In The News

The Currency Albatross

Nayan Chanda March 1, 2010
Long-term political stability in China and the political future of the Obama administration both rest on resolving the economic crisis. But these goals may be at odds with one another as seen in the ongoing debate over China's currency, which is estimated to be under-valued by 25-40 percent. The legitimacy of the Chinese Communist Party is in part predicated on economic prosperity, something...

Connecting Across Oceans

Nayan Chanda February 18, 2010
The global economic crisis inspired cries of globalization’s demise, but economic data from the past two years paints a more complex picture. Developed countries generally suffered through negative GDP growth, while developing countries largely stayed in positive territory. Trade collapsed, with shipping indices sinking to surprising lows, but has since recovered. And total international travel,...

One World, Two Universes

Nayan Chanda February 1, 2010
The tussle between Google and China is laying bare a strained relationship between China and the Western world that had previously been covered up by the financial crisis. Secretary of State Hillary Clinton's recent speech on Internet freedom, though it did not specifically mention China, marked a shift for the US administration in emphasizing human rights. Western corporations are...

Climate Of Politics

Nayan Chanda January 22, 2010
The Copenhagen conference seemed to reveal more about the current global balance of power than to resolve how to mitigate climate change. The US turned its back on Europe to get a chance to measure developing countries’ emission reduction efforts. While Europe’s attempt to mandate a 50 percent emissions cut was blocked principally by China, supported by India, Brazil, and South Africa. The reason...

The Trade Factor

Nayan Chanda January 5, 2010
The precipitous drop in trade last year as a result of the global financial crisis was evidence of the heightened interconnectedness of the world’s major economies. But such interconnectedness was also one reason why trade protectionism – the bogey everyone feared would send the globe into another Great Depression – never rose to a level that threatened a recovery. Indeed, there were many calls...

The Forecast is Gloomy

Nayan Chanda December 7, 2009
The prospects for a successor climate change treaty to the Kyoto protocol coming out of the Copenhagen summit are grim. And while the US and China have recently announced new targets, cynics may conclude that such measures are simply ploys to avert blame for failing to commit to stemming climate change. Indeed, Obama’s proposed 17 percent emission cut is closer to four percent when compared to...

A Natural Alliance

Nayan Chanda November 30, 2009
Though India Prime Minister Manmohan Singh’s visit to the US was being viewed as all form and no substance in the lead up to the trip, the result was the complete opposite. This conclusion is inescapable when one observes the stark contrast between the joint US-China statement – issued a week earlier – and the US-India statement. The former is a study in an uneasy business partnership made...