In The News

The Bonds Of Debt

Nayan Chanda November 24, 2009
President Obama’s first visit to China has understandably drawn wide attention. Observers have scrutinized the visit – from the symbolic town hall meeting to the unprecedentedly detailed Joint Statement – trying to gauge the extent of cooperation between the two countries. On the face of it, China clearly enjoys some advantage over the US. It is the largest foreign creditor to the US and is...

Black And White

Nayan Chanda November 10, 2009
China’s rising presence in Africa has received increasing notice in the press and increasing concern from the West. Such contact is not a new phenomenon as trade between the Middle Kingdom and the continent first occurred as far back as six centuries ago. Today, raw materials trade continues but it is not all one way – China invests directly in the region through mines, construction, and...

Outsourcing Progress

Nayan Chanda October 28, 2009
If you thought outsourcing would take a hit from the financial crisis, think again. While certain sectors have seen double digit declines, other end markets are growing. What the final tally for the year might be is unknown, but the results thus far are somewhat counter-intuitive. Outsourcing’s resilience in the face of such financial and political strain – lawmakers across the globe have often...

US, The New Saver

Nayan Chanda October 14, 2009
The recent bleak unemployment report for the US suggests that the economic recovery is likely to be W-, rather than, V-shaped. But the 9.8 percent unemployment rate is only part of the picture: when including the “underemployed”, the rate is roughly double. What this means is that the US isn’t going to be consuming that much during what is normally the biggest spending period of the year –...

Tyre-some Efforts

Nayan Chanda September 29, 2009
Amid worries of protectionism, Obama’s tariff on China’s tires is almost insignificant in terms of size. Moreover, it is supported by the WTO agreement that allows countries to seek relief, albeit temporary, from the damage Chinese imports can cause to local industries. What most critics seem to be missing about the tariff is that even if is small and will not improve unemployment, it did provide...

Something Is Fishy

Nayan Chanda September 15, 2009
A recent proposed treaty on illegal fishing has the potential to aid the world’s poor nations and improve global governance. If enforced, the proposal, formulated in Rome and signed by 91 countries, would prevent fishing boats from landing in various ports if inspectors deem the catch to be illegally procured. Such a system still relies on the honesty of the individuals that uphold it....

No Walls In This Street

Nayan Chanda August 31, 2009
One of the greatest fears facing the world as it entered the financial crisis a year ago was the potential aftermath of protectionism in the form of rising trade barriers. But, while many cited the beggar-thy-neighbor policies that spawned the Great Depression as the next shoe to drop, these prognostications largely did not come to pass. True, there have been some “Buy [place country here]”...