In The News

Free Trade, Loss of Support Systems Crippling Food Production in Africa

February 18, 2010
Free trade and privatization, two hallmarks of development strategy in the last few decades, have not produced the intended benefits in developing countries. In fact, these policies increased poverty and decreased food production, exacerbating food shortages in the developing world like the one in 2008, according to a multi-university study. The problem is that free trade is not really free and...

The End of Switzerland

Denis MacShane February 17, 2010
Switzerland has traditionally been known for its neutrality, the secrecy of its banks, and for being the center for resolving international conflicts. But these are different times for Switzerland: banks cannot guarantee secrecy and Switzerland’s neutrality is more of a curse than a cause for praise. British Labour MP Dennis MacShane argues that “Switzerland’s nonalignment has rendered it...

Globalization in Trouble – Part II

David Dapice February 15, 2010
Globalization appears to have weathered the storm of the financial crisis, but it may be poised for a tumble. According to economist David Dapice, many developing nations, whose economies often depend heavily on exports, cannot sustain themselves without the willing consumption of their goods by the developed world. But with a pullback in aggregated demand among developed nations, the prognosis...

A Very European Crisis

February 8, 2010
Greece’s entry into the euro zone nine years ago benefitted the country but also masked significant structural problems. The stability of the euro allowed Greece to borrow at lower interest rates; but it papered over a more serious lack of fiscal discipline. That is, while GDP was growing, Greece could take on more debt without appearing over-leveraged. But any drop in GDP would expose the...

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...

The New Rules: Globalization’s Next Wave of Integration

Thomas P.M. Barnett January 21, 2010
The global recession, rather than setting back economic integration, is actually deepening it by making companies create tighter, vertical supply chains that cut out the middle-man, with companies buying direct from the producer. A major example of this is Wal-Mart, which is using its global size to negotiate directly with suppliers to reduce costs but also to ensure security of supply. To the...

The Trade Factor

Nayan Chanda January 5, 2010
The precipitous drop in trade last year as a result of the global financial crisis was evidence of the heightened interconnectedness of the world’s major economies. But such interconnectedness was also one reason why trade protectionism – the bogey everyone feared would send the globe into another Great Depression – never rose to a level that threatened a recovery. Indeed, there were many calls...