Here is a very encouraging story from Newsweek about social entrepreneurship and the kind of change that is possible when thinking outside of the box. The story highlights the innovative work of José Roberto Fonseca that is revitalizing the agricultural sector in one of the poorest districts in Brazil. Using a combination of solar energy and a process known as hydroponics, José has been able to create sustainable solutions for agricultural problems that inundate this arid region of Brazil.

But where others saw privation, Fonseca saw opportunity. "Poor people in the sertão have been farming beans, manioc and corn the same way they have since Brazil was discovered, and poverty is as bad as ever," he says, waving at the monotonous expanse of balding scrub and cactus. "It's time they tried something different."

Finally, there is an upbeat news piece about Africa. The BBC released a brief story on Jan. 31st about the opening of a stock market in Rwanda. For a country that has known its share of sorrow, this is one more element that can direct Rwanda toward a more hopeful future.

Upon opening the Rwanda Capital Market, President Paul Kagame described it as a milestone for the nation. The hope is that the exchange will aid the economy, which has yet to bounce back after the 1994 genocide.

Most assume that China will experience a significant downturn in growth as a result of the recent scare in the US economy. But on January 3rd The Economist published an article suggesting that growth of GDP in China is less dependent on the export of cheap goods to Western consumer markets.

The headline ratio of exports to GDP is very misleading. It compares apples and oranges: exports are measured as gross revenue while GDP is measured in value-added terms…
Once these adjustments are made, Mr Anderson reckons that the "true" export share is just under 10% of GDP. That makes China slightly more exposed to exports than Japan, but nowhere near as export-led as Taiwan or Singapore.

Today an International Herald Tribune article asks, "is economic history about to change course?" As power transfers from the west to the east, many economists are worried about a protectionist backlash by governments in attempt to regain control.

"Economic theory tells us that globalization is a win-win, but it isn't, at least not in the West," Roach said. "The theory was written for another era. We have to ask some hard questions about unfettered capitalism. We need a new script."

The risk is that Western governments, mindful of the growing backlash among voters, will be tempted to rewrite the script by engaging in old and new forms of protectionism.

Many are predicting 2008 to be a year for the economic history books.

The Council on Foreign Relations takes a look at the possibility of a global recession.

As many indices mark the worst stock market losses since 9/11, India suspends trading and Japan marks the worst two-day losses in 17 years, analysts are talking global recession (and its implications for the US).

The Council on Foreign Relations' Lee Hudson Teslik says that this recession (or mild economic turn down) could have implications for a number of US policies, ranging from immigration to possibly increasingly protectionist economic policies as US job losses cause citizens to feel the squeeze-- and subsequently pressure politicians.

However, can emerging markets counterbalance the fear and uncertainty present in the US and across Asia?

Globally, economists see a silver lining in the developing world. Emerging markets in East Asia, the Middle East, Latin America, Eastern Europe, and even Africa have seen rapid recent growth (Economist),
and analysts hope growing consumption in these regions might offset declines in the United States. Either way, analyst Zakaria and others argue, a downturn need not bring a permanent loss of power for Washington, if policymakers reclaim the “open and expansive” attitude with which they once embraced the world.