The massive growth of hedge funds has sparked warnings of instability and demands that the industry be regulated. But the fear of hedge funds is overblown, based on a misunderstanding of their role in the international financial system. In reality, hedge funds do not increase risk; they manage it -- and policymakers, rather than clamping down, should make sure hedge funds have the tools to perform this function well.

Foreign governments want control of the Internet transferred from an American NGO to an international institution. Washington has responded with a Monroe Doctrine for our times, setting the stage for further controversy.

Despite widespread fears about China's growing economic clout and political stature, Beijing remains committed to a "peaceful rise": bringing its people out of poverty by embracing economic globalization and improving relations with the rest of the world. As it emerges as a great power, China knows that its continued development depends on world peace -- a peace that its development will in turn reinforce.

Conventional wisdom has long assumed that economic liberalization undermines repressive regimes. Recent events, however, suggest that savvy autocrats have learned how to cut the cord between growth and freedom, enjoying the benefits of the former without the risks of the latter. Washington and international lenders should take note.