In The News

The Global Debt Bomb

Daniel Fisher January 25, 2010
Countries around the world took on massive amounts of debt in in the last two years to help fend off economic disaster by bailing out banks and fostering growth. But in many cases, this has worsened a pre-existing debt problem and raised debt-to-GDP ratios to astronomical levels. How all this debt will be paid off remains uncertain: an economy needs to grow fast enough to allow the government to...

Immigration in Italy: Southern Misery

January 15, 2010
Rosarno, Italy has recently experienced a wave of anti-immigrant violence targeted at Africans, many of whom work as crop-pickers. Causes of such violence are multi-faceted. An influx of immigrants, many of whom entered illegally, created tensions with the existing population over employment and race. Worsening the situation, cheap citrus imports from countries like Spain and Brazil left Italian...

Falling Dollar Pushes Manufacturing Out of Europe

Dinah Deckstein, Frank Dohmen, Dietmar Hawranek, Alexander Jung December 10, 2009
With the secular decline in the US dollar, some manufacturers like Mercedes-Benz that face rising costs and lower competitiveness are moving some production from Germany to the US. Normally, such companies hedge their exchange rate exposure through derivative contracts to protect them against rapid depreciation of foreign currencies. But such contracts become more expensive amid a sustained...

Money Trickles North as Mexicans Help Relatives

Marc Lacey November 23, 2009
Mexicans immigrants in the US have long sent money back to their families, providing a vital source of capital to a country where almost half of the population lives in poverty. The global recession, and the consequent lay-offs has left many Mexican immigrants unemployed, leading to a 13.4 percent drop in remittances. Mexico is suffering too. But Mexican families are now combining funds to...

The Long March

Debarshi Dasgupta November 5, 2009
Indian construction projects are seeing an influx of Chinese laborers who are being paid more and treated better than their Indian counterparts. This has sparked resentment among Indian workers and led to scattered instances of violence. Curiously, many of the Chinese workers have entered on business visas designed for skilled individuals on short visits not intending to take up employment. Some...

Dollars Without Borders

Dilip Ratha October 20, 2009
For many countries, a significant source of national income comes from remittances sent by family members working abroad. Remittances play a crucial role in the economic health of poor countries, providing funds for social services and capital for new businesses and investments. While the global economic crisis and high levels of unemployment are forcing many migrant workers to remain in the host...

Public and Government Views on Migration Diverge

Joseph Chamie October 16, 2009
There is a surprising gap between government and public views on migration. Most governments tend to be favorably disposed to immigration, while the public remains fearful of admitting foreigners. Such a divergence in opinion is likely to cause significant turmoil in the future, according to Joseph Chamie, research director at the Center for Migration Studies. Less than 20 percent of governments...