In The News

A Thaw in South Asia? – Part I

Michael Krepon December 23, 2004
India and Pakistan's feud over the disputed region of Kashmir may at last be subsiding, says nuclear proliferation expert Michael Krepon. The issue has long been a dangerous sticking point between the two nuclear powers. Yet after a year-long cease fire along the Line of Control, both Indian Prime Minister Manmohan Singh and Pakistani President Pervez Musharraf seem willing to compromise on...

Beyond Cheap Labor: Lessons for Developing Economies

Diana Farrell December 21, 2004
The specter of China and it's massive fleet of low-cost laborers haunts developing economies worldwide. However, for middle-income countries, focusing on cheap labor is not the answer for sustained economic growth, according to The McKinsey Quarterly. Using Mexico as a basis for discussion, this report offers alternative strategies for successful competition. More effective routes to...

Schröder Boosts Arms Sales to China

Peter Sturm December 17, 2004
The topic of weapons sales frequently divides the coalition government of German Chancellor Gerhard Schröder. But despite the controversy that has raged over past plans to sell tanks and submarines to Turkey and Israel, Schröder is pushing to vend weapons to China. "In economic terms, the gigantic country fuels people's money-making fantasies," writes FAZ Weekly columnist Peter...

African Renaissance

Gamal Nkrumah December 17, 2004
When the Egyptian and Nigerian presidents met recently to discuss bilateral and trans-African issues, top items on their agenda included economic cooperation, and most importantly and urgently, the Sudanese peace process. For both leaders, this process is both a crisis and an opportunity: If solved successfully, it will help enhance African-Arab cooperation. African leaders are more interested...

The McKinsey Global Survey of Business Executives, November 2004

December 16, 2004
Executives are significantly less optimistic about the global economy than they were a year ago, according to McKinsey's latest global executive survey. The weak dollar, volatile oil prices, and geopolitical uncertainty have dampened executive confidence around the world, especially in developed Asian countries. While European executives predictably take the dimmest view of George W. Bush...

Taiwan Averts a Crisis

Jonathan Fenby December 13, 2004
With polls predicting a win by the pro-independence Democratic Progressive Party (DPP) of Taiwanese President Chen Shui-bian and Beijing threatening dire consequences, cross-Strait relations seemed headed for turbulence. However, to the relief of nervous observers, Saturday's legislative elections resulted in a victory for the opposition alliance led by the more conservative Kuomintang Party...

Latin America's family remittances -- heading south?

Andres Oppenheimer December 10, 2004
Every year, more than $30 billion in family remittances flows from the United States to Latin America. This money encourages economic growth, and many countries actually get more in remittances than from foreign investment. In addition, this money goes to those who need it most, helping to lift people out of poverty. However, a recent Columbia University study warns these countries against...