cheap energy and become the world’s leading producer of petrochemicals. The emphasis on manufacturing over...

The Never-Ending Myanmar Nightmare

Daniel Pepper September 30, 2006
The ruling military junta in Burma does not care what the world thinks about its rule. Though the junta pays no heed to outside pressure, some neighbors are intent on fostering relations or at least paying the government for permission to tap into its rich natural gas resources. While the Western countries largely shun the military regime, China and India stand ready to pay up to $17 billion...

Be Careful What You Wish For

September 28, 2006
A global economy closely binds the prosperity of the US and China, points out Henry Paulson, US treasury secretary. The US has been among the loudest clamoring for China to increase the value of its currency – but appreciation in the yuan may not necessarily ease US economic woes. China’s competitive advantage is not linked to currency differences alone, but also labor costs as well. A rising...