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7321. Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization

Author:
Brad Setser
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Two aspects of global imbalances—undervalued exchange rates and sovereign wealth funds (SWFs)—require a multilateral response. For reasons of inadequate leverage and eroding legitimacy, the International Monetary Fund (IMF) has not been effective in dealing with undervalued exchange rates. We propose new rules in the World Trade Organization (WTO) to discipline cases of significant undervaluation that are clearly attributable to government action. The rationale for WTO involvement is that there are large trade consequences of undervalued exchange rates, which act as both import tariffs and export subsidies, and that the WTO's enforcement mechanism is credible and effective. The WTO would not be involved in exchange rate management, and our proposals do not entail the WTO displacing the IMF: Rather, they would harness the comparative advantage of the two institutions, with the IMF providing the essential technical expertise in the WTO enforcement process. On SWFs, there is a bargain to be struck between countries with SWFs, which want secure and liberal access for their capital, and capital-importing countries that have concerns about the objectives and operations of SWFs. The WTO is the natural place to strike this bargain. Its services agreement, the General Agreement on Trade in Services (GATS), already covers investments by SWFs, and other agreements offer a precedent for designing disciplines for SWFs. Placing exchange rates and SWFs on the trade negotiating agenda may help revive the Doha Round by rekindling the interest of a wide variety of groups, many of whom are currently disengaged from the round.
Topic:
Economics, Foreign Exchange, International Trade and Finance, and Oil

7322. North Caucasus Weekly:Attacks Continue in Ingusheti

Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
A car belonging to an official believed to be a relative of Musa Medov, Ingushetia's Interior Minister, was blown up in Nazran on October 8. The opposition Ingushetia.org website reported that a powerful explosion took place 100 meters from the Interior Ministry building in Nazran while Itar-Tass quoted a source as saying that the explosion was an attempt on the life of Daud Medov, the deputy head of the Interior Ministry's vehicle maintenance department. According to Newsru.com, the blast was caused by an explosive device that was attached to the undercarriage of Medov's Lada Priora car and that the bomb went off when the car was parked outside his home and as Medov had left his home and gone outside. Neither Medov nor anyone else was hurt in the blast, but the car was burned out.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

7323. North Caucasus Weekly: Suicide Bomber Targets Ingush Interior Minist

Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
A suicide bomber attacked the motorcade of Ingush Interior Minister Musa Medov on September 30. The Moscow Times reported on October 1 that the male bomber attempted to ram a Lada hatchback packed with explosives into Medov's convoyin downtown Nazran at 8:20 a.m., local time, but the car exploded before it collided with the minister's armored Mercedessedan. According to Gazeta.ru, Ingush prosecutors said Medov and his bodyguards were unharmed, while five by standers were wounded and several houses in the vicinity of the blast were damaged. Kommersant reported on October 1 that amongthe injured were a taxi driver and his passenger who were driving by when the bomb detonated and two women living in apartment buildings nearby.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

7324. North Caucasus Weekly:Opposition Website: Ingush Rebels Seize Village

Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
Ingushetia.ru reported on October 16 that rebel fighters had seized two villages in the republic. According to the opposition website, the militants had blocked the entrances to the villages of Muzhichi and Yandare from the Rostov-Baku federal highway and had set up their own checkpoints. Yet sources in Ingushetia's Interior Ministry called the report “disinformation,” while the republic's prosecutor, Yury Turygin, told Interfax that neither he nor the Interior Ministry nor any other republican law-enforcement bodies had received any information about “bandits” having seized villages.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

7325. A Fork in the Road: Obama, McCain, and Health Care

Author:
Michael Tanner
Publication Date:
07-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Healthcare reform will be one of the top issues of the 2008 presidential election. In the face of widespread public demand for changes in the U.S. health care system, both Barack Obama and John McCain have offered detailed proposals for reform.
Topic:
Government, Health, and Politics
Political Geography:
United States

7326. The Klein Doctrine: The Rise of Disaster Polemics

Author:
Johan Norberg
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Naomi Klein's The Shock Doctrine ;purports to be an exposé of the ruthless nature of free-market capitalism and its chief recent exponent, Milton Friedman. Klein argues that capitalism goes hand in hand with dictatorship and brutality and that dictators and other unscrupulous political figures take advantage of "shocks"-catastrophes real or manufactured-to consolidate their power and implement unpopular market reforms. Klein cites Chile under General Augusto Pinochet, Britain under Margaret Thatcher, China during the Tiananmen Square crisis, and the ongoing war in Iraq as examples of this process.
Topic:
Democratization, Economics, and Markets
Political Geography:
China and Chile

7327. Asset Bubbles and Their Consequences

Author:
Gerald P. O'Driscoll Jr.
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
In the past, the federal government has introduced moral hazard in the banking system through deposit insurance. Banks underpriced risk because of the federal guarantee that backed deposits. After banking crises in the 1980s and 1990s, deposit insurance was put on a sound basis and that source of moral hazard was mitigated. In its place, monetary policy has become a source of moral hazard. In acting to counter the economic effects of declining asset prices, the Federal Reserve has come to be viewed as underwriting risky investments. Policy pronouncements by senior Fed officials have reinforced that perception. These actions and pronouncements are mutually reinforcing and destructive to the operation of financial markets. The current financial crisis began in the subprime housing market and then spread throughout credit markets. The new Fed policy fueled the housing boom. Refusing to accept responsibility for the housing bubble, the Fed's recent actions will likely fuel a new asset bubble. The cumulative effects of recent monetary policy undermine the case for free markets.
Topic:
Economics, Government, and Markets
Political Geography:
United States

7328. FASB: Making Financial Statements Mysterious

Author:
T.J. Rodgers
Publication Date:
08-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Since the passage of the Sarbanes-Oxley Act in 2002, the Financial Accounting Standards Board has passed rules that it promises will make corporate accounting more transparent. In fact, its revised Generally Accepted Accounting Principles have made it difficult for investors — or even CEOs — to understand a company's financial report.
Topic:
Economics, Government, and Markets
Political Geography:
United States

7329. Freddie Mac and Fannie Mae: An Exit Strategy for the Taxpayer

Author:
Arnold Kling
Publication Date:
09-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The Fannie Mae-Freddie Mac crisis may have been the most avoidable financial crisis in history. Economists have long complained that the risks posed by the government-sponsored enterprises were large relative to any social benefits.
Topic:
Economics, Government, and Financial Crisis
Political Geography:
United States

7330. Rails Won't Save America

Author:
Randal O'Toole
Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Rising gas prices and concerns about greenhouse gases have stimulated calls to build more rail transit lines in urban areas, increase subsidies to Amtrak, and construct a large-scale intercity high-speed rail system. These megaprojects will cost hundreds of billions of dollars, but they won't save energy or significantly reduce greenhouse gas emissions.
Topic:
Development, Economics, and Government
Political Geography:
United States

7331. Does Barack Obama Support Socialized Medicine?

Author:
Michael F. Cannon
Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Democratic presidential nominee Sen. Barack Obama (IL) has proposed an ambitious plan to restructure America's health care sector. Rather than engage in a detailed critique of Obama's health care plan, many critics prefer to label it "socialized medicine." Is that a fair description of the Obama plan and similar plans? Over the past year, prominent media outlets and respectable think tanks have investigated that question and come to a unanimous answer: no.
Topic:
Economics, Government, Health, and Markets
Political Geography:
United States

7332. North Caucasus Weekly: Rebels Reportedly Kill Dozens of Servicemen in Ingushet

Author:
Mairbek Vatchagaev
Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
Following the capture of the foothill villages of Muzhichi and Yandare in Ingushetia on the evening of October 16 (North Caucasus Weekly, October 16), militants from the Ingush Jamaat “Shariat” carried out another series of high-profile actions against Russian troops. According to various sources, more than 50 Russian military personnel were killed and wounded in two assaults by the militants on the Galashki Highway on October 18, which would make this the most audacious attack by the jamaat members in Ingushetia to date. According to the media reports, the attack on the Russian military motorcade took place on the Alkhasty-Surkhokhi road in Ingushetia's Nazran district at ten in the morning. According to Ingush Prosecutor General Yury Turygyn, only two soldiers were killed and five were wounded in the attack. All of them were from Interior Ministry detachments based in the village of Alkhasty (RIA Novosti, October 18) According to Turygyn, the assault was carried out by members of “illegal armed formations” with the purpose of destabilizing the situation in the region. Turygyn, however, was apparently referring to the casualties in an attack on another column of servicemen that had occurred earlier on October 18, and the Regnum News Agency quoted a source in the Interior Ministry department forIngushetia's Sunzha district as saying that all the soldiers in the column targeted in the second attack were killed except forone and that the total number killed was around 50. The surviving serviceman was transported to the Sunzha Central District Hospital, the source said (www.regnum.ru/news/1071507.html). Thus, according to the Ingush police, two attacks took place, not one, as the Ingush Prosecutor General's Office claims.
Topic:
Security and Ethnic Conflict
Political Geography:
Russia, Europe, and Asia

7333. From Gridlock to Compromise: How Three Laws Could Begin to Transform Iraqi Politics

Author:
Jason Gluck
Publication Date:
03-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
On February 13, 2008 the Iraqi parliament simultaneously passed a law that sets forth the relationship between the central and provincial governments, an amnesty law and the 2008 national budget. The passage of these laws was the result of months of negotiation and last-minute substantive and procedural compromises that could portend a shift away from merely ethnic and sectarian-based alliances to inter-ethnic and sectarian issue-based politics. At the same time, Iraqi lawmakers may have discovered a strategy of simultaneous consideration of multiple matters that could increase the likelihood of consensus and resolution—a sharp contrast to what has until now been an issue-by-issue approach that has often resulted in impasses and political gridlock.
Topic:
Development, Government, and Treaties and Agreements
Political Geography:
Iraq and Middle East

7334. Embedded Provincial Reconstruction Teams

Author:
Robert Perito
Publication Date:
03-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
In January 2007, President Bush announced that the U.S. would double the number of Provincial Reconstruction Teams (PRTs) in Iraq as part of his plan for a "New Way Forward." PRTs are small, civilian-military units that assist provincial and local governments to govern more effectively and deliver essential services. These new PRTs would be embedded with Brigade (Army) and Regimental (Marine) Combat Teams (B/RCTs) participating in the "surge" of U.S. forces into Baghdad, Anbar and Erbil provinces. The new ePRTs would begin as four person interagency teams, but would expand to include civilian experts in a broad range of specialties. These new PRTs were staffed with Defense Department civilians and members of the National Guard and Army Reserve until funds became available to the State Department to hire civilian contractors. The process of deploying civilian experts is now underway, but the B/RCTs to which they are being assigned will return to the United States by August 2008.
Topic:
Development, Government, and International Cooperation
Political Geography:
United States, Iraq, Middle East, and Baghdad

7335. The Justice Dilemma in Uganda

Author:
Scott Worden
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
On February 18, 2008 the Ugandan government and the Lord's Resistance Army (LRA) reached agreement on an accountability and reconciliation accord that would provide for prosecution in Uganda of senior LRA leaders most responsible for atrocities committed over the course of the country's 20-year long civil conflict. The agreement also provides that lower level perpetrators will be held accountable by traditional justice mechanisms indigenous to Northern Uganda, where much of the violence occurred.
Topic:
Conflict Resolution, Development, and Ethnic Conflict
Political Geography:
Uganda and Africa

7336. Engaging the Darfur Diaspora for Peace

Author:
Susan Hayward
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
In partnership with Concordis International and the Preparatory Committee for the Darfur-Darfur Dialogue and Consultation (DDDC), USIP held a consultation with approximately30 members of the North American Darfur diaspora community from February 12-14, 2008.Representative of Darfur's constituencies, this group of Darfurians traveled to Washington, D.C. from throughout the U.S. and Canada in order to address a broad range of issues related to the conflict in their homeland. Through small-group brainstorming and plenary ession debates, the group developed a set of consensus recommendations aimed at creating the conditions necessary for a sustainable safe and secure environment to prevail in the troubled region.
Topic:
Conflict Resolution, Civil Society, and Development
Political Geography:
Africa, United States, and Canada

7337. Facing the Abyss: Lebanon's Deadly Political Stalemate

Author:
Mona Yacoubian
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
As the third anniversary of the assassination of former Lebanese Prime Minister Rafik Hariri approaches, Lebanon is witnessing its worst crisis since the 15-year civil war. Hariri's February 14th assassination—widely suspected to have been orchestrated by Syria—enraged the Lebanese who took to the streets one month later, demanding the withdrawal of Syrian troops. Dubbed the Cedar Revolution, this mass protest movement succeeded in ending nearly 30 years of Syrian military occupation. It was to have ushered in a new era of democracy. Instead, Lebanon has suffered through bombings, assassinations, war between Hezbollah and Israel, and bouts of sectarian violence.
Topic:
Security, Political Violence, and Terrorism
Political Geography:
Middle East and Syria

7338. Uganda/Lord's Resistance Army Peace Negotiations

Author:
David Smock
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Juba, Southern Sudan – Northern Uganda is one of the world's humanitarian disaster areas. Twenty thousand have been killed and up to two million have been displaced in Internally Displaced Person (IDP) camps over the last 20 years. This havoc has been created by the notorious Lord's Resistance Army (LRA), whose agenda and purposes have remained murky. Joseph Kony, the rebel commander, asserts that the LRA political program is based on the Ten Commandments, despite the fact that the LRA routinely violates most of them.
Topic:
Ethnic Conflict, Human Welfare, and War
Political Geography:
Africa, North Uganda, and South Sudan

7339. A Toxic Cocktail: Pakistan's Growing Instability

Author:
J Alexander Thier
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Pakistan, a nuclear-armed, predominantly Muslim nation of 165 million, has experienced a dramatic rise in political turmoil and violence in the last year. Following the assassination of former Prime Minister Benazir Bhutto on December 27, 2007, analysts have raised serious concerns about Pakistan's stability and the possibility of a collapse of the federation.
Topic:
Conflict Prevention, Democratization, and Development
Political Geography:
Pakistan and Asia

7340. Iraq: Politics Unfrozen, Direction Still Unclear

Author:
Daniel Serwer and Rend Al-Rahim Francke
Publication Date:
01-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
In meetings conducted in Beirut and Baghdad in mid-January 2008, a high-ranking and broad cross-section of the Iraqi political spectrum expressed views on the current political situation, main priorities for the next year, prospects for moving forward on key issues, and the American military presence in Iraq. The Iraqis, numbering about 40, included parliamentary leaders, members of the presidency and their staffs, top government officials and leaders in both the Anbar and Baghdad "Awakenings" (tribal groups prepared to fight Al Qaeda and guard their own neighborhoods.
Topic:
Security, Democratization, and Treaties and Agreements
Political Geography:
Iraq and Middle East