In The News

Sovereign Wealth to the Rescue

Michael Pettis August 20, 2007
A US consumption spree has spawned a global savings glut, and nations such as China and Japan with large reserves of cash still hope for sizable returns. “Every period of globalization in the past has had its origins in one or more events that gave a big boost to global liquidity,” writes finance professor Michael Pettis for the Wall Street Journal. “As liquidity expanded and risk appetite rose,...

In Dusty Archives, a Theory of Affluence

Nicholas Wade August 16, 2007
The Industrial Revolution may have been the result of an evolutionary change in human nature, argues Gregory Clark, an economic historian at the University of California, Davis. His research shows that, generation after generation, the wealthy people of England had more surviving children than the poor, leading him to theorize that the behaviors that made for wealth – or the middle-class values...

The New Economy – Medical Tourism

Sushma Ramachandran August 14, 2007
India anticipates the medical-tourism sector to expand, with patients around the world seeking low-cost, high-quality treatment. The industry could be worth $2 billion in 2012, about six times its worth in 2004, a study from Ernst and Young projects. Depending on the medical procedure, treatment in India can cost about 12 to 20 percent what the same operation might cost in developed nations. As a...

Huge Dust Plumes From China Cause Changes in Climate

Robert Lee Hotz August 13, 2007
Nations can impose the strictest of environmental standards – but that does not stop the pollution seeping in from other nations. Plumes of “man-made sulfates, smog, industrial fumes, carbon grit and nitrates” collect over manufacturing powerhouse China and then move with prevailing winds around the globe. On some days, almost one third of the air pollution in cities like Los Angeles can be...

How to Deal With a Falling Population

August 9, 2007
Between 1900 and 2000, the world’s population quadrupled, today standing at 6.5 billion people. But in some parts of the world – including the US, Europe, Japan, China – the fertility rate is lower then the replacement rate, causing experts to worry about a declining population. Institutions in developed nations, designed for growth, will be affected: For example, worker-retiree rations will be...

US Mortgage Crisis Hits Pacific Rim Markets

Carter Dougherty August 7, 2007
Lured by low adjustable-interest rates, US homeowners bought larger homes than many could afford. Mortgage companies bundled those loans into bond packages, selling them to investors worldwide. But the credit was too easy, and wages are stagnant for many. For homeowners who can’t handle automatic rate increases, loans go into default. Trying to sell homes and escape the trap, homeowners discover...

Africa Struggles to Get on the Internet

Ron Nixon August 6, 2007
Four years ago, the firm Terracom signed a contract with the Rwandan government to provide 300 schools with internet access. Rwandan officials had planned on equipping schools with the internet as a way to modernize the rural economy. But as of mid-July, only one third of the schools had been connected. That rate is better than that for Africa as a whole, with only 4 percent of the continent...