In The News

Buy Now, Profit Later

Elise Kissling October 8, 2004
Over the past eight years, German companies have invested more than US$9 billion in China, the world's largest recipient of foreign direct investment. Unfortunately, only six of the 23 German companies that responded to a Deutsche Bank survey claimed to be earning money in China. Last year, for instance, Volkswagen manufactured more cars in China than in Germany, but failed to turn a profit...

The New Yellow Peril

Oliver Cattaneo October 6, 2004
Responding to public fears about job loss, the French government recently announced new measures to prevent the outsourcing of domestic production. Opponents of offshoring, however, overstate its harmful effects, argues French trade specialist Olivier Cattaneo. For instance, in the United States – where outsourcing has become a potent political issue – the trade surplus in information services...

Freeing India's Textile Industry

Asutosh Padhi October 5, 2004
When the Arrangement on Textiles and Clothing (ATC) expires on January 1, 2005, the international textile industry will be entering a free-for-all phase. The ATC’s quota restrictions on textile exports have so far safeguarded poor countries such as Bangladesh and Cambodia, and its abolition leaves them to the mercy of the free global market. India, with its copious human and natural resources,...

Making Globalization Work for All

Jeffrey D. Sachs October 2, 2004
When world leaders met at the UN’s Millennium Assembly four years ago, they laid out ambitious proposals to alleviate global poverty, hunger, disease, and illiteracy. Yet in spite of a rhetorical commitment to development, says economist Jeffrey Sachs, rich nations like the US have been unwilling to commit the necessary aid. Much of the developing world is experiencing rising poverty and needs...

Africa Must Be Heard in the Councils of the Rich

Kevin Watkins October 1, 2004
The World Bank and International Monetary Fund (IMF) have come under intense scrutiny, as the two international financial institutions prepare to meet in Washington this October. Though the agencies greatly influence the shape of the global economy, critics note that their decision-making mechanisms are profoundly undemocratic and favor the interests of rich nations. Wealthy countries maintain...

States Pressing for Right to Set Shopping Hours

William Pratt October 1, 2004
Most Americans take for granted that they can stop by their local mini-mart anytime, day or night. Now, some German officials want their citizens to enjoy the same simple convenience – but not on Sundays. The idea of allowing stores to stay open 24 hours a day, six days a week represents one of the latest plans aimed at unlocking the legal padlock on German store owners. This effort, led by the...

Seeing Green in Golf Courses

Sim Sung-tae September 30, 2004
In an effort to stimulate the country's economy, Korean officials are trying to increase the number of domestic golf courses being built. Hoping to keep Korean golfers – many of whom travel overseas to play – and their money at home, the Ministry of Finance and Economy claims that more golf courses will also create new jobs, attract tourists, and salvage Korea's struggling construction...