In The News

Industrialization in Saudi Arabia: A New Paradigm

Jean-Francois Seznec October 2, 2006
In the 20th century, Saudi Arabia embraced crude oil and the Western powers demanding it. For the 21st century, Riyadh is turning away from both, as the government hopes to translate its wealth of raw resources into lasting industrial development. The plan is for the Saudis to use their cheap energy and become the world’s leading producer of petrochemicals. The emphasis on manufacturing over...

The World Bank's China Delusions

Weijan Shan September 29, 2006
The World Bank has suggested that substantial earnings by China firms, not debt, have fueled the nation’s growth. But that assumption could be wrong, argues a private-equity analyst, who examined the same data from the National Bureau of Statistics. Reported profits in China often include government subsides and are released before payment of income taxes, a rate of about 30 percent in the...

Man and His Endangered Home

Bo Ekman September 28, 2006
In their single-minded pursuit of economic growth and wealth, human beings could be collectively working themselves out of a home. Human activities systematically degrade the water, air and other surroundings that sustain life. The problem is not with pending shortages of resources, argues systems analyst and philanthropist Bo Ekman, but a rapidly growing population and new generations that...

Be Careful What You Wish For

September 28, 2006
A global economy closely binds the prosperity of the US and China, points out Henry Paulson, US treasury secretary. The US has been among the loudest clamoring for China to increase the value of its currency – but appreciation in the yuan may not necessarily ease US economic woes. China’s competitive advantage is not linked to currency differences alone, but also labor costs as well. A rising...

Small Islands’ Migration Drama

Dominic Bailey September 28, 2006
Sunbathing tourists have discovered unexpected company on the beaches of the Canary Islands lately, as boatloads of West African migrants wash up on the shores of this Spanish possession just off the Moroccan coast. These migrants make the life-threatening crossing to flee political upheaval in regions like Senegal’s separatist Casamance province and to seek better lives in the schools and labor...

Economic Forum Warns US of Budget Deficit's Ill Effects

Marcus Walker September 27, 2006
Mired in debt, the US has lost its competitive edge, dropping from first to sixth place in one year, according to the World Economic Forum. While debt decreases the nation’s flexibility and ability to sustain economic growth, the US still leads in innovation, as demonstrated by patents and quality of university of research, notes a chief economist for the forum. However, an $8.49 trillion debt...

Bouquet of Roses May Have Note: “Made in China”

Keith Bradsher September 27, 2006
China’s plan to export cut flowers is less about conquering another industry and more about creating jobs in provinces other than those along the crowded, booming coast. Roses from impoverished Yunnan Province, grown and packed by workers who earn about $25 per month, have suddenly swept the global market. The Chinese government invested in greenhouses, airports, roads and other infrastructure...