In The News

Middle-Class Uprising Poses a Global Threat

John Paul Rathbone July 22, 2011
The world’s greatest source of instability might not be terrorism but a middle class angered by vanishing prosperity, the loss of a lifestyle with many comforts and protections, argues John Paul Rathbone for the Financial Times. He points to an observation of journalist Moisés Naím, that most recent conflicts are within rather than between civilizations. In developed and developing countries...

China Urges US to Protect Creditors by Raising Debt

Bettina Wassener, Matthew Saltmarsh July 15, 2011
China, a major lender to the US, urges the president and US Congress to reach agreement on lifting the nation’s debt limit, so that bills can be paid. “China holds more than $1 trillion in United States Treasury securities, making it highly sensitive to any developments that could lower the value of those holdings,” reports the New York Times. Statutory limits have been in place since 1917, an...

The Next Domino? Italy Suffers from Euro-Zone Contagion Fears

Carsten Volkery July 13, 2011
After Greece and Portugal, the markets are sending signals of turning on Italy, and investor fears are raising rates on the nation’s government bonds. Analysts have issued warnings about the country’s aging population, weak economic growth, low productivity and rigid labor market, reports Carsten Volkery for Spiegel Online. Should Italy fall into the vicious circle of downgrades and rising bond...

Water Challenges Asia’s Rising Powers – Part I

Keith Schneider July 12, 2011
Scarcity of water increasingly challenges economic growth of India and China. Water’s role in economic development is taken for granted, yet for running the growth engine it’s as precious a commodity as fossil fuels. This YaleGlobal series examines strategies for negotiating demands among competing industries. Conflicts over water could disrupt China’s steady economic progress, argues journalist...

Europe Seeks to Free Itself From Rating Agencies' Grip

David Böcking July 8, 2011
Risk and creditworthiness of state debt are largely assessed by three major agencies based in the US. Nations rated low – due to low revenues, excessive borrowing or threat of default – pay high interest rates to borrow. As Greece and Portugal struggle to repay massive debt, facing steep downgrade by the agencies, European politicians renew calls for an independent credit-rating agency based in...

Playing Make-Believe With Greece

Floyd Norris July 4, 2011
Operating under the assumption that their economy is “too big to fail,” Greeks anticipate an infusion of new loans and are in no hurry to embrace austerity. Despite their role in failing to regulate the excessive lending, central bankers resist accountability for the crisis in Greece. Floyd Norris of the New York Times compares central and commercial bankers: Both loaned funds without adequately...

As Number One, China to Face Hour of Choice

Richard Bush June 30, 2011
China is on track to become the world’s largest economy, and the Chinese welcome the milestone, anticipating greater influence over world affairs. But economic size does not automatically translate into greater or less power and influence, warns Richard Bush, China expert with the Brookings Institution. He compares today’s rankings of economies – the US, China and Japan – with those existing in...