In The News

The Next Globalization Backlash

Sebastian Mallaby July 3, 2007
Globally, with national reserves growing, countries move spare cash into sovereign wealth funds. Oil-rich countries, such as Russia and Nigeria, have experienced high growth rates, and it is unlikely that hydrocarbon prices will fall anytime soon. A global trade imbalance also spurs the funds’ growth. East Asian countries, such as China and Japan, have accumulated large sums, while the US...

Expert View: Outsourcing Is Out – It's a Political Cold Potato

Chris Walker June 28, 2007
Companies began outsourcing tasks, including payroll processing, in the 1960s. As the information-technology sector grew, so did the number of outsourced jobs. Today, all types of jobs, from low-level data entry to the transfer of intellectual property, are outsourced from high-wage to low-wage areas. Experts estimate that in India, call centers employ more than a million people, which some...

South Africa's Exodus

June 20, 2007
The South African government’s strategy for economic stability, pushing annual growth to 6 percent and controlling inflation, is threatened by spending outpacing productivity. A substantial shortage of skilled workers could lead to a rise in prices. The public sector bears most of the burden, with infrastructure crumbling, power outages becoming a common occurrence, and the need to import basics...

Capitalism with Special Chinese Characteristics

Gustav Ranis June 19, 2007
On the surface, China’s fast-growing economy looks superb. However, growing income inequality and the massive inflow of foreign funds can pose problems that often go unrecognized. International economics professor Gustav Ranis categorizes China’s economic problems as a type of “Dutch Disease,” a phenomenon when rapid growth in one export can lead to pockets of excessive wealth, weakening of other...

Megacities, Mega Dreams for a Connected World

Suketu Mehta June 14, 2007
Throughout the history of the world, cities have lured people for both cooperation and competition. Megacities of the modern era such as Bombay not only symbolize dreams and dashed hopes, they also pose an array of consequences for the interconnected world. The paradoxes are many, with disaster making way for renewal and today’s sacrifices and long-term planning delivering future promise, writes...

Massacres and Paramilitary Land Seizures Behind the Biofuel Revolution

Oliver Balch June 13, 2007
As oil prices increase and the world’s demand for alternative fuel sources grow, Colombian farmers struggle to control their own land. Collaborating with some palm-oil corporate interests, right-wing paramilitary groups drive farmers from their homes at gunpoint and take over the land for plantations. Palm oil, used for biofuel production, is a lucrative business, and unlike another source of...

Should We Globalize Labor Too?

Jason DeParle June 13, 2007
Witnessing the quiet desperation of the poor, willing to work hard but lacking resources, often ignites anger and ideas. Neither trade nor traditional occupations such as goat-herding can provide enough subsistence for the rural poor, such as those who live in Nepal. Economist Lant Pritchett proposes “a giant guest-worker program that would put millions of the world’s poorest people to work in...