In The News

US Wages Face Glut of Pressures

David Wessel June 26, 2006
Conventional economics suggests that the retirement of the baby boomers in the US will reverse the decline of wages and job benefits throughout the US. But the emergence of China, India and the former Soviet bloc as modern capitalist economies could prolong the agony, suggests journalist David Wessel, particularly if the US is unprepared. Overseas competition will continue to lower wages of US...

Coming to Terms With the Forces of Anti-Globalization

Nick Mathiason June 23, 2006
Increasing criticism of capitalism and multinationals, even by British Conservatives, neglects an emerging trend in global commerce. Cited in the May/June issue of “Foreign Affairs” by IBM chairman and chief executive Samuel Palmisano, the “globally integrated enterprise,” or GIE, is a new trend. The GIE no longer invests in outsourcing cheap labor to poor countries while reserving the...

China’s Portuguese Connection

Loro Horta June 22, 2006
Patience is power, suggests a Chinese proverb, and that describes how China pursues diplomacy. The Community of Portuguese Language Countries (CPLP) consists of eight states around the world, encompassing 230 million people – but is rarely regarded as a priority in global politics. Bucking conventional thinking, China diligently pursues diplomacy with the CPLP, foreseeing benefits such as new...

Plan B for Plurilateralists

Bernard K. Gordon June 22, 2006
The current round of the World Trade Organization’s Doha conference has become hopelessly stalled, bringing into relief a split between what some call the “can do” and the “won't do” nations. Political scientist Bernard K. Gordon posits that the current US administration will not settle for a limited multilateral agreement that could likely result from the WTO talks. Instead, he sees the...

The Real Disaster: Inadequate Preparation

Kevin O'Marah June 21, 2006
Businesses are often not prepared for large-scale disasters – and as a result of globalization, a threat to one business has become a threat to all. Large-scale events in the form of terrorism or natural disasters hinder the supply-chain for businesses and the flow of goods to consumers. Despite widespread agreement that supply-chain disruptions can harm a business, few companies have plans in...

Students in a World of Trouble

J. Michael Adams June 20, 2006
Though many American public school students are surrounded by diverse cultures and languages, two recent publications show that most “are likely to be unprepared to compete and lead in a global work environment,” according to the Committee for Economic Development’s report on the value of international studies. J. Michael Adams and Angelo Carfagna argue that maintaining a US hold in the global...

Why Dollar Hegemony Is Unhealthy

Thomas I. Palley June 20, 2006
The US dollar holds value for more countries than any other world currency and comprises about two thirds of world’s official foreign-exchange holdings. This dependence allows the US to run large trade deficits in purchasing a cornucopia of goods – from Porsches to t-shirts – by distributing paper IOUs in place of actual dollars. Because of a global faith in the voracious appetite of the US...