Global Challenges
Trade, Economics & Finance
In times of elections, it becomes obvious that both the right and the left promise the same thing which is economic growth. ++ However, the growth strategies and the ideas about the role of the state differ from each other. ++ The right-wing assumption …More
For those who live in hunger, long-term solutions cannot come fast enough. ++ The US, donor of half of the world’s food aid, is highly criticized for its unique practice of monetization that disrupts commercial markets and can cause, albeit temporarily, …More
The financially emerging world cannot be ignored by rich nations in economic negotiations. ++ Because emerging nations play an increasingly large role in world consumption and growth, the G7/G8 is not the appropriate forum for …More
Even though the European Central Bank reassures the investors that the euro has great prospects, business activity on the Old Continent is falling and consumer confidence is plummeting. ++ On Friday, the euro had its worst day against the dollar …More
After 1945, the US was clearly the world’s leader but it took its supremacy for granted and became complacent. ++ Since then, the US has become dependent on foreign oil and relied on debt to finance its economy. ++ American …More
The Doha round was constructed on the myth that a negotiating agenda focused on agriculture would make it a “development round” and could help reduce global poverty. ++ But the underlying assumption that the trade regime can only legitimize itself by …More
With regard to the global slowdown, it would be wise if China privatized state-owned assets in order to transform China’s growth model from being export-driven to being stimulated by domestic consumption. ++ Even if the country’s assets …More
The problem of modern capitalist markets in times of global warming is that we do not have to pay the true environmental costs of the products we buy. ++ There are two possible solutions: either we apply green taxes to reflect a …More
Food security is increasingly an issue in many parts of the developing world. ++ In countries that are net importers of food, e.g. Egypt or the Philippines, soaring prices lead to economic and political crises. ++ To help solve the …More
Because of the transatlantic dispute about the Iraq war, the transatlantic know-how exchange has been neglected. ++ But with the high oil prices it becomes obvious to the US that it can learn from the EU: Europe, due to higher gasoline taxes had …More
The relations between Russia and the EU are shaped by mistrust which poses a threat to trade and investment between both regions. ++ Although they still rely on each other economically - especially Russia whose economy depends on oil and …More
Common efforts to reform the financial system are on the agenda and one step towards this aim is the wide dissemination of the final report of the Institute of International Finance’s committee on market best practices which contains …More
Tomorrow China’s new antimonopoly law takes effect. ++ At a formal level, it is comparable to the laws in the US and the EU, but its implementation will not be as simple. ++ The US encourages competition in the marketplace; EU, on the …More
The global trade negotiations known as the Doha Round broke up yesterday without an agreement. ++ Despite expectations of a new international plan to cut tariffs, members of the WTO proved themselves unready for such a deal. ++ While the US and the EU had made some …More
The deepening financial crisis may seem a rationale for expansionary global macroeconomic policy. ++ Individual countries may see some short-term growth benefit to US-style macroeconomic stimulus, albeit these vantages will be minimal compared …More
The ascendancy of Anglo-American capitalism has been an illusion - as proven by the credit crisis which originated in the US. ++ Apart from this model, there are different forms of state capitalism developing in China, Russia, the Middle East, and South …More
This week the WTO gathers trade ministers to try and salvage the Doha round. ++ Decisions are tough and stakes are high: whereas success would boost the global economy and be “a historic achievement for multilateral diplomacy,” …More
We live in a global economy, yet we have no effective system to manage a global economy. ++ The G8 leaders like to think they can handle global challenges such as global warming. ++ Yet, the dispute between industrial and emerging market economies …More
Anna Wojnilko: Changing economic and political realities are forcing the G8 to rethink its goals, mandate, and membership. The debate on the shape of a potential G8 reform divides the political world. Should the G8 be enlarged to include new major international players or contracted to ensure effectiveness? We invite you to vote. …More
China shocks the world and keeps adding record sums to its foreign currency reserves, already the largest in the world. ++ Such reserves are not sustainable: they are a strain on the global balance of payments, fuel rising …More
The prospects for a global agreement to slash subsidies and tariffs at the WTO meeting in Geneva next Monday are dim. ++ At stake is the Doha Round of trade liberalization talks. ++ The latest threat to the Doha Round comes from an …More
Despite warnings of their imminent collapse, with the help of US government, Fannie Mae and Freddie Mac should be able to survive and stock market panic can be avoided. ++ Since the two companies have $5.3 trillion in …More
Outperforming the dollar and the yen, the euro is a resounding success. ++ Still, Eurozone policymakers should allow for more economic freedom and encourage competition. ++ Europe should stop supporting national enterprises and give the …More
Since the first use of sanctions against Italy in 1935, suspending trade with corrupt regimes has proven to make the poor poorer and the evil richer. ++ Even with supposed success, sanctions were either accompanied by other internal problems …More
Though Africa still accounts for only a fraction of the global private equity market, the spread of stable democracy and rapid economic evolution make it increasingly attractive for US and European investors. ++ Private capital flow into …More
With European inflation at its highest ever since the introduction of the euro, many countries are tightening their credit reins in an effort to curb inflation. ++ The world’s central banks are slowly realizing the magnitude …More
According to a report by the Bank of International Settlements, the ongoing financial crisis has revealed the folly of lax monetary policy during periods of rapid credit growth and asset prices. ++ Central banks and financial …More
Recent shifts in the behavior of key SWF’s has led to the fear that state-controlled investors may now be “aiming primarily for strategic rather than purely financial returns.” ++ In response, both the IMF and EU Commission are encouraging …More
Sonja Davidovic: Instead of continuously debating, negotiating and making plans for reconfiguration, the international community should help the Serbian and Kosovar governments find ways to strengthen cross-border trade and regional business activities.
…More
Once upon a time in the West, the notion of globalization brought to mind new commercial outlets, the international exchange of goods and new post-industrial job opportunities. Yet, the integration of highly populated emerging economies, …More
Foreign direct investment is slowing down worldwide due to nations’ fears of losing control of what they call “critical infrastructure.” ++ Markets have recently experienced FDI coming from non-traditional sources such as China …More
Nouriel Roubini: The Financial Times recently interviewed economist Nouriel Roubini regarding the current US housing market problem and the potential for an extended US recession. Roubini addresses the outlook of the US economy, mortgages, potential policy action—The Frank-Dodd bill, Fed policy, and the outlook of financial markets. …More
Gao Xiqing, the president of China’s sovereign wealth fund expressed his frustration concerning the political opposition his fund sometimes faces when it attempts to invest in the West. ++ From the economic point of view, this is …More
Given inevitable economic and demographic shifts, European countries will not be able to remain agenda setters in the global system, unless they cooperate more effectively and speak with one voice. ++ Despite Ireland’s vote …More
In the debate regarding climate change and the shortage of fossil fuels, biofuels were for a long time considered to be the ideal solution. However recently, they have increasingly come under fire. Critics denounce the fact …More
Surprisingly, it is some of the fastest developing countries such as China and India, that are slowing down the Doha development talks. ++ Protectionism in one country triggers a chain reaction that blocks free trade in several …More
US President George W. Bush’s final visit to Europe is likely to be only ceremonial and of little real substance. ++ The EU and the US are deeply divided over issues of trade, especially the import ban on American poultry. ++ Meanwhile, …More
The future world energy order will have China, India, and Middle Eastern countries rather than OECD countries at its helm. ++ Conventional oil is likely to peak soon, and unconventional oil will then play an important role. ++ Since global oil …More
International tourism is undergoing very rapid changes. New travelling habits, an increased awareness of price, short notice and short term holidays - and the wish for more flexibility and individuality as well as rising energy prices …More
Europeans and the United States fear that CIC - owned by the Chinese government -, turns into a political tool enabling investment decisions to be based on political motives. ++ The head of the Chinese sovereign wealth fund says they are trying to …More
Almost two-thirds of humanity live in high-income or high-growth countries, while the remaining two billion live in countries with stagnant, or declining incomes. ++ The main increase in global population expected by 2050 will occur in countries …More
The US dollar was for a long time the leading global currency against which all other foreign currencies were measured. The downside of this is that as a result, the USA has accumulated a huge trade deficit. In 2006, foreign …More
Over the last few years, the annual G8 summits have attracted more attention than ever before in the history of this group of states originally known as the “Library Group.” The rise in power of Brazil, China or India …More
President Sarkozy has announced that citizens of the 2004 EU accession countries will be permitted to work freely in France beginning in July. ++ This development contrasts sharply with Germany where “borders will remain firmly shut …More
In the current discussion about the response to high fuel prices one point was missed: the world is producing one barrel of oil for every three we consume. ++ Although the price of petrol has increased by 4.7% a year, in real terms the price …More
Tim H. Stuchtey: The Germans’ limited understanding of contemporary economics is responsible for their lack of enthusiasm for entrepreneurship. Seriously addressing the challenge of global competitiveness will require Europe to inform and educate its citizens with respect to the benefits of the market economy. …More
There are three factors underlying the current rise in oil prices: rising global demand, increased costs for oil producers, and the relatively short time span in which supply has yet to adapt to these increased pressures. ++ Timely and …More
Why do free trade promoters believe they can convince the “Joe Sixpacks” of the world that temporary, however painful, economic adjustments will lead to overall gain? ++ This argument requires a trustworthy system of …More
High oil prices are tied to a weak US dollar. ++ The single-currency pricing of the oil market means that in the long run, a weak dollar reduces production while simultaneously increasing consumption. ++ This increase in demand …More
The Wall Street Journal: Recent research has found that consumers actually are willing to pay slightly higher prices for ethically produced goods than for unethically produced ones. …More
US Federal Reserve officials continue to insist that recent price increases have almost nothing to do with monetary policy. ++ Yet their claim that only global supply and demand for corn and oil are responsible for the soaring of …More
Michele Rioux & Susan Ariel Aaronson: Strategies to Link Trade Agreements and Real Labor Rights Improvements: …More
India’s slide by two places in the global competitiveness ranking from 2007 to 2008 reveals the country’s infrastructural deficiencies. ++ “The government is unable to create infrastructure needed to sustain …More
The defense of the European economy “against unfair international trade policies” needs to be critically examined. ++ In reality, defensive measures such as anti-dumping duties often negatively affect European companies. ++ The …More
Due to unilateral export restrictions imposed by grain producing countries, the Japanese government recently raised the price of imported wheat it sells to flour-milling companies by 30%. ++ The surge is expected to be passed on to the …More
Loretta Napoleoni: The truth is that terrorism is a political phenomenon and, as long as it remains in the domain of politics, there are few chances to win. …More
Foreign direct investment by sovereign wealth funds from oil-producing and Pacific Rim nations has many Americans worried about the impact on financial markets. ++ However, the lack of transparency poses a greater problem for the country of …More
A 30-year lease of the Afghan copper deposits was sold to the China Metallurgical Group
for $3 billion, making it the biggest foreign investment in Afghanistan’s history. ++ While critics argue Afghanistan is too …More
The Indian Ocean will be a strategic bridgehead for the big players of the 21st century. This relates to the Indian sea doctrine, which has been determining India’s policies in the region since its release in 2004. China’s advance in …More
Eckart von Klaeden: The “strategic partnership” between the EU and Latin America must be followed up with concrete and substantive political initiatives. The European Union, Latin America, and the United States must work towards a trilateral dialog. …More
Former Fed chairman, Paul Volcker, blames this year’s financial crisis on the lenders’ and investors’ attempting to revise the age-old fundaments of finance. ++ Despite the euphoric effect of bubbles, parties …More
Some highly developed nations with bourgeoning service sectors are experiencing difficulties in adapting out-dated education policies to a more competitive, business-oriented world. ++ Scandinavian countries are leading a new trend in …More
The current problems of the US financial sector are often compared to those of Japan in the 1990s. ++ While there are many similarities, there are significant structural differences that suggest that a different remedy is required in …More
Samantha Ferrell: Combating Human Trafficking requires systematic worldwide action. In a rapidly globalizing world, organized crime groups are operating transnationally. Unless there is an increased effort on the part of international agencies, the US, and the EU, to coordinate efforts, human trafficking will only continue to expand. …More
Susan Aaronson: Much more than a marriage of convenience, America and other industrialized nations, should examine their trade policies to see how it might encourage and ultimately form a coherent union with human rights abroad. …More
President-elect Dmitry Medvedev realizes that high economic growth cannot be sustained as long as Russia relies primarily on macroeconomic policy and rising oil prices, and inequality and corruption remain widespread. ++ His rhetoric …More
India’s agricultural sector remains nearly stagnant at a time when global food production faces five major challenges: population growth, changing consumption habits in emerging markets, declining agricultural production capacity, …More
The US market is experiencing the unprecedented inflow of large- and medium-size European investors. ++ Because of the extremely cheap US dollar, it became affordable for many European companies to relocate their production to the much more …More
Susan Aaronson: This article takes a closer look at the Bush administration’s policy concerning trade and human rights; a policy area that has, in recent years, been inconsistent. As the Olympics approach, how the US responds to China’s human rights violations with respect to trade negotiations could set a very important precedent. …More
Western politicians should avoid spreading alarm concerning the size and wealth of SWFs and turning their regulation into a restriction of foreign investment in general. ++ Caution is advisable but SWFs have till now been apolitical model …More
Internationalist economic policy is no longer perceived to be in the interest of the working population in the US. ++ A new internationalism that mitigates adverse effects – inequality and insecurity – is required to …More
David Francis: Why is everyone outside of Germany worried about Nord Stream, while people in Germany seem okay with it? By looking at the United States, it’s apparent that it’s easier to ignore reliance on imported energy than it is to confront the problem. …More
The appointment of a Chinese Professor, Lin Yifu, to the post of chief economist at the World Bank reflects the changes in the global balance of powers. ++ In the past, the World Bank, like the IMF, was traditionally …More
It is important that high crop prices are not equated with world hunger since the well fed rather than the truly hungry are dependent on international food markets. ++ In South Asia and Sub-Saharan Africa, where hunger is the worst, the …More
The Fed is undermining global confidence by flooding the economy with new dollars while it should in fact be pursuing direct and targeted intervention. ++ Since US global purchasing power is used for humanitarian, economic or military …More
Cereal stocks have not been this low since 1980, but the food crisis can be explained by human greed. ++ To avoid mass hunger, climate change and trade protectionism must be addressed. ++ If international cooperation is brokered …More
The mortgage crisis emphasized that even sophisticated market players were “clueless about new financial instruments that emerged” and general reconditioning that needed to be done. ++ Economists distinguish 3 schools of …More
Not the US but the new big globalizers are responsible for renewed global tensions since the 1980s. ++ BRIC countries, – Brazil, Russia, India and China – terrify because they compensate for weakness by projecting power. …More
Restrictions on food exports worldwide are causing destabilizing
shortages in some of the world’s most populace nations. ++ Suggestions for increased productivity include: liberalization of agricultural trade; a boost in …More
To their disadvantage, Europe’s leaders are divided regarding China. ++ A visit from the Dali Lama to a European Parliament session has disgruntled one of Germany’s and most of Europe’s largest trading partners. ++ The presence …More
Thanks to its massive
workforce and low labor costs, China
has become the twenty first century’s leading global production plant. Even for
German companies, China
has long been a fundamental market for supplies. Yet an inquiry …More
As potentially non-economic agents, SWFs are threatening to affect the efficiency of the global market economy and distort the allocation of risk and resources. ++ Governance should remain adapted to the fund’s purpose and specific …More
The rise of American philanthropy and foreign investment, as well as the need for raw materials are protecting Africa’s frontier economies from international economic volatility. ++ Yet a slowdown in the US and EU could lead …More
Since they help increase productivity and develop economic potential, efficient services are fundamental to modern economies. ++ Because the service sector is expanding rapidly and contributing to sustainable growth, liberalization could …More
The IMF might have prevented the US crisis if it had detected mortgage market vulnerability sooner. ++ Since IMF governance is organized according to the “money for influence” model - most influential members have most leverage - US policies and …More
CBS: In an exclusive interview with Lesley Stahl for “60 Minutes,” the head of China’s new sovereign wealth fund, Gao Xiqing, pledges more transparency to allay fears that China will try to use its vast investment ability to exert economic or political control in the United States. …More
The three largest Asian Powers China, India and Japan have good reason to hope for a Republican US President. ++ China and India see the world more in terms of classic balance-of-power equations. ++ Balancing a rising China is …More
The current financial crisis demands strong governmental actions, particularly in the US. ++ The US’s financial problems can be explained through the debt crisis, credit crunch, and housing bubble which lead to a consumer binge. ++ The government …More
The IMF’s need for governance reform points to the EU’s lack of management of its external monetary policy. ++ Consolidating the representation of Eurozone members on the board - currently 15 members are awkwardly split among 8 chairs - …More
Andreas Thomas Kern: This research note by Christian Fahrholz and myself depicts arguments for lending boom-bust cycles in emerging market and transition economies. …More
Benjamin Lucas Schoo: McCain is the only true free trader among the remaining presidential candidates. The economic policy positions of Clinton and Obama are similar. Unlike McCain, both Democratic candidates support ending the Bush tax cuts. …More
An increasing number
of governments are becoming global economic players - and this in the form of
state-controlled companies or gigantic sovereign wealth funds. The global
economy used to be dominated by the democratic West but the …More
The current housing mortgage crisis points to a general problem in finances. ++ Financial authorities and institutions are guided by market fundamentalism. ++ Their success has reinforced the misconception that markets are …More
Russia could benefit from the US financial crisis if Americans transfer their excess liquidity to currencies such as the ruble which are likely to appreciate. ++ Russia is enticing to foreign investors: the ruble is undervalued, …More
The significant and growing contribution of emerging markets to the global economy demonstrates the strategic importance for the OECD to cooperate and engage with them, with an ultimate view to membership. ++ Countries like Turkey …More
The differences in transatlantic mortgage systems are causing the Fed and the ECB to deal with housing crisis in contrasting ways. ++ While the Fed keeps cutting interest rates to make up for the huge losses in capital of US banks, the …More
The world economy depends upon China. ++ The US in particular can’t afford to criticize China - it depends too heavily upon Chinese foreign exchange reserves, above all in this time of financial
crisis. ++ The West will not act on the …More
Ulrike Guérot: I just signed an urgent petition calling on the Chinese government to respect human rights in Tibet and dialogue with the Dalai Lama. This is really important, and I thought you might want to take action. …More
With Fidel Castro gone, the US has the chance to lift the embargo on Cuba, but should only do so in exchange for an independent and democratic Cuba. ++ The new ruler of Cuba should have a clear choice: hold free and fair elections, or be responsible for prolonging Cuba’s suffering. ++ History proves that neither tourism nor open trade are enough to democratize a country.
Frederik C. Köncke: In an increasingly complex global environment, businesses are seeking a greater understanding of how they are at risk. …More
The Bear Stearns collapse forces Wall Street to finally face reality and end the culture of easy lending. ++ US recession combined with a Democratic president in November will spell protectionist legislation. ++ The biggest …More
Survey by Wall Street Journal: Economists are now debating the extent of the recession rather than its existence. Recent statistics seem to confirm concerns. …More
As a reserve currency, the US dollar’s value was only sustainable while the economy was growing. ++ As many economists expect a recession, the Fed is moving aggressively to pump more liquidity into the US banking system. ++ This and increasing …More
Europe and Japan’s deafening silence in the face of the US’ market crisis is exacerbating the credit turmoil. ++ US policymakers should alter contracts for mortgage holders and/or use the government’s balance sheet to support …More
The growth of Sovereign Wealth Funds requires vigilance to “ensure they continue to be the positive force in the global macro-economy that they have been.” ++ Greater transparency rather than investment protectionism is needed. ++ Robert Kimmitt made these comments at a panel discussion of the Brussels Forum organized by the German Marshall Fund of the United States.
Soaring oil prices are the result of underestimation of demand, overestimation of supply, depressed production outside OPEC, and the latter’s recent regulation of supply. ++ OPEC’s actions are preventing using oil prices to correct …More
It is wrong to think that China has supplanted America in driving the global economy - the US still contributes 5 times more to the world’s GDP than China. ++ Banks around the world are learning that the US has lived beyond its means and debt may not be repaid. ++ Though a US tax cut may help, it won’t be enough to prevent recession. ++ The extent of the damage may not be known until 2009.
The world financial
markets’ present bout of turbulences should not hide the long-term and often brighter
trends:
Despite
occasional crises, global financial assets have expanded continuously over the
last decades. In 2006 …More
Maximilian Müngersdorff: Resource-based growth poses a risk to the broader economy. With oil prices hitting record highs, Russia, the world’s largest fossil-fuel exporter, has seen rapid growth. The question is, whether this growth is used to transform Russia into a diversified and sustainable economy. …More
The fear of several analysts that oil prices will rise if Brazil joins OPEC is not justified. ++ This would only happen if all OPEC states cut production by more than the amount Brazil would produce. ++ This is unlikely as OPEC states’ wealth mainly depends on oil revenues. ++ Examples are Venezuela and Saudi-Arabia. ++ History shows that lower prices are the more probable consequence.
The US economy is facing a post-bubble recession rather than a cyclical downturn. ++ As homebuilders and consumers - a sector representing 78% of GDP, are being hit the hardest, the Fed’s monetary easing policies which favor …More
The global credit crisis calls for cautious monetary policy. ++ Central banks need to take the risks of inflation seriously and avoid unnecessary interest-rate cuts. ++ The ECB should serve as a model for other central banks - it …More
In recent years, the Democratic Party has tended to gravitate towards protectionism. ++ The denigration of freer trade is characteristic of Democratic candidates during the primaries. ++ Obama’s trade policy credentials however, suggest he is likely to be a friendlier president to multilateral free trade. ++ “Hope,” “change” and an international outlook are incompatible with protectionism.
Anna Nadgrodkiewicz: When in Washington, Tusk will need to address the role of Polish troops in Iraq and Afghanistan, the necessity of easing visa requirements, and the proposed missile defense shield. Most importantly, Tusk should use his visit to build name recognition and focus on issues important to Poland. …More
Farmers are among the few beneficiaries of skyrocketing global food prices. ++ Governmental subsidies for producing biofuels combined with droughts and a growing demand for animal feed account for the high prices. ++ Food and energy issues are beginning to collide. ++ Speculation accounts for some of the price escalation, but as arable land becomes scarcer, prices are likely to remain high.
Europe is well on the way to fall short of the ambitiously formulated targets of the Lisbon Agenda of 2002. We remember: all EU member states wanted to increase R&D expenditure from an average 1,8% of GDP in the late …More
Investors outside the EU and the US are increasingly shaping trends in global financial markets. With the tripling of oil prices since 2002, petrodollar investors in particular have increasing influence and are in fact the fastest …More
Viktor Friedmann: This paper provides a summary of a V4 conference with young researchers which identified the type of information which could be transferred from the Visegrad civil sector to the neighboring countries who would also like to be members of the EU. …More
The current membership of the G-7 no longer reflects the changing reality of the global economy. ++ Leadership in the global economy has been shifting from the old industrial countries to the emerging market countries over the past decades. ++ Instead of 4 European countries, there should be one EU representative, China, India and one African country. ++ The G-7 must adapt or become irrelevant.
The so called “next billion” consumers come from Brazil, China, India, Eastern Europe and even parts of Africa and Asia and represent the largest untapped consumer market in the world. The Boston Consulting Group estimates that these new …More
Leon Hadar: The EU should put its money where its mouth is and work towards inviting both Israel and Palestine to join the EU. With the election of a new US president, Europe could gain more control in the Middle East, but only if it simultaneously accepts more responsibility. …More
Sascha Wagner: The Middle East Free Trade Area (MEFTA) as a Juggernaut for Economic Development – is the US-Morocco FTA a Good Example for Overcoming Trade Barriers? …More
Michèle Schmiegelow: Asia’s integration has advanced considerably. Europe could benefit from Asia’s strategic pragmatism.
…More
50% of respondents to a BBC World Service Poll feel “economic globalization” is growing too fast while 35% say it is growing too slow. ++ Two thirds say that the benefits and burdens of economic development had not been shared fully. ++ In …More
The African, Caribbean and Pacific (ACP) group of states have enjoyed a privileged access to the European market and benefited from Economic Partnership Agreements (EPAs) with the EU since the 1960s. However, these trade agreements have …More
Despite the much-discussed rise of emerging markets, the transatlantic economy remains the foundation of the global economy. ++ US foreign direct investment into Europe rose to $1.2 trillion, that’s nearly three times larger than …More
Ted R. Bromund of Yale University explains that liberal US think tanks (and their budgets) are expanding rapidly and notes that the Brookings Institution “has grown by 50 percent over the past two years.” Conservative American think …More
Tobias Bock: In order to answer the question What is Political Risk?, I will focus on a report assembled by the Political Risk Services Group, a commercial provider of political risk analysis to businesses. …More
Robert Zoellick: The president of the World Bank expresses his concern regarding the German focus on bilateral aid programs in an interview with Rüdiger Lentz, head of the Deutsche Welle studio in Washington and executive director USA of the Atlantic Initiative. …More
Christian Andreas Morris: On balance the economic decisions of the EU benefit the world economy, despite the fact that some its policies could be interpreted as protectionist. …More
The coping mechanisms which have kept US middle-class families afloat since the 1970’s are no longer sufficient. ++ Wages, adjusted for inflation, have barely increased in three decades, so Americans have moved more women into the …More
The struggling US economy has become a critical issue for America’s current and future leadership. Robert Reich, a professor of public policy at the University of California at Berkeley and a former US secretary of labour, …More
The subject of Asia has become a common source of criticism in US politics. Many Republicans want to see an end to cooperation with Peking because of China’s alleged attempt to displace the US in Asia, its defense budget, missile buildup, …More
Andrew Moravcsik of Princeton University says that 2008 could be a “year of destiny for transatlantic relations”. Regardless of the outcome, the American elections are likely to spark a change in US foreign policy and the European Union …More
Confronting some of the protectionist calls during the ongoing presidential nomination process, Steven E. Landsburg, a professor of economics at the University of Rochester, reminds us of the huge benefits of free trade we benefit from everyday.
Thus, even …More
In a speech before business leaders, UK Prime Minister Gordon Brown stressed the need for the UK to remain engaged with the EU, in order to push for “reforms that are essential for Europe’s, and Britain’s, economic future.”
Brown, delivering a very …More
With China’s economy predicted to double over the next decade — and surpass the United States’ economic leadership by 2020 — there is no question that China is on the rise. The question is not if or …More
The desire for growth essentially drives the globalization of these companies. Having realized that a strong presence on their home market is not sufficient to secure their long term sustainability, they move abroad, in search of continued growth …More
The time has come for the United States and Europe to formally unite, postulates John Vinocur of the International Herald Tribune. Referring to former French prime minister Edouard Balladur’s recent essay on a “Union of the West,” …More
A Missed Opportunity The economic backwardness of the Arab World is striking. Its poor record is second only to Sub-Saharan Africa. In a region of 250 million people, more than 50% of whom are under 35, more than 40% of whom are …More
The international interest in the development of Central Asia increased sharply during the last two decades. Johannes Linn identifies in his article “Central Asia: A New Hub of Global Integration” the main reasons for this renewed …More
Stryker McGuire laments that the days of real ideological battles between Europe’s major parties are over. Thus, be it in Britain, Denmark, Spain, Portugal or Germany, parties from left and right agree on almost everything, bar …More
The Economist reports that the Sino-American trade talks have achieved very little, despite US Treasury Secretary Hank Paulson’s impressive links with China.
Thus, the economic meetings, dubbed “Strategic Dialogue,” although producing …More
The inner-workings of the sub-prime crisis in the United States are explored by the BBC. Scrutinized are its origins and its effects, but particularly the role of the mortgage bond market in the outcome and …More
At the recent EU-Africa two day summit in Lisbon, the EU not only failed in securing formal trade agreements with Africa but also in combating China’s growing influence in Africa according to Andrew Grice of the Independent.
Only 15 of the 76 …More
Jose Ignacio Torreblanca of the European Council on Foreign Relations (ECFR) criticizes Sarkozy’s proposal of a committee of the wise, to address the future of Europe, but discusses how it might eventually come to be seen …More
For all the criticism globalization receives today, the diversity it has brought about offers a range of benefits. And these are not only social and cultural benefits. There are also tangible economic benefits.
Legrain points towards the research …More
Anders Åslund of the Peterson Institute for International Economics argues that citizens of paternalistic regimes stand to lose most from Sovereign Wealth Funds (SWF).
Even though by 2015, assets accumulated by SWF will equal the size …More
A new report by the Boston Consulting Group reveals that developing world firms are growing fast and spreading into foreign markets. The list of 100 firms consists of multinationals which are expanding overseas aggressively.
So why …More
A new survey by the German Marshall Fund finds that further transatlantic trade and investment are seen by majorities on both sides of the Atlantic as crucial to the economic stability of the region. While …More
Most economic indicators in the United States look disappointingly opaque today, with the exception of an acceptable 4.6% unemployment rate. Yet Dr. Joseph Stiglitz argues in his article, “The Economic Consequences of Mr. Bush,” that …More
As the prices of basic food staples soar, the world’s poor are getting ever-hungrier and increasingly vulnerable. Furthermore, the World Food Program (WFP) is experiencing exponential growth in expenditures, informs the Economist. While 850 …More
Casey S Butterfield: Income mobility in the United States is not as high as people think. If the US economy is so excitingly dynamic, why do children in Canada and Europe have a better chance of surpassing their parents’ incomes? …More
The McKinsey Global Institute (MGI) report for October 2007 explores the rise of petrodollar investors, Asian central banks, hedge funds, and private equity funds as the “new power brokers,” so called because of the increased …More
Katharina Gnath: I laud the ongoing Heiligendamm Process as an important step in involving emerging countries in global economic governance. Five months after the summit, there are still challenges to be met, and the two-year Process is only the first stage in increasing cooperation with China, India, Brazil, South Africa and Mexico. …More
Background
The Energy Watch Group (EWG) initiated by German MP Hans-Josef Fell, is a group of independent scientists and experts who investigate sustainable concepts for global energy supply. The experts at EWG use …More
Eckart von Klaeden: India has become a new global player. The broadening and deepening of relations with Western powers such as Germany and the United States in recent years has been welcomed in Berlin and Washington. …More
Debunking five traditional myths about the European economy, Steven Hill from the Washington Post, reassesses Europe’s economic position vis-à-vis the United States and the World. The “eurosclerotic” European Union is …More
Despite tough rhetoric from Chancellor Angela Merkel, Germany continues to play a role in Iran’s nuclear program, writes Benjamin Weinthal in Haaretz. Germany’s official public stance looks shaky in the face of the $5.7 …More
Robert M. Kimmitt:, U.S. Deputy Secretary of the Treasury, applauded Germany’s efforts at forging transatlantic economic bonds during a media breakfast hosted by the Atlantic Initiative in conjunction with the DGAP and Bohnen Kallmorgen & Partner. Kimmitt’s stop in Berlin was part of an extended trip through European capitals aimed at promoting common transatlantic policies towards financial and economic issues. …More
Control of the world’s oil is in a smaller and smaller number of hands, writes Sacha Kumaria on Yale Global Online. Rising oil prices — analysts predict $100 per barrel by the end of 2007 — has fuelled increasing competition between independent oil …More
Education is a vital part of the UK economy, says Donald MacLeod in response to a report by the British Council. The report, compiled by Dr. Pamela Lenton of the University of Sheffield, reveals that the educational sector is worth more to …More
The conclusions made in the World Bank report Where Is the Wealth of Nations?, first published in 2006, have been largely overlooked in the policy world and offer valuable information on how to evaluate the changing global …More
Maria Rankka: I urge Europe to look beyond Sweden’s mythic welfare state and learn from the country’s history of free trade and free enterprise. Protectionism and social safety nets will not forestall the wave of competition from globalization. …More
Christine Otsver: Labor mobility in the EU-25 is shamefully low. One of the EU’s core concepts is freedom of movement, but getting more workers to resettle will take some radical rethinking. …More
Washington Post columnist Joel Achenbach takes a look back at the history of world empires and makes some bets on America’s future. The list of empires is extensive and some enjoyed great longevity, …More
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