Knowledge@Wharton -- Law and Public Policy

Our Endangered Planet: How to Protect and Promote Sustainable Development

Mon, 09 Nov 2009 10:18:56 EST

The title of an upcoming Festival of Thinkers panel, "Future Resources: Envisioning Sustainable Development," only begins to hint at the broad range of interconnected subjects that go into any discussion of sustainability -- ranging from ecological concerns and population control to economic disparity and social disruption. Panelists will discuss the prospects for sustainability as societies move forward in an increasingly crowded world characterized by dwindling resources, continued poverty, civil wars and climate change, among other challenges.

The Good, the Bad and the Exaggerated in Michael Moore's New Film, 'Capitalism: A Love Story'

Wed, 14 Oct 2009 15:33:51 EST

Michael Moore's movie, Capitalism: A Love Story, doesn't pull any punches in its depiction of capitalism as the monster that is destroying America. Moore's villains range from Wall Street bankers to Wal-Mart to Treasury Secretary Timothy Geithner, while capitalism's victims include those who are losing their jobs, their houses and, in some cases, their faith in a system that is supposed to reward hard work and playing by the rules. Knowledge@Wharton asked Kent Smetters, a professor of insurance and risk management at Wharton who describes himself as "generally right of center," to review Capitalism: A Love Story.

Five Questions: What's New with Net Neutrality and India's Mobile Markets?

Wed, 30 Sep 2009 17:48:04 EST

Federal Communications Commission chairman Julius Genachowski in late September outlined principles of net neutrality to promote more open use of the Internet. What will these developments mean for business in the U.S. and other parts of the world? In a new interview format called Five Questions, Rajesh Jain, CEO of India-based Netcore, asks Wharton legal studies and business ethics professor Kevin Werbach about net neutrality. In the second part of the interview, roles are reversed and Werbach poses five questions to Jain about opportunities in the Indian mobile market, which is going through explosive growth.

FCC's Cable TV Ruling: Will the Competitive Landscape Change?

Wed, 02 Sep 2009 16:37:02 EST

For cable TV companies in the U.S., August 28 was a day to celebrate. Ending several years of regulatory battles, a ruling by the U.S. Court of Appeals came down in favor of Philadelphia-based Comcast, which sought to overturn the Federal Communications Commission's contentious 30% market share limit on cable TV operators. Not everyone is happy about the ruling, fearing it will lead to cable monopolies. In contrast, Peter S. Fader, professor of marketing and co-director of the Wharton Interactive Media Initiative, sees this as a "golden age" for the industry and consumers alike. Fader spoke with Knowledge@Wharton about why the recent ruling is likely to make the landscape more, not less, competitive.

Connecting the Dots at the World Economic Forum: 'We Can No Longer Face Global Issues Alone'

Wed, 19 Aug 2009 21:11:02 EST

Economic progress, ethics and social entrepreneurship are three themes that have long had a place on the agenda of the World Economic Forum (WEF), well before phrases like "subprime lending" had crossed the lips of bankers and Wall Street investors. But how can these and other global topics remain relevant during today's market turbulence? To answer that question, Knoweldge@Wharton spoke with Gilbert Probst, WEF managing director and dean of the Geneva-based, non-profit think tank's Global Leadership Fellows program; Tiffany West, associate director and Global Leadership Fellow, Program Development team; and Ana Karinna Sepulveda, project manager for the WEF's Global Education Initiative.

Can 'Cash for Clunkers' Help Jump-start the Auto Industry?

Wed, 05 Aug 2009 16:41:52 EST

Ford reported its first sales gain in 20 months, thanks to the U.S. government's "cash for clunkers" rebate program that gives consumers a rebate of up to $4,500 to trade in older cars for new and more fuel-efficient models. Other manufacturers said their continuing sales declines would have been worse without the program. All in all, the officially named Car Allowance Rebate System (CARS) provided taxpayers with a good return on their investment, Wharton management professor John Paul MacDuffie says in an interview with Knowledge@Wharton. But, he adds, the auto industry -- most notably GM and Toyota -- have a lot of work to do to prepare for a marketplace transformed by the financial crisis and growing demand for fuel efficiency.

Sacrifice and National Service: From the Civil War to Today's Financial Crisis

Wed, 15 Jul 2009 16:36:48 EST

When President Barack Obama delivered his victory speech last November, he used the words "a new spirit of service, a new spirit of sacrifice" – a theme that he has continued to sound since taking office in January. But the concept of sacrifice is not new. When it comes to American history, sacrifice has long been a unifying ideal in times of crisis, and it has also long been a concept used by government to enlarge its scope, according to a recent book by Drew Gilpin Faust titled, "This Republic of Suffering: Death and the American Civil War."

Former Infosys CEO Nandan Nilekani: 'We Are on the Razor's Edge'

Wed, 15 Jul 2009 16:36:27 EST

When Nandan Nilekani was the CEO of Infosys, one of India's top IT and outsourcing firms, he often found himself being forced to answer questions, not just about his company, but also his country. Sometimes, global business executives who visited the company's sprawling campus in Bangalore would raise issues to which Nilekani had no answer -- such as, "Why does Infosys have such a beautiful campus, but also large slums in other parts of the city?" So when Nilekani decided to write a book, unlike other CEOs who write about their favorite leadership or management theories, he chose India as his subject. In "Imagining India: The Idea of a Renewed Nation," Nilekani tackles themes ranging from education and demographics to investment and infrastructure. Nilekani, who was recently recruited by Indian Prime Minister Manmohan Singh to head a project to create a national identification card for the country, spoke with India Knowledge@Wharton about the book at the recent Wharton India Economic Forum in Philadelphia.

One War We Shouldn't Avoid: A New Approach to Reducing the Cost of Future Catastrophes

Wed, 08 Jul 2009 16:18:09 EST

In 2005, three major hurricanes -- Katrina, Rita and Wilma -- struck the U.S. Gulf Coast area, causing not just death and destruction, but also leading to insurance payments and federal disaster relief of more than $180 billion. Today, say the authors of a new book titled, At War with the Weather: Managing Large-Scale Risks in a New Era of Catastrophes, the U.S. is even more vulnerable to catastrophic losses. Written by Howard Kunreuther and Erwann Michel-Kerjan, with colleagues Neil Doherty, Martin Grace, Robert Klein and Mark Pauly, At War with the Weather analyzes current thinking about catastrophes and proposes new solutions for reducing loss and providing financial protection against future disasters. Kunreuther, co-director of Wharton's Risk Management and Decision Processes Center, and Michel-Kerjan, the Center's managing director, recently talked to Knowledge@Wharton about their book.

'Rewarding Failure': Will the Crisis Leave a Residue of Moral Hazard?

Wed, 08 Jul 2009 16:18:09 EST

The federal government has poured hundreds of billions of dollars into the banking system, and most experts seem to agree that the financial crisis is closer to its end than its beginning. But as attention shifts from fire fighting to rebuilding, many are worrying about the "moral hazard" that may remain, with an apparent government safety net encouraging a new round of foolish risk taking.

Obama's Regulatory Plan: Too Hot, Too Cold, or Just Right?

Wed, 24 Jun 2009 16:27:19 EST

Five months into his administration, President Barack Obama on June 17 unveiled his complex, sweeping financial proposals to create a "21^st century regulatory framework" for the U.S. The proposed regulations give the Federal Reserve more power to watch over Wall Street and also create a new agency to curb abuses by mortgage and credit card lenders. Wharton professors and other experts say that while the new framework does not hamper financial innovation, it is also "too timid" and fails to address serious problems.

The Dragon Turns Green: China's Manufacturers Adapt to a New Era

Wed, 03 Jun 2009 16:43:47 EST

The skies over Hong Kong today are permanently gray, covered with smog from southern China's factories -- the same factories that have made China one of the world's most important manufacturing hubs in just two decades. Now the government is shifting emphasis from economic growth at all costs to growth without a high environmental cost. Who will gain as China cleans itself up? Who will lose? And what opportunities will this historic shift in national priorities create?

Carbon Cutting with Cap and Trade: A 'Step in the Right Direction, but ... Far from Ideal'

Wed, 27 May 2009 17:04:13 EST

In the war on carbon dioxide, the chief culprit in global warming, taxes are out and "cap and trade" is in, as key legislation moves forward in the U.S. Congress. The plan -- which gives a limited number of permits for industries to release carbon into the atmosphere and to sell permits they don't need -- might work if it doesn't have too many loopholes. It must also inspire similar action in China, India and other big carbon emitters that have yet to jump on the global-warming bandwagon.

Has the Response to Swine Flu Been Too Feverish?

Wed, 13 May 2009 16:53:27 EST

The answer is no, according to experts at Wharton and the University of Pennsylvania. Despite an estimated $2.2 billion loss in Mexico due to business interruptions and the curtailing of global travel and tourism, they say the highly publicized health warnings may have helped to slow the spread of the H1N1 virus. A more casual approach to the initial reports could have proved deadly if the strain had, in fact, been more severe -- a scenario that would have serious implications for the economy.

Legal Strategy 101: It's Time for Law Firms to Re-think Their Business Model

Wed, 29 Apr 2009 14:19:24 EST

The global financial crisis is reshaping many businesses -- and tradition-bound, top-drawer law firms are no exception. While the legal industry had begun to face the need for change before the current economic downturn, the crisis is accelerating trends that will alter the structure and operations of law firms going forward.

Renewable Energy in China: A Necessity, Not an Alternative

Mon, 20 Apr 2009 21:39:27 EST

What role does renewable energy play in the world's fastest growing economy? China's burgeoning consumption rate, its increase in heavy industry exports and a construction boom that has led the Chinese to nominate the "crane" as their national bird have fuelled a massive and increasing appetite for energy -- intensified by the government's balancing act of not imposing energy constraints while also seeking more energy sources.

Re-thinking Risk Management: Why the Mindset Matters More Than the Model

Wed, 15 Apr 2009 15:21:37 EST

This year, companies like Unilever, Union Pacific and Visteon are reluctant to make predictions about their financial performance in the months ahead. The problem, according to the companies, is not that they don't want to present a gloomy picture; it is that they just don't know how the economy will perform. Risk management models have been criticized for failing spectacularly to predict or prepare firms for the crisis now shaking the world. According to experts from Wharton and elsewhere, the trouble lies less in the models than in the decisions that get made based on them.

A Thought for Tax Day: The Real Fiscal Crisis Is Yet to Come

Wed, 15 Apr 2009 15:21:37 EST

Even the biggest tax hikes will not raise enough money to pay off the national debt or meet coming obligations to retiring baby boomers for Medicare and Social Security. To accomplish the latter, politicians must do something they fear even more than raising taxes: Reduce Medicare and Social Security benefits. In an interview with Knowledge@Wharton, insurance and risk management professor Kent Smetters discussed the impending crisis.

German Inter-city Competition Enters a New Millennium

Tue, 07 Apr 2009 12:01:27 EST

While few European cities have a business-friendly reputation, German cities are an exception. Drawing upon their historic strength as competitive centers in a decentralized economy, cities are actively vying to attract global business. Düsseldorf, which has successfully courted companies from around the world, is a case in point.

A Matter of Degrees: German Education Reform and Its Consequences

Tue, 07 Apr 2009 12:01:19 EST

While Germany's education system has had a proud legacy, policy makers in recent years have become frustrated with a system that seems stuck in a number of ways. Knowledge@Wharton asked experts at Wharton and leading German universities to explain what's changing in post-secondary education and the impact these changes will have on German business and society.