In The News

Growth Without Equity Roils South Africa

Haroon Bhorat, Morné Oosthuizen, Anne Kamau February 1, 2013
Labor unrest does not attract foreign investment. South Africa must subdue strikes in its mining industry before unrest spreads to other sectors while addressing the challenges of a high unemployment rate and dire poverty, argue researchers Haroon Bhorat, Morné Oosthuizen and Anne Kamau. South Africa is the world’s biggest producer of gold and platinum. The strikes are both reducing gold and...

America’s Fiscal Policy Is Not in Crisis

Martin Wolf January 31, 2013
The angst of some US politicians would suggest the country is in terrible economic shape, close to bankruptcy and the inability to pay on its obligations. The view is false, contends Martin Wolf of the Financial Times. The US does have fiscal challenges, he maintains, largely due to its inefficient healthcare system and the inability to say no to special interests. The country is on the path for...

Portuguese Flee Economic Crisis

January 30, 2013
Struggling with debt, Portugal is losing its youngest, most educated citizens. More than 2 percent of the country’s population have emigrated during the past two years, reports the BBC News. The emigrants head to Switzerland or Angola rather than France, once a traditional destination. Other destination countries include Germany, Mozambique, the Netherlands and the United Kingdom. The Portuguese...

Europe in North Africa – Recolonize or Rescue?

Jonathan Fenby January 23, 2013
Amid a severe currency crisis and other economic struggles, cooperation of the European Union, the very union itself, is being tested with the rise of Islamist radicalism in North Africa. France has forcefully intervened to assist Mali troops against extremists who have taken over the northern half of the country, demonstrating a willingness to attack civilians, destroy cultural icons and lash...

The Price of Globalization

Nayan Chanda January 23, 2013
The interconnected world is not so different from a small community in that the greed or lack of foresight of a few can bring quick ruin. The US has $16.5 trillion in debt and a reduced revenue stream due to the global recession. Some conservatives demand harsh cuts in exchange for lifting an artificial debt ceiling, devised to control government spending. Delays in approving the debt ceiling...

Biggest Growth Story? Outside the US

Russ Koesterich January 21, 2013
The gridlock in US Congress, its reliance on last-minute, short-term fixes for well-documented problems, is reducing confidence, threatening credit ratings and low interest rates for borrowers, worrying investors and decreasing tax revenues. So far, opposing parties in Congress refuse to compromise on substantial reform of the US tax code or costly entitlement programs, especially costly health...

The Post-Crisis Crises

Joseph E. Stiglitz January 15, 2013
Caught up with many pesky invented crises, the US and Europe are neglecting pressing long-term problems. The most serious is the failure to address global climate change, argues Joseph Stiglitz for Project Syndicate. He notes that every delay will require sharper reductions from future generations. Stiglitz argues that “retrofitting the global economy for climate change would help to restore...