In The News

Dodging the Curse of Diamonds and Gold

Desha Girod August 11, 2005
As the G-8 unveiled an ambitious plan to lift Africa from the mire of debt and double foreign aid, a debate concerning the efficacy of aid has re-emerged. Many critics contend that additional aid money will merely benefit the corrupt leaders of a troubled continent, rather than support the reforms those nations sorely need. Desha Girod counters that, in certain circumstances, aid can be highly...

Africa After the Music Stops

Susan E. Rice August 2, 2005
From the Live 8 concerts to the lofty agenda of the G-8 summit, the world's wealthiest nations have been charged with the daunting task of combating African poverty. On the surface, writes Brookings scholar Susan E. Rice, the Gleneagles Summit accomplished more than many expected. Member nations pledged to double African aid, provide debt relief for certain countries, and address the...

Chinese Company Ends Unocal Bid, Citing Political Hurdles

David Barboza August 2, 2005
The China National Offshore Oil Corporation (CNOOC) has withdrawn its takeover bid for America's Unocal, discouraged by political opposition that complicated the deal. CNOOC's offer was the largest takeover bid ever attempted by a Chinese company, and considerably larger than Chevron's competing bid, but it faced strident opposition in Washington. Set on the backdrop of a rapidly...

Mugabe Sells Bankrupt Zimbabwe's Assets to China

Rochelle Mutton August 1, 2005
With a highly unsavory international reputation and one of the world's most sluggish economies, Zimbabwe and its leader, Robert Mugabe, have very few cards left to play. One of those cards is its natural resource wealth. As a result, China has been willing to trade with the otherwise isolated African country. Though details of Mugabe's recent talks with Chinese President Hu Jintao...

From Shoes to Aircraft to Investment, Zimbabwe Pursues a Made-in-China

Michael Wines July 27, 2005
Zimbabwe’s President Robert Mugabe has earned the scorn of most Western countries for his brutal suppression of human rights.. As a result, amidst calls for democratic reforms, Zimbabwe’s trade has dwindled. However, China, in constant search for natural resources and markets to fuel its economic boom, has shown itself willing to overlook the rough governance styles of its trading partners....

Toyota, Moving Northward

Paul Krugman July 25, 2005
When Toyota decided to build a new assembly plant in Canada's Ontario, despite being wooed by many American states, they opted for a location with a publicly funded health care scheme as well as high-quality public education. The idea that big government can actually help attract global business is a commonplace in Canada, but is anathema to most American decision makers. If more businesses...

Revaluation: A Double-Edged Sword for China

Xu Haihui July 21, 2005
When the Chinese central bank decided today to abandon its policy of pegging the renminbi to the dollar, it took the first step towards a truly floating currency. Revaluation will have a different impact on different segments of the Chinese economy, its influence determined by both the extent to which a given segment is dependent on foreign capital, and by its quality and efficiency. The textile...