In The News

Changing Paradigms

Nayan Chanda September 13, 2010
Enduring a mortgage crisis followed by global recession and an ongoing credit crunch, Western nations extended emergency funding to major banks and also tightened regulations to prevent future crises. Now those same banks are expanding, even relocating operations to Asia’s substantial markets, offering rapid growth and business development. “The fact that one of America’s largest banks and one...

Intelligence Loopholes

Nayan Chanda August 30, 2010
Confidential messages have served as a basis for long-distance trades for thousands of years. Long ago a list of contents was baked into clay tablets that accompanied shipments. Upon arrival, the tablets were cracked open to assure complete delivery. The modern BlackBerry phone, with countless more messages over longer distances, also provides confidentiality. As secure phones become more popular...

Reverse Outsourcing

Nayan Chanda July 6, 2010
An old saying – what goes around comes around – applies to anything global, and that includes outsourcing. France and other developed nations with high labor costs have long and bitterly complained about jobs shifting to low-wage nations like China. But Europe’s rising unemployment, combined with rising wages in China, contribute to an agreement that brings up to 50 Chinese electronics and light-...

The Web of Globalization

Nayan Chanda May 24, 2010
Can a country withdraw from globalization, or for that matter, give up democracy in order to benefit from global capital flow? In this column, YaleGlobal editor Nayan Chanda dissects the recent argument offered by Harvard economist Dani Rodrik, who suggests that “economic globalization, political democracy, and the nation-state are mutually irreconcilable.” Crises that disrupt global capital...

Lessons From Athens

Nayan Chanda May 12, 2010
Carefree spending on borrowed funds is not sustainable. Europe could not handle fast assistance to debt-laden Greece on its own and had to turn to the International Monetary Fund for additional financial support. Eurozone nations and the IMF imposed stringent conditions, and future borrowing by the Greeks will carry heavy costs. “The same global liquidity that can fuel growth can also evaporate...

Freeing the Renminbi

Nayan Chanda April 30, 2010
Criticizing the value of another nation’s currency is easy. Understanding the consequences of any currency adjustments is more complicated, explains Nayan Chanda, editor of YaleGlobal and regular columnist for Businessworld in India. Economic advisors have undoubtedly explained the many challenges linked to currency revaluation awaiting political leaders in both China and the US, suggesting that...

Thorns Amid Green Shoots

Nayan Chanda March 17, 2010
Politicians in the US are expressing concern that the stimulus package could be creating more jobs in other countries than it does at home. But that's the reality of an interconnected world. The stimulus package commits billions of dollars for green energy projects in an attempt to combat both global warming and create jobs in the US. But many projects require global sourcing due to the...