In The News

An Unlikely Marriage

Nayan Chanda August 20, 2009
The notion that China and America have fused into one economy, termed “Chimerica”, is now likely a chimera, according to the co-creator of the phrase, economic historian Niall Ferguson. This does not mean the two countries are not ineluctably linked; perhaps even to the degree that loosening the ties might precipitate unforeseen, but negative consequences. But it does call into question the idea...

Developing Responsibility

Nayan Chanda August 7, 2009
The two-pronged solution to climate change proposed by the G-8 at the summit in L’Aquila has left much to be desired. First, it calls for an 80 percent reduction in emissions by 2050. While the proposed reduction seems encouraging at first glance, the reality is that it lacks a concrete plan to get to the target. Second, the G-8 agrees on a two-degree warming target for the planet. Yet, if...

We Are All Africans

Nayan Chanda July 21, 2009
Racial discrimination is perhaps the most superficial of all prejudices. And this is borne out not simply by an examination of the causes, but also by the scientific data surrounding our common ancestry. Both maternal mtDNA and paternal Y-chromosome show that everyone carries genetic code of African origin. Humans’ differing physical features – blonde or black hair, round or slanted eyes – are...

The China Barrier

Nayan Chanda June 26, 2009
In the world of ideas, globalization inhabits a happy realm where goods, capital, and people flow freely, guided by the over-arching force of utility maximization. But the real world is much more jagged. Labor flows face consistently higher friction than idealized. And capital, when supplied by a government-owned corporation, has also faced substantial roadblocks. While the reasons oft-cited for...

Government Motors

Nayan Chanda June 5, 2009
General Motor’s bankruptcy is as much a failure of the company to remain competitive as it is a failure of GM to embrace globalization. Once the industry leader, the auto behemoth was laid low by high labor costs and bad management. But it was perhaps protectionism, a protectionism that did not require GM to adapt to the global market, that ultimately killed the car maker. GM could not compete in...

Climate Sans Borders

Nayan Chanda May 26, 2009
Even before the UN Climate Change Conference in Copenhagen convenes in December, a stalemate has occurred. Developed nations want the developing nations to accept carbon dioxide emission limits. Meanwhile, developing nations argue that they’re not responsible for the majority of the build-up of greenhouse gases, so shouldn’t be forced to pay the price. But such a blame game belies the real...

Capitalism Divides

Nayan Chanda May 6, 2009
As pundits debate whether intervention in financial markers, or the lack thereof, was the cause of the current financial crisis, what is missing from the debate is a critique of capitalism. Whether greed multiplied 30 times through the use of debt and derivatives or the vicious cycle of twin deficits and currency manipulation caused the collapse misses the point. Assuming capitalism is safe – the...