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December 21, 2012 | NATO's Senior Defense Economist on Security Despite Austerity - Part 2

Editorial Team: Adrian Kendry responds to member questions about NATO capabilities, specialization, and other aspects of smart defense. He also explains NATO’s commitment to energy efficiency and talks about resource wars and terrorist financing. …More

December 19, 2012 | It Is Time for Transatlantic Free Trade

Europe buys three times more US products than China. ++ Though US orientation towards Asia is legitimate, the importance of transatlantic relations must not be neglected. ++ A Transatlantic Free Trade Agreement can significantly foster …More

December 18, 2012 | Turkey and the EU - a Slow Alienation

Negotiations between the EU and Turkey about full membership have almost come to a dead end. ++ A breakthrough will be difficult to achieve due to the continuing criticism on Turkey’s restrictions on human rights. ++ Recent surveys …More

December 14, 2012 | US-Russian Relations: Towards The Eurasia Pivot

Cooperation between the US and Russia in international affairs still suffers from mutual distrust. ++ An improvement demands the willingness to shape a longer-term strategy addressing contemporary global challenges. ++ American …More

December 13, 2012 | NATO's Senior Defense Economist on Security Despite Austerity - Part 1

Editorial Team: Adrian Kendry has answered questions from atlantic-community.org members about the security implications of the financial and economic crises. In the first part, he talks about potential threats to the stability of the Alliance, terrorist recruitment and defense spending levels. …More

December 10, 2012 | Rising Dragon

Georgi Ivanov: The ongoing financial crisis is a forewarning of America’s declining role as the custodian of global finance and China’s increasingly important role in the world economy. The hypothesis posited and analyzed here is that a multilateral global economy, led by China, is the best alternative for a stable global financial system in the 21st century. …More

December 6, 2012 | Why Not Create an "Economic NATO"?

Historically, austerity measures have proven wrong to stimulate sustainable economic growth. ++ A trans-Atlantic free trade agreement can be the right move to foster both the US and the European economies. ++ Harmonizing markets and …More

December 3, 2012 | Shada Islam, Friends of Europe

Shada Islam is the head of the Asia Programme at Friends of Europe - a Brussels-based European think-tank promoting discussion and debate on the future of the EU.
For over 25 years, she has covered Europe-Asia relations as a correspondent for …More

November 27, 2012 | Defence Specialization: Indispensable or Unachievable?

Alyson JK Bailes: Logically, one of the best ways to get more bang for fewer bucks - while also deepening cooperation - should be for nations to specialize further in their defence roles on a basis of comparative advantage. Yet there are many obstacles. …More

November 27, 2012 | US Pivot Pitfalls and Prospects

Richard Weitz: The Obama administration has yet to find a robust balance between deterring without alarming Beijing, or assuring its allies and friends that the United States would neither abandon them to China’s growing might nor entrap them in an unwanted confrontation with Beijing. …More

November 20, 2012 | Ask NATO about Security Despite Austerity This Article contains Flash-Video

Editorial Team: Adrian Kendry is NATO’s Senior Defense Economist and works in the Emerging Security Challenges Division. In our latest Q&A, he takes your questions on the interaction of economic and security challenges. Watch his opening statement. …More

November 16, 2012 | Free Trade for Mutual Benefit

The US and Europe remain each other’s largest economic partner with a daily trade amount of 3.6 billion dollars. ++ A renewed partnership with the US could in particular stem from cooperation in economics. ++ Reducing barriers to trade and …More

November 5, 2012 | Smart Defense: A Eurosubmarine

Balazs Martonffy: The nuclear submarine fleets of Britain and France are in need of replacement. Both countries and their defense industries should build a single co-produced platform. This “Eurosubmarine” might initially be designed to fully replace each nation’s fleet in an economical way, but could eventually lead to a joint European nuclear deterrent. …More

November 2, 2012 | Time to Depreciate the Euro

“Recent events at the European Central Bank, in Germany, and in global financial markets, make it worthwhile to consider a favorable scenario for the common currency’s future.” ++ Interest rates on Italian and Spanish bonds decreased on the …More

October 22, 2012 | What Does the Euro Crisis Mean for Europe?

Karsten Voigt: EU decisions have been driven by political motivations with major economic implications. Members were unable to agree on an efficient governance structure. Since some members want less Europe, not more, an improved system of governance cannot include all members for the time being. …More

October 16, 2012 | EU's Single Supervisory Mechanism Needs Work

Five years on, Europe’s economic situation remains vulnerable to a mild recession expected this year. ++ Recently, a decision was reached to create a single supervisor for banks in the eurozone, however work still needs to be done …More

October 4, 2012 | The United States' Wrong Economic Medicine

Policymakers have misdiagnosed the ailment of America’s financial problems. ++ The prescribed medicine can result in unwanted side effects. ++ The American consumer, the patient, has been spending far less, due to the disease, the …More

September 21, 2012 | Europe Needs Not More, But Better Integration

Franziska Brantner: Before they demand more Europe, pro-Europeans have to say how citizens can stay in control of the process. The grand project of finally making the EU into a true economic union, finally risking the step to create a true political union after more than five decades – this project will only be successful if citizens see themselves as part of the process. …More

September 18, 2012 | Strengthening EU-China Relations

Pop Irina Ionela: The European Union’s strategy in its economic relations with China needs to be coherent, feasible and more interest-based. The EU could take on several initiatives, including granting China market economy status, negotiating a bilateral investment agreement, and improving EU-China relations within international institutions. …More

September 18, 2012 | A Win-Win: Chinese Banks in the European Market

China’s second largest bank, China Construction Bank, wants to buy $15.8b worth of assets in a European bank. ++ With the rapid growth of the Chinese economy, their initiative makes sense, but the differences in …More

September 17, 2012 | In November, Obama Should Thank Europe

Obama’s reelection success will be due to Euopean Central Bank President Mario Draghi. ++ Greece’s exit from the eurozone or the collapse of the ESM would have really hurt the EU and US economy, thus giving Romney leverage to win over …More

September 14, 2012 | Conference Invitation: Europe's Common Future

Editorial Team: The EU not only finds itself in a fiscal crisis, it is also faced with a crisis of confidence. We need a broadly based public debate on alternative proposals for the future of Europe. With this in mind, the Heinrich Böll Foundation’s international conference explores different perspectives and policy proposals. Atlanitic-community.org is a media partner and invites you to attend the conference or watch the live stream. …More

September 7, 2012 | Banks are at the Core of the Euro Crisis, not States

The troika is now calling for Greece to make cuts of nearly €12bn to reduce public dept by 2014. ++ The government agreed to reduce social expenditure, pensions, and public sector wages. ++ Unfortunately, all the …More

September 4, 2012 | Putting All Our Eggs in the BRICs' Basket

There is an illusion that the BRICs can support global growth while Europe and the US falter with debt. ++ Yet, the BRICs have their own Achilles’ heel. ++ Brazil struggles with dropping commodity prices; Russia has little …More

September 3, 2012 | Think Tank 20: New Challenges for the Global Economy, New Uncertainties for the G-20

The Brookings Institution, along with its think tank partners, has published the fourth edition of Think Thank 20 entitled “New Challenges for the Global Economy, New Certainties for the …More

August 30, 2012 | The Next Four Months are Crucial for Europe

As European countries embrace themselves for yet another recession, political leaders of the eurozone are faced with the challenge of saving the Euro from fragmentation while harnessing support from their respective publics. ++ …More

August 28, 2012 | German Leadership at Home and Abroad

Merkel has taken bold initiatives at home and overseas. ++ At home, she opposed Greek’s exit from the eurozone, thereby preserving the unity of the union. ++ Abroad, she represented not only Germany, but the EU in her visit to China where …More

August 24, 2012 | The US Has Learned, the UK Has Not

The approach that encouraged the financial crisis has still not been replaced and sufficient regulation is lacking on both sides of the Atlantic. ++ The US recognizes this, but the UK does not. ++ Some wrongfully claim the regulations of …More

August 13, 2012 | The Last Shall Be First: German Bonds and the Euro Crisis

Christian Fahrholz & Gernot Pehnelt: Investors with exposure to Euro-denominated German bonds should consider switching to more defensive plays than aggressive bets. In the end, Germany’s status as a ‘safe haven’ within the Eurozone might just disappear. What happens then? …More

July 31, 2012 | Be Careful, European Central Bank

ECB President Mario Draghi walks a thin line between monetary policy and fiscal policy. ++ He wants to purchase more Spanish and Italian bonds, but it is dangerous because they bear high interest rates. ++ Instead, the ECB should conduct …More

July 31, 2012 | European Central Bank Walks a Thin and Dangerous Line

ECB President Mario Draghi threads a thin line between monetary policy and fiscal policy. ++ He wants to purchase more Spanish and Italian bonds, but it is dangerous to make purchases that bear high interest rates. ++ …More

July 27, 2012 | Is the IMF Losing its Steam?

The resignation letter of a senior IMF official is proof that the IMF is faltering in its mission as crisis-stabilizer. ++ It has failed to mobilize its intellectual and financial resources to help solve the eurozone crisis. ++ Neither its lack …More

July 23, 2012 | An Honest Monti Just Might Save Italy

The tale spun by Monti is one in which Italy secured the right to use eurozone rescue funds without any additional conditions. ++ As the country approaches an investment crisis and it becomes more likely that Rome will have to tap into …More

July 18, 2012 | Conflicting Agendas in UN Agencies

The UN agency WIPO has provided technical support and hardware to Iran and North Korea. ++ Although its contributions are only meant to improve the intellectual-property agencies of both countries, its actions violate UNSC resolutions …More

July 17, 2012 | Diversifying Yemen's Economy

Yemen is struggling with much more than insurgents and al-Qaida cells. ++ The unemployment rate is 35% and the population growth rate is 2.5%. ++ It is necessary for Yemen to diversify its economy away from the oil and gas sectors. ++ This can be …More

July 9, 2012 | The Coming Resolution of the Euro Crisis

Since 2010 many pundits and financial analysts have constantly proclaimed that EU
leaders only have three months to save the Euro. The general mood and the
outlook gets more and more pessimistic. Thus, the policy brief by Fred …More

June 28, 2012 | Structural Adjustment Programs and Inequality

Sander Florian Tordoir: While IMF-World Bank Structural-Adjustment Programs are associated with higher inequality in the short-run, larger structural-adjustment seemingly decrease inequality in the long-run. Furthermore, growth during an SAP does not benefit the poor as much. …More

June 13, 2012 | Berating Berlin is Detrimental to Europe

Spain is now viewed as part of a wider struggle to rescue Europe, with Germany portrayed as the villain. ++ Intellectuals are calling for Berlin to take measures that may lead to political radicalization. ++ From Berlin’s view, it is …More

June 5, 2012 | Rescuing Spanish Banks

The EU must find a way to salvage its banks and should start with Spain. ++ Spain’s banks are paralyzed amid losses incurred by real estate loans. ++ An injection of capital, 120 billion euros, is required. ++ The situation is only getting worse, as bank …More

June 2, 2012 | Karel de Gucht, European Commissioner for Trade

Karel De Gucht is the present European Commissioner for Trade and co-chairs the Transatlantic Economic Council. Up to February 2010, he served as European Commissioner for Development and Humanitarian Aid. He is a former Belgian …More

June 1, 2012 | Prepare for Eurozone Worst Case Scenario

The Eurozone could be approaching an emergency moment. ++ The markets are signaling anxieties: Eurozone sovereign debt is a risky investment and banks are under stress. ++ If Greece leaves the Eurozone, it is impossible to predict what …More

May 30, 2012 | Whither the European Project?

Germany’s inability to address the Eurozone crisis means that Europe is now facing an existential crisis. ++ As shown by history, Germany’s strict austerity will only lead to depression. ++ Europe’s future depends on Germany’s economic policies …More

May 29, 2012 | Not Making the Case for Open Trade

Public support in the US for open trade has fallen. ++ One of the causes for this drop is that politicians make unconvincing mercantilist arguments for free trade: we open our markets so they open theirs. ++ This kind of free trade …More

May 22, 2012 | Will East Asia Surpass the World's Largest Economy?

The leaders of China, South Korea and Japan agreed to launch talks to lay down the foundations for a trilateral free-trade agreement (FTA). ++ Together the economies currently constitute 20% of global economic output and …More

May 16, 2012 | Berlin's Competitiveness Gains Perpetuate the Crisis

European leaders must pay close attention to the “austerity vs. growth” debate. ++ Although there is much condemnation of Europe’s austerity cure, critics are unsuccessful in finding solutions to fund …More

May 11, 2012 | Spain Needs Audacity, Not Half-Measures

Spain must be bold in order to reestablish confidence in it banks. ++ Without healthy banks, the Spanish economy will continue downhill. ++ Current measures have been too little, too late. ++ Policymakers have been indecisive and …More

May 10, 2012 | Changing Policy Over Dinner

Economic policy changes in Europe have been a common feature of the EU since its inception. ++ However, the fundamental politics of decision-making has yet to change. ++ Crucial deals are still being concluded behind closed doors among key national …More

May 8, 2012 | Hollande's Victory an Opening for Europe

Hollande’s victory offers Europe an opportunity to directly address the challenges ahead. ++ The victory should bring an end to policy focused entirely on austerity, which has split the EU and paralyzed economies. ++ Any new plan for …More

May 7, 2012 | The Failure of Today's Monetary System

The current global monetary system is insufficient to deal with today’s challenges. ++ Since the collapse of Bretton Woods, there has been a US dollar-led system, which in turns allows for less than optimal US financial policies. ++ …More

May 2, 2012 | Politics of EU's Structural Fund Policy

Thilo Bodenstein: This article investigates the political determinants of EU’s Structural Fund distribution. It concludes that the official criteria used are not sufficient to explain the final distribution of Structural Funds, and that at the interregional level, pork-barrel politics plays a strong role in determining the amount of Structural Funds. …More

May 2, 2012 | "Designed in Europe" Meets "Made in China"

China’s ongoing process of găigé kāifàng (reform and opening up to the West) and the process of European integration are both paving way for a more economically fruitful future. ++ In an effort to …More

April 27, 2012 | The EU Path to Prosperity

International trade is not a zero-sum game; it is a mutually beneficial good. ++ Any steps to stop international trade through protectionist measures will only hinder economic growth in Europe. ++ Innovation is a major driver of economic progress. ++ …More

April 25, 2012 | Yuan Not to Blame!

America’s trade deficit with China mounted to a hefty US$295 billion in 2011. ++ China has been accused for allegedly manipulating its currency, thereby driving the US trade deficit. ++ In reality, however, China’s trade surpluses can be …More

April 18, 2012 | Islamic Economics and the Global Financial Crisis

Renáta Janka Janka Tóth: The Islamic banking system showed a higher resilience during the global financial crisis than its conventional counterparts and is gaining more recognition worldwide. Some are even considering the implementation of the system in the conventional banking systems of Europe. …More

April 13, 2012 | A New Opening for India and Pakistan?

India now has the chance to improve its relationship with Pakistan. ++ Pakistan is showing a new inclination to work with India. ++ Pakistani President Zardari recently made a successful visit to India ++ India should use this moment to …More

April 12, 2012 | Fall of a Western Democracy

As debt-ridden Greece cedes sovereignty to the EU, ECB and IMF, the country is increasingly looking less like a nation in crisis and more like a company run by foreign professionals. ++ Since the market was not competitive enough, prices rose, while …More

April 10, 2012 | The Shortcomings Holding China Back

China’s rise to the top is not preordained. ++ Its system is cracked along political, economic, and social lines. ++ The choosing of party leaders is not transparent. ++ China relies far too heavily on exports and investment in infrastructure …More

April 3, 2012 | How to Save Myanmar

In light of recent events, Myanmar is facing its most important moment since military rule began in 1962. ++ Popular protests did not force the regime to hold recent elections. ++ And change is coming in spite of Western sanctions, not because of them. ++ …More

April 2, 2012 | Climate Change Policy: Pretext for Protectionism?

The EU proposal to require all flights to and from Europe to obtain emission permits might spark a new trade war. ++ The US and China are enraged over the new proposal and doubt the sincerity of it. ++ Europe’s trade …More

March 28, 2012 | BRICS: Changing the Global System?

The BRICS (Brazil, Russia, India, China, and South Africa) could be a force in reforming global institutions. ++ The BRICS are now looking for an identity backed by institutionalized cooperation such as a common development bank. ++ China …More

March 26, 2012 | Coming Soon: The Transatlantic Market

There has never been a better opportunity for the US and EU to strike a free trade deal. ++ There is unparalleled backing for such an agreement. ++ Washington and Brussels have created a High Level Working Group to find ways to …More

March 23, 2012 | Europe Stoking Trade War

The European Commission’s recent proposal on public procurement risks a 1930s-style protectionist war. ++ The proposal would allow the EU to close public-procurement markets to countries that exclude European companies from their public contracts. ++ …More

March 16, 2012 | Follow New Delhi to Tehran

Iran and India are developing a warmer relationship. ++ In light of renewed sanctions, India hopes to step into the Iranian markets vacated by European firms. ++ Iran could provide India not only with oil, but also with chemicals, polymers, and …More

March 13, 2012 | The Perils of Austerity

Greece’s troubles have been used to promote a false narrative about deficits and austerity. ++ Greece has officially defaulted on its debt, even if in a negotiated manner. ++ But the story of Greece shows that while deficits are bad, slashing …More

March 8, 2012 | World Bank Risks Insignificance

The World Bank will become irrelevant if not reformed. ++ The US has traditionally appointed the World Bank president while Europe claims the IMF’s managing director. ++ This arrangement does not reflect the fact that emerging markets represent …More

February 23, 2012 | Flawed Agents of the Contemporary Global Economic Governance

Balazs Ujvari: The world economy is currently looking more precarious, more unequal and less governed than it has been in previous decades. This is in part because governance (particularly the IMF, WTO, and the World Bank) within the global economy has not kept up with globalization and growth. …More

February 2, 2012 | Hungary: A Test Case for EU Relevance

Jack Bicker: The diplomatic turmoils surrounding domestic politics in Hungary are a chance for EU institutions to define their effectiveness at a moment of significant flux. They also confirm that a potentially consolidated EU could be a strong and valued partner in a continuing transatlantic alliance. …More

February 2, 2012 | Understanding Change in Brazil's Foreign Policy

Albert Buyé Grau: This dissertation seeks to demonstrate that Brazil’s foreign policy changed during the period between 1990 and 2010 because of the country’s adoption of a consensual hegemonic strategy in South America. This was pursued in order to become a global power. …More

January 26, 2012 | Latin America's Economies: Innocent Bystanders?

Latin America recovered strongly from the financial crisis of 2008-9, but now the region is feeling the pains of financial stress and dwindling global demand. Nevertheless, the major economies (the LAC-7: Argentina, Brazil, …More

January 17, 2012 | Strategic Partnerships: The Indian Case

A New Delhi based think tank has studied the term “strategic partnership” through India’s agreements. ++ India has signed over a dozen partnership agreements in the last decade ++ The Russia-India partnership was rated the most valuable …More

January 13, 2012 | A Multi-Speed EU Will Weaken Europe

David Grodzki: A greater union of the Eurozone countries may have a dangerous effect on the overall unity of the European Union. A growing divide between a “Core Europe” and a periphery based on the Euro threatens to undermine the European integration process and reduce Europe’s status in the world. …More

January 6, 2012 | The Policy Implications of Happiness

Editorial Team: Happy New Year! Before we start discussing the tough security and economic challenges, we would like to wish our members all the best for 2012. Happiness is increasingly considered an additional benchmark for national progress, says Brookings expert Carol Graham. …More

January 4, 2012 | Lots of Talk, Little Action? Chances and Impediments for a New EU-US Trade Agenda

The annual meeting of the Transatlantic Economic Council (TEC) in November 2011 presented an opportunity for German and American policymakers  to make progress on their efforts at greater …More

December 19, 2011 | 2012: An Economic Apocalypse?

The economic outlook for 2012 is clear: everyone is in trouble. ++ The Eurozone is certain to recede further, which will also put pressure on the economic downturn in the US; the UK is majorly exposed. ++ China’s model is stalling, and …More

December 16, 2011 | The Key is Liberalization

Gaspar Frontini: Protectionism remains one of the major threats to global growth. The EU aims to eliminate this hazardous risk and regulatory barriers through free trade agreements and more liberalization. A combination of bilateral and regional trade agreements is the best approach to implementing increased liberalization and reaping its rewards. …More

December 15, 2011 | Learning from One Another

Hans-Hartwig Blomeier: Latin America has experienced a historic economic boom, but numerous social and institutional problems still hamper the region. In contrast, the more democratically advanced EU is facing a historic economic crisis. Working together, both regions can advance each others’ interests and develop a genuine partnership. …More

December 12, 2011 | Europe is Angry Because We're Right about the Euro

David Cameron’s “veto” is nothing so new in EU negotiations; the real problem is it exposes the contradictions of the Euro. ++ Euro nations face an unworkable problem; a single currency needs greater …More

November 30, 2011 | And Another Turns to Germany...

After the latest bond auctions and as French influence wanes, there can no longer be any doubt of what many have long suspected: Germany is the undisputed leader of Europe. ++ Germany should use this strength to guarantee the public debts …More

November 25, 2011 | Spain Calls. Will Merkel Answer?

Newly elected Spanish PM Mariano Rajoy has the country’s biggest mandate in 30 years, but he will still need plenty of outside support to tackle Spain’s imposing economic issues. ++ He is hoping that Germany and the ECB will …More

November 16, 2011 | China's Power Play in Sino-Australian Trade

Estephanie Henaro: China’s economic outgrowth is about more than commercial relationships. It has used its influence on the Australian economy, traditionally a cornerstone of US-led regional stability, to consolidate its access to key energy supplies and assert its own hegemonic structure in the Pacific. …More

November 8, 2011 | Solidarity: The Emptiest Word in Eurospeak

Julian Steven Lindley-French: France and Germany’s past actions expose their current plea for “solidarity” as empty rhetoric. What they really want is more money from the British taxpayer. It will be gladly handed over, but only after they emerge from their Euro fantasy land and take real steps to solve the crisis. (Start with booting Greece.) …More

November 8, 2011 | "Credibility" Gap in Merkozy's Eurozone Strategy

Merkel and Sarkozy’s shifting strategy on the Euro crisis is undermining the credibility of the EU and hurting investment. ++ Suddenly introducing foreign exchange risk to the Eurozone has frightened the very market …More

November 2, 2011 | Russia's Long Road to the WTO

Russia’s 18-year quest to become a member of the WTO may finally be drawing to a close by the end of this year, as Georgia gave its consent under US and EU pressure. ++ The biggest barrier to admission into the WTO, however, lies within Russia in …More

November 1, 2011 | US Will Not Lose Its Leadership Role in Southeast Asia

The emergence of China as a global power has fundamentally changed the geo-political landscape of Southeast Asia. China, US and Japan are making significant efforts to cooperate and work in tandem with ASEAN to “maintain …More

November 1, 2011 | Europe Threatens Obama's Reelection

The biggest danger to Obama’s re-election bid is the possibility of the European crisis spilling over to the US. ++ While the US economy is starting to show signs of gradual recovery, mounting European debt could send the American economy …More

November 1, 2011 | Migration and Development Policy: Six Lessons Learned

Over the past several decades, migration has been at the center of heated policy debates in both the United States and Europe. In this report by the Migration Policy Institute, Kathleen Newland evaluates what lessons can …More

October 28, 2011 | "Europeanizing Europe"

The EU’s inherently weak internal structure is not suited to deal with the current financial crisis and threatens to bring an end to European integration. ++ A collapse of the monetary union would be a death sentence for the EU as a whole. ++ The …More

October 27, 2011 | Eurozone Summit Fails to Address Unemployment

As Eurozone leaders agreed to continue with austerity and forced the banks to write off 50 percent of Greece’s debt, the effect of these measures will hardly be felt by Southern European countries plagued by unemployment. ++ Medium …More

October 26, 2011 | More Productivity, Less Austerity Will Save Europe

The lack of a common fiscal policy is what allowed the Eurozone debacle to occur. ++ Europe has at the same time experienced extremely low levels of growth compared to the US and emerging markets, forcing it to accrue debt to …More

October 20, 2011 | Government Bonds Will Be the Next Economic Blow

Andreas Kern: The initial steps taken to deal with the debt crises have created a new kind of toxic asset: government bonds. If the Eurozone and G-20 members do not take adequate action to coordinate their financial regulation, a government bond credit crunch will be the next shock to strike the faltering global financial system. …More

October 20, 2011 | Don't Start a Trade War, America. You Won't Win.

China’s currency manipulation is now a real problem for both the US and the People’s Republic, and the US Congress should make some effort to press China on this issue; however, the current plan to place tariffs …More

October 17, 2011 | A Betrayal of the Social Contract

Recent protests around the world have varied causes, but all share a basic theme: rejection of traditional elites and a perceived breaching of the social contract. ++ In the US, it is anger against banks and their cozy relationship to the …More

October 14, 2011 | Bond Insurance Can Save the Eurozone

A state-run EU bond insurance system could provide security for Eurozone creditors without compromising members’ fiscal sovereignty. ++ Nations’ interest rates would still fluctuate according to their financial standing but bonds …More

October 7, 2011 | Occupy Wall Street: Take It Seriously

Occupy Wall Street protestors have legitimate grievances about how government has handled the economic crisis, but have been trivialized by the mainstream media. ++ Finding some protestors with contradictory or mistaken claims does not …More

October 4, 2011 | Why Europe Shouldn't Listen to Obama

Obama’s recommendation for Europe to increase spending as part of a wider-reaching economic stimulus is ill-advised. ++ Cheap credits and low interest rates have been at the heart of a failed US economic strategy. ++ Instead of …More

September 30, 2011 | EU Should Tax the Financial Sector

In a time of economic turmoil, the European public finances are under threat and it is time for the financial sector to contribute its fair share. ++ Introducing an EU tax on financial transactions is the key to solving the current deficit …More

September 26, 2011 | Six Reasons to Save the Euro at All Costs

Soeren Keil: To understand why the members of the Eurozone need to “save” Greece from bankruptcy, it is important to think about the consequences of a possible Greek default. This would not only have an effect on Greece and the Eurozone, but put the entire EU in jeopardy. Saving Greece means saving the Euro and the European Union. …More

September 26, 2011 | Greece and Italy Must Abandon Their Old Ways

Clemens Wergin: Why should German taxpayers be forced to pay for a debt crisis caused by tax evasion and corruption in Greece and Italy? Solidarity is not a one-way street and the German public should expect the Greek and Italian governments to take the blame for the economic mess and initiate much-needed reforms. …More

September 18, 2011 | US Should Invest in European Militaries

Jason Naselli: Direct US investment in European militaries would complement joint defense interests and strengthen logistical and political cooperation across the Atlantic. It would also encourage burden-sharing, advance specialization and reduce costs by increasing competition in an industry where it is sorely lacking. …More

September 18, 2011 | Open Markets, Better Arms

Dmitri A Titoff: Without an agreement on a common defense policy, European states are letting market forces play a larger role in shaping their defense industries. Open markets could increase the risk of proliferation, but would also lower arms prices and improve military procurement across European borders. …More

September 8, 2011 | Full Integration Is Europe's Only Option

With more European countries falling into financial turmoil, it is time the EU took significant steps towards greater political and economic integration. ++ The current European crisis shows that a monetary union cannot function …More

September 5, 2011 | Obama Should Present Bold New Fiscal Plan

President Obama must provide Americans with a clear message on jobs and the economy in his upcoming address to Congress. ++ He should break from Democrats and appeal to voters with a new plan that includes a more wide-reaching stimulus …More

September 2, 2011 | Eurozone Success is Up to Germany

Germany faces a choice in the eurozone crisis: allow the creation of a full-blown debt union, or let the euro fail. ++ Berlin has benefitted hugely from the currency union, with the economic surge of the last decade attributable largely to …More

August 29, 2011 | Japan Must Overcome Political Dysfunction

Japan’s prime minister resigned Friday, becoming the sixth Japanese leader to step down in the past five years. ++ Already beset with $200 billion in reconstruction costs after the terrible March earthquake, Tokyo also faces a …More

August 29, 2011 | How Sovereign Debt Resembles Student Loans

Ethan Christian Arrow: Some European countries resemble graduate students more than they do competing investments. Credit, for sovereign states and academia alike, should always be a scarce resource. The impact of students who would rather party is far milder than a country that has borrowed unwisely. …More

August 26, 2011 | "Ukraine's Future Is With the European Union"

Ukraine has come a long way from its Soviet legacy. Now, Kiev sets its sights on EU membership. ++ With an educated labor force and a “rich foundation in science and technology” along with its energy …More

August 24, 2011 | China Must Rethink Economic Growth Model

China has criticized the US for its debt problems, but Beijing’s own growth model is “fraught with difficulties”. ++ Since US and EU debt issues leave its export-driven economy vulnerable to market fluctuations, Beijing …More

August 12, 2011 | Hot Issue: How will the Debt Crisis End? This Article contains Flash-Video

Editorial Team: “Armadebton” and “Debtocalypse” are terms Jon Stewart has used to describe the US debt crisis. European commentators have not yet coined a name for their continent’s debt troubles as eurozone pessimism reaches new depths. Share your thoughts on the on-going sovereign debt crisis. …More

August 12, 2011 | US and Europe Must Support BRIC Recovery

The world economy now depends less on the leadership of the US and Europe, and more on the domestic consumption of large developing markets. ++ Western policymakers should be wary of new monetary stimulus, as a weaker dollar could raise …More

August 11, 2011 | Russia and US: Outraged by the Rating Agencies

Russia and the US have disagreed on several issues recently, such as the US’ imposition of travel restrictions on some Russian officials in response to a controversial human rights case, and by a US Senate resolution urging …More

August 8, 2011 | Doomed to an Economic Double-Dip?

The world economy risks a double-dip, a second severe recession, thanks to an EU debt crisis, fiscal instability in the US, and slow manufacturing seemingly everywhere else. Policy makers are quickly running out of options to trigger …More

August 5, 2011 | Germany's Energy Populism Hurts Europe

Matthew Hulbert & Christian Brutsch: Berlin’s decision to appease voters and phase out nuclear power looks more problematic as energy giants from Germany and Russia merge. The EU is now even more dependent on Russian energy than before, just as Russia turns to Asian markets. As a result, the EU could be left in the cold. …More

August 2, 2011 | "Too Dysfunctional To Lead"

Washington finally reached a debt-limit deal to avert a calamitous default. But the deal, which “strained and nearly snapped American politics,” was the easy part. ++ The compromise avoided reforming America’s massive …More

July 28, 2011 | Self-Inflicted Crises Plague EU and US

Dysfunctional politics have turned financial challenges into crises on both sides of the Atlantic. ++ In Europe, officials have “dithered and argued at national, intergovernmental and pan-eurozone levels” as Greece’s …More

July 27, 2011 | Cutting the US Deficit: Listen to Bill

Stewart Munn: Bill Clinton is right to use the UK economy as a warning of what can happen if deficit spending is cut too severely. If Republicans get their way in the ongoing deficit negotiations, America’s economy could be headed for a long, painful spell. US politicians should take heed. …More

July 25, 2011 | US Must Solve Domestic Issues First

In a world of diverse threats and diffuse power, the US must turn to a policy of “restoration” to “rebalance the resources devoted to domestic challenges, as opposed to international ones, in favor of the former.” ++ …More

July 22, 2011 | Europe Must Share the Debt Burden

Thursday’s emergency EU summit created an immediate rescue package for Greece and a sliver of hope for Italy and Spain, but the euro’s stability in the long run depends on the taxpayers. ++ The heavily devalued national bonds of …More

July 20, 2011 | Germany is Deeply Divided on How to Deal with Russia

Ingo Mannteufel: Germany’s political and intellectual classes are completely divided over how to perceive present-day Russia and what Germany’s policies toward the country should be. This was noticeable ahead of the Petersburg Dialogue, and even more evident during its discussions and lectures.
…More

July 19, 2011 | Europe Has Obama's Attention

As the eurozone crisis groans on, a German-led Europe regains the stage as America’s most important foreign partner. ++ But this is more a matter of necessity than choice. “Openings to China and India have produced little. Relations with …More

July 19, 2011 | EU Crisis: Return to the Language of Truth

Hans F. Bellstedt: Joschka Fischer’s call for “greater European political unification” will not help solve the EU’s ongoing debt crisis. The only way to regain the public’s trust and restore financial markets is strict fiscal austerity as a prerequisite for future sustainable growth. …More

July 18, 2011 | Merkel a "First-Class Passenger on the Titanic"

EU politicians, led by Germany’s Angela Merkel, have been too slow to realize that the eurozone crisis is the fault not of any single state, but of “a monetary union that refuses to be a fiscal union.” ++ …More

July 15, 2011 | How to Solve the US Debt Crisis

The US political elite is responsible for the country’s current debt-ceiling crisis, a direct result of public spending that has skyrocketed to its highest levels since World War II. ++ President Obama has failed to create jobs and improve …More

July 14, 2011 | Despite Rise, China Could be Doomed

As China continues its meteoric rise and challenges US economic supremacy, both China’s growth and America’s shaky position tend to be overstated. ++ China’s massive infrastructure investments lack transparency and predictability, and …More

July 14, 2011 | Does Europe Have a Death Wish?

Joschka Fischer: Europeans must forge ahead with the political union now; otherwise the euro and EU integration will be undone. Europe would then lose nearly everything it has gained over a half-century from transcending nationalism. In the light of the emerging new world order, this would be a tragedy. …More

July 13, 2011 | Israel Solidifies Global Diplomatic Ties

Until recently, Israel’s foreign policy was defined by its conflict with Palestine, which stunted its growth and its engagement with the world. ++ Now, Israel is pursuing a strategy of “inclusion, integration and …More

July 7, 2011 | "American Power Requires Economic Sacrifice"

President Obama wants to cut US defense spending by $400 billion, about 7 percent, by 2023. The proposed cuts would help deal with soaring national debt, but they also signal the ebbing of US preeminence in world affairs. ++ The …More

July 5, 2011 | The Economic Case for Supporting Israel

Tiny Israel has long depended on the United States for military aid and security. But Israel is also vital to the economic interests of the United States. ++ Despite being smaller than the state of New Jersey, Israel is a global leader in …More

June 30, 2011 | Greek Austerity Drama

It is still far from clear how the Greek saga will conclude. ++ The adoption of the austerity package sparked riots and sharpened the question of whether “the increasingly rebellious Greek public” is ready to meet the severe cuts. ++ In case of …More

June 29, 2011 | To Save the IMF: Lagarde's To-Do List

The scandalous resignation of the IMF’s managing director Strauss-Kahn and bailouts of European debtor states urge the new IMF head Chistine Lagarde to turn to decisive policy actions. ++ Apart from restoring separation …More

June 24, 2011 | EU: the Union of Shattered Dreams

Greek debt crisis questions the existence of the EU and outlines the instability of a monetary union which is not backed by political and economic unions. ++ “Dismantling of the welfare and redistributive systems” stir populist …More

June 16, 2011 | Baltic Sea: Developing a Regional Cooperation for Renewables in the Electricity Sector

Europe has the potential to generate all of its electricity from renewable
energy sources if it combines its diverse natural potentials. The Heinrich Böll
Foundation has strongly …More

June 9, 2011 | Greece: to Pay or not to Pay

Germany’s decision “to ask Greece to offer its debt holders a seven-year term extension” draws more attention to the deep economic, social and political deadlock of the heavily indebted state. ++ Against the background of …More

May 31, 2011 | "Populist Temptations" Threaten EU Integration

Ongoing political and economic challenges put under pressure the existence of the Schengen travel zone and the euro. ++ Electoral success of populist parties in Finland and the Netherlands, North African refugees, the debt …More

May 27, 2011 | The EU, the US and the Pursuit of the 'Good World'

Katja Kruse: EU and US arms export strategies leave them bound to regimes whose domestic practices and policies are questionable. This suggests that international norms such as democracy and human rights do not count as much as economic interests. …More

May 25, 2011 | No European Head for the IMF!

At the G-20 summit in 2009 it was agreed that leaders of international financial institutions would be chosen by an “transparent and merit-based selection process” and no longer needed EU or US nationality. ++ Angela Merkel now wants the job to …More

May 24, 2011 | My Big Fat Greek Debt Crisis

The ECB has threatened to refuse Greek banks access to its refinance operations which would most likely force Greece out of the Eurozone. ++ Whether the ECB is bluffing is uncertain and ministers are divided. ++ Merkel is cautious when supporting …More

May 23, 2011 | The Austerity Myth is Dead

The economic utopia that spending cuts and fiscal austerity will tackle unemployment threatens Europe with a new financial crisis. ++ The imposition of austerity programs aggravated the financial situation of EU debtor states. ++ The irrational …More

May 12, 2011 | Afghanistan 2011: Last Call for a Smart Economic Policy

As the Obama Administration intends to begin the gradual withdrawal of troops from Afghanistan this year, time is running out on the international community in its efforts to pacify the rebellious country on the Hindu …More

May 2, 2011 | Growth, the Rural Gap and Legitimacy in China

Franziska Petersen: This paper analyzes how the rural gap and the environmental question may stifle the legitimacy of the Chinese regime and thus the continuation of the process of accumulation and growth in China. …More

April 14, 2011 | Greece's Democratic Deficit is Deepening

Greece’s major problem may be its lawlessness rather than astronomical levels of public debt. ++ Greece’s Communist Party and the “anarcho-Stalinist Coalition of the Radical Left” believe that by destroying Greece’s economic and …More

April 1, 2011 | The Era of Nuclear Energy is Over

Heinrich Bonnenberg: The energy industry and politicians valued profitability over safety. They built unsafe nuclear power plants with light water reactors based on a faulty design meant only for submarines. Due to the disaster in Fukushima, people have lost confidence in all nuclear energy technologies, including the safe very high-temperature reactor (HTR). …More

March 28, 2011 | Targeting the Gap Between Rich and Poor

Leah McFarland: Today’s fundamental global challenge is the rising discontent of poor countries, and thus ameliorating this imbalance with rich states should be a top goal of the transatlantic community. Yet this will require leadership by western, wealthy states currently benefiting from major inequalities. …More

March 21, 2011 | Japan Crisis Veils European Economic Woes

With global attention turned to Japan, Europe is dealing with another looming financial crisis. ++ Japan could recover quickly, as they have after past quakes. ++ Europe must to act, as they represent 20% of the worlds economy, …More

February 21, 2011 | Why the Youth of the World is Revolting

“Demography is destiny”.++ The young people rebelling against autocratic regimes in North Africa and the Middle East as well as those in the UK protesting against university fees have something in common. ++ They have both been let down …More

February 18, 2011 | The West Helps Middle Eastern Dictators to Steal

While tyrants like Hosni Mubarak and Omar al-Bashir steal from their citizens, banks in the west only help conceal it. ++ Rather than celebrating the protests in Egypt and pouring aid into the region, we should focus on the …More

February 8, 2011 | German Firms Abroad: Agents of Change?

German enterprises doing business in countries where regimes do not respect basic human rights should start living up to the responsibility which that clout involves. ++ Instead of waiting for social unrest to explode in places like in …More

January 25, 2011 | Commodities Exchange: Playing Games With Lives

Widespread hunger rears its ugly head again worldwide, as prices for wheat and maize skyrocket. ++ Traders at the international commodity exchanges need to realize that they “are playing with peoples’ lives and …More

January 14, 2011 | Foundation Work Needed to Strengthen Euro

If Spain and Italy cannot shoulder their debt burdens, the euro will collapse despite its strong German foundations. ++ Using the analogy of a building, the common currency requires serious foundation work- in this case the expansion …More

January 13, 2011 | Portugal's Partial Reprieve

While the panic surrounding Portugal subsided a little yesterday, the reprieve may turn out to be a temporary one at best. ++ Investors continue to fear a default on Europe’s periphery. ++ Moreover, European policymakers’ insistence that …More

January 12, 2011 | Gulf Oil Spill: Cleanup is Good, Prevention is Better

The final report on the Gulf oil spill demands that oil companies provide more detailed assessments of the true risks involved in deep-sea drilling. ++ The oil lobby strongly opposes US attempts to regulate the industry …More

January 12, 2011 | Developing the Russian Economy Through Financial Literacy

Natalia Smirnova: In order to stimulate the Russian economy, citizens need to become more involved in the banking and financial system by investing in stocks and bonds. However, marketing bank loans and investment in financial markets to people will not help unless it is combined with a program of financial literacy for everyone. …More

January 11, 2011 | Kremlin Overreacting to Opposition Threat

The arrest of opposition figures Limonov and former Russian Prime Minister Nimzov reveal the government’s nervousness with regard to the threat posed by the opposition to its power. ++ Falling fossil fuel prices are putting the …More

January 10, 2011 | Parag Khanna: How to Run The World

Editorial Team: The world is entering a perfect storm of calamities: a great game for scarce natural resources, financial instability, environmental stress, and failing states. In some respects, it isn’t far off from that medieval landscape of almost a millennium ago. …More

December 20, 2010 | More Sovereign Debt Shocks Coming Down the Line

The issue of rising sovereign bond yields, not just in the euro zone, but across the Western world, will be one to watch in the New Year. ++ However, governments are in a position to minimize this volatility. ++ The United States …More

December 17, 2010 | Euro Crisis: Germany Must Lead Fightback

“The time for stumbling through the euro crisis is over.” ++ A radical, targeted effort is required to protect the future of Europe’s common institutions. ++ The path to this involves tough, yet practical solutions: the creation of …More

December 16, 2010 | China is Using Europe's Weakness

China is increasing its commercial activity in Europe in hope of stabilizing one of its most important trading partners. ++ Beijing is thus “using Europe’s weakness to gain in influence on the continent.” ++ The Chinese are …More

December 10, 2010 | Europe's Leadership Deficit

The scale and urgency of Europe’s financial crisis is not being confronted, or even acknowledged by its leaders. ++ “Europe needs to move forward to a sustainable euro, not back to the days of competing currencies”. ++ For that to happen, it needs …More

December 9, 2010 | Future of Eurozone a Worry for Russia

45% of Russia’s reserves are held in Euros, but Russia’s Central Bank apparently has no backup plan for what to do should the Euro crash. ++ Speculations as to the future of the Eurozone abound in Moscow, as observers fear that Germany …More

December 6, 2010 | Europe's Piecemeal Failure

Policy makers are making the same mistake with the sovereign debt crisis in Europe that they did with the banks two years ago. ++ Dealing with the problem on a case by case basis ignores fundamental systemic flaws. ++ The solution for the euro zone …More

November 29, 2010 | Europe is Edging Towards the Unthinkable

“It is easy to criticise eurozone governments, but how about some constructive advice?” ++ The EU chose not to establish a contingency plan for the Euro during the past decade of prosperity. ++ Now, the longer you wait the more radical …More

November 26, 2010 | Only Germany Can Save the Eurozone

The current threat to the eurozone is the greatest challenge to German statecraft since the country was peacefully united 20 years ago, but at the moment they are not rising to the challenge. ++ Following Greece and Ireland, the next …More

November 18, 2010 | The Price of German Leadership

The euro, the European Union’s boldest and most ambitious project, is under threat. ++ This has has damaged the EU’s reputation around the world. ++ However, the crisis has seen the emergence of a genuine EU leader in Angela Merkel. ++ This …More

November 12, 2010 | We Need a Common European Foreign Policy, Now

EU national rivalries are a standing invitation for any major world power to divide and rule. ++ In relation to China and Russia, EU member states want the EU’s collective stance to be tougher than their own individual ones. ++ …More

November 11, 2010 | G-20 Summit Should Not Overlook Poorest Countries

South Korea will be hosting the November 2010 G-20 Summit. ++ In this regard, the developed economies should focus on the needs of the world’s poorest countries, as they too are crucial to “rebalance” the global economy …More

November 3, 2010 | Rare Earth Dispute Hampers Renewables

China’s trade policy could force the renewables sector to its knees – an industry that has registered 230% growth in global investments since 2005 and generated $162 billion in investments last year alone. After all, this …More

October 19, 2010 | Tariffs on Chinese Goods Will Not Solve US Jobless Woes

Eric Maurice Fung: If the US Currency Reform for Fair Trade Act becomes a law, trade war between China and the US will be inevitable. Thus, USA’s economic reengagement with China is the most viable solution for the progress of both the countries.
…More

October 4, 2010 | Emerging Powers in the Global Economy

With an increasing shift in the global economic structure, the post WW-II major powers assert that they are ready to offer space to emerging countries. ++ However, the reluctance on the part of these major powers to give up some of their …More

October 1, 2010 | China and Japan: Trade Wars

A number of states from Latin America and Asia have engaged in currency devaluations of late in order to help their export businesses. ++ Sanctions are also used for political purposes, as in the case of Iran. ++ Now a Chinese move sent …More

September 29, 2010 | Rich not Middle Class Furious With President Obama

Contrary to the rhetoric in the US media, the middle classes are not those most severely affected and outraged by the financial crisis and President Obama’s policies. ++ Those in low-paying jobs bear the brunt of the …More

September 23, 2010 | The Woes of Obamanomics

With the third of President Obama’s close economic advisers recently resigning, it is clear that the administration’s economic policy must change. ++ According to the theories advanced by Marcur Olson, “advanced democracies eventually …More

September 15, 2010 | China Hits a Great Wall

While many commentators warn of the impending eclipse of Europe and the US by China in the near future, the upcoming “Chinese Century” will in fact last only a few years. ++ A number of factors account for this. ++ Demographic growth is …More

September 15, 2010 | A Critical Look at Western Perceptions of China's IP System

Brian Safran: Transatlantic corporations have channeled their energies into their respective Chambers of Commerce to complain about China’s lack of enforcement of IPR. However, evidence suggests that such firms are not availing themselves to the protections the Chinese system affords. …More

September 10, 2010 | European Finance: Three Musketeers to the Rescue?

Last Tuesday, Europe’s finance ministers bestowed upon three offices the heavy charge “of defending the integrity of the European financial system, much like the Queen’s three musketeers.” ++ A fourth …More

August 24, 2010 | A Currency Battle with China Cannot be Won

The growing US trade deficit with China should not be blamed on the exchange rate – de-linking the two currencies would have a minimal impact at best. ++ There are more effective ways for the US to benefit from China’s growth. ++ …More

August 19, 2010 | Political Populism is the Real Threat in the Gulf

The Gulf oil spill is the latest example of state terror, hyped by Obama as a national disaster for political ends. ++ In reality, oil has reached only 10 percent of the coastline, but the economic consequences stemming from the …More

August 6, 2010 | The Outsourced World: The Philippine Destination

Brian Safran: As a consequence of the global economic recession, many companies are restructuring their workflows and maximizing their potential through outsourcing. The Philippines offers itself as a low-risk destination for outsourced services, providing skilled human capital and the necessary legal infrastructure. …More

August 3, 2010 | Embracing the Myth of Structural Unemployment

The American governing elite has begun to define high levels of economic distress as the new normal for workers. ++ Politicians are in the process of repudiating their responsibility to create jobs by labeling high unemployment as …More

August 2, 2010 | When Will Big Oil Ever Learn?

Christoph Suess: Big oil suppliers like Halliburton should be humble given the disaster in the Gulf of Mexico. Instead, they are claiming that the current crisis won’t affect their business significantly. Governments and above all we, the informed public, should not put up with such obscene behaviour. …More

August 2, 2010 | Tax Bad Behavior for the Sake of Modernization

Peter the Great should inspire the search for funds to help modernize Russia. ++ The Tsar outlawed the wearing of beards and taxed those of his subjects who refused to obey. ++ To fight corruption in Russia’s notorious …More

July 28, 2010 | State of the Food: Globalization and Identity Creation

Christoph Suess: The globalization of food security discourse is a product of discursive processes. By putting together and analyzing the factors influencing the problem, such as politics, international relations, globalization, trade, and even culture, a new perspective can be gained. …More

July 26, 2010 | Beef Up the Budget of the I.M.F.

The International Monetary Fund needs to increase its available resources and adjust its policies to new economic realities. ++ Flexible and precautionary credit lines that guarantee some measure of protection against the aftershocks of a …More

July 14, 2010 | EU Finance: France Gets to Tell Germany Off

The finance ministers of the euro zone “sentenced” French Minister Lagarde to pass a verdict on Germany’s economic course. ++ While it is customary that one EU country assess the economic policy of another, this …More

July 13, 2010 | Intellectual Property Theft Gives China an Edge

China is America’s most important economic partner, but this relationship is dysfunctional and one-sided. ++ China has shown no progress in enforcing intellectual property rights in the software industry. ++ For every five …More

July 12, 2010 | Where Europe and America Differ on Global Banking Regulation

Avinash Persaud: It is tempting to base ideas for global financial regulation on bashing big banks. The greater problem is that of diverging American and European views on a safer rulebook. …More

July 5, 2010 | Challenging the Presumption that China is Weak on Intellectual Property

Brian Safran: Corporations on both sides of the Atlantic have channeled their collective energies into their respective Chambers of Commerce to complain about China’s lack of enforcement of IPR. However, evidence suggests that such firms are not availing themselves to the protections the Chinese system affords. …More

July 1, 2010 | The Broken Promise of the Post-Industrial Economy

The industrial economies of Germany and China have weathered the global financial crisis much better than their high-consumption, post-industrial American competitor. ++ American capitalism has abandoned its manufacturing sector …More

June 25, 2010 | The EU-South Korea FTA - A Good Deal for Both Sides

Soyen Park: For Europe to get out of the current crisis quickly and for South Korea to diversify its trading, a prompt implementation of the FTA is essential. In spite of lobbying against the agreement by certain interest groups, ratification of the FTA could greatly help Europe’s exports and lower import costs for South Korea. …More

June 22, 2010 | Slow Recovery: Bashing the Chinese

Bashing the Chinese has become a fad in the Western media lately, in particular since the recovery has been slow. ++ Proponents of the “China solo show” theory in the West claim that “China has been the biggest winner in …More

June 15, 2010 | The Safety of Europe is Tied to United States Debt

The United States’ rising debt runs the risk of creating a security threat for Europe.  ++ “Should [Europe] continue to rely on the US? Should it bolster its armed forces to become self-reliant? Or should it …More

June 14, 2010 | BP Taints the "Special Relationship"

US President Obama has stepped up his rhetoric against BP in recent weeks, calling for criminal investigations and increasing efforts to remove the statutory cap on the company’s liability. ++ “Given the extraordinary …More

June 10, 2010 | Innovation is the Name of the Game: Even in Russia

It is no coincidence that the US targets 13% of its stimulus package at innovation. ++ Such tactics help the West, especially the US and Europe, “to fortify their domination of the world.” ++ Russia spends only 2% …More

June 8, 2010 | EU Public Debt: Not Out of the Woods Yet

Europe needs sustainable productivity growth and above all job creation in order to leave the public debt crisis behind it. ++ A reduction of public debt levels is absolutely imperative. ++ “While it is true that appeals for fiscal …More

June 7, 2010 | Think Tanks and Their Influence on the Trade Policy Agenda

Jakobine Rosa Martha Janucek: Think tanks are beneficial to the fruitful development of international trade negotiations. They help those involved better understand national agendas, internal debate, and official positions. This was evident with regard to the recent DOHA round. …More

June 1, 2010 | Red Herrings in Eurozone Recovery Efforts

The economic crisis continues to grip the continent, yet instead of pursuing “a strategy based on growth and a credible fiscal adjustment plan,” eurozone governments have chosen to blame speculators and promote unreasonable …More

May 25, 2010 | Taming the European Monster

“There is only one way out of the euro crisis: The euro-zone countries must regain the confidence of the financial markets. But that is only possible if they clean up their budgets.” ++ Unregulated financial markets pose the single …More

May 25, 2010 | Wall Street Loves Tea Party

Corporate donations to the GOP are up by 10 percentage points this year. Traditionally Democratic securities and investment firms are also giving big, as are oil and gas companies. ++ Bankers are furious over tax increases on their private earnings. …More

May 19, 2010 | The European Dream is at its End

The crisis in Europe represents not just a threat to continent’s economic union, but also could signal the downfall of the European “Idea” which includes international cooperation and an international legal order. ++ “If …More

May 14, 2010 | The EU-Mexico Global Agreement: Stepping Stone or Stumbling Bloc?

Corina Ciambur: Using as a case study the EU-Mexico Global Agreement, this article will try to offer an answer to one of the most intense academic polemics in the field of international trade: the compatibility between regionalism and multilateralism. …More

May 12, 2010 | Large Oversights in European Bailout

There was an important oversight in the €1 Trillion bailout designed to rescue the European economy and end speculation against the euro, namely the failure to hold creditors responsible. ++ “ The fact that the creditors to Greece …More

May 10, 2010 | What Will it Take to Hold the Eurozone Together

EU leaders must do whatever it takes to save the eurozone because the newly founded European Stability Fund may fall short. ++ “The reforms, desirable as they may be, are probably too late.”++ And what is taking so …More

May 5, 2010 | "Don't Believe the Shanghype"

Shanghai, host of the World Expo, is one of the coolest cities. ++ But contrary to its image, Shanghai is not very innovative. ++ Private start-ups are thin ++ Regarding patent grants, a key indicator of innovation, Shanghai “consistently …More

April 30, 2010 | Holding Ratings Agencies Accountable

“If the crisis proves anything, it is that the agencies enjoy too much authority among investors and regulators. Any reform that would loosen their grip on bond markets deserves a shot.” ++ There are several ways to accomplish …More

April 26, 2010 | EU Should Have Veto Power in Athens

Hans F. Bellstedt: A high EU official should be installed in Athens as a state commissioner with the power to veto spending plans that do not comply with EU and IMF standards. Greece should enjoy a set of austere rules, similar to those having been imposed by the IMF on Argentina or Turkey when they were in financial trouble. …More

April 23, 2010 | How to Revive Climate Negotiations

A exceptionally cold winter in the Northern Hemisphere revealed inaccuracies in climate data, and the Copenhagen Climate Summit debacle have combined to put the issue on the back burner. ++ If climate change negotiations are to be renewed …More

April 23, 2010 | Towards Sustainable Security in the Maghreb Region

Jean-Thomas Lesueur: While undergoing important transformations, North Africa constitutes a major challenge for the European Union. Bound by geography and history, the two shores of the Mediterranean (including the European Union, North Africa, and up to Sahel and the Sub-Saharan Region), must cooperate in order to consolidate and expand their partnership, especially as globalization reinforces the logic of regional integration. …More

April 20, 2010 | Germany Won't Let Greece Be the Next Lehman Bros

The collapse of Greece’s financial system would be as detrimental as that of a major bank. ++ Germany ultimately benefits from a stable euro-zone. ++ Germany has said that it supports assistance to Greece as a last …More

April 2, 2010 | Is China the Great Currency Manipulator?

China will likely be labeled a “currency manipulator” in the upcoming US Treasury report on foreign currency arrangements. ++ This label could carry a greater diplomatic than economic cost, potentially leading to a trade …More

April 1, 2010 | US Foreign Office Favors Women's Progress

Fifteen years after the Fourth UN Conference on Women, the condition of women worldwide has greatly improved: more and more girls go to school, and the equality between men and women is increasingly being recognised …More

April 1, 2010 | The United Financial States of Europe

The Greek crisis proves that a “halfway Europe” is not sustainable. ++ The implementation of the euro without any integrated economic framework was naïve. ++ Gaps among the EU member states were supposed to narrow thanks to both …More

March 31, 2010 | Need for a New Way to Track African GDP

Africa is often viewed as a hopeless continent that is unable to develop. ++ A recent MIT report proves these assumptions wrong: both the difficulty to collect information and the importance of the underground economy …More

March 29, 2010 | The "German Question" for the 21st Century

The “German Question” has returned, only this time the concern is not over an aggressive, expansionist state in the heart of Europe, but of an introverted power overly concerned with its own self-interest. ++ Chancellor Merkel’s …More

March 24, 2010 | Eurozone Seeks a Leader: Merkel Says "Nein Danke"

“The European Union has been unable to deliver because Chancellor Angela Merkel of Germany, Europe’s biggest, richest country, has been unwilling to lead.” ++ Greece has adopted tough new austerity measures designed to …More

March 22, 2010 | Germany also to Blame for Eurozone Crisis

Germany is not completely blameless for the current economic crisis affecting Europe, and the austerity policies it proposes for the weak economies on the periphery of the eurozone are unsustainable. ++ “A fundamental problem of the …More

March 16, 2010 | Immigration Policy as a Development Tool

The sad truth of the matter is that global income distribution in the year 2010 looks not so very different from that under the Apartheid regime in South Africa. In spite of a myriad of development projects, there is still a great chasm …More

March 11, 2010 | How to Better Prepare for the Next Financial Crisis

The financial crisis demonstrated that economic difficulties arise as a result of misguided financial as well as monetary policies. With the crisis a recent memory, the chances are good for tackling the root of the problem …More

March 11, 2010 | European Economic Government Wanted

What used to be inconceivable, is today desirable and even essential. ++ As mentioned by the President of the EU, a European economic government should be the centre of all the EU efforts and attention for three reasons. ++ First, the …More

March 10, 2010 | Women Can Do It Better

Empowering women in Asia is not only a requirement for basic human rights but also an economic asset in recovery form the global recession. ++ It remains the best way to lower the illiteracy, malnutrition and child mortality rates in the long term. ++ A …More

March 4, 2010 | France Cozies Up to Russia

Last Monday, Head of State Sarkozy hosted Russian President Medvedev in order to seal the biggest arms sale ever from a NATO country to Russia. ++ In return, France increases its dependence on Gazprom pipelines, undermining all prior American and …More

March 4, 2010 | Helping Greece: Reason Over Wrath

The Greek deficit revealed two major flaws in the European integration machine: firstly the sheer absence of a budget deficit watchdog and secondly the lack of either support or sanction if one member state eventually goes bankrupt. ++ …More

February 25, 2010 | US-EU Co-operation is Key to Global Governance

Robert Hutchings: The globalised economy and the rise of new economic giants demand a radically reformed international system. But it will nevertheless fall to Europe and America to fashion these new structures for global governance. …More

February 24, 2010 | Post Apartheid South Africa Turns 20

For its 20th birthday, post-apartheid South Africa has little to celebrate. ++ SA is doing better than anticipated, but expectations were very low. ++ The country has some of the highest murder and AIDS rates in the world as well as one of …More

February 18, 2010 | Why Bailing Out Greece is Not Debatable

Unlike the US, the EU is not a federal union and therefore cannot afford to bail out one of its members. ++ Comming to the aid of individual members of the currency union is simply forbidden. ++ The ongoing debate about the possible Greek …More

February 17, 2010 | The Euro's Final Countdown?

Sylvester Eijffinger and Edin Mujagic: The euro is currently dividing the euro zone more than uniting it. The “One size fits all” policy increased tensions both internally with inflation and externally as a rebuffed currency. The 10 year-old euro is far from holding its promises. …More

February 16, 2010 | Another Lesson of Chinese Wisdom

Outstanding records in all fields prove again that 2010 will definitely be the year of China. ++ Beside the 10 Chinese growth rate outrunning the timid 3,9 world GDP, China is surprisingly enough the world’s first importer in almost all raw …More

February 15, 2010 | Eurozone: One Size Does Not Fit All

Spanish and Greek deficits are a godsend for advocators of fiscal discipline. ++ This is just one aspect of the problem. ++ European elites are being blamed for ignoring signs that proved Europe was not ready for one currency. ++ The …More

February 12, 2010 | Is Greece the New Lehman Brothers?

Joerg Wolf: How should the euro zone members deal with the PIIGS? Portugal, Ireland, Italy, Greece and Spain have big budget deficits and other economic problems that lead to speculation against the euro. How serious is it? What should be done? …More

February 12, 2010 | Eastern Europe Needs the Euro

The global financial crisis has had severe repercussions in the new Eastern European EU-member states, as well as in the three former Soviet Republics of Belorussia, Ukraine, and Moldavia. The following lessons can be drawn from the manner in which …More

February 10, 2010 | Spain is the Weakest Link in the G-20

The Spanish gov’t. is doing damage control to combat the belief that the country is holding back the rest of the eurozone. ++ Spain is the only G-20 country still to be in a recession as of the 4th quarter of 2009. ++ “The …More

February 3, 2010 | US Deficit Projected to Shift World Order

President Obama has projected that it will take at least ten years to eliminate America’s budget deficit. ++ The US could face a situation similar to the one Japan did—as its debt rose, its influence worldwide declined. ++ …More

February 2, 2010 | Davos Reveals Unexpected Gap

The Davos Economic Forum 2010 reaches very little outcome regarding the current economic and financial challenges. ++ Still, what strikes most is the surprisingly widening gap between fast-recovering emerging economies and old struggling …More

February 1, 2010 | 3 Step Survival Kit for the Eurozone

The EU will bail out one of its fellow members for the first time in its 11 year-long honeymoon with the euro. ++ After Greece and Portugal, Spain is likely to ask for support as well. ++ What should be done in order to prevent the eurozone …More

January 25, 2010 | China's Economy Grows at the Expense of the World

China’s foreign exchange reserves rose to $2.4 trillion in 2009, two-thirds of which are held in US dollars. ++ The dollar will likely not be dumped by China due to the probability of another economic collapse, which …More

January 22, 2010 | World Hunger on the Rise, Says the UN

World hunger and poverty have risen over the past decade as the wealth gap has widened due largely to the World Food Crisis of 2008 and the Global Financial Crisis of 2009. ++ Developing countries have tried to liberalize and globalize …More

January 18, 2010 | Capital vs. Labour

Wall Street was the first to recover from the financial crisis as opposed to 10% of the American population still struggling to find a job. ++ The pay controversy is more relevant than ever before. ++ Yet the New York Stock Exchange evolves in a different …More

January 14, 2010 | Do the Benefits of Economic Growth Favor the Rich?

Jay Thomas Chittooran: This paper focuses on the relationship between economic growth and income distribution. Previous attempts to study this relationship have ignored, for the most part, government social spending aimed at the redistribution of wealth. …More

January 13, 2010 | China Responsible for an Open Trade War

China’s merciless economic strategy exacerbates the global economic downturn and international tension. ++ This process of manipulating the currency markets and drowning the world with Chinese exports makes global economies …More

January 11, 2010 | There Is Such a Thing as Society

Americans fear the heathcare plan is a sign of a shift towards the “lousy” European social democracy. ++ Statistics prove the “Old Continent’s” model to be an economically dynamic one, challenging both the current financial crisis and long-run …More

January 6, 2010 | Transatlantic Economic Rivals?

Tobias Fella: Competing regulatory rules and policies pose a major challenge to transatlantic relations and to the further development of the multilateral trade order. The EU and US must institutionalize a framework, which supports enhanced liberalization, thus preventing the development of competing regionalism. …More

January 5, 2010 | False Economic Hope

Though the economy is showing signs of recovery, we should not repeat the mistake of 1937, when the Fed and Roosevelt’s administration decided the Great Depression was over and “it was time for the economy to throw away its crutches.” ++ Occasional good …More

December 22, 2009 | Nobody Said it Would be Easy

China’s undervalued currency and huge trade surplus threaten the world economy and risk engendering backlash from Europe and the US. ++ The situation is not as simple as many pundits would have us believe. ++ Undervaluation is the government’s main …More

December 18, 2009 | Re-engaging the Golden Land

Reese Alan Neader: Burma is fully dependent on Chinese aid without any requirement to improve human rights practices. Since Washington ignored tyrannical regimes, China has been allowed to move in unchecked. Thus, by re-engaging Burma, the Obama administration is putting pressure on China to conform to international norms. …More

December 11, 2009 | Banks Must Serve the Global Community

Europe must lead the way in forging a new financial consensus, as fundamental issues must be addressed globally. ++ We live in an age where national economies have been eclipsed by global structures, so financial standards must be …More

December 1, 2009 | The Slowmotion Default

In order to deal with massive deficits and US debts, international governments must press for a “permanently and greatly weakened” dollar. ++ Otherwise, to close the gaping holes in the American economy, taxes would have to be raised to sky-high levels …More

November 30, 2009 | European Union, Get Serious in Iraq

Daniel Korski and Richard Gowan: The potential rewards the EU might reap from improved trade in Iraq are huge, but the risks of instability remain highly problematic. By coordinating efforts, both within the Union and with NATO, Europe will win gratitude in Washington and a fruitful market in Baghdad. …More

October 9, 2009 | Proximity to Europe Hurting Baltic States in Crisis

According to established financial and economic theories, the three “Baltic tigers” were the ones who got everything right, prior to the international financial crisis. Estonia, Latvia, and Lithuania kept their state sectors …More

October 5, 2009 | China's Sustainable Growth Uncertain

Marcin Szwajkajzer: China must recognize that the global financial crisis is recalibrating the international economy. This realization is quickly dawning on the CCP as they drive to boost domestic consumption and promote the Yuan internationally. Can this sustain growth? …More

September 24, 2009 | The G20 Pittsburgh Summit - Symbolic Policies or Fundamental Reforms?

Johannes Klocke: In principal, the G20 process is right. Yet, the emphases of the G20 agenda remain questionable and problematic. It is becoming more and more likely, that even the deepest crisis since the Great Depression will not suffice to initiate fundamental reforms of the financial system. …More

September 22, 2009 | Vote on Recommendations for a Global Green Recovery!

Editorial Team: The experts of our Atlantic Task Force “Global Green Recovery” offered fresh ideas on what measures should be taken within the G20 framework to support green technology markets. The next step will be the concrete implementation of selected recommendations. Which initiatives should obtain priority in this process? Your vote counts! …More

September 21, 2009 | Dragon Guarding Treasure

A US-China trade war would be dangerous prospect, as it encourages resource nationalism and hoarding of important minerals by Beijing. ++ Through monopolizing the supply of resources vital to the construction of batteries, LED’s, and lightbulbs China is …More

September 18, 2009 | How to Be Compensated for Failure?

Anne Deter: Despite the harsh lesson the banks obviously haven’t learnt. As Sarkozy, Obama and Brown all rail against the excesses of the CEO’s and huge bonus payments the trend continues. A return to the basics of the social market economy could provide the perfect solution and hopefully lead to self regulation. …More

September 16, 2009 | Can China Deal With Transition?

It seems the moment when China becomes the world’s largest economy is getting closer every day. ++ However, before China will finally become number one, the country has to find a way to manage its two biggest challenges: the democratic and …More

September 15, 2009 | G20 to Introduce a Tobin Tax 2.0?

Editorial Team: Will G20 governments support recent calls from Germany to introduce a global tax on all financial transactions? Your assessment is needed prior to the upcoming G20 summit in Pittsburgh. …More

September 15, 2009 | More Equity, Less Risk

Last year, the US government made the right decision in letting the Lehman Brothers go belly up. ++ Lehman’s crash stated an example, that the banking house cannot count on government aid at any price. ++ As long as bank managements can trust on …More

September 14, 2009 | China's Growth Rates are Based on an Unstable Footing

With 8 percent growth rate for the second quarter of 2009, China appears to be the miracle of the global economy in these times of recession. To boost domestic demand Beijing enacted a massive stimulus package at the end …More

September 3, 2009 | Merkel, Medvedev and the Market Economy: The Fate of Wadan

Jakob Schirmer: Chancellor Merkel and President Putin recently saved the insolvent German shipyards Wadan by supporting its selling to a Russian investor. The media speculated about large scale orders by Gazprom and its affiliates. Although so far, Gazprom has not ordered any ship and the fate of Wadan is still unclear. …More

September 2, 2009 | Is the Dragon Fizzling Out?

China’s stock market continues to fall as the Shanghai Composite fell 5% on August 31st. ++ “The jitters in Asia and the rest of the world are rooted in fears that China will not be able to help pull the global economy from …More

August 27, 2009 | Walk the Walk G20!

Until now, leaders from the G20 countries have not shied away from grand declarations as to how the world of finance must change. ++ Most statements involve deep cuts in executive bonuses and the granting of state credits for corporations. ++ President …More

August 27, 2009 | The Fed: Obama's Good Choice

The US President’s decision, to nominate Ben Bernanke for another term as head of the Federal Reserve Bank was right. ++ Bernanke remains the most qualified for the position, as the Princeton Professor is an expert in theory and praxis. ++ …More

August 20, 2009 | Oil Is a Curse For Poor Countries

“Poor but resource-rich countries tend to be underdeveloped not despite of their hydrocarbon and mineral riches but because of their resource wealth.” ++ Thus, oil, gold, diamonds and other natural resources make a country poorer. ++ …More

August 19, 2009 | Think Asia - Germany to Benefit as Asia Rebounds

Asia is leading the global financial recovery this summer, pulling away from the US and towards an independent path. An Economist analysis states that the regions growing economies hit hardest during the crisis, such as Thailand …More

August 14, 2009 | China and India Must Seal the Border Deal!

After the 13th round of border talks, India and China have still not found a solution to their territorial dispute. ++ Despite the ongoing conflict China has become a crucial trading partner for India, even surpassing the US. ++ …More

August 14, 2009 | How Russia Takes Turkey

The Turkish-Russian relationship has improved immensely since Turkey’s setback in its EU accession plans. ++ Despite supporting Europe’s Nabucco pipeline project Ankara also cooperates with Russia over gas supplies. ++ “If Turkey still …More

August 13, 2009 | Beware of the Friendly Dragon

China to use its foreign exchange reserves to accelerate overseas expansion bringing tax revenues and employment to Europe. ++ However, “it can be at odds with the national interests of the host country.” ++ Europe should therefore …More

August 12, 2009 | China Quietly Reshapes Asia

Through investment in infrastructure projects China is quickly gaining influence in Russia’s Far East and Central Asia. ++ Beijing lent $25billion to Russian state-owned oil company Rosneft and pipeline manufacturer Transneft in order to …More

August 11, 2009 | The Myth of Western Decline and G7-OECD Obsolescence

Ira Louis Straus: Despite widespread belief in a decline of the West and obsolescence of G7-G8, the actual statistics show that G7-8 remains overwhelmingly important, both as a vehicle for mutual cooperation and a guide for the world economy. A G14 or G20 could not provide an adequate substitute for it. …More

August 5, 2009 | Hillary Clinton Lost in India

The US and India should increase their defence partnership to offset the rise of China and secure further nuclear technology for New Delhi. ++ During a successful visit, Secretary Clinton left the capital to embrace India’s “societal linkages” and …More

July 21, 2009 | Wall Street Learned Nothing

Experts said last year’s economic breakdown was “the end of the world as we know it… there are new values that we will need to adopt and adapt.” ++ But as memories of the financial turmoil begin to fade, bankers are right back where they started. …More

July 20, 2009 | Regionalism: Stepping Stone or Stumbling Block?

Rudi Guraziu: The demise of the Cold War seems to have boosted the salience of regionalism across the globe, and RTAs have blossomed since then. But is regionalism a help or a hindrance in the process of globalization? …More

July 16, 2009 | Ugly Dynamics: Business Mixed with Politics

Last week Rio Tinto, the Australian mining giant, saw four of its executives arrested in Shanghai on spying charges. ++ The arrests took place directly after a deal between Rio and a Chinese state-owned company was cancelled. ++ …More

July 15, 2009 | Why Iran Will Not Profit from Its Black Gold

Despite controlling some of the most extensive oil resources worldwide, Iran is heading towards an economic crisis. ++ In order to use its oil reserves, the Islamic Republic needs new technologies for oil production and further …More

July 15, 2009 | Economic Decline Threatens Medvedev's 'Liberality'

A decline in the Russian economy caused by the global financial crisis could set off an authoritarian agenda change in the Kremlin. ++ Worker protests and societal riots against company closings are just the beginning. …More

July 7, 2009 | The Future of the Service Industry at a Glance

As a worldwide logistics and transport company,
Deutsche Post must grant particular attention to global developments. For this
reason Deutsche Post has conducted a comprehensive study regarding energy, raw
materials, climate …More

July 6, 2009 | Japan to Propose Priniciples to Assist Food Security

Investment, not charity, is the key to ensuring food security. ++ Japan will make a new proposal to “promote responsible foreign investment in agriculture, in the face of so-called ‘land grabs’ - the growing trend for …More

July 1, 2009 | The Opel Sale: An Elegant Solution for All Involved?

Irina Aervitz: The purchase of a slice of car company Opel by a consortium consisting of Magna, Canada’s largest automobile parts manufacturer, and Sberbank, Russia’s state-owned bank, may be another step in Moscow’s plan to revive the nation’s automotive sector.

…More

July 1, 2009 | Financial Sector Liberalization and Household Savings in India

Lekshmi Rajasekharan Nair: Although financial liberalization can enhance the efficiency of channeling saved resources into productive use, it is also possible that it leads to a sharp decline in saving ratios in industrial and developing countries. In India this phenomenon resulted in a significantly lower household saving rate. …More

June 29, 2009 | Strong UN Agreement on Crisis a Step Forward

A landmark agreement by all 192 UN states on the financial crisis last week was a small but important step forward as it acknowledges our global interdependence. ++ The UN said “we have allowed economic globalisation to outpace …More

June 17, 2009 | Will the Global Financial Crisis Affect EMU Enlargement?

C. Fahrholz, J. Börner and C. Wójcik: The current global financial crisis is creating new challenges for the European Monetary Union (EMU) that may threaten its credibility, its enlargement through the addition of member nations and even put the long-term stability of the euro at risk. The European Union must create new institutions that can balance short term needs during the crisis with long term sustainability. …More

June 15, 2009 | US can no Longer Call All the Shots

The meeting of the six-nation Shanghai Co-operation Organisation this week will discuss the creation of a new type of financial institution that will challenge the dominance of US-style free markets. ++ This is an opportunity for China, …More

June 8, 2009 | Why Protectionism Could Intensify the Crisis

The current economic
and financial crisis is often compared to the worldwide crisis of 1929. At the
time many countries reacted with increased tariffs and currency depreciation,
which resulted in severe international …More

June 3, 2009 | State-Backed Opel Deal Poses Threat to Free Markets

Jens F. Laurson & George A. Pieler : The recent deal to save Opel in Europe, which was backed by the US, German and Russian leaders and included a 1.5 billion euro investment from Germany, is not the end of the story. The deal blithely gave the state control of a major industry - putting free markets themselves at stake. …More

May 28, 2009 | Don't Isolate Zimbabwe, They Need Our Help

The transition in Zimbabwe to a unity government has not been smooth. ++ Western governments have remained “standoffish” despite the progress made by the new government, such as lowering inflation. ++ Human Rights Watch argue that …More

May 28, 2009 | China Must Innovate to Remain Competitive

The economic crisis has reminded China of the fragility of an export focused economy. ++ As a result China must consider wealth management alternatives and the “initial stage of industrial development is crucial to value creation in …More

May 25, 2009 | Inflation Not the Answer to US Financial Crisis

There are increasing calls from economists to use inflation to solve the financial crisis by keeping US interest rates artificially low. ++ They say it would reduce the real level of debt, and allow a faster recovery. ++ But …More

May 20, 2009 | US Must End Cold War Trade Hangover

The Obama Administration must get rid of a “cold war fossil” - the Jackson-Vanik amendment - which makes normal trade relations with Russia contingent on free emigration. ++ Russia has allowed such freedom for years, but the law remains
in …More

May 20, 2009 | Is Western Civilization in a State of Decline?

Florian Kuhne: The global financial crisis is just one of many issues the West is facing which could mean it has met the “limits of growth”. Capitalism is overstretched and finite resources are running out. Affluence will start to level out across the world and the west could face a decline in living standards.
…More

May 18, 2009 | EU Hedge Funds Directive is Closet Protectionism

The EU directive which aims to impose new regulation on hedge funds and private equity is a politically driven effort to place obstacles in the way of an industry that is almost exclusively based in the US and the UK. ++ The …More

May 15, 2009 | US - China Relationship has Long Term Importance

The US - China relationship remains the most important in world politics. ++ “China’s response to the financial turmoil has been forthright” and has impressed governments across the world. ++ The US supports China’s membership in …More

May 11, 2009 | World Moving Towards An Owned-By-China Era

China’s £2 trillion of foreign currency reserves could help fix the financial crisis. ++ China is already the sixth largest outward investor. ++ “The era of Made in China is drawing to a close, the era of Owned by China is …More

May 8, 2009 | The US Must Be a Friend to Georgia and Russia

The US must improve its relationship with Russia as well as supporting the fledgling democracies on its border. ++ Introducing a free-trade agreement with Georgia is a good first step and will not hurt Washington-Moscow relations. …More

May 8, 2009 | Africa Must Break Free of Aid Shackles

Entrepreneurship, not aid, is the best way for poor nations to end poverty and improve development. ++ Aid engenders poverty, instability and reliance. ++ Help is welcome, but rich nations must have “a head for poor countries, not just a …More

May 7, 2009 | Arab Sovereign Wealth Funds Changing Investment Strategies

Less than one year
ago reservations in Europe and the US about Arab sovereign wealth funds were
rampant. The goals of the Arab oil states were contemplated, and fear grew that
their aims were directed towards …More

May 6, 2009 | Crisis Management Means Securing Long-term Growth

The economic recession demands crisis management that
incorporates not only spontaneous aid measures, but also lays the foundations
for long-term growth. Poor crisis management could have fatal effects on the
long-term …More

May 6, 2009 | Bailouts for Banks: Unjust and Very Expensive

In
an attempt to control the economic crisis and stabilize global financial
institutions, the world has quickly become tied up with billions of dollars in
bailout packages.  In the meantime it
seems things are almost back …More

May 6, 2009 | Major Indicators Show Recession is Over

Economic indicators show that the recession in the US could end as early as this month. ++ Consumer spending has increased, and claims for unemployment insurance have peaked. ++ Container imports and exports are both up at two major …More

May 6, 2009 | The European Experiment of Unity Has Failed

Despite decades of institutional development seeming to create a more integrated Europe, the continent remains more divided than united. ++ Europe’s different cultures are not spoken of because it is politically incorrect to do so. …More

May 4, 2009 | Robust Germany is a Pillar of the Global Economy

Germany’s economic stimulus efforts are comparable to the US’. ++ Strong financial, social welfare and regulatory systems have allowed Germany to absorb the shockwaves from the crisis and the nation is now boosting the global …More

April 30, 2009 | Financial Crisis Requires Deeper Changes

The IMF estimates the fiscal costs of rescue efforts to be high and difficult to obtain. ++ Still, the solid logic remains: the fiscal costs of deep recessions are greater than those of rescuing finance. ++ Choices of how to fix the …More

April 28, 2009 | Piracy Challenges International Theory

Georgios Drossinos: This thesis analyzes, from a practical and a theoretical approach, the resurgence of Somali piracy and the threat it poses to international trade. Furthermore, it explains how piracy challenges both realist and international regime theory. …More

April 27, 2009 | No Time for Protectionism Between US and China

The US and China need to seize the opportunity to be more open and cooperate to deal with the slump in trade between the two nations. ++ “Regrettably… trade measures by the US against China are on the rise.” ++ US pleas for the …More

April 27, 2009 | Improved Pandemic Response Does Not Ensure Safety

Health bureaus and the WHO have swung into action to deal with the Mexican swine flu outbreak. ++ The public health community has learnt to cope with pandemics after an ill-handled outbreak in 1976 and recent avian flu …More

April 23, 2009 | Future of Democracy in Question After Financial Crisis

Bijan Daniel Khezri: Blind faith in democracy is coming to an end. Rather than introducing more regulation, democracies should become more corporate and results-oriented. Until such reform happens, increasing numbers of ambitious citizens will abandon democracies for other nations. …More

April 21, 2009 | China on Track to Be Global Financial Leader

The global financial crisis has highlighted both the decline of the US and the dependence of the world on China’s economy. ++ Given that reform is inevitable, China will be a central player in whatever new global financial …More

April 17, 2009 | US Must Keep Its Reputation for Risk

A push for Wall Street banks to be turned into heavily regulated, “talent-deficient” public utilities would see them take fewer investment risks, leading to lower economic growth and higher long-term unemployment. ++ A no-risk system fails …More

April 15, 2009 | Protectionism Is Not the Answer

Governments must cooperate to stimulate their economies and resist protectionism in response to the economic crisis. ++ Protectionism is short-sighted and could destroy the positive aspects of economic globalization which have encouraged …More

April 14, 2009 | US Must Have Less Power Over the IMF

While the recent pledge by the G20 to increase the resources of the IMF is welcome, the organisation desperately needs to restructure and reform if it is going to play an effective role in solving this current economic crisis. ++ …More

April 14, 2009 | Resilient India

Shashi Tharoor: India seems to be immune from the global economic recession. The November terrorist attacks against the commercial capital did not hinder the country’s speedy growth rate and the prompt return of investors and Foreign Direct Investments. …More

April 9, 2009 | HOT ISSUE: The Verdict on Obama's European Trip

Editorial Team: Does one achievement stand out as a significant development at the infancy of the Obama presidency’s foreign policy, or have the early signs of progress been exaggerated out of context? Take part in our poll and vote what you think Obama’s greatest achievement has been. …More

April 8, 2009 | The Economic Crisis Focuses on the G2, Not the G20

President Obama’s “deferential diplomacy” cannot surmount fundamental transatlantic differences, as exemplified by the failure of a wider fiscal stimulus. ++ Demographic patterns dictate policy responses to the …More

April 7, 2009 | Global Governance in 2020

Memo 14: The challenges faced in an increasingly globalized world demand a change in the approach required to tackle them. The current economic crisis has shown that no one country alone can solve the world’s problems. The “superpower” age is now at an end, and the world must adapt accordingly. …More

April 7, 2009 | The Economic Recovery Versus Economic Nationalism

Despite the agreement at last week’s G20 meeting, concerns exist that protectionism will come to the fore. ++ The Chinese proposal to replace the US dollar as the international currency is emblematic of this. ++ For decades the …More

April 3, 2009 | The Transition to Sustainability

Jeffrey D. Sachs: Long term economic growth will only be achieved if accompanied by sustainable investments in green technologies. Yet developed countries ought also to understand that they need to guide and help developing countries towards sustainability. …More

April 3, 2009 | Is the Crisis a Watershed Moment for Sustainability?

Both climate change and the increasingly perceptible scarcity of primary commodities are responsible for the current economic crisis. Endlessly rising energy and food prices have also played their role in destabilizing …More

April 3, 2009 | Economic Crisis Forces China to its Knees - If Only Temporarily

In China signs of the crisis are highly visible: abandoned factories and container ships, bankruptcies, massive migration to the Chinese countryside, and ironically clean air. Due to the large quantities of goods …More

April 3, 2009 | Repose in US-Russia Tensions Thanks to Crisis?

Some 85% of Russian exports are based on energy and raw materials. Falling prices in the international market mercilessly expose these vulnerabilities of the Russian economy: no other newly industrialized country is so dependent …More

April 3, 2009 | US Losing its "Immigrant Appeal"

The United States is considered the destination of choice by immigrants the world over. Especially highly skilled immigrants regard the US as a land of endless possibilities and ever attractive prospects. However, more and more immigrants …More

April 3, 2009 | China and India: Two Great Powers Duel in the Indian Ocean

The Indian Ocean is well on the way to becoming the location of global conflict in the 21st century. Today the third largest body of water on the Earth is already considered the most important cross national sea …More

April 3, 2009 | Bleak Economic Future for Palestinian Regions

The conflict with Israel and the inner political crisis have set back the Palestinian autonomous areas a long way. Furthermore, the promise of the international community at the most recent donor conference in Sharm el-Sheikh to …More

April 3, 2009 | The EU Should Be the Leader of a New Globalization

Is de-globalization the magic solution to escape the economic crisis? No, it would be the biggest mistake. ++ Protectionism and nationalism are false friends and, as history has proven, responsible for poverty and …More

April 1, 2009 | Poor People Will Pay Heavier Toll

Developing countries —even if not located at the at the center of the crisis— will feel the impact of the financial crisis’ “second wave.” ++ As remittances decline and demand for exports falls, poor households …More

March 31, 2009 | The European Union on the "Way to Hell?"

Matthias Stephan Fifka: Recent comments made by Mirek Topolanek concerning the US approach to the global economic downturn have cast a shadow ahead of the G20 meeting in London. Finding solutions to the current crisis will not be easy, and Topolanek’s remarks may make future agreements even harder to acheive. …More

March 31, 2009 | G20 Meeting to Determine the Global Economy's Path

The upcoming G20 meeting will determine the future path of the global economic system. ++ The camps are divided into two: Obama, Brown and the IMF (who speak of depressed demand and push for stimulus plans) vs. Sarkozy and …More

March 27, 2009 | Politicians Open Your Eyes!

The economic crisis has hit the world as a surprise but was it truly unexpected? Krugman, Economic Nobel Prize Winner in 2008, had issued warnings since 2000 on the fragility of ultraliberalism. ++ Yet, when it comes to hearing pessimistic …More

March 27, 2009 | The Left's Missed Opportunity

The economic crisis has highlighted the failure of the US imposed model of deregulation, at least for the financial sector. ++ What a perfect occasion for the Left, whose mantra is state regulation, to re-enter the political scene. ++ …More

March 25, 2009 | China to the Rescue

Brazil, Russia, India and China, the “BRIC” countries, have called the IMF to implement sweeping reforms “to adapt to the ever-changing global financial situation.” ++ To give the IMF greater legitimacy, reforms should “give proper representation to and …More

March 23, 2009 | Romanticism Should Guide the G20

Romanticism has something to say in the upcoming G20 meeting concerning the “limits of universal rationalist solutions.” ++ While globalization demands co-ordinated responses, national or perhaps regional solutions might be effective as …More

March 23, 2009 | Have Faith in the Market

Nobel Prize Winner Gary Becker argues that the current economic crisis is born out of big government, the Fed’s low interest rates policy, and the “bubble mentality” meaning the reckless borrowing based on “expectations that …More

March 20, 2009 | The Financial Crisis is a Chance!

The idea guiding the upcoming G20 Summit in April to address the financial crisis should be that “every crisis embodies a chance to change things for the better”. ++ On the one hand, the opportunity of the current crisis is the promotion of …More

March 19, 2009 | US Congress Vetoes NAFTA Provisions

Another obstacle was placed in the way of free trade last week as the US Congress abolished the US-Mexico trucking demonstration system. ++ This is not a new development; in 1995 the US Congress unilaterally vetoed NAFTA’s …More

March 16, 2009 | Security is Central to Global Governance

Johannes Gunesch: The lack of a commonly accepted global approach means that alternative regional approaches outside of traditional organizations such as the UN will become more common. …More

March 16, 2009 | Regional Organizations Will Gain New Powers

Kyle Robert Coppin: In the future, nations will devolve into smaller, homogenous states that are united into regional organizations that take on responsibilities of foreign affairs, national defense, and others. …More

March 13, 2009 | Social Cohesion Depends on Functioning Economies

The December 2008 events in Greece were spurred by the shooting of a teenager by the police, yet have deeper roots in the dismal social, economic and political conditions in which the Greek youth finds itself. ++ As the …More

March 12, 2009 | The Misinterpretation of the Financial Crisis

Noble Prize winner Amartya Sen argues that the current global crisis does not signal the end of capitalism, but rather calls for rethinking the nature of capitalism. ++ Sen refers to Adam Smith to argue that the pioneer of the …More

March 11, 2009 | "Global New Deal" Answer to the Economic Downturn

Today’s politics is global as well as local. ++ A global effort is required to “reduce the impact of the downturn and support a sustainable recovery.” ++ Problems in emerging markets and developing countries should not be …More

March 10, 2009 | How You Can Change Our Website

Editorial Team: Which sections of Atlantic Community are of most interest and use to you? …More

March 9, 2009 | Obama's Mortgage Plan is the Solution

Since the economic downturn began as a mortgage crisis, the focus should be on mortgages in order to find a solution to the financial crisis. ++ Mr. Obama and his administration seem to be aware of this; the Homeowner Affordability and …More

March 9, 2009 | As the Wheels Come off GM, Opel Goes it Alone

Christoph Suess: Instead of forging ahead with its separation from General Motors, German affiliate OPEL should be kept within the GM group. German politicians must engage with their American counterparts in trying to find a transatlantic solution to the auto crisis on both sides of the Atlantic. …More

March 4, 2009 | China Has Little Interest in Peaceful Development

Judith Richards: China’s grand strategy aims to enhance its trade and investment interests. Its rhetoric on peaceful attitudes is nothing more than a means to an end. …More

March 4, 2009 | Changing Priorities Could Reshape the EU

The economic crisis could result in an outbreak of nationalism across Europe. ++ It would be a retrograde step to roll back the successes that have been made in the areas of free movement of goods, people, services and capital. ++ These …More

March 3, 2009 | Economic Crisis More Dangerous Than Terrorism

In his State
of The Union Address
in January 2002, George W. Bush warned us of the infamous “Axis of
Evil.” Iran, North Korea and Iraq were accused of harboring
terrorists, building weapons of mass destruction and threatening …More

March 3, 2009 | A "Green Stimulus" for Growth and Jobs

The
inauguration of US President Obama was overshadowed by the financial crisis,
which for the time being will set the agenda in the White House. High on the
list of priorities is the nearly 800 billion US dollar stimulus package. …More

March 3, 2009 | This Time Around, Think of Ethics

The financial crisis was not a total shock; some economists - Stiglitz - warned of the dangers which inhabited the global economy. ++ Currently, the use of public funds to revive the economy will only succeed if done in an ethical way …More

March 2, 2009 | Obama States Intent with First Budget

Barack Obama’s first budget has seen him deliver the promises he set out in his campaign, without any signs of a bipartisan approach. ++ Sought after healthcare reform will be delivered by tax reforms, with greater tax contributions being …More

February 26, 2009 | A Fine Line Between Hope and Fear

The White House’s comparisons between the US’ current financial situation and the Great Depression have created a necessary climate of fear in the country. ++ This crisis is both alarming and systemic and America must face up to …More

February 25, 2009 | Where is the Money to Help Eastern Europe?

Eastern Europe is acutely hit by the economic crisis and WB President Zoellick estimates that the region would need $120bn to recapitalize its banks. ++ Western Europe, as the main investor and credit provider in the region, is …More

February 25, 2009 | Obama Will Save the World at the G-20

Obama is the only man who can bring about effective change and make the financial crisis a passed nightmare: “he is untainted, popular and leader of the country that, for good and ill, remains central.” ++ On the occasion of the G-20 he …More

February 23, 2009 | The "Euroization" of Eastern Europe

The financial crisis is bad, but eurozone members still have some hope given the bail out guarantees. ++ It’s in Central and Eastern Europe that the catastrophe scenario seems too real to escape; the provision of mortgages in …More

February 20, 2009 | In Defense of the Czech EU Presidency

Tobias Wolny: Do not be misled by President Klaus’s speech to the European Parliament. The Czech EU presidency has done a good job so far, managing a number of unexpected international and domestic issues over the last two months. And the Czechs deserve more credit from fellow European leaders in the current debate on protectionism. …More

February 20, 2009 | Politics, Not Deregulation, Caused the Crisis

Quotas for federal housing loans to poor Americans led to a huge increase in subprime loans. ++ Regulators could have stepped in, but thought that housing prices would increase steadily. ++ The crisis shows that we cannot help …More

February 20, 2009 | Aloha, China and Japan!

Leaders of the three largest economies should meet up in Hawaii. ++ There has never before been a summit for the US, Japan and China, but the time has come. ++ Japan needs to break its political marginalization towards China, Americans must stop …More

February 18, 2009 | Upcoming Lost Decade for the World's Economy

Japan’s experience in the 1990s is no longer seen simply as a terrible recession but has become an example of how to recover from the current financial crisis. ++ What conclusions can be drawn to rescue our economies? ++ The …More

February 18, 2009 | Disempowered Unions Explain Economic Crisis

“Misshapen economic codependency of the US and China” lies at the heart of the economic crisis. ++ E. Asian exports are being left to gather dust in US warehouses whilst the US is paralyzed by debt accumulated to compensate …More

February 17, 2009 | President Chavez for Eternity


Chavez’s victory at a national referendum that will end presidential term limits is no big surprise considering that he controlled all aspects of the electoral process. ++ This success does not however mean that Chavez’s position will …More

February 17, 2009 | Non-State Actors vs. the Westphalian Model

Niketa Kumar: Global governance will introduce a range of actors beyond the Westphalian state and will be based on interconnectedness. In the governing globally model the traditional nation-state will remain in control and formulate policy responding to global interactions. …More

February 17, 2009 | The Party is Over, Go Home

The financial crisis spares none as it rains down economic havoc around the globe. ++ Dubai, the “shrine” of capitalism, is now in the heart of the storm, and extravagant projects costing billions of dollars are quickly being …More

February 17, 2009 | Don't Worry, It's All Part of the Game

When comparing the recession-prone capitalist system to the recession-free communist system, it is surprising that it is the latter which has collapsed. ++ Despite numerous predictions of its demise, capitalism continues in the …More

February 17, 2009 | Globalized Decision-Making Demands New Acting Styles

John Dalziel Frew: The trend that will define the future of global governance is the globalization of decision-making: when decisions made in one place increasingly affect the lives of those living in another, hopes of security rest on recognising the far-reaching consequences of apparently parochial actions. …More

February 16, 2009 | Europe: Incoordination Means Protectionism

The EU responded to the financial crisis in an uncoordinated fashion. ++ When stimulus plans are implemented on the national level, governments will go out of their way to keep the money in the national economy and bend competition …More

February 15, 2009 | The Legacy of the Financial Crisis Awaits Us in 2020

Soyen Park: The financial crisis will bring about critical changes to the global order. New markets will emerge, the ECB may disappear, and leading financial institutions may become obsolete. Whatever the case, prudent, coordinated government policy is imperative. …More

February 13, 2009 | New Bail-Out: Go See Obama!

The curious case of Henrietta Hughes shows American attitudes towards social assistance. ++ Before, she was unemployed and homeless, living in a small car with her adult son. ++ Now, she lives in a spare home of a Republican representative and …More

February 13, 2009 | Reining in the Nation State

Mansur Seddiqzai: Nation states threaten to only further dominate local and regional organizations in the future. A decentralized system of global governance which incorporates regional associations is required if disorder and crises are to be prevented. …More

February 12, 2009 | Do Not Upset the Internal Market

The motor force behind the development of the EU has been economic interdependence and the creation of a common internal market. ++ If member states respond to the crisis by putting their national interest first, measures like state aid — …More

February 11, 2009 | Davos: A First Step Out of the Crisis

Davos provided the starting point of the way out of the financial crisis by bringing together G-20 leaders. ++ Climate change can become part of the economic revival, with the job and technology opportunities that sustainable energy …More

February 10, 2009 | Fixing the Economy and the Planet In One Go

If the international community acts carefully, the economy and the climate can be healed in tandem. ++ Incentives to cut greenhouse emissions could “kick-start private investment and refuel the economy.” ++ To coordinate …More

February 9, 2009 | Leaders, Fight the Economic Tempest Together

Whether or not the current economic situation is a depression depends on one’s definition of the term. ++ What is certain is that global trade and growth have been in freefall for the last couple of months. ++ The expected …More

February 9, 2009 | The Case for Germany First

Tyson Barker: Biden’s historic first visit to Germany underscores a new reality in trans-Atlantic relations when the US is looking for partners on the tough economic and political questions, the road to Europe goes through Berlin. …More

February 9, 2009 | The Return of the N-beast

André Budick: Thinking the Unthinkable: What if private banks, who have to work to jumpstart the global economy once again, can’t be saved for the time being? What if only the wholesale nationalization of entire national banking systems is the chance for a fresh new start? …More

February 6, 2009 | Obama's Stimulus Plan: the Right Medicine This Article contains Flash-Video

The response to an economic crisis which is very reminiscent of the Great Depression needs to reflect the urgency of the situation. ++ The stimulus plan now standing before Congress will bring the change hoped for because it is …More

February 6, 2009 | The World Stands Up Against Capitalism

People are sick and tired of having to pay for their governments’ mistakes; the time has come for elites to take responsibility. ++ It is customary in crisis times for “extraordinary politics” to enable politicians to adopt unpopular …More

February 5, 2009 | Global Energy Infrastructure Needs Higher Investment

The financial crisis has put the brakes on a sustainable energy market for now. Investment in the last half of 2008 was only half of what it was in 2007. “Green investment” during financial crisis will be considered an ever …More

February 5, 2009 | Obama Must Stop Protectionism or See It Spread

Protectionist measures, like the proposed Buy American provisions in the US stimulus package, will not be taken lightly by other countries. ++ Even if measures followed WTO rules, China and India can retaliate. ++ Americans will …More

February 2, 2009 | Tax Payers Pay for Stockholders' Mistakes

The Obama administration’s plan for rescuing the banking system is not the appropriate response to saving the financial system. ++ The problem goes beyond fairness considerations, “where taxpayers bear the cost if things go …More

February 2, 2009 | No Time For Tough Talk with China

Sino-US relations have not got off to a good start. ++ US Treasury Sec. Tim Geithner has branded China a “currency manipulator,” a careless move. ++ China is the US’ largest creditor and it is entirely plausible that it will …More

January 30, 2009 | The USA and the Myth of Small Government

The long proclaimed transatlantic divide
between bloated European welfare states and a lean US government is mythical at best. A
closer look at the facts shows that the social expenditures of the United Sates
and Europe are very …More

January 29, 2009 | PM Harper's Hobson Choice

Last seen clutching on to power by the skin of his teeth in the Fall, Canadian PM Harper has come back with a massive $2.5m bail-out plan. ++ “Can there be any greater act of capitulation for a former head of the anti-government National …More

January 28, 2009 | Beware of the "Fiscal Straitjacket"

The debate over the ways to revive the US economy has an explicit focus on the immediate and short-term: save the economy now. ++ But in the absence of a medium-term strategy, the stimulus plan will simply add to an already large …More

January 27, 2009 | What's With the Republicans?

Republicans are very slow to understand that their policies have worked against America. ++ Their illusions are reflected in their doubts over the President’s stimulus plan: they argue that it legitimates excessive spending at a time …More

January 27, 2009 | Southern Europe Out of the Eurozone

The economic and political divisions between a “hard core” Northern Europe and a crumbling South are re-emerging in the midst of the economic crisis. ++ Euroskeptics argue that this will eventually lead to a departure of the …More

January 23, 2009 | Nationalize the Banks, For Good

It is a case of too little, too late for British PM Brown’s second banking-bail out. ++ The current halfway measures are a recipe for failure and “risk turning recession into slump.” ++ The solution is clear: nationalize the …More

January 23, 2009 | The US Bubble Will Not Be Helped More Debt

Obama spoke of sacrifice, but the only ones sacrificing are the Chinese, Japanese and Saudis who fund America’s debt. ++ These countries are the sole creditor nations able to buy bonds to finance the spending expected by Americans. …More

January 23, 2009 | Consistency Is Needed To Stabilize the Economy

Soon-to-be US Treasury Secretary Geithner has declared to the Senate that speed and force are necessary to deal with the financial crisis. ++ Meanwhile, Bank of America has faltered. ++ Plans to set up a “bad bank” are advancing …More

January 22, 2009 | The Verdict on the Global Financial Crisis

The solution to the financial crisis — probably the product of excess supply and demand due to “huge asset price bubbles” — may lie with a simple economic equation: “at world level, supply must equal …More

January 21, 2009 | World Economic Forum Focus Week

From the Editorial Team: We are hosting a 5 day run-up to the WEF Conference (conference begins Jan 28) and focusing on two of the major issues: the Global Economy and Climate Change. We are asking you, our readers, to contribute. …More

January 21, 2009 | President of Change or President of Continuity?

Worldwide, the state has recently reassumed a greater role in the economy, including firm sustainers of the neoliberal philosophy. ++ The adoption of Keynesian measures has been seen as an unavoidable step to counteract the …More

January 19, 2009 | New Taxes: Solution Out of Financial Crisis

The new US government has opted for raising taxes in an attempt to exit the financial crisis: a necessary step indeed considering the dangerous state of the economy as a result of the huge budget deficit accumulated during the …More

January 19, 2009 | Shopping Does Not Equate To Patriotism

The poor should not be beggared to bail out speculators. ++ Housing, health care and education are so expensive they are creating misery comparable to the ills of imperialism, feudalism and bureaucratic capitalism that once afflicted …More

January 15, 2009 | Congress to Stop Bank Bailout Plan?

The US Congress is critical of the way money from the Trouble Asset Relief Program has been used, and adds that the remaining amount should be made conditional on more loans being granted. ++ However, analysts argue that as the financial …More

January 14, 2009 | The Economic Crisis Advances Democracy Globally

The Great Depression hindered the democratic progress; the current crisis could advance it. ++ Authoritarian countries like China, Russia, Venezuela and Iran will suffer more than democratic competitors. ++ Political legitimacy …More

January 14, 2009 | Anxiety as China Responds to Global Challenges.

China’s deployment of two Chinese destroyers in Somalia as a response to the piracy threat opens a new chapter in Chinese security policy. ++ Although at face value the move is not threatening, it portrays …More

January 13, 2009 | Outcome of Return to Keynesianism Is Uncertain

The Fed’s decision to pour tons of new dollars into the US economy has not staved off recession. ++ The government is in fact the main beneficiary of the huge increase in the monetary base: deposits which the public are too …More

January 12, 2009 | Obama Stimulus: A Necessary Paradigm Shift

President-elect Obama’s stimulus package, now roughly $800 billion, includes “politically expedient” tax cuts which “are widely recognized as packing very little bang for the buck” - $150 billion in business tax breaks and the …More

January 12, 2009 | 2009 Will Test EMU and Franco-German Relations

2009 will be a challenging year for EMU and Franco-German relations regarding which economic policies to adopt. ++ The two countries traditionally differ on their stance vis à vis the role of the ECB, namely its degree of …More

January 12, 2009 | Solving the Satyam Scam

India’s corporate image is at stake as the truth behind the Satyam scam has yet to be uncovered. ++ Ramalingas Raju’s arrest is “only the start of a long process of dispensing retributive justice.” ++ Satyam was already under scrutiny for a failed deal …More

January 9, 2009 | Obama: Big On Words, Small On Action?

When President Obama speaks of the current state of the US economy, his rhetoric reveals the gravity of the situation. ++ Yet, his actions fall short of his words, with US analysts arguing that his stimulus plan will do little to …More

January 9, 2009 | Food Crisis Disappears, but Only From Newspapers

A key topic a few months ago, the food crisis has now disappeared from the headlines. ++ Unfortunately this does not mean that the situation has improved; on the contrary, the financial crisis is likely to bring a series of …More

January 8, 2009 | Finally, a German Stimulus Package. Is It Worth It?

Berlin witnessed the end of a stalemate between the Christian and Social Democrats on a 31-billion-euro economic stimulus package, but “Germans may find that the chances of their country’s economic recovery were higher …More

January 7, 2009 | Economic Package: Testing the New Administration

The stimulus package needed to combat the economic downturn is a source of concern as its experimental character deprives it of any guarantee of success. ++ Due to the acuteness of the crisis, measures taken ought to be …More

January 7, 2009 | Greater Role for the State in the 21st Century

The financial crisis has proven that there is still a major role for the state to play in our global era. ++ New challenges, such as intense capital transactions, have increased pressure on the state and require it to complement …More

January 7, 2009 | Obama Suggests Tax Cuts To Stimulate Economy

President Obama has introduced a new stimulus plan to revive the US economy. ++ While the plan aims to reduce tax payments by $300 and provide relief to both families and business, US officials warn against the unnecessary …More

January 6, 2009 | Financial Crisis Sways German Electoral Campaign

Germany is getting ready for a year rich in elections at every level, concluding with the September legislative duel between Chancellor Merkel and FM Steinmeier. ++ A recent survey places Merkel in the lead; however, the …More

January 6, 2009 | End of Dollar Era, Back to the Gold?

Originating in the US, the economic recession has gradually affected all economies. ++ International responses vary from smooth European behavior, where the Bundesbank still plays a key role in shaping the ECB policies, to an aggressive …More

January 5, 2009 | Rethinking Germany's Rescue Package

One of the conditions of Germany’s rescue package stating that salaries of top management ought to be limited to €500,000 a year found itself at the origin of several critiques. ++ Contested is the fact that “one cannot give the banks …More

December 23, 2008 | Greening the Bailout This Article contains Flash-Video

Van Jones: It’s time to bailout the American people, the planet and the economy. We need to create millions of new jobs that can’t be outsourced, wean the country off its dependence on foreign oil, take bold steps to address the climate crisis and make America an innovation leader again. …More

December 19, 2008 | A New Consensus for Global Financial Regulation

“We need a financial system that operates with less leverage, has stronger oversight, and is more transparent.” ++ Already existing regulators have been under pressure from top-earning bankers to not use their powers. ++ The US …More

December 18, 2008 | Re-evaluating Economic Governance In the Financial Crisis

Maie-Brit Rüter: As the financial crisis threatens to also become an economic one, the recent Carlo Schmid Network conference left its most lasting impressions on topics addressing the crisis and possible remedial action. The conclusions: the international economic order is in urgent need of revision. Nevertheless, existing institutions should not be thrown out with the bathwater. …More

December 18, 2008 | Tax Cuts Would Compensate For High Energy Prices

Energy independence would be a disaster for America. ++ Not buying oil from despotic regimes will not topple them. ++ If Obama moves towards real energy independence it would mean “$20 per gallon and true depression.” ++ …More

December 17, 2008 | Let Eastern Europe Join the Euro

The criteria for joining the euro “make little economic sense for euro-zone candidate countries in Central and Eastern Europe.” ++ Inflation targets are “flawed” and keep Poland and the Czech Republic from joining quickly. ++ “Accession for …More

December 16, 2008 | China Looks Vulnerable In Face of Financial Crisis

Protests and strikes have taken place among laid-off workers across China as the financial crisis begins to hit. ++ Global demand for Chinese goods is likely to plummet in 2009, creating heightened tension between the US and …More

December 15, 2008 | China's Great Depression

The myth of decoupled markets is all but shattered. ++ Asian countries, especially China, who benefited from trade imbalances and western overconsumption, will have difficulty adjusting. ++ In reaction to these new economic conditions trade deficit …More

December 15, 2008 | Merkel: "Frau Nein" on Economic Rescue

German Chancellor Angela Merkel and her economic officials are standing in the way of a much-needed rescue plan for the EU’s economic woes. ++ “If there is to be a rescue of the European economy, Merkel wants no part of it, telling a …More

December 12, 2008 | Put GM, Chrysler and Ford Into Bankruptcy

Bankruptcy is the right path for Detroit car companies. ++ Under “Chapter 11” proceedings they will be able to continue and restructure production. ++ This will not undermine trust in American cars -the company executives of GM and …More

December 12, 2008 | Obama Should Pursue Friendly Chinese Policy

Barack Obama’s approach towards China is unlikely to be confrontational in view of the current global situation. ++ The US has plenty of conflict to deal with elsewhere and needs Chinese cooperation in dealing with North …More

December 11, 2008 | Bailout Set for Santa Claus

Santa Claus may need a federal capital injection or Christmas could fail. ++ “I’m OK with bailing out Christmas,” said a government spokesperson. ++ Why? There is systemic risk to the nation’s “intricately related system of holiday …More

December 10, 2008 | "Don't Create a Fiscal Crisis!"

The European Central Bank has cooperated with major central banks to expand its liquidity provision, making it easier to access central-bank money. ++ Fundamental measures to protect economies have been carried out by euro-zone …More

December 9, 2008 | Germany Wins on Globalization, but Not All Germans are Winners

Markus Drake: What do you do when your research yields clear results, but business interests and politicians pick up only a narrow part of the message? Shouting louder is certainly not an option. Professor Daniel S. Hamilton faced this dilemma when presenting his research on Germany and globalization at the event The Global Marketplace 2020: Where Will Germany Be? …More

December 8, 2008 | Fighting Deflation and Tempering Inflation

The European Central Bank is forecasting annual inflation rates for 2009 at 1.1 to 1.7% and for 2010 at 1.5 to 2.1%. ++ Yet, Interest rates are being cut below these markers. ++ Banking officials claim that “twenty per cent inflation …More

December 8, 2008 | Europe Must Embrace New World Order

Globalization has rendered the G-8 increasingly insignificant; a new world order is at hand, in which emerging economies and the G-20 will play a key role. ++ Obama’s election will facilitate the reorientation of US foreign policy towards a …More

December 5, 2008 | Latin America's Economic Boom -- and Hardships Ahead

The recent meeting of the Asia-Pacific Economic Cooperation (APEC) in Peru drew worldwide attention. This was due less to the presence of President George W. Bush in his last international appearance as to the decision on …More

December 5, 2008 | US Financial Crisis as Kick-starter for Green Technology

Falling auto prices, bank crashes, mass layoffs: the economic crisis has taken full hold of the United States. Current prognoses predict that the crisis will persist for at least another year. In addition, climate change …More

December 5, 2008 | A Behavioral Trap Threatens Fed in Detroit

Pouring Fed money into the car-makers of Detroit is tempting. ++ If they slip, “a myriad” of other companies depending on them will fall. ++ But if the Fed bails out car companies, credit card companies will come begging, after which …More

December 4, 2008 | Institutions and State Actors in Transatlantic Cooperation This Article contains Flash-Video

Interview with John C. Kornblum: The former US ambassador to Germany outlines the role of states, institutions and high-level political leaders in the transatlantic relationship at a conference hosted in Berlin by the American Institute for Contemporary German Studies (AICGS). …More

December 4, 2008 | China: "Western Institutions Cannot Be Trusted"

China Investment Corporation, a fund that manages foreign exchange reserves for China, says it does not dare invest in western financial institutions. ++ When “government policies change every week, how can you expect that …More

December 3, 2008 | Sino-US Dialogue Essential to Solve Financial Crisis

Tomorrow the fifth Sino-US Strategic Economic Dialogue will start and will focus on how the two economies will face the ongoing financial crisis ++ Other topics on the agenda include energy, environment, trade and investment. …More

December 3, 2008 | Long-term Solvency of US Government Endangered

A downward spiral of stagnation and deflation - “stag-deflation” - is threatening the US and the world. ++ Central banks are no longer lenders of last resort, having to give direct loans, or even becoming the sole lenders on the …More

December 2, 2008 | The US Needs to Spend to Overcome Recession

Public spending, especially on infrastructure and new technologies, is needed to build up steam in this stagnant economy. ++ Building up more state debt and increasing the budget deficit is nothing to worry about right now. ++ Cutting …More

December 2, 2008 | US Agenda for Renewable Energy: Will it Benefit Europe?

Markus Drake: The opportunity for structural change that the economic crisis offers cannot be overlooked. With climate change no longer a “left” question, but rather in the center of society, business is realizing that there is profit to be made. But is it European companies that will benefit from Obama’s policies? …More

December 1, 2008 | German Complacency Poses Serious Threat

Germany’s persistent boycott of a coordinated European response to the economic crisis has serious implications both nationally and for the EU. ++ There will be no decision about a German stimulus package until February 2009 at the …More

November 26, 2008 | Eastern Europe Needs Financial Protection Too

As EU banks have been stabilized, east European subsidiaries have been discarded because some don’t want to use taxpayer money abroad. ++ As a result, investors are fleeing the “wrong side of a financial Iron …More

November 25, 2008 | Central Banks Should Buy Low, Sell High

Central banks should go on an internationally coordinated shopping spree. ++ They should target not only municipal bonds, but buy up bank shares on the open market, the price of which are down to as low as a tenth of what they were two …More

November 24, 2008 | Keynes to the Rescue

Keynesian economics prevail in times of economic turmoil. ++ Britain should “expect plans for higher borrowing, tax cuts, and more spending in Monday’s pre-Budget statement.” ++ While economists and politicians differ on intervention policies, Keynes …More

November 21, 2008 | Who Needs the G8 Anyway

In view of the economic crisis rocking the international community, the G8 has lost its right to exist. ++ Emerging nations like India took part in the G20 summit, discussing new finance regulation structures. ++ G8 nations have to understand that in a …More

November 20, 2008 | An Auto Bailout Would Damage Free Trade

A bailout for the Big Three automotive companies could damage US engagement in the global economy. ++ Foreign investment and job insourcing would take a major hit, costing jobs and devaluing the dollar. ++ By expanding protectionist …More

November 19, 2008 | A More Stable Banking System

By passing an economic rescue package, Congress intended to stabilize the banking system by “purchasing illiquid mortgages and mortgage-related securities.” ++ Rising unemployment, falling house prices and European economies in crisis …More

November 19, 2008 | Britain's Black Gold Runs Out

The largely unknown British oil industry was one of the largest in the world, but is now running dry. ++ The drilling platforms off the shore of Scotland gave Prime Minister Thatcher a one-time economic boost that funded her economic policies. ++ …More

November 18, 2008 | Europe's Economy Needs Cooperative Efforts

To answer the G20’s calls for budgetary stimulus, Europe needs a three-part recovery program. ++ EU member states must pledge to equally share the burden of recovery. ++ Because many countries will exceed EU deficit limits, …More

November 18, 2008 | The US Must Rely on Economic and Military Power

The Bush administration destroyed American goodwill abroad. ++ Obama is a welcome change, but there are limits to what “soft power” can achieve. ++ White House glamour will be useless if Asia stops buying US treasury bonds. ++ As …More

November 18, 2008 | "Pass the Colombian Trade Agreement"

In 2006 president Bush signed a free-trade agreement with Colombia that Congress has yet to pass, arguing Colombia’s state of human rights is unacceptable. ++ Most Colombian exports are free of tariffs, in view of efforts to combat …More

November 18, 2008 | Obama's Agenda: 10 Challenges for the New President

Great challenges await the 44th US president, especially economic ones. The Brookings Institution lists the ten most important:

Restoring Financial Stability: Strengthening the global financial system is a priority …More

November 17, 2008 | Realistic Expectations: G20

This weekend’s G20 summit was a mixed bag: Obama did not attend, lame-duck Bush cannot make any serious commitments, and yet, the G20 may be jockeying its way into an important position. ++ National governments promised to focus on macroeconomic …More

November 17, 2008 | Pakistan Should Spend on Schools, Not Ministers

Pakistan should be grateful for IMF supervision. ++ President Zardari seems to think he can add 61 people to his government and magically create money. ++ With a marginal parliamentary opposition and a heterogeneous government, …More

November 17, 2008 | Gas: $3.50

General Motors is on the brink of bankruptcy with Ford and Chrysler not far behind. ++ The government must bail out the auto industry as hundreds of thousands of jobs are at stake. ++ A gas tax is the answer. ++ Gas prices should be set to $3.50 per gallon with …More

November 17, 2008 | Bretton Woods Revisited, Again

Luke A. Nichter: With this weekend’s G-20 meeting in Washington, calls for the return to a Bretton Woods-like system can be heard around the world. However, before getting caught up in the momentum of “reform,” the incoming administration of President-elect Obama should carefully heed the lessons of history. …More

November 14, 2008 | After a Vote for Change, Obama Chose Continuity

Washington’s handling of the Wall Street bailout is incompetent, maybe illegal. ++ The Democrat response is to either defend the Bush administration or refuse to intervene. ++ Bush is violating the conditions of the original …More

November 14, 2008 | The West Must Treat Developing Countries as Partners

The financial relevance of the G7 has diminished, from 65% of production in 2002 to 52% now, and will continue to fall. ++ In 2009 all growth will happen in developing nations. ++ The support of China, India, and Brazil is …More

November 13, 2008 | IMF Stands for Global Economy Insurance

Uninsured drivers need to save big for car crashes; nations have done that to prepare for financial crashes. ++ However, every-country-for-itself policies are wasteful and inflate credit bubbles. ++ The IMF was everyone’s insurance …More

November 13, 2008 | China Can Rescue the World

China can revive the world economy by strengthening its consumption. ++ Its industrial development has been shaped by US consumer demand and “US consumption has in turn been fueled by Chinese lending that kept interest rates low.” ++ This …More

November 12, 2008 | Bush, Obama Should Push for Trade Agreements

In the upcoming lame duck session of Congress, Bush and Obama should insist to vote on the outstanding free trade agreements with Colombia, South Korea and Panama. ++ The election put these pacts on the back burner, but the sooner …More

November 12, 2008 | Minimum Target for the G20: Do No Harm

The G20-meeting may harm the economy if conflicts surface and the US is blamed for the crisis. ++ The IMF lacks legitimacy due to an under-representation of Asian powers and over-representation of Europeans. ++ Obama must agree to the …More

November 12, 2008 | Renaissance of Protectionism

Jens F. Laurson & George A. Pieler: The first dangerous results from governmental overreaction to the financial crisis are beginning to show. Bailout bills have counterproductive effects as political pressure is even brought on institutions that do not need the governmental help. Following protectionist approaches could lead to a harmful and tragic economic outcome. …More

November 11, 2008 | Congressman Calls for Fire Hose on Own Party

A “fire hose, not [a] feather duster” is needed for Republican Party reform, even if it means taking risks. ++ The Fed’s task should be limited to stopping inflation; the financial system also needs overhaul. ++ The GOP, meanwhile, …More

November 11, 2008 | Sarkozy Against "Polite Conversation"

French President Sarkozy is rushing on with demands for the upcoming G20-meeting, at the expense of diplomacy. ++ His harsh call for multilateral action, blaming Wall Street for the crisis, is explained by a feeling of support from …More

November 11, 2008 | Getting out of Bretton Woods Was a Bad Idea

Although little can be done until the financial crisis is over, it is time to think about exchange rate reform now. ++ Asian countries devalued their own currency while hording US dollar reserves to boost employment and growth. ++ …More

November 10, 2008 | Beware Deflation

Deflation is the financial threat that might catch us unaware. ++ Relief from high food and oil prices is pleasant, but extreme price drops could signal economic havoc. ++ For now, falling prices will suppress inflation (5% in the US and 9% in Asia in 2008), …More

November 10, 2008 | "Europe in Wonderland"

Actions undertaken by governments and central banks won’t be able to adress the financial crisis as other huge risks are threatening the financial system. ++ The world has benefited from over-consuming America, but the “US engine of …More

November 7, 2008 | Blank Czech: The Next EU Presidency

The Czech government is ready for the EU presidency.++ “In the past two decades, the central and east European (CEE) economies have done their homework, introducing reforms, with bank bail-outs and privatizations.” ++ The Czech presidency …More

November 5, 2008 | "China's Way: Firm, Gradual, Holistic"

China’s economy is changing from a centrally planned to a market oriented system. ++ Its GDP has increased tenfold compared to 1978, not without creating causes of concern. ++ The government faces “imbalance of …More

November 4, 2008 | Old System of Finance is Kaputt

Germans now lament eschewing the “glorious era” of state ownership of banks. ++ They are missing a cardinal fact, though: The European Central Bank’s independence “enabled it to serve as a corrective to governmental …More

November 3, 2008 | How to Solve the Financial Crisis

With the financial crisis still in full progress, political leaders are ready to cooperate. ++ As politicians negotiate next week, they have to realize that the economy is still too unstable to carry out extensive reforms. ++ Discussions are …More

November 3, 2008 | No Deal in Sight Between the EU and Syria

Last week, the EU held talks with Syria, but refused to set a date for signing a partnership agreement. ++ After multiple attempts to please the EU, Syria is vexed by what it saw as European inflexibility; however, Syria has made little …More

October 31, 2008 | Mr. Putin, Your Economy is Showing

Commodity prices are falling, Western credit has dried up, and Russia has failed to diversify its economy. ++ Russia’s dazzlingly successful economy turned out to be just make-believe. ++ Despite the professionalism of the finance …More

October 31, 2008 | All Eyes on the Yen

Japan’s central bank has reacted to last weeks rise of the yen as well as to the falling stock market by cutting interest rates. ++ If Japan decides to move towards “zero interest” it would become the “source of almost free money for anyone …More

October 30, 2008 | International Middle-Man Fund

International Monetary Fund resources are limited and might not handle all those requests from new, strategically located democracies like Pakistan, Ukraine and Hungary if things get too severe; however, the US, Japan and Europe should still borrow …More

October 29, 2008 | But Words Can Never Hurt My Financial System

European financial schadenfreude and finger-pointing directed at the US might be premature crowing. ++ Not all roots to the crisis stem from New York, rather mainly from London and Frankfurt. ++ Blaming the US and calling for a new …More

October 28, 2008 | Expansion Will Save World's Economy from the US

A US recession is inevitable but stopping global downturn should be political leaders’ top priority. ++ Expansionary policies by the surplus economies of Asia and the Middle East could offset demand decline. ++ Coordinated …More

October 27, 2008 | Sarkozy's EU Coup d'état

Nicolas Sarkozy wishes to remain “president of the eurozone” for another year. ++ Chances are this coup will work, given the current situation. ++ The financial turmoil will likely require another eurozone summit meeting to address lingering …More

October 24, 2008 | Nationalism Trumps Global Economic Cooperation

Financial turmoil has provoked leading nations to recognize the need for economic cooperation, yet fierce nationalism has reared its head amid the calls for global unity. ++ “Economics and finance may be global, but politics is …More

October 24, 2008 | What We Can Learn From Asia

Financial bailout plans enacted by governments help to revitalize market confidence but do not address the fundamentals of the financial crisis. ++ Governments have failed to closely check banks’ balance sheets  – they should learn a …More

October 22, 2008 | Cries for Change Are Empty Political Platitudes

Crying to re-found democratic capitalism and create a new global economic order, world leaders are simply trying to divert attention away from their own helplessness and cover the confusion they have been thrown into by a crisis …More

October 22, 2008 | "Super-Sarko's Plans for the World"

National governments of the EU have dealt with the financial crisis, ignoring the power of EU institutions. ++ State aid laws have been neglected aiming to “prevent EU governments from subsidising national companies.” ++ …More

October 22, 2008 | Crisis Will Reassert Russia as a Global Player

The financial crash will have serious geopolitical consequences. ++ Russia will reassert itself as a global player. ++ As its stock market does not play as crucial a role as in Western markets, and as Russia has a lot of money due …More

October 21, 2008 | Bretton Woods II

Developing countries are cut off from global prosperity; climate change has decreased the world food supply; and energy shortages often promote environmentally damaging solutions. ++ A Bretton Woods II summit is needed. ++ First, the IMF should have global …More

October 21, 2008 | America's World Role Is Diminishing

The US has to face a reduction in its super-power role and an “era of financially induced isolationism.” ++ Spending on foreign policy challenges has increased, and the times in which a strong dollar used to provide stability to …More

October 20, 2008 | Banking Crisis Will Erode US Geopolitical Hegemony

It is clear that it was the free-market fundamentalism and reckless stewardship of the US government that led to the current financial crisis. ++ The US will pay a high price for its sins. ++ The bailout, which is likely to end …More

October 20, 2008 | Lack of Politicial Trust Is the Reason for Market Crisis

The financial crisis is the consequence of a democratic deficit. ++ “Market capitalism only works when it can feed off democratic social capital” and the lack of political trust, which is a form of social …More

October 20, 2008 | Crisis is No Excuse to Dodge Climate Declarations

It’s tempting to use the economic slowdown as an excuse to dodge ambitious declarations for cuts in greenhouse gas emissions. ++ We mustn’t forget that our current economic problems are small compared to the …More

October 17, 2008 | Financial Crisis Vindicates the EU

The Brown-Darling rescue package for British banks not only provided a template to follow for the rest of the EU, but was also adopted by the US. ++ The British PM did not rest on his laurels and is leading international action even further by …More

October 17, 2008 | Avoid Knee-Jerk Opposition to Government Spending

While reports from stockmarkets dominate the news, what we should really worry about is the shape of our nonfiscal economy. ++ In the US retail sales and industrial production are falling quickly, and it seems like we are in for …More

October 16, 2008 | Europe's "New Corporations"

Global commerce has dramatically changed in the last fifteen years. The opening of new markets, growing competition, and the struggle for attracting the world’s brightest minds are all responsible for such a change. On the basis of substantial …More

October 16, 2008 | Chinese and Western Economies Increasingly Alike

When it comes to the economy, the West and China are becoming more and more alike. ++ The Chinese are moving towards private ownership and crave the kind of dynamism that only a capitalist system can provide. ++ Western …More

October 16, 2008 | Too Much Political Meddling Will Only Prolong the Financial Crisis

Jens F. Laurson & George A. Pieler: The economic crisis has brought harmony to trans-Atlantic affairs. Europeans might secretly blame the calamity on US “Casino Capitalism,” but they know they are rowing in the same boat and so cooperation is the order of the day. The stock markets treat this as good news now, but it could easily do more harm than good. …More

October 16, 2008 | Old Maids turn to Match Sticks

Deregulated markets are to blame for the financial crisis; likewise, only governments can salvage the wreck. ++ We will not see another great depression, but rather a recession. ++ Neo-liberal economics will go the way of the dinosaur in favor of …More

October 15, 2008 | China: Rescuer of the Financial Crisis

The monetary meltdown is partly the result of collapsing consumer and business spending. ++ The assumption that banking sytems could be left alone has proven to be false. ++ There needs to be state-financed banking systems. ++ While …More

October 15, 2008 | Assuaging EU Taxpayers

Europe has a plan to bail out the banking system, but it might be hard to convince European taxpayers to pick up the bill. ++ In reality gross debt will increase, not taxpayer debt, and by saving banks we save million of jobs - yet strong opposition from …More

October 15, 2008 | Merkel in the Hot Seat

Merkel’s uncertainty regarding the financial crisis is becoming increasingly evident. ++ Recently, three “Merkel myths” have been dispelled: the CSU loss in Bayern ended the idea of Merkel’s electoral invincibility; her rejection …More

October 14, 2008 | G20 the New G7

G20 nations represent 85 percent of the world’s economy. ++ The forum is essential for addressing the financial meltdown. ++ Developed nations urgently need liquidity; the vast reserves of foreign capital held by emerging economies are the remedy. ++ Bush’s …More

October 14, 2008 | UK: Stay Away From Joining the Euro

Though the UK economy has become more “European,” one area of contrast endures: the euro. ++ UK capitalism has been discredited and the credit crunch will be a test that may prove independent currency is bad for financial stability, …More

October 13, 2008 | God Save the Queen - She is Saving Us

Gordon Brown and Alistair Darling “have shown us the way through this financial crisis.” ++ The British Prime Minister and his officials lead the world in assessing the financial crisis and quickly enacting an apt solution. ++ The problem: …More

October 13, 2008 | G7 Must Work With IMF to Avert Global Recession

It will not suffice if the G7 only saves the financial systems of its own members. ++ The wealthiest nations can afford to shore up their banks, but emerging countries won’t be able to do the same on their own. ++ Steep …More

October 10, 2008 | Gordon Brown: Global Fix for Finance

World’s financial systems are increasingly interdependent, and solutions to economic slowdown that used to be relevant are now “outworn dogmas.” ++ Cross-continental flows of capital make regional systems of supervision …More

October 9, 2008 | Unjustified Panic May Lead to Great Depression

The current breakdown in financial markets is driven by unjustified panic. ++ Restoring confidence in the financial systems should be the priority for American and European governments. ++ EU countries should offer a time-limited …More

October 9, 2008 | US Sneezes, World Catches the Flu

Even those inimical to US policies “have reason not to gloat over America’s comeuppance.” ++  Hugo Chavez has warned of the impending force of “one hundred hurricanes” about to be unleashed on the world’s markets. ++ European nations …More

October 8, 2008 | Global Crisis, Global Solution

With the financial crisis teetering on the verge of global contagion, a coordinated, worldwide effort is needed to avert a further calamity. ++ “There is inherent tension as finance becomes global but its regulation remains national.” ++ …More

October 7, 2008 | China's Financial Policies Harm Domestic Growth

To date China can, through financial repression - state regulation, which undermines market mechanisms in the financial system - sustain the costs of an undervalued currency. However, by adhering to these financial policies, …More

October 7, 2008 | Creating an Asian Bond

It is time for the “globar” - or “global dollar,” a collective Asian bond that could revitalize the world economy by catering to US currency-stabilization needs and simultaneously recycling massive Asian surpluses back into tangible assets in Asia itself. …More

October 6, 2008 | What Hinders Economic Growth in the Middle East?

Economically speaking,
Arab states have developed at a strikingly slower pace in the last 20 years
than most other regions in the world. This is particularly true for the Arab Mediterranean, including Jordan, Egypt, Tunisia, …More

October 6, 2008 | Potential EU Monetary Crisis - Recapitalize Now

Despite the success of some initial bank bailouts granted by the EU, such as Fortis, Europe is still short of an overall financial strategy. ++ Three things are needed: first, money to recapitalize the banking sector; second, a …More

October 6, 2008 | Bailout is "Dirty Socialism"

The nationalization of Fannie Mae and Freddy Mac was “clean socialism.” ++ The Wall St. bailout, on the other hand, has exposed deep divisions in the US. ++ Both sides of Congress had serious doubts when passing the bill. ++ This is dirty …More

October 3, 2008 | Bailouts Work, But the Current Paulson Plan Won't

The Laevan and Valencia study of 42 recent bailouts shows they can work, yet the current Paulson plan may not. ++ “Paulson and Bernanke should use bailout money to recapitalize the banks, not buy bad assets.” ++ Furthermore, …More

October 2, 2008 | You Lose, I Lose Economics

Asia’s role in the financial crisis shouldn’t be underestimated. ++ Endless liquidity coupled with cheap goods fueled America’s “buy-now pay-later consumption,” inflating the housing bubble in the process. ++ The overextension is as much a story …More

October 2, 2008 | Crisis in North Korea: Opportunity for Democracy

The possible regime crisis in N. Korea poses a threat of loose nukes, floods of refugees, and long-term economic upheaval, but is also a great chance to reunite the Peninsula under democratic rule. ++ The US-South Korean Forces …More

October 1, 2008 | The US Needs a Global Line of Credit

The US is following a pattern similar to Japan’s financial crisis in the 1990s, but ignoring the principles and method with which to handle it. ++ Unlimited liquidity in the market is needed and the world should help share the burden. …More

October 1, 2008 | Paulson 0, Democracy 1

“It is a glorious day for democracy.” ++ With all members of the House up for re-election in November, the rejection of the Paulson plan is a clear indication of the American public will - Wall Street must be accountable, not the tax payers. ++ …More

October 1, 2008 | The End of US Arrogance

By talking about terrorism instead of the financial crises in front of the UN, Bush has staged himself as “yesterday’s man.” ++ Even Germany - one of America’s closest allies - is distancing itself from the US and blames the state for opposing tighter …More

September 30, 2008 | Financial Anger the World Over, but Misguided

Anger stemming from the financial mess is ubiquitous; the biggest backlash comes from outside the Anglo-American world and is directed at their unique type of capitalism. ++ The disparity between individualism and solidarity is …More

September 30, 2008 | Rescue the Rescue Plan

The rejection of the rescue package, led by Republicans, proved the incompetence of US leadership. ++ Most members of the G.O.P. still believe socialism poses the biggest threat and disregard that today’s economy experiences huge cycles of bubble and …More

September 29, 2008 | Economics We Don't Understand

We are witnessing the very “bankruptcy of modern economics.” ++ While we have long understood demand-oriented macroeconomics, the current financial crisis does not conform to any previous economic model or known solution. ++ The previous $152 …More

September 26, 2008 | HOT ISSUE: <br />How to Respond to the Financial Crisis?

From the Editorial Team: The current financial crisis has sent economists, politicians, and citizens alike scrambling to find solutions. In the US and Europe, expert opinion is divided on how to revamp the economy. How should the United States, the EU, the private sector, and others respond to this international situation? …More

September 26, 2008 | A New Financial Ethos Needed

The financial crisis evinces the exigent need for a “Global Monetary Authority.” ++ No international framework exists for dealing with such crises; the vacuum is perilous. ++ Financial wealth is shifting to the East; the result will be a …More

September 26, 2008 | India Dodges Financial Crisis

The impact of the current financial crisis on India will be minimal. ++ Indian institutions, such as ICICI Bank, have relatively little exposure to Wall Street, and due to a good regulatory system, should escape fairly unscathed. ++ However, Tata …More

September 26, 2008 | US: Still the Global "Beacon of Free Enterprise"

It’s a critical question: Is the financial crisis on Wall Street going to damage the US’s image of good finance and business expertise? ++ Actually, the answer is no. ++ The image of the US from a global perspective is …More

September 25, 2008 | No Blank Check for Paulson

The Bush administration’s financial bailout package is not well received by Congress – and rightly so. ++ There should be no “blank check,” given Henry Paulson’s maladroit leadership. ++ Obama has outlined four cardinal …More

September 25, 2008 | Private Sector Boosts Asset Values, Not Government

In the late 80’s and early 90’s the government-owned Resolution Trust Corporation (RTC) was charged with overseeing $400 billion in assets, most from failed banks and loan institutions. ++ The lessons learned then are …More

September 25, 2008 | Private Wars: The Renaissance of Western Mercenary Warfare

Thomas Speckmann: To Western democracies, the idea of war privatization is still largely associated with the reign of warlords in Africa and Afghanistan. However, privatization is also sneaking into Western warfare. This new financial aspect of war needs to be regulated on a national and global scale. …More

September 24, 2008 | Financial Fix Must be Clear and Efficient

Urgent action to save the financial system is good, but current draft legislation is risky. ++ Congress should not rush into a decision but needs to concentrate on three things: quickly restoring financial stability with low cost, …More

September 24, 2008 | UK: Take Action, Cut Interest Rates

Unemployment in Britain will rise by 2 million by the end of the year. ++ Just last month 81,000 more British citizens were without jobs, causing the unemployment rate to rise from 5.3% to 5.5%. ++ Job activity is on a sharp decline. ++ …More

September 23, 2008 | US Bailouts: Socialism is Not the Answer

Washington is bankrupt, fiscally and morally. ++ Socialism is in full swing, proving the free-market Republicans hypocrites. ++ Paulson wants Congress to grant the Fed $700 billion to buy private assets. ++ Such a move will only create …More

September 23, 2008 | No Money Left for Change

The US has done the right thing when it launched a rescue plan. ++ Those who argue how vast the initiative is are wrong because they underestimate the extensiveness of the US economy. ++ However, the true impact of the expansion of public spending lies …More

September 22, 2008 | Hard Landing for Eurozone

The demise of the shadow banking system began last week. ++ This is the financial crisis of the century. ++ Shadow banks are not protected from bank runs, as commercial banks are. ++ A run on hedge funds is highly probable. ++ If these institutions are …More

September 22, 2008 | History Repeats its Financial Self

Historically, reformers have always tried to stabilize activity through control of interest rates and money supply, but these are not consistently correlated. ++ The current crisis was foreseeable; booms cannot be eternal. ++ The world’s …More

September 22, 2008 | Questioning Export Led Growth

It has been unchallenged that export-led growth is the way to go for developing countries. ++ In light of the global slowdown, however, it is likely that the EU and US will become less hospitable to developing nations’ exports. ++ South-south …More

September 19, 2008 | Greater Transparency is Not a Fiscal Panacea

The G7 finance ministers endorsed an approach to regulation in April, which stipulated transparency, disclosure, and strict risk management, i.e., nothing new. ++ This hackneyed approach will fail again. ++ Regulation hasn’t …More

September 19, 2008 | Volatile Oil Prices Signal Looming Market Meltdown

Oil prices spiked to US$147 per barrel and then dropped to $90, demonstrating their dangerous volatility. ++ The US approach to oil price regulation is ineffective. ++ Global oil price benchmarks are now largely based on Black …More

September 19, 2008 | Multilateralism - Making the Market Work

This is not the end of capitalism, but “the global financial system will never be the same again.” ++ Those responsible for the mess are now entrusted with cleaning it up. ++ Politicians had little choice: socialize the debt …More

September 18, 2008 | Asking Financial Markets for a Viennese Waltz

Andreas Kern: This research note by Christian Fahrholz and myself depicts a new line of argument for the current global financial turmoil and especially the recent American financial crisis. …More

September 18, 2008 | Politics of Fear are Bad News for Obama

Due to the financial crisis, the attack on the US embassy in Yemen, and the latest tropical storms, the tone of the US presidential campaign has become nervous and angst-ridden. ++ Even if people who consider the economy to be the most …More

September 18, 2008 | Unregulated Market Collapses in US

We are witnessing the worst economic conditions since the banking shutdown of 1932. ++ After rescuing Fannie Mae and Freddie Mac, and reluctantly doing so with AIG, the Fed declined to bail out Lehman Brothers or Merrill Lynch; the Fed had to …More

September 18, 2008 | US Sanctions on Iran Backfiring

US sanctions on Iran have caused an influx of Iranian trade with nearby Dubai. ++ Visits to the UAE by US officials have resulted in drastically fewer business licenses for Iranians there. ++ This policy has hurt many Iranians who are at odds …More

September 17, 2008 | The Time for Government Regulation is Now

Three of the top five Wall Street investment banks are no longer independent or no longer exist. ++ The US financial system is “melting away.” ++ Undue faith in unregulated markets led to dubious risk taking in the US as …More

September 16, 2008 | The BRICs Could Crumble After All

For a long time it has been thought that world markets are decoupling, enabling the emerging economies of the BRIC group to thrive regardless of the economic slowdown in the Western world. ++ The emerging countries were predicted to quickly …More

September 16, 2008 | The Euro, Still Going Strong

The Euro is not yet ten years old, but its success to date has been unquestionable. ++ Despite numerous exogenous shocks - ranging from the specter of terrorism to the subprime mortgage meltdown in the US - the Euro is still going strong. ++ …More

September 12, 2008 | Mexico Could be the New China

Due to high oil prices that make transport more expensive, US companies might stop outsourcing to Asia and give Mexico another chance. ++ China’s export taxes are rising, its workers are demanding higher wages and the Chinese currency is rapidly …More

September 5, 2008 | The Bank Must End the "Euro's Wild Rise"

The downturn of economic activity in the Eurozone has come as a surprise. ++ The twin shock of the exchange rate of the euro and oil prices squeezed profits from exporting firms. ++ The opposite has happened in the US, where the …More

September 5, 2008 | Asian Free Trade Agreements Balk at WTO and US

Meeting in Singapore, 10 southeast Asian nations along with India confirmed yet another FTA that clearly indicates the waning influence of the WTO and the US in the region. ++ Many such countries, especially India, prefer …More

September 4, 2008 | Azerbaijan and Kazakhstan Harness Natural Resources

Azerbaijan and Kazakhstan lead the region as two countries
that have successfully harnessed their natural resources allowing them to grow
their economies and avoid the apparent “natural resource curse” that plagues
many …More

August 29, 2008 | Russia Scares Off its Own Investors

International investors were already troubled by Russia’s economic problems, but Russia’s recent actions toward Georgia have created diplomatic tensions, which may scare off investors. ++ The outcome of the US election could be a major factor …More

August 25, 2008 | The US Can no Longer be the Importer of Last Resort

At the moment when most of the industrial world is in or near recession, a lot of global economic momentum comes from authoritarian regimes that concentrate on accumulating wealth rather than on raising the standard of life of …More

August 22, 2008 | West Should Concentrate on Russian Oligarchs

A sharp consensus between Europe and the US emerged at the NATO summit that they can not deal with Russia as usual. ++ Regarding the question what to do instead, one answer could be: concentrate on Russian oligarchs. ++ They have …More

August 18, 2008 | "Turn Left for Growth"

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 …More

August 15, 2008 | US Food Aid is Ineffective

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 …More

August 13, 2008 | The Rich Must Get out of the Economic Driver's Seat

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 …More

August 12, 2008 | Euro's Joyride is Coming to an End

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 …More

August 11, 2008 | Next US President Must Reverse America's Decline

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. ++ …More

August 11, 2008 | The Myth Behind Doha

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

August 8, 2008 | Privatization Would Enrich China's Citizens

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 …More

August 8, 2008 | Product Prices Need to Reflect Environmental Costs

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 …More

August 6, 2008 | Protectionism Can Lead to Global Food Crisis

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

August 5, 2008 | A Transatlantic Learning Community

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 …More

August 5, 2008 | "Ending the Silent Russian-European War"

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 …More

July 31, 2008 | How the Banks Can Win Back Confidence

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

July 31, 2008 | China's New Antimonopoly Law Takes Effect

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

July 30, 2008 | Doha's Demise

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 …More

July 30, 2008 | The Global Economy Needs to Slow Down

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 …More

July 25, 2008 | The Clash of Capitalisms

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 …More

July 23, 2008 | With 50-50 Chances for Success, Doha Needs a Miracle

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 …More

July 18, 2008 | The G8 is Losing Relevance

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

July 17, 2008 | Does the G8 Need a Redesign?

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

July 15, 2008 | China's Reserve Accumulation is not Sustainable

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

July 14, 2008 | Sarkozy Jeopardizes the Next Trade Talks

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

July 14, 2008 | The Fed Won't Solve Fannie and Freddie's Problems

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

July 14, 2008 | Europe Should Lead Global Financial Reform

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 …More

July 3, 2008 | "Sanctions Are a Coward's War"

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

July 3, 2008 | The Rise of Private Equity in Africa

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

July 2, 2008 | Raising Interest Rates May Cause Global Recession

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 …More

July 2, 2008 | Monetary Policy Must Tighten to Avoid Future Crises

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

July 1, 2008 | Europe Must Avoid Becoming a Toy for SWFs

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 …More

June 27, 2008 | Fear of Globalization is Rising in the West

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 …More

June 26, 2008 | Protectionism is Hampering Foreign Investments

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 …More

June 23, 2008 | US Markets Will Continue to Struggle This Article contains Flash-Video

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

June 20, 2008 | SWF Investments Are Not Dangerous

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

June 18, 2008 | EU Reforms Must Continue, Despite Ireland's "no"

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 …More

June 18, 2008 | Are Second Generation Biofuels a Curse or a Blessing?

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 …More

June 12, 2008 | Moving Doha Forward is Critical for Global Free Trade

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 …More

June 10, 2008 | A Lame Duck and Chickens Cramp EU/US Dialog

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. ++ …More

June 10, 2008 | "The New World Energy Order"

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

June 9, 2008 | Tourism and Climate Change: The Guilty Gain

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 …More

June 6, 2008 | Chinese SWF Promises Transparency

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 …More

June 5, 2008 | Pragmatic Guidelines for Development

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 …More

June 2, 2008 | US Deficit and Sinking Dollar: The Agenda of a New G5

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, …More

June 2, 2008 | The Future of the G8: From "Library Group" to G13?

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

June 2, 2008 | Germany Would do Well to Look Towards France

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 …More

May 29, 2008 | Missing Points in the Fuel Price Debate

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 …More

May 28, 2008 | Know Your Market Economy

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

May 28, 2008 | Oil Prices Have Reached Their Break Point

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

May 28, 2008 | Free Trade Mantra Falling on Millions of Deaf Ears

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 …More

May 27, 2008 | A Love/Hate Relationship: US Dollar and Oil Prices

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 …More

May 26, 2008 | The Market Price of Social Responsibility This Article contains Flash-Video

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

May 23, 2008 | US Monetary Policy is Responsible for Price Rises

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 …More

May 23, 2008 | Striking a Proper Match?

Michele Rioux & Susan Ariel Aaronson: Strategies to Link Trade Agreements and Real Labor Rights Improvements: …More

May 22, 2008 | India's Government Needs to Bolster Competitiveness

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 …More

May 20, 2008 | Detrimental Protectionist European Trade Policies

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. ++ …More

May 20, 2008 | Food Prices Will Continue to Rise in Asia

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

May 20, 2008 | Why the West Lost the Financial War against Terror

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

May 19, 2008 | Sovereign Wealth Funds Are Only a Symptom

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 …More

May 19, 2008 | Afghanistan's Chance for a Better Economic Future

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

May 16, 2008 | India Strives for Influence in the Indian Ocean

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 …More

May 16, 2008 | The Need to Nurture the Latin American-European Relationship

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

May 15, 2008 | Financial System Failed the Test of the Marketplace

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

May 15, 2008 | Global Competitiveness Begins with Education

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 …More

May 13, 2008 | Finance: US and Japan Only Similar in Symptoms

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 …More

May 13, 2008 | Human Trafficking: A Global Malady

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

May 8, 2008 | Marrying Trade and Human Rights

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

May 5, 2008 | Can Medvedev Sustain Russia's Growth?

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

May 5, 2008 | Challenge and Opportunity for India's Agriculture

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 …More

May 2, 2008 | The European Invasion of the US Market

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

April 30, 2008 | On Righting Trade: Human Rights, Trade, and the 2008 Elections

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

April 29, 2008 | The Hysterical Fear of SWFs in Unjustified

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 …More

April 28, 2008 | Americans Are Growing Skeptical of Globalization

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

April 25, 2008 | Outrage Over Nord Stream Deal Seems to Have Died in Germany

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

April 24, 2008 | Will the Chinese Change International Institutions?

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

April 24, 2008 | The Food Crisis is a Problem of Productivity

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, …More

April 23, 2008 | A Rising Euro Threatens American Dominance

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

April 21, 2008 | "International Rice Market Has Become a War Zone"

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 …More

April 21, 2008 | "Financial Industry Needs an Overhaul!"

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

April 21, 2008 | Flawed Geopolitical Giants Fuel Global Tensions

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 …More

April 17, 2008 | Protectionism Could Be the Cause of Food Crisis

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

April 16, 2008 | Profits Divide European Leaders' Stance on China

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 …More

April 14, 2008 | Purchasing in China is Becoming More Expensive

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

April 14, 2008 | Do Not Regulate Sovereign Wealth Funds

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

April 14, 2008 | Africa's Fragile Triumph Over Global Financial Turmoil

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 …More

April 14, 2008 | Liberalizing Services for Future Growth

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

April 11, 2008 | IMF Needs a New Governance Structure

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 …More

April 10, 2008 | China's Sovereign Wealth Fund Promises Transparency This Article contains Flash-Video

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

April 10, 2008 | Europe Votes Democrat, but Asia Tends Republican

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 …More

April 10, 2008 | Financial and Leadership Deficits

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 …More

April 9, 2008 | The Eurozone Should Assume Global Leadership

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 …More

April 9, 2008 | Selling the Drama

Andreas Kern: This research note by Christian Fahrholz and myself depicts arguments for lending boom-bust cycles in emerging market and transition economies. …More

April 9, 2008 | The Next US Economic Policies

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

April 8, 2008 | State-owned Enterprises and the Global Economy

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 …More

April 8, 2008 | Fundamentalist Fallacy, New Paradigm Needed!

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

March 28, 2008 | US Financial Crisis: An Advantage for Russia

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

March 28, 2008 | The OECD: A Response to Turkey's Challenges

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

March 26, 2008 | The Fed and the ECB Face Different Dilemmas

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, …More

March 26, 2008 | Global Economy Outweighs Concern Over Tibet

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 …More

March 25, 2008 | End the Violence in Tibet!

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

March 24, 2008 | A Window of Opportunity in Cuba

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.

March 21, 2008 | Multinationals Face Political and Economic Risks

Frederik C. Köncke: In an increasingly complex global environment, businesses are seeking a greater understanding of how they are at risk. …More

March 19, 2008 | Bear Stearns Collapse Good for Wall Street and World

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

March 18, 2008 | The Recession is Already Here This Article contains Flash-Video

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

March 18, 2008 | "Fighting Recession With Panic"

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 …More

March 18, 2008 | Increasing Intervention to Deal With the Market Crisis

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 …More

March 17, 2008 | Sovereign Wealth Funds: Vigilance Not Fear

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.

March 13, 2008 | The Threat of OPEC Acting Like a True Cartel

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

March 12, 2008 | US Recession Hurts Everyone

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.

March 11, 2008 | Global Capital Markets: The USA Stands its Ground

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 …More

March 10, 2008 | Russia and the Resource Curse

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

March 7, 2008 | Lower Oil Prices with Brazil in OPEC

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.

March 6, 2008 | The US Should Avoid Japan's Economic Mistakes

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

March 5, 2008 | Before Cutting Interest Rates, Consider Inflation

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 - …More

March 5, 2008 | Obama's Free-Trade Credentials Top Clinton's

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.

March 5, 2008 | Polish PM Due In DC: Managing Image and Expectations

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

March 3, 2008 | Food Prices Soar: Few Are Able to Reap Benefits

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.

March 3, 2008 | Lisbon Agenda: the EU Fails to Deliver on R&D Promises

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

February 29, 2008 | Petrodollars Pose no Risk to the Global Economy

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

February 26, 2008 | V4 Perspectives and Opportunities

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

February 25, 2008 | The Changing Reality of the Global Economy

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.

February 25, 2008 | The Consumers of the Future

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

February 25, 2008 | EU Expansion to Israel and Palestine

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

February 22, 2008 | The MEFTA and Economic Development

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

February 19, 2008 | What Europe Can Learn from Asia

Michèle Schmiegelow: Asia’s integration has advanced considerably. Europe could benefit from Asia’s strategic pragmatism.

…More

February 15, 2008 | Widespread Unease Over Globalization

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

February 14, 2008 | Time to Renew EU Trade Agreements with Africa

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 …More

February 13, 2008 | Transatlantic Economic Relations Remain Strong

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 …More

February 7, 2008 | How do European and US Think Tanks Measure Up?

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 …More

February 6, 2008 | What is Political Risk?

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

February 6, 2008 | Multilateral Aid Programs Are on the Line

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

February 5, 2008 | EU Action and Global Economic Stability

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

February 4, 2008 | [live]The US Economy: A Deep Concern

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 …More

February 4, 2008 | The US Economy: A Deep Concern for the Middle Class

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 …More

January 29, 2008 | Bush Bashers are Wrong About Asia

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

January 25, 2008 | 2008: Remaking Transatlantic Relations

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

January 21, 2008 | In Favor of Free Trade

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, …More

January 17, 2008 | Gordon Brown Praises the EU

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

January 16, 2008 | Integrating a Rising China into a Declining Western Order

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 …More

January 14, 2008 | The Multinationals New Competition

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 …More

January 10, 2008 | Edouard Balladur's "Union of the West"

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 …More

January 10, 2008 | Enterprise in the Arab World: Held Back by Politics

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 …More

January 8, 2008 | The Awakening of Central Asia

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

January 3, 2008 | European Politicians Avoid Ideological Confrontations

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, …More

December 21, 2007 | Still No Progress in Sino-American Trade Talks

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 …More

December 21, 2007 | The US Sub-Prime Crisis: Mortgage Bonds and the Sociology of Repossession

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 …More

December 19, 2007 | EU-Africa Summit is a Failure

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 …More

December 18, 2007 | Sarkozy's Proposal: Elitist or Forward Thinking?

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 …More

December 17, 2007 | Immigration Promotes Innovation

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 …More

December 13, 2007 | Why We Shouldn't Fear Sovereign Wealth Funds

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 …More

December 10, 2007 | Developing World Firms Go Shopping in the West

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 …More

December 5, 2007 | Europeans and Americans Favor More Extensive Transatlantic Commerce

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

November 26, 2007 | Economic Mismanagement and the Future of America

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,” …More

November 21, 2007 | Alarm is Growing About Rising Food Prices

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 …More

November 21, 2007 | The (Euro)Land of Opportunity

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

November 20, 2007 | Emerging Global Finance Giants: The New Power Brokers

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 …More

November 15, 2007 | Beyond Heiligendamm

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

November 13, 2007 | Energy Watch Group: Steep Decline in Oil Production Coming

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

November 8, 2007 | India's Changes

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

November 7, 2007 | Europe's Old Age Seems More Like the Prime Time of Its Youth

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 …More

October 25, 2007 | Germany: An Accomplice to a Nuclear Iran?

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

October 22, 2007 | "The United States and Germany pursue the same goals" This Article contains Flash-Video

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

October 19, 2007 | Big Oil Getting Smaller

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 …More

October 4, 2007 | UK Education Brings Big Bucks to Britain

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 …More

October 3, 2007 | To Reach Millennium Goals, Think About Human Capital

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

September 27, 2007 | Sweden: A "Welfare Paradise" Offers Lessons For Europe

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

September 26, 2007 | Get Moving, Europe! This Article contains Flash-Video

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

September 14, 2007 | Joel Achenbach on How America Will Remain "The Shining City on A Hill"

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 …More

September 13, 2007 | Maseeh Rahman Reports: India to Put Nuclear Arsenal Underwater

The cloud of secrecy surrounding India’s long-standing secret nuclear submarine program is finally clearing up, reports Guardian columnist Maseeh Rahman from Delhi. India has been racing to create …More

August 29, 2007 | The Increasing Importance Of Africa in US Trade Relations

Princeton Lyman, former US ambassador to Nigeria and South Africa, writes together with Council on Foreign Relations director Patricia Dorff that the United States must recognize Africa’s growing significance and improve …More

August 20, 2007 | Europeans Ignore Mexico At Their Peril

Philipp S. Mueller: Mexico is the ignored elephant on the transatlantic agenda. This OECD country of 105 million people is an economic heavyweight that both Europe and the US have underestimated. What are you waiting for, policy entrepreneurs? …More

August 17, 2007 | Why Dump Dollars When You Can Own the US?

Louis G. Schirano: The US Congress reacted to the wrong Chinese threat: Sovereign Wealth Funds pose a far greater danger than devalued currencies. The West must pay attention to the leverage that China, Russia and others are building up. …More

August 14, 2007 | How US Investors Could Stop The Darfur Genocide

Mia Farrow and Jody Williams provide possible explanations in Opinion Journal for the ongoing violence in Darfur. According to Ms. Farrow and Ms. Williams, one of the primary reasons is the investment of US-based investment …More

August 14, 2007 | China Threatens to Sell Dollars if US Pressure Does Not Abate

If the US continues pressing China to float its currency, Beijing will start selling its dollar reserves, warns Ambrose Evans Pritchard of the Telegraph . Although Chinese officials …More

July 26, 2007 | All Gain, No Pain with Sustainable Banking

Rewards For A New Way of Doing Business
More and more banks are embracing sustainable banking as a strategy to gain a competitive advantage, reports Williams. This is no mere Western phenomenon – the FT Sustainable Banking …More

July 20, 2007 | G8 Aftermath: Energy, Development, and Enlargement

Memo 2: Members of the Atlantic Community commented and wrote articles on energy and development policy as well as G8 enlargement at the time of the G8 summit. …More

July 19, 2007 | Don't Blame the Welfare State for US-EU Productivity Gap

The Productivity Gap
Europe still lags behind the US in per capita productivity by as much as 32%. Worse still, a transatlantic comparison by sector indicates that official statistics overstate European labor …More

July 18, 2007 | Bruegel on The Global Accounting Experiment

Rising financial and economic interdependence across the globe has generated new opportunities and challenges that exceed the limits of individual nation states and traditional treaties. Six years ago the International Accounting …More

July 18, 2007 | Will the Euro Dethrone the Dollar?

William L. Silber: I find that the “currency without a country” may owe much of its rise to serendipity. Past experience, however, shows that the dollar has further to fall. …More

July 9, 2007 | US-Asia Economic Policy: Saving the Dollar from the Renminbi

The US global merchandise trade and current account deficit in 2006 was the largest ever recorded by one country, amounting to $857 billion in 2006. On the opposite side of the spectrum, China’s current …More

July 6, 2007 | The $2,500 Billion Question

The Good
Sovereign Wealth Funds (SWFs), schemes to invest the growing foreign exchange reserves of nations, have mushroomed in size over the last five years. Morgan Stanley estimated in March that the total funds at the disposal of SWFs amount …More

July 2, 2007 | How Japan Fuels Global Financial Instability

Thomas Palley: China is not the only Asian economy perpetuating trade deficits. Japan’s rock-bottom interest rates also play a part. …More

June 29, 2007 | Islamic Banking Systems Growing and Spreading to Europe

Mainstream investment banks are pitching into the increasingly popular and profitable business of Sharia-compliant financial services, and the trend is moving to Europe. The industry has experienced annual growth of about …More

June 22, 2007 | McKinsey: Multinational Acquisition Highlights China's Strength in a Global Economy

Representatives of the McKinsey consulting group in China sit down with Hong-Kong based Lenovo’s CFO Mary Ma for a conversation about the company’s 2005 acquisition of …More

June 8, 2007 | G8 Criticism: Scattered and Hollow

Sylke Tempel: I look at the ever-present globalization bogeyman at the top of this year’s G8 protest agenda. But are concerns justified? Many of the more fuzzy arguments of globalization critics can be easily discarded. …More

June 7, 2007 | Horne Points Out How Globalization Has Taken a Bite Out of Wall Street

J. Paul Horne of the European Institute reports that, after decades of US financial dominance, economic developments in Asia have driven down American GDP’s percentage scale of the global market. He …More

June 7, 2007 | Roland Berger Report on Top European and American Managers on Transatlantic Relations

A Roland Berger Strategy Consultants’ survey offers perspectives on transatlantic relations from senior European and American business managers. The survey indicates that while European …More

May 31, 2007 | Bruegel Says Worldwide Exchange Rates Adjustment Would Fight Current Account Deficits

The March 2007 Bruegel Policy Brief reveals that imbalances in global current account positions are not sustainable and need adjustment. A 15% depreciation of the dollar and an appreciation …More

May 29, 2007 | New Silk Road Has Global Significance

John Turner: The “new Silk Road” between the Middle East and Asia has brought major economic changes to the Persian Gulf region. Oil and trade flow between the Middle East and Asia has increased 25%, outstripping the increase in trade between Asia and the United States. Together Asia and the Middle East provide more than 50% of total net capital to the world. …More

May 9, 2007 | Germany's Innovation Dilemma

David Vickrey: German businesses should take a cue from the vibrant start-up culture in the United States and be more open to the radical change that innovation can bring. There is no room for fear of failure if Germany is to achieve the sustainable economic growth that it so desires. …More

April 26, 2007 | Hands Off Hedge Funds

The current conventional wisdom on hedge funds—which have rapidly emerged as a major force in the world economy—is that they are dangerous and should be subject to much broader regulation. Sebastian Mallaby, economist for the American Council on Foreign …More

April 26, 2007 | Europe and America Too Divided Over China Policy

Sonja Bonin: The United States and Europe should unify their policies on China. Both currently have separate strategies on how to deal with China’s growing economic and military might. This division shows other rising powers that the West lacks a plan to keep its place in a new world order. …More

April 25, 2007 | Boston Consulting Group On India's Ascent On The Global Market

India is no longer simply the world’s “back office,” and has moved beyond its perceived role as provider of data processors and call-center workers. A study of the Boston Consulting Group and …More

April 19, 2007 | Rosemary Righter on America's Pampered Godchild

With the 50th anniversary of the Treaty of Rome approaching, journalist Rosemary Righter suggests that Angela Merkel stop worrying about the EU constitution and instead help Europe stimulate growth by “joining forces” with the …More

April 16, 2007 | Kiroku Hanai on Consolidation of US-Japanese Economic Partnership

If Japan intends to preserve its status in world trade, it must negotiate an economic partnership agreement with its biggest trading partner, the US, warns journalist Kiroku Hanai. Japan already lags behind South …More

April 12, 2007 | Javier Santiso on the Rise of Latin Multinationals

Cheaper access to capital, successful business models and sizable assets are helping Latin American companies—especially from Brazil and Mexico—to take over OECD-based firms. Javier Santiso of Deutsche Bank Research analyzes …More

April 12, 2007 | Eric Heymann Sees Wasted Energy in the Airbus-Boeing Trial

If an agreement can be reached in the WTO dispute between Airbus and Boeing, it will be achieved only after a long and costly process, writes Eric Heymann of Deutsche Bank Research. Since the original agreement of 1979, …More

April 12, 2007 | Mei Ying Gechlik on China's Intellectual Property Rights Balancing Act

Protection of intellectual property rights has become increasingly important since China’s admission to the WTO, reports Mei Ying Gechlik of the Carnegie Endowment for International Peace. Foreign …More

April 12, 2007 | Mirela Isic Argues For Transatlantic Free Trade

A Transatlantic Free Trade Area (TAFTA) could provide new momentum for the transatlantic relationship, reports Mirela Isic of the Center for Applied Policy Research in Munich. An alliance that handles one third of world trade and …More

April 12, 2007 | Kenneth Rogoff Asks What Keeps the Dollar so Strong

The dollar should be much weaker relative to America’s competitive position, according to Kenneth Rogoff of Harvard University. In 2006, interest payments for US debt amounted to 6.5% of GNP. US borrowing makes up more than …More


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