In The News

How Not to Repeat the Mistakes of the Kyoto Protocol

Scott Barrett November 14, 2007
Most countries recognize the need for a reduction in greenhouse gas emissions. But for any climate treaty to succeed at reducing emissions, all countries – especially the big emitters – must participate. Otherwise, trade leakage will result, as emitting industries concentrate in the nations with the fewest restrictions. For such reasons, the Kyoto Protocol to the UN Framework Convention on...

Why FAS 157 Strikes Dread Into Bankers

William Rees-Mogg November 14, 2007
Accounting rules organize how money is classified and valued – and investors expect transparency. New accounting standards, designed with that goal in mind, go into effect on November 15, 2007, and could exacerbate already volatile financial markets. By classifying a company's assets according to marketability, the new rules highlight those that are most risky, like sub-prime mortgages, and...

The Dollar in Danger

Sebastian Mallaby November 14, 2007
Overseas investors are skittish about investing in the US, in light of the recent sub-prime mortgage defaults. The US government functions by taking on debt. But as foreign investors resist investing in low-yield government notes and similar instruments described as low risk, the dollar sinks in value. The value of many currencies and commodities, including oil, are linked to the dollar. So many...

Plain English Gets Harder in Global Era

Phred Dvorak November 12, 2007
The globalizing economy – particularly the rise of outsourcing and offshoring, along with the growing acceptance of English as the universal language within multinational corporations – raises the demand for sophisticated language training. English speakers confront a broader range of accents and cultures than ever before, and education programs step up their offerings. Some concepts – sarcasm,...

Emergency for Pakistan – and the World

Ahmed Rashid November 12, 2007
The United States has long considered Pakistani President-General Pervez Musharraf an essential ally in its war on terror and provides more than $1 billion in annual foreign aid, most of which goes to the military for fighting terrorism. But Pakistan’s constitution prohibits Musharraf, who took office by coup in 1999, from serving another term as president while also serving as army chief. With...

A Villain to Our Rescue

Robert J. Samuelson November 9, 2007
Politicians, activists and even some business executives in the West blame globalization for a lot of problems. But the US has benefited from foreign trade. “Contrary to popular opinion, the trade balance (deficit or surplus) barely affects total U.S. employment over long periods,” writes Robert Samuelson for the Washington Post. Some types of foreign competition do hurt some individual workers...

The Sovereign Wealth Explosion

Stuart E. Eizenstat November 8, 2007
A rise in state-owned funds and companies investing internationally has triggered national security concerns in a variety of countries and even some protectionist measures. These worries can sometimes be valid – observers of Russia's state-owned natural gas giant Gazprom, for instance, understand how government-controlled businesses may be used as tools of policy. However, former US...