In The News

Worldwide Effects of Sinking Dollar

David R. Francis November 22, 2004
As the value of the US dollar continues its dive, observers worldwide continue to debate the consequences. The gaping US trade deficit is seen as the culprit for the devaluation, which has sped up markedly since President Bush's re-election. Most recently, concerned G20 officials called for the United States to rein in its federal deficit. As Chinese citizens, fearing a revaluation of...

Companies Should Set Own Hours

Heike Göbel November 19, 2004
Years of economic stagnation and high unemployment have forced the world’s “leisure-time champions” to accept that stronger economic performance requires a longer workweek. “But it takes a very long time before the recognition of a mistake actually leads to a correction - at least in Germany,” writes columnist Heike Göbel. Germany’s unions add to the problem. Despite agreeing to some concessions...

Microentrepreneurs' Contribution to Microcredit Too Long Ignored

Ron Luhur November 17, 2004
Banks and credit facilities have long been hailed for providing small loans, or microcredit, to the poor so they can start businesses and thus raise themselves from poverty. And indeed, thanks to these loans, 94 percent of the business entities in Indonesia are small businesses, employing over 136 million people, or two-thirds of the population. But credit institutions are not alone in igniting...

The Looming Revolution

November 16, 2004
As the expiration of international textile quotas draws near, China emerges as a force to be feared by both rich and poor countries. Many believe that China, if unchecked, will soon have a global monopoly in textiles, forcing countries currently depending on textile exports into economic disaster. Meanwhile, India and Pakistan - China's main competitors - are hedging their bets. Indian...

A Grim Report on Future Grabs Europe's Attention

Graham Bowley November 12, 2004
The economies of the European Union have been struggling, and according to a former Dutch Prime Minister, the situation will only get worse. According to data from the International Monetary Fund, over the past 10 years, US growth has averaged about 3.3 percent a year, compared to only 2.1 percent for the EU. To make matters worse, Europe simultaneously faces rising life expectancies and...

Can Arab Financial Institutions Rise to the Challenge?

Dr. Bassam Fattouh November 11, 2004
Several Middle Eastern governments face large public deficits and mounting public debts. In the midst of this mounting crisis, a logical solution might be to involve Arab banks in energy and infrastructure investments. The Arab financial sector is currently dominated by banking. However, warns this Daily Star news analysis, Arab banks are highly localized, with a stiff structure that limits their...

From Boom to Bloom

November 10, 2004
The lifting of millions of Chinese out of poverty constitutes one of the world’s greatest success stories in economic development. Yet behind the bold headlines touting this miracle remain problems that could undermine China’s success. The central government recently raised interest rates in order to prevent economic growth from overextending the country’s resources. And it has also committed...