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Begin New Search Topic International Trade and Finance Content Type Policy Brief

601. Regional Integration After the Collapse of the FTAA

Author:
Raúl Zibechi
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
Foreign Policy In Focus
Abstract:
Although every Latin American government pays lip service to integration, taking the concrete steps needed to attain it is much more difficult than simply issuing declarations. In the wake of the collapse of the Free Trade Agreement of the Americas (FTAA), Latin America faces the dilemma of remaining divided and at the mercy of the interests of the great powers, or setting out on the road to continental unity. Even if the forces in favor of integration prevail, the type of integration to be constructed remains to be defined.
Topic:
Government, International Trade and Finance, and Regional Cooperation
Political Geography:
South America and Latin America

602. Timely Demise for Free Trade Area of the Americas

Author:
Laura Carlsen
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
Foreign Policy In Focus
Abstract:
The stage was set for a showdown. When the Bush cabinet announced intentions to revive the moribund Free Trade Area of the Americas at the Fourth Summit of the Americas in Mar del Plata, the countries of the Southern Common Market closed ranks to prevent it. What followed was a diplomatic melee that reflects not so much divisions within Latin America, as a growing resistance to the current free trade model throughout the developing world.
Topic:
Economics and International Trade and Finance
Political Geography:
South America, Latin America, and North America

603. A Currency Basket for East Asia, Not Just China

Author:
John Williamson
Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
China recently announced that it is adopting a basket of currencies as the peg for its exchange rate instead of the US dollar. This announcement raises questions of how such a system works, whether other East Asian countries would be advised to follow China in adopting a basket numeraire, and whether it would be advantageous to these countries if they were all to adopt the same basket. This brief answers these questions.
Topic:
Economics, International Cooperation, and International Trade and Finance
Political Geography:
United States, Israel, East Asia, and Asia

604. China and the World Economy Workshop. Conference Summary

Author:
Robert Kapp
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Peter Bottelier, the principal presenter of this topic, opened by noting that much discussion now surrounds the evolving “new line” embodied in China's economic plans for the next five years. The three agricultural questions, self-innovation, regional adjustment, opening up of a win-win “harmonious society,” and economizing on energy use: what do these and other much-discussed new terms really mean?
Topic:
Economics, Globalization, and International Trade and Finance
Political Geography:
China and Asia

605. China as Producer: Chinese Industry After 25 Years of Reform

Author:
Thomas Rawski
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Beginning with the start of reform in the late 1970s, China's industry has recorded impressive growth of output, labor productivity, and exports as well as dramatic upgrading of the quality and variety of output. These gains have occurred in spite of difficulties arising from lethargic state enterprises, inadequate corporate governance, excessive official intervention, corruption, and weak financial institutions.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
China and Asia

606. China as Consumer

Author:
Kenneth Lieberthal
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
This article seeks to examine two key issues that will be major drivers of consumption in China over the coming five years: urbanization and environmental amelioration. Whether the issues identified will be the largest factors over this time frame remains unclear, but each of these two areas warrants considerable attention as a very significant contributor to the future of consumer demand in China.
Topic:
Economics, Environment, and International Trade and Finance
Political Geography:
China and Asia

607. China as Employer and Consumer: Economic Outlook for the 11th Five-Year Plan (2006-2010)

Author:
Arthur R. Kroeber
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
China's impressive economic growth of the past quarter century (9.4 percent average annual real GDP growth between 1980 and 2004, by official figures) is not miraculous; on the contrary, it can largely be explained by conventional models of economic development.
Topic:
Economics, Human Welfare, and International Trade and Finance
Political Geography:
China and Asia

608. Hu Jintao's Outbox

Author:
Joseph Fewsmith
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
China has now sustained two and a half decades of high-speed growth. This growth has been even faster with regard to exports and China's role in international trade. Domestically, a capitalist tendency seems to be everywhere, while internationally the rise of China, whether peaceful or not, seems – at least to some – to threaten Western jobs, prosperity, and the international order. The focus of this paper, however, is not this question of whether or how China poses a threat to the West but rather an old (but new) question of how this “capitalist” conversion is compatible with the continued rule of a communist party. This is a question of considerable practical import, as people contemplate what the continued growth of the Chinese economy might mean for the political stability of that country, but it is also a question of considerable theoretical import: Leninist parties that sought to “include” external interests, it was argued, are on the way to collapse. It is only a matter of time. The time frame for China has lasted longer than theoreticians had supposed, though they might yet prove to be right – perhaps the Chinese Communist Party (CCP) has lasted longer than people imagined but it might still be on the road to collapse. This point of view would find supporters, both in the West and in China, but even if they prove right, it is important to inquire more deeply about what is going on in China, whether institutions are being created, and if so whether they might provide a foundation for a post-communist China or whether they suggest a more chaotic future.
Topic:
Economics and International Trade and Finance
Political Geography:
China and Asia

609. Germany and the Future of the Transatlantic Economy

Author:
Jan Neutze and Philipa Tucker
Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
A senior delegation from the Atlantic Council of the United States, led by W. Bowman Cutter and Paula Stern, visited key government, parliamentary, and private sector stakeholders in Frankfurt, Berlin, and Brussels in spring 2005. The delegation presented the findings of the Atlantic Council report, "The Transatlantic Economy in 2020: A Partnership for the Future?" to numerous business, government, and think tank audiences. This report summarizes the delegation's discussions.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
United States, Europe, Germany, and Berlin

610. Making Trade Work: Straight Talk on Jobs, Trade, and Adjustment

Author:
Research and Policy Committee of the Committee for Economic Development
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
This report examines the benefits and challenges of developing an effective adjustment policy for workers who lose their jobs because of outsourcing or any other adverse effects of trade. The statement, approved by CED's Research and Policy Committee states, "The most important next step is to recognize that adjustment policy is vital to achieving free trade - which, in turn, is vital to the nation's economic future." The statement concludes that America needs to develop the national will to devise and fund an adjustment policy that will get to "yes" on trade.
Topic:
International Trade and Finance, Labor Issues, and Unemployment
Political Geography:
Global Focus

611. The European Union Code of Conduct on Arms Exports: Improving the Annual Report

Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute
Abstract:
The 1998 European Union Code of Conduct on Arms Exports is a political agreement designed to set common standards across the EU for the export of military equipment. Under its provisions, all EU member states have agreed to apply a standard set of criteria to assess applications for licences for the export of military equipment. Member states have also agreed to share information, and in certain cases consult in advance, on their arms export licensing decisions. One of the main tools for assessing how states interpret and apply the EU Code of Conduct is the Annual Report according to Operative Provision 8 of the European Union Code of Conduct on Arms Exports, which has been published in the autumn of each year since 1999. The aim of the Annual Report is to enable member governments, parliaments and civil society to understand how the EU Code is being interpreted at the national level by each EU member state. The report describes how the EU Code has been implemented, discusses future measures to improve implementation and provides statistical data for the previous calendar year on licences granted for the export of military equipment, actual arms exports and denials of export licences.
Topic:
Arms Control and Proliferation, International Trade and Finance, and Terrorism

612. Export Credits and the Environment

Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Official export credit agencies (ECAs) support exports, much of which support goes to emerging economies, by providing loan guarantees, export credit insurance and direct loans. In 2002, the amount of business covered by such support was approximately USD 50 billion. Typically, officially supported export credits are provided to enable recipient countries to fund major capital goods and projects exported by the home country of the ECA, such as roads, mining, railways or airports.
Topic:
Economics, Environment, Industrial Policy, and International Trade and Finance

613. Economic Survey of the Czech Republic, 2004

Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Following accession to the European Union the big issue for the Czech Republic is to strengthen growth prospects. Growth potential at present is somewhat above 3 per cent, implying a moderate pace of catch-up to living standards in the EU and elsewhere. There is room for greater ambition in growth performance, and it is welcome to see this reflected in the programme of the new Czech government. This Survey underscores four main challenges. Fiscal consolidation is the dominant challenge for macroeconomic policy, and is not only necessary to cope with ageing and to bring down the tax burden but is also needed to fulfil euro-area entry conditions. A welcome programme of fiscal reform has begun, including proposals for a system of multi-year aggregate spending ceilings and significant expenditure cuts. However, to date, mainly revenue-raising measures have been implemented while the full impact of expenditure measures is yet to be realised. The attempt to secure broad political consensus on pension reform is commendable, but it must be underscored that whatever reform is finally implemented, it will have to bring considerable fiscal savings. Health-care reform also has to deliver savings, but concrete proposals have yet to be made. To facilitate assessment of the true fiscal position, extra-budgetary funds need to be more fully integrated in mainstream government budgeting procedures. Also, with the further decentralisation of public services, the need for good budgeting practices and accountability in regional and municipal governments is all the more important. The Central Bank and the Ministry of Finance have formulated a transparent strategy for entering the euro area, that foresees minimising the time spent in ERM II. Annual reports will assess the economic conditions in relation to the Maastricht Criteria and a request to enter ERM II will only being made if the probability of a positive first assessment by the EU authorities is high. The choice of a 3 per cent inflation target for the run-up to euro entry is justifiable on medium-term grounds. However there may be some difficulty communicating the consistency of this target with the Maastricht criterion for price stability. The Czech authorities should therefore pay close attention to how the Maastricht criteria are interpreted and applied by the European Commission and the ECB and adjust their communication strategy accordingly. Most of the catch-up in living standards will have to come from boosting productivity growth. This means swifter re-allocation of resources across firms as well as stronger in-firm productivity growth. While the Czech Republic is a strong competitor for attracting foreign direct investment, policy towards poorly performing firms and business start-ups has problems, slowing down the exit and entry of firms. Bankruptcy procedures are cumbersome, often long and usually end up in liquidation, with asset stripping not uncommon. Reforms have long-since been planned, and it is welcome that new legislation looks finally set to go ahead. The legislation aims at strengthening the role of creditors, speeding up proceedings and allowing composition to play a bigger role. Likewise, efforts to streamline business registration are welcome and should be implemented as soon as possible. The general business climate is also damaged by issues in network industry competition, as some services, notably internet, are expensive in international comparison. Mobility between jobs and regions is weak. Administrative extensions of collective wage agreements, strict employment protection legislation (EPL) on individual dismissals, rent control, severe poverty traps (particularly for families) and a high tax wedge have contributed to considerable long-term unemployment. The Roma population is hit especially hard in this respect. Migration is to some extent mitigating the labour-market rigidities with Slovaks filling skilled vacancies and other eastern Europeans (mainly Ukrainians) taking up unskilled jobs that are unattractive for locals. Tackling the unemployment problem requires measures across a wide front, but most notably social benefit reform is needed along with reduction in the tax wedge as well as easing of EPL. The widespread social and economic exclusion of the Roma needs more attention, particularly in the education system. A more open immigration policy is needed to address immediate issues such as the inconsistency between granting work permits as well as for better alignment of immigrants' skills with those needed on the Czech labour market.
Topic:
Economics and International Trade and Finance
Political Geography:
Europe, Ukraine, and Czech Republic

614. OECD Territorial Reviews: Mexico City

Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Mexico City's spectacular growth into one of the world's largest metropolitan regions is giving way to new development dynamics. The Metropolitan Area of Mexico City (MAMC), with a population of approximately 18.4 million people, is undergoing two main transitions: first, from high population growth to relative demographic stability and spatial redistribution, and second, from a declining manufacturing economy focused on national markets to one based on services competing internationally.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
North America and Mexico

615. Economic Survey of Canada, 2004

Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Economic performance has been solid, and macroeconomic policies are appropriate. The economy is expected to expand by close to 3.5 per cent in 2005, and the output gap will soon be closed. Monetary stimulus should gradually be removed and the fiscal policy stance needs to remain neutral. The Canadian dollar appreciated sharply in 2003 and is now probably not far from its fundamental value. Canadian firms will need to continue to adjust by making efforts to improve productivity to maintain competitiveness. Policy makers should remain focussed on policies that enhance productivity growth across all sectors. With a sound macroeconomic framework and structural policies that are mostly conducive to a well functioning economy, the country is well placed to meet the challenges of an ageing population, namely, maintaining rises in living standards through strong rates of productivity growth and policies to attenuate the expected fall in hours worked on average across the whole population, and ensuring that public finances are sustainable, especially given pressures on health care outlays.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Canada and North America

616. Economic Survey of Turkey, 2004

Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Turkey is at a crossroads. After hitting the most severe crisis of its recent history in 2000-2001, the economy bounced back and is now among the fastest growing economies in the OECD. A new institutional framework for monetary and fiscal policies as well as for product, labour and financial markets, infrastructure industries, and agricultural support opened a window of opportunity to escape from the three traps of low confidence, weak governance and high informality which underpinned the boom and bust cycle of the past and to embark durably on a higher growth path. Success will depend on fully implementing and completing the new policy framework.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Turkey and Eastern Europe

617. Economic Survey of Finland, 2004

Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The transformation of the Finnish economy over the last decade represents one of the few examples of the "new economy" taking hold in Europe. Output and productivity growth over the second half of the 1990s was among the highest in the OECD, and the recovery from the global downturn has been much stronger than for the euro area as a whole. However, imminent population ageing threatens to expose weaknesses in the labour market. Demographic developments, which over past decades have been broadly neutral, could reduce the growth rate of GDP per capita by 1/4 of a percentage point per annum over the remainder of this decade and by almost 1 percentage point over the next decade. This, combined with the likelihood of smaller productivity gains in the information and communication technology (ICT) sector, a continuation of falling ICT prices as well as the mediocre performance in the sheltered sectors, threatens the future growth of living standards. Within a decade, and in the absence of further policy changes, these developments together could imply that Finland not only loses its top performer status but could face a protracted period of slow growth, as illustrated in the following scenario.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Europe

618. Which Policies Can Reduce the Cost of Capital in Southern Africa?

Author:
Martin Grandes and Nicolas Pinaud
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Lowering interest rates and, thus, the cost of borrowing in the rand zone (Lesotho, Namibia, Swaziland and South Africa) is a priority to promote investment and economic growth. Local-currency interest rates in these countries are driven by those on rand-denominated transactions. Reducing the level and volatility of the rand premium would help reduce financing costs in the region. Policies should promote: enhancing financial-market liquidity; easier access to South African financial markets for African entities; domestic saving capacity; and the improvement of international perception of the rand. Johannesburg could become a financial "hub" for the region, channelling cheap resources to its neighbours.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
Africa, South Africa, Swaziland, and Namibia

619. Economic Survey of the Euro Area, 2004

Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The euro area has shown disappointing resilience to shocks and its income gap against the best performing countries remains large and is widening. The differences between individual euro area countries are even more striking and the forces that influence convergence in economic performance across the area are largely the same as those that shape the economic performance of the area.
Topic:
Development, Economics, and International Trade and Finance

620. Financial Access for Immigrants: Learning from Diverse Perspectives

Author:
Audrey Singer and Anna Paulson
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Policymakers and academics are now catching up to financial institutions in their desire to understand how and why immigrants use U.S. financial markets. “Financial Access for Immigrants: Learning from Diverse Perspectives,” a conference co-sponsored by the Brookings Metropolitan Policy Program formerly the Center on Urban and Metropolitan Policy) and the Federal Reserve Bank of Chicago, was held at the Chicago Fed on April 15-16, 2004. It included presentations from scholars and practitioners who discussed recent research on the financial practices of immigrants as well as the practical experiences of for-profit and nonprofit institutions working to provide financial services to the immigrant community.
Topic:
Economics, International Trade and Finance, and Migration
Political Geography:
United States and Chicago

621. Development and Foreign Investments: Lessons Learned from Mexican Banking

Author:
Jacob Steinfeld
Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
FOREIGN DIRECT INVESTMENT (FDI) HAS TRANSFORMED MEXICO'S BANKING SYSTEM during the past decade, making it the second largest in Latin America with $165 billion in commercial assets in 2003. In the past four years, Mexico received $25.3 billion of FDI into its financial sector. This composes nearly 40 percent of total FDI inflows into the country. As a result of FDI flowing into the country's financial sector, the Mexican banking system has the highest ratio of foreign ownership in Latin America.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Latin America and Mexico

622. The Dominican Republic: Resolving the Banking Crisis and Restoring Growth

Author:
Steve H. Hanke
Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
After a decade of rapid economic growth, the Dominican Republic entered a downward spiral in 2003. The economy shrank for the first time since 1990, the inflation rate quadrupled, the Dominican peso collapsed, government debt more than doubled, interest rates soared, and the central bank incurred large losses.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Latin America and Caribbean

623. Can Europe deliver growth? The Sapir Report and Beyond

Author:
Jean-Pierre Casey and Jacques Pelkmans
Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The SAPIR report (Sapir et al., 2003) is important for Europe. The justification of and search for higher economic growth in the EU ought to be on the very top of the EU agenda everywhere. Offering a very rich and useful survey of many issues related to European growth, or indeed the lack of it, the report's analysis is insightful and should be compulsory reading for policy-makers and political leaders. Sapir et al.'s policy recommendations are numerous and rightly touch economic as well as institutional aspects at EU level.
Topic:
Economics and International Trade and Finance
Political Geography:
Europe

624. THE INTERNATIONAL FINANCIAL INSTITUTIONS: Postconflict Reconstruction and Peacebuilding Capacities

Author:
James Boyce
Publication Date:
06-2004
Content Type:
Policy Brief
Institution:
Center on International Cooperation
Abstract:
This paper assesses the capacity of the international financial institutions–the World Bank, International Monetary Fund, and regional development banks–to respond effectively in the planning and implementation of the civilian components of postconflict reconstruction and peacebuildin.
Topic:
Economics, International Trade and Finance, Markets, and Peace Studies

625. Transpacific trade imbalances: causes and cures

Author:
Warwick McKibbin, Park Yung Chul, and Jong-Wha Lee
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
This paper explores the causes of the transpacific trade imbalances using an empirical global model. It also evaluates the impact of various policies to reduce these imbalances. We find the fundamental cause of trade imbalances since 1997 is changes in saving-investment gaps, attributed to the surge of the U.S fiscal deficits and the decline of East Asia's private investment after the 1997 financial crisis. Our simulation results show that a revaluation of East Asia's exchange rates by 10 percent (effectively a shift in monetary policy) cannot resolve the imbalances. We find East Asia's concerted efforts to stimulate aggregate demand can have significant impacts on trade balances globally, but the impact on the US trade balance is not large. US fiscal contraction is estimated to have large impacts on the US trade position overall and on the bilateral trade balances with East Asian economies. These results suggest that in order to improve the transpacific imbalance, macroeconomic adjustment will need to be made on both sides of the Pacific. lowy institute for international policy.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Israel and East Asia

626. The Australia-United States Free Trade Agreement: a preliminary assessment

Author:
Mark P Thirlwell
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
On 8 February Australian Trade Minister Mark Vaile concluded an agreed text for an Australia-United States Free Trade Agreement. This Issues Brief provides a preliminary assessment of the agreement, based on the limited information now available.
Topic:
Economics, International Trade and Finance, and Treaties and Agreements
Political Geography:
United States, Australia, and Australia/Pacific

627. The international economy in 2003: managing economic imbalances in an integrated world

Author:
Mark P Thirlwell
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
This Issues Brief suggests that a key theme over the past year has been the management of external imbalances in a world economy that is not only increasingly integrated but which is simultaneously undergoing a sustained geographic shift in the distribution of economic weight towards Asia. Using this theme as an organising principle, it reviews several major economic developments including US current account adjustment, international exchange rate adjustment in response to that process, growing Sino-US trade tensions, the increasing focus on international outsourcing and the stresses facing the current multilateral trading round. The Brief concludes by arguing that many of these same themes will influence international economic prospects over the coming year.
Topic:
Economics, Globalization, and International Trade and Finance
Political Geography:
Asia

628. China Bashing 2004

Author:
Gary Clyde Hufbauer and Yee Wong
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
On April 26, 2004, Senator John Kerry released his six-point trade pro - gram, “Trade Enforcement: Asleep at the Wheel,” and conspicuously targeted China for violating worker rights, dumping, and supporting “illegal currency manipulation” (Kerry 2004). Five days earlier, senior Bush administration officials met with Chinese Vice Premier Wu Yi to settle a few trade disputes (e.g., WiFi) but did not resolve the most contentious ones (exchange rates, semiconductors, and labor rights).
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
China and Asia

629. Islam, Globalization, and Economic Performance in the Middle East

Author:
Marcus Noland and Howard Pack
Publication Date:
06-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The Middle East is a demographic time bomb. According to the United Nations Development Program's (UNDP) Arab Human Development Report 2002, the population of the Arab region is expected to increase by around 25 percent between 2000 and 2010 and by 50 to 60 percent by 2020—or by perhaps 150 million people, a figure equivalent to more than two Egypts. Even under the UNDP's more conservative scenario, Bahrain, Kuwait, Qatar, and the United Arab Emirates will be the only Arab countries in 2020 with median ages above 30.
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
Middle East, Kuwait, Arabia, Egypt, Bahrain, Qatar, and United Arab Emirates

630. Senator Kerry on Corporate Tax Reform: Right Diagnosis, Wrong Prescription

Author:
Gary Clyde Hufbauer and Paul Grieco
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Senator John Kerry has proposed a major overhaul in corporate taxation, with the goal of persuading multinational companies (MNCs) to employ more workers at home and fewer abroad. Kerry has correctly emphasized that domestic production is often taxed at a higher rate than production abroad, but his prescriptions will not boost US jobs.
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
United States, South America, Central America, Caribbean, and North America

631. Labor Standards, Development, and CAFTA

Author:
Kimberly Ann Elliott
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The debate over linking trade and worker rights is often a dialogue of the deaf, with advocates on either side paying little attention to the scope for positive synergies between labor standards, development, and globalization. Instead, each side views the other as promoting positions that will, intentionally or not, impoverish poor people in poor countries. Opponents of global labor standards fear that these standards will undermine developing countries' comparative advantage in low-wage goods or be abused for protectionist purposes, thereby denying workers jobs. Standards advocates argue that failure to include labor standards in trade agreements increases inequality and leads to a race to the bottom for workers worldwide.
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
Central America

632. This Far and No Further? Nudging Agricultral Reform Forward

Author:
Tim Josling and Dale Hathaway
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
As countries attempt to restart the stalled Doha Round and continue the negotiations on further agricultural trade reform and liberalization, it is useful to take stock of the progress made so far in the light of both the objectives of countries and the needs of the trading system. This policy brief reviews the main objectives of the agricultural talks in the World Trade Organization (WTO), examines the major proposals that emerged in the run-up to Cancún and at the ministerial itself, describes the emerging framework for further reform, and suggests ways in which the negotiations can build on this progress to achieve a worthwhile outcome.
Topic:
Agriculture, Economics, International Political Economy, and International Trade and Finance
Political Geography:
South America

633. Brazil: The End of a Honeymoon

Author:
Mark Falcoff
Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
When Luiz Inácio "Lula" da Silva was elected president of Brazil in October 2002, popular expectations nearly across the political spectrum were so enormous that he was bound to disappoint someone. Indeed, what is remarkable about the present situation in Brazil is just how popular Lula remains (60 percent approval rating) in spite of a conservative fiscal policy, a modest uptick in the unemployment figures, a willingness to expend valuable political capital on pension and tax reforms, a financial scandal involving his chief of staff, and an embarrassing threat to expel a New York Times journalist.
Topic:
International Relations, International Trade and Finance, and Political Economy
Political Geography:
New York, Brazil, South America, and Central America

634. The Transatlantic Economy in 2020: A Partnership for the Future?

Author:
Frances G. Burwell, W. Bowman Cutter, Paula Stern, and Peter S. Rashish
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The United States and the European Union maintain the world's largest and most significant economic relationship, which in turn is a foundation supporting the transatlantic political partnership. By some estimates, the transatlantic economy — including two-way trade and foreign affiliate sales — totals $2.5 trillion and is responsible for 14 million jobs in the United States and Europe. It is not just the scale of the transactions, however; the transatlantic economy is deeply interconnected through impressive levels of foreign direct investment in both directions. Together, the United States and the EU have been key players in managing the global economy through the World Trade Organization, World Bank, and International Monetary Fund. They have been responsible for the major accomplishments in international trade liberalization of the last 40 years, and have spurred the adoption of global standards in a wide range of sectors.
Topic:
Economics, International Cooperation, and International Trade and Finance
Political Geography:
United States and Europe

635. OECD Health at a Glance - How France Compares

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
In many respects, France fares well among OECD countries in terms of indicators of the health status of its population and resources allocated to its health care system. The French population (and particularly French women) enjoys a relatively high life expectancy compared with the average across OECD countries. The French have a free choice of doctor, and can approach relatively easily both generalists and specialists. Also, the French health system has not generally experienced the problems of long waiting lists for certain treatments, as has been the case in several other OECD countries. The health care system in France is predominantly funded through public sources, but with services delivered by both the public and private sector. Universal access is provided to doctors and hospital services, with some co-payments for patients which vary depending on the type of services. Since the introduction of the Universal Health Coverage Law (Loi de la Couverture médicale universelle or CMU) in 2000, people with low income who are not covered by complementary insurance have access to doctors and hospitals free of charge. Overall, public satisfaction with the health care system in France has traditionally been much higher than in most other countries. However, health spending in France is relatively high in comparison with the OECD average.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
France

636. Economic Survey of Luxembourg, 2003

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The prospects for lower growth in the medium-long term will require far-reaching fiscal and structural adjustment. The authorities have made a start in reducing public expenditure growth in line with these more subdued prospects but more restraint will be necessary to meet their medium-term objectives. Adjustments to the general public pension scheme, preferably by reducing the high replacement rates, will be needed to make the scheme sustainable in the long term. The authorities have begun to tackle the early retirement problem, which will help to reduce the scale of the required adjustments to make the general public pension scheme sustainable, but more needs to be done. The reforms to the disability pension, which is one of the major routes to premature withdrawal from the labour force, should be complemented by reducing the earlyretirement pension on an actuarial basis in relation to a pension taken at the official retirement age and by reducing the ease with which imputed contributions can be obtained. Lower growth will also diminish the buffering role of cross- border employment on the national labour market, increasing the risk that adverse shocks increase structural unemployment. To counter this risk, the authorities should reduce the high replacement rates for unemployment and related benefits and ease employment protection regulation.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
Luxembourg

637. Public Sector Modernisation

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Most OECD countries have been actively reforming their public sectors for two decades. Initially the problem seemed to be a relatively straightforward one of improving efficiency, reforming management practices, and divesting public involvement in commercial enterprises. These reforms have indeed had a major impact but they have also given rise to some unexpected problems of their own. Even a seemingly straightforward action such as simplifying a welfare benefit form and cutting the time taken to process it may, for example, encourage more people to apply for the benefit, increasing the workload and making it more difficult to cut waiting time. While more efficient government is certainly desirable, efficiency alone is not a guarantee of better government.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

638. E-Government in Finland: An Assessment

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Since the late 1990s, Finland has been a leader in exploiting information and communication technology (ICT) to renew its economy and to reform its public administration. Its reputation for successfully providing proactive electronic government services and information has brought officials from around the world to learn from its experience.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

639. Checklist for e-Government Leaders

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
E-government is more about government than about "e". As a tool to achieve better government, e-government offers potential solutions to leaders across the whole of government: IT managers, programme managers, agency heads, government-wide e-government planners and co-ordinators, and politicians all have a role to play. Yet the roles of these leaders differ, and even the role of an individual leader changes as e-government develops in a given country. At the beginning there may be an immediate need to foster innovation and diffusion of technology, whereas organisational change becomes more important once IT applications are in place. Certain key e-government principles are common to all leaders, though their relative importance will differ. While the elements in this policy brief may be applicable to leaders at various levels, they are especially relevant to leaders with broad responsibilities and a strategic vision of e-government.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

640. Attracting Investment to China

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Foreign investment has played an important role in China's economic development for almost a quarter of a century and is vital for that development to continue. But while China has been highly successful in attracting foreign direct investment (FDI) so far, and has made significant progress in improving its FDI policy framework, it has not fully exploited its potential to attract investment from OECD countries. To make the most of the potential benefits of joining the World Trade Organization (WTO) and to increase FDI inflows while enhancing their contribution to domestic development China will need to persevere with efforts to bring its laws and regulations into harmony with internationally recognised standards and to ensure they are fully and consistently implemented at local level.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
China

641. Economic survey of Canada, 2003

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Canada's economy has done comparatively well over the past two years, demonstrating a noticeably improved resilience to unfavourable shocks. Over the medium term the economy is poised to achieve growth rates that compare favourably with past performance, but that will not be enough to eliminate the per capita income gap with the United States. The fundamental challenge is to make Canada an even more attractive place to live, work and invest. While past reforms have begun to pay off, there is still unfinished business. To boost the employment rate further the government should reduce disincentive effects arising from the tax and benefit systems by, for example, making greater use of in-work benefits and reintroducing experience rating of Employment Insurance users. Faster productivity gains are more likely to be achieved in an economic environment conducive to innovation. A key to greater dynamism is strengthening competition by eliminating remaining foreign ownership limits and barriers to internal and external trade and continuing electricity deregulation. Investing in skills should also remain a priority, with a particular emphasis on adult education. The nation has benefited by importing human capital from abroad through immigration but needs to intensify its efforts to remove the obstacles that prevent immigrants from having their skills fully utilised in the labour market. Having introduced a sound fiscal framework and reformed its public pension system Canada is in a better position than most other countries in facing ageing-related fiscal challenges, but the trend rise in health-care costs remains a risk. With the recent budget the government chose to address the short-term needs of the existing system. But, ultimately, ways to control the rise in budgetary costs - whether through incentives to raise efficiency or through cost sharing - will need to be explored, otherwise the resources needed to finance the future burden should be set aside in advance, for example by setting a bolder debt reduction target. Finally, environmental sustainability will be enhanced with least cost to the economy if the ambitious greenhouse gas emissions reduction is achieved through market-oriented instruments rather than command and control measures or voluntary agreements.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
United States and Canada

642. Civil Society and the OECD - November 2002 update

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The OECD recognises the valuable contribution that civil society can make to the public policy-making process, and attaches great importance to the Organisation's own consultation and dialogue with civil society organisations (CSOs). This continuing dialogue builds trust in public institutions and promotes public understanding of the benefits and challenges of global economic and social change.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

643. Policy coherence: Vital for global development

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Trade and investment, coupled with transfers of knowledge and technology and an appropriate institutional framework, have been major engines of global economic growth in developed and developing countries over the past 50 years. From the mid-1980s, the pace of global economic integration and growth accelerated significantly. Sustaining global economic growth and achieving a better sharing of its benefits will further the interests of all countries, developing and developed alike. Recognising this, the international community has committed itself to specific Millennium Development Goals and to ways of achieving them.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

644. Environmentally Sustainable Buildings: Challenges and Policies

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The building sector is economically important in OECD countries, accounting for a significant proportion of industrial activities and jobs. In fact, the construction industry - buildings and infrastructure such as roads and electricity networks - accounts for around 5%-15% of their gross domestic product (GDP), and 45%-55% of their gross capital formation. The industry also provides 5%-10% of total employment in OECD countries. The building sector also has a great impact on the environment. Building activities such as design, construction, use, refurbishment and demolition all affect the environment, either directly or indirectly. p>
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

645. Trade Capacity Building: Critical for Development

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The global annual welfare gains from further multilateral trade liberalisation, involving both tariff reduction and trade facilitation, would be substantial. Recent OECD estimates suggest that they would range, depending on the precise scenario, between US$117 billion and US$173 billion. For individual economies, depending on the region to which they belong, the gains would amount to annual real increases in gross domestic product (GDP) of between 0.2% and 1.8%, the OECD estimates show. These figures are sufficiently impressive to inspire international action. But would the gains be automatic? Would significantly improved market access be enough to stimulate diversification and trade-led growth? And will increased trade necessarily contribute to reducing poverty and achieving the other Millennium Development Goals identified by the international community?
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

646. Opening up Trade in Services Opportunities and Gains for Developing Countries

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Services, from health and education to telecommunications and transport, are becoming the single largest sector in many economies. Not only do they provide the bulk of employment and income in many countries, but in areas such as the financial or telecommunications sectors, services provide vital input for the production of other goods and services. So the efficiency of the services sector is crucial to the efficiency of the overall economy.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

647. Service Providers on the Move

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The development focus of the current multilateral trade negotiations launched in Doha in late 2001 has highlighted the need for trade liberalisation in areas of export interest for developing countries. When it comes to services, a key issue for these countries is the temporary movement of people across borders to supply services, for example in areas such as nursing or information technology.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

648. Regionalism and the Multilateral Trading System

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Regional trade agreements (RTAs) are an integral part of international trade, accounting for almost half of world trade and expected to grow further in the next few years. These agreements operate alongside global multilateral agreements under the World Trade Organization (WTO), and have both positive and negative effects. They can be attractive, for example, because it may be easier for a small group of neighbouring countries with similar concerns and cultures to agree on market opening in a particular area than to reach agreement in a wider forum such as the WTO. They can also offer new approaches to rule-making and so act as stepping stones on the way to a multilateral agreement.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

649. Trade Facilitation: The Benefits of Simpler, more Transparent Border Procedures

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
International trade has grown rapidly in recent years, and with it the relative importance of border procedures such as Customs requirements, adding to the cost for governments and business, and ultimately for the customer. Indeed, surveys suggest that border-related costs such as the expense of supplying the required Customs documents or the surcharges arising from procedural delays when importing goods could total as much as 15% of the value of the goods being traded in some cases.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

650. The Doha Development Agenda: Tariffs and Trade

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The opening of markets has boosted trade and economic growth worldwide in the past few decades. Yet tariffs – taxes imposed by importing countries on foreign goods – still remain a key obstacle to market access. The potential benefits of further reducing this obstacle are significant. OECD estimates indicate that scrapping all tariffs on merchandise trade and reducing trade costs by 1% of the value of trade worldwide would boost global welfare by more than USD 170 billion dollars a year. These gains would contribute a boost to regions around the world, adding the equivalent of up to 2% to the present annual gross domestic product (GDP) in some areas. No wonder that both developed and developing countries consider substantial tariff reductions as a central goal of the current multilateral trade talks in the World Trade Organization (WTO).
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

651. Economic Survey of euro area, 2003

Publication Date:
07-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Entering its fifth year of existence, the European Economic and Monetary Union (EMU) has met major headwinds. At the advent of the single currency the euro area experienced solid economic growth, with unemployment falling and public finances rapidly improving. However, a number of structural problems were exposed with the cyclical downturn since 2001, from which the area is recovering only hesitantly. The challenges facing policy makers at present are both of a short-run and medium-run nature. Policy makers are currently grappling with sluggish demand. Responding to this challenge, monetary policy has been eased and fiscal policy reacted through the automatic stabilisers. However, the room for manoeuvre was reduced by lingering inflationary pressures and earlier insufficient fiscal adjustment in several member states. Meanwhile the euro exchange rate has appreciated significantly. Over the medium term, the Community has set ambitious targets and a vast programme for enhancing the performance of labour, product and financial markets. This programme needs to be pursued with vigour, thereby raising the odds of large gains in trend growth and jobs while making it easier to achieve sound fiscal positions.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
Europe

652. Economic Survey of France, 2003

Publication Date:
07-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
After several years of rapid expansion, the French economy has entered into a period of below potential growth, with a negative output gap opening up. Monetary conditions have been relaxed, while fiscal policy has eased excessively, provoking the European Commission to initiate an excessive deficit procedure. As uncertainty dissipates towards the middle of this year, the economy should pick up speed, reaching a growth rhythm of around 2 per cent in 2004. Nevertheless, over the medium term, in the absence of substantial reforms the ageing of the population risks threatening economic and fiscal equilibrium. Current pension and healthcare reform initiatives and plans to redress spending over the medium term go in the right direction. However, in order to ensure medium and long-term fiscal sustainability, additional policies to slow the expansion of health and pension spending are required, while efforts to raise employment rates and potential output are needed to improve the economy's ability to finance future ageing-related expenditure. Here, programmes that offer the possibility of on-the-job training should be expanded so as to reactivate young and lowskilled workers, while reforms to early-retirement schemes and the pension system need to be continued so as to restore work incentives for older workers. Ongoing tax and labour market reforms and policies to facilitate the development of high-tech and fast growing enterprises, which should help promote investment and higher productivity growth, also need to be pursued. The opening of the capital of stateowned enterprises and their eventual privatisation, and planned improvements to governance structures should help promote growth, but revenues from sell-offs ought to be used to reduce debt. Finally, in order to better manage the totality of public expenditures, the authorities need to implement reforms that can be used to ensure that all spending organisms contribute to controlling spending. Here, it will be necessary to implement mechanisms that would improve the effectiveness of measures to control healthcare spending. Moreover, decision-makers need to be more directly confronted with the long-term consequences of their actions. Initiatives such as decentralisation and the new budget framework law should help in this regard. Pursuit of reforms along all of these lines should permit society to meet the fiscal challenge posed by population ageing, while retaining high levels of service.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
Europe and France

653. Economic Survey of Italy, 2003

Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The traditional dynamism and flexibility of the Italian economy has faltered in recent years, in part because of the unfavourable developments in the international economy. Furthermore, structural reforms have not yet gone far enough to turn the tide. Despite supportive fiscal policies and monetary conditions, growth is sluggish, confidence is at a low ebb, inflation is above the euro-area average, and there are perceptions of a pervasive loss of competitiveness. As regards fiscal policy, room for manoeuvre has now been greatly reduced by tax cuts – desirable in themselves – and significant additional corrective measures will be required for some years to come, if medium-term targets are to be achieved and long-term fiscal sustainability is to be assured. Such corrective measures should be of a structural and permanent nature, with prime candidates being savings in public pensions and health care, and increased public sector efficiency. The pension system is very expensive, in large part because it still encourages early retirement, thus resulting in inefficient public spending and low employment rates. These perverse features need to be removed. Public health spending is not efficiently administered: recent agreements on standards and financing with regions are a step forward, and a more incisive control of costs could derive from the quarterly monitoring of spending that has already been implemented. In public administration, the retirement of large numbers of public employees creates opportunities for a more effective and less costly redeployment of human resources. Overall economic performance would be improved by policies that further strengthen competition in product markets, for example by not eroding the powers and independence of the sectoral regulators. Privatisations should be vigorously resumed and effective financial market monitoring of firms ensured. Speedier bankruptcy procedures should be introduced that give priority to efficient reallocation of resources. Together with less rigid employment protection legislation, this might encourage more small firms to expand to levels that would permit more investment in both human and R capital. Recent employment developments have been positive, and further improvements could be achieved by encouraging the social partners to allow wages of workers of all ages to more closely reflect their productivity and local conditions. Planned improvements in the social safety net and the functioning of employment services should also boost job creation by making employees willing to accept more flexible employment conditions. In the longer term, increasing the levels of output and living standards will also depend on raising the skills and qualifications of Italy's labour force. Proposed educational reforms could improve them both and thereby help to realise Italy's full economic potential.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
Italy

654. From Red Tape to Smart Tape: Administrative Simplification in OECD Countries

Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
One of the most common complaints raised by businesses and citizens in OECD countries is the amount and complexity of government formalities and paperwork. Enterprises and citizens spend much time and devote significant resources to activities such as filling out forms, applying for permits and licences, reporting business information, notifying changes etc. In many cases, practices have become extremely complex, or irrelevant and cumbersome, generating unnecessary regulatory burdens – so-called “red tape”. The costs imposed on the economy as a whole are significant. When excessive in number and complexity, administrative regulations can impede innovation, create unnecessary barriers to trade, investment and economic efficiency, and even threaten the legitimacy of regulation and the rule of law.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

655. The OECD Guidelines for Multinational Enterprises: A Key Corporate Responsibility Instrument

Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The OECD Guidelines for Multinational Enterprises are one of the world's foremost corporate responsibility instruments and are becoming an important international benchmark for corporate responsibility. They contain voluntary principles and standards for responsible business conduct in such areas as human rights, disclosure of information, anti-corruption, taxation, labour relations, environment, and consumer protection. They aim to promote the positive contributions multinational enterprises can make to economic, environmental and social progress.
Topic:
Economics, Environment, Human Rights, International Organization, and International Trade and Finance

656. MAgricultural Policies in OECD Countries: A Positive Reform Agenda

Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
OECD countries have recently agreed to a positive reform agenda for agricultural policies. Central to this agenda is the need to set out clearly the objectives of agricultural policies, and to monitor the performance of alternative policies in attaining them. In most cases, the best way to achieve an objective is to target it directly. Thus, where agriculture is deemed to provide public services, such as a pleasing countryside or environmental benefits, any required support for those services could be provided directly, rather than through policies that stimulate output. Conversely, environmental degradation could be taxed or regulated at source. Where agricultural households have low incomes, there may be a case for policies that concentrate benefits among poorer households, as opposed to blanket support measures that pay more to larger (and typically wealthier) farmers and to landowners. Reform along these lines would improve the cost-effectiveness of government programmes, and would greatly reduce disruptions to international markets. At the same time, not everyone will gain from reform, at least in the short term. There may therefore be a need for temporary adjustment assistance for farm households that are negatively affected. The broader opportunities to improve economic well-being call for policies that respond explicitly to a more diverse range of societal interests.
Topic:
Agriculture, Economics, Environment, and International Trade and Finance

657. Feasible Financing Strategies for Environmentally Related Infrastructure

Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
An important obstacle to achieving environmental goals in many countries has been the failure to adequately address the associated financial issues: the costs of achieving goals; how those costs could be minimised; and the challenge of matching costs with available resources. The need for a fresh approach has become evident as central European countries come to terms with mobilising substantial financial resources to comply with challenging EU environmental requirements, and as the countries of Eastern Europe, Caucasus and Central Asia (EECCA) struggle to maintain even the low levels of services currently delivered by environmentally-related infrastructure.
Topic:
Economics, Environment, and International Trade and Finance
Political Geography:
Europe, Central Asia, and Eastern Europe

658. Territorial review of Öresund,2003

Publication Date:
03-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The Öresund project which is intended to develop jointly Skåne (Malmö) in Sweden and Zealand (Copenhagen) in Denmark is a major endeavour for the Danish and Swedish governments, given the potential economic growth that can be derived from the integration of one of the most highly populated and productive regions on the Baltic Sea. The significance of the project is reflected not only in the regional policy focus given to Öresund in both countries but also in the EU's support, notably through INTERREG, which considers Öresund a flagship programme. While progress has been achieved to better link the two regional economies, much remains to be done to remove barriers to integration and to define the strategic positioning of the area for the future. Four key policy challenges need to be addressed. First, regarding physical accessibility, the pricing policy for the crossing of the new bridge can be made more efficient and secondary infrastructure optimised to fully exploit the opportunities brought about by the fixed link. A cross-border committee could be created to allow integrated spatial planning. Second, labour mobility should be increased by removing bureaucratic and legislation obstacles through a new package of active labour market policies. Third, networking and co-operation between firms and educational institutions should be enhanced. Fourth, asymmetries of the two fiscal systems will need to be tackled by a new tax agreement. Most important is the governance framework of the region. While there are numerous common Danish/Swedish regional institutions and rightfully the creation of a heavily bureaucratic governing body has been avoided, the potential for public/private partnerships is far from tapped. Furthermore, the system in place does not provide an appropriate framework for the private sector to fully involve all relevant actors. These conditions will need to be fulfilled and forms of “light institutionalisation” of cross-border relations developed in order to trigger a new dynamism in the integration process.
Topic:
Emerging Markets, International Trade and Finance, Political Economy, and Regional Cooperation
Political Geography:
Denmark and Sweden

659. Financial Conglomerates: The Future of Finance?

Author:
Robert Litan and Richard Herring
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
In 1999, after nearly twenty years of debate, the U.S. Congress finally passed legislation permitting bank affiliations with all sorts of other financial enterprises, and vice versa. In this step, the United States joined many other countries — especially in Europe and, more recently, Japan — in allowing the operation of financial conglomerates. But are financial conglomerates the wave of the future in finance? And if so, how are they to be regulated? These were the two central questions addressed in the fifth annual conference of the Brookings-Wharton Papers on Financial Services, an annual volume published by the Brookings Institution Press. The conference, held in October 2002 in Washington, D.C., convened financial services experts from around the world. The papers presented at the conference suggest, generally, that while the future may see more financial conglomerate activity than it has in the past, there still will be a role for specialist, or "monoline" financial companies. As for regulation, there is no settled model: some nations will pursue consolidated supervision, with authority over entire conglomerates vested in a single authority (often the central bank), while others will still regulate the pieces of diversified financial enterprises along structural lines.
Topic:
Economics, Government, Industrial Policy, and International Trade and Finance
Political Geography:
United States, Europe, and Washington

660. Decoding Cancun: Hard Decisions for a Development Round

Author:
George Perkovich, Sandra Polaski, John Audley, and Scott Vaughan
Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
Following the riotous 1999 meeting in Seattle, and a near failure in Doha in 2001, the World Trade Organization dedicated the current round of trade liberalization talks to “development.” Negotiators will meet in Cancun, Mexico, in September amid competing claims regarding what steps are necessary to make trade serve development goals. The catch phrases of international trade—“comparative advantage,” “the development round,” “trade not aid,” and “level playing field”—hide tough choices for both developing and developed country governments. Getting trade rules right is not sufficient for development, but getting them wrong can cripple it. The authors outline the policies that governments and international institutions will need to avoid a debacle at Cancun and to assist developing countries in achieving long-lasting growth.
Topic:
Development, Globalization, International Organization, and International Trade and Finance
Political Geography:
Mexico

661. The New Approach to Foreign Aid: Is the Enthusiasm Warranted?

Author:
Ian Vásquez
Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The failure of past foreign aid programs has given rise to a new consensus on how to make foreign aid effective. According to the new approach, aid that goes into poor countries that have good policies and institutions is highly effective at promoting growth and reducing poverty. Disbursing aid to countries that have good policies contrasts with the traditional practice of providing aid to countries irrespective of the quality of their policies or providing aid to promote policy reforms. President George Bush's proposed foreign aid initiative, the Millennium Challenge Account, is based on the selective approach to foreign assistance, as are, in large part, the World Bank's calls to double foreign aid flows worldwide.
Topic:
Debt, Economics, International Political Economy, International Trade and Finance, and Third World

662. Reauthorize or Retire the Overseas Private Investment Corporation?

Author:
Ian Vásquez and John Welborn
Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The Overseas Private Investment Corporation is a government agency that provides loans and investment insurance to U.S. companies doing business around the world. Its four-year, renewable charter will expire in September 2003. Proponents of OPIC claim that the agency helps the U.S. economy and promotes economic development abroad.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States

663. The IMF's Dubious Proposal for a Universal Bankruptcy Law for Sovereign Debtors

Author:
Anna J. Schwartz
Publication Date:
03-2003
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The International Monetary Fund has proposed a universal bankruptcy tribunal to deal with sovereign debt restructuring. But does the international financial system really need such a mechanism? There has been little demand by sovereign borrowers or their creditors for a universal bankruptcy law, and few countries have had to enter into debt restructuring procedures. The absence of such a law does not appear to have created chaotic conditions even in those cases.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance

664. The Civil False Claims Act: Using Lincoln's Law to Protect the European Community Budget

Author:
Alan Riley
Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper argues that the US Civil False Claims Act of 1986 (hereafter CFCA) could provide the European Community with a means to effectively protect the largely decentralised revenue collection and expenditure of the Community bud get. It also offers a solution to the difficulty of creating an effective means of investigation and penalisation of cross-border fraud without having to create a Community criminal law or a European Public Prosecutor.
Topic:
Economics and International Trade and Finance
Political Geography:
Europe

665. Asian Oil Market Outlook: Role of the Key Players

Author:
Jeffrey Brown and Kang Wu
Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
The Asia Pacific region's dynamic oil market is marked by strong growth in consumption, declining regional oil production, and over capacity in its highly competitive oil-refining sector. Its "key players" are China, India, Indonesia, Japan, and South Korea—a group that includes the region's five top consumers and three of its major producers—and developments in these countries will have commercial and strategic implications for the whole region. On the consumption side, Japan's slow growth in demand has failed to dampen regional growth, which is now driven by China and India's fast growing thirst for oil. On the supply side, Indonesia's inevitable transition to a net oil importer highlights the trend toward growing dependence on Middle East oil, which already comprises 42–90 percent of imports among the key players. In response to this trend, China, Japan, and South Korea are pushing to acquire overseas oil reserves, with Japan and China already locked in a fierce competition for projected Russian supplies—a type of struggle that will likely become more commonplace.
Topic:
Economics and International Trade and Finance
Political Geography:
Japan, China, Indonesia, Middle East, India, Asia, and South Korea

666. The Move to Preferential Trade in the Western Pacific Rim

Author:
John Ravenhill
Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
Western Pacific Rim states have been slow to participate in preferential trade agreements (PTAs). In the past four years, however, more than 40 PTAs involving these economies have been proposed or are being implemented. For the first time, Japan and China have either signed or are negotiating bilateral or plurilateral agreements. The new interest in PTAs reflects the perception that they have been successful in other parts of the world, and is reinforced by dissatisfaction with the region's existing trade groupings. Although arguments can be made in favor of PTAs, they amplify political considerations in trade agreements, may adversely affect the political balance in participating countries, impose costs on nonparticipants, and deplete scarce negotiating resources. Nevertheless, the number of western Pacific Rim states participating in PTAs continues to climb. Northeast Asian countries have been following Europe in exploiting loopholes in WTO rules on PTAs to protect their noncompetitive sectors, thereby strengthening their political positions, which will likely make global liberalization more difficult.
Topic:
Economics and International Trade and Finance
Political Geography:
Japan, China, Asia, and Australia/Pacific

667. Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth

Author:
Catherine L. Mann
Publication Date:
12-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Businesses throughout the US economy continue to transform even after the technology boom has faded. The key sources of this continuing transformation are investment in the information technology (IT) package (hardware, software, and business-service applications) and reorientation of business activities and processes to use both information and technology effectively.
Topic:
Economics, Globalization, International Trade and Finance, and Science and Technology
Political Geography:
United States

668. Next Move in Steel: Revocation or Retaliation?

Author:
Gary Clyde Hufbauer and Ben Goodrich
Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In May 2003, the World Trade Organization (WTO) dispute panel ruled that US steel safeguards imposed in March 2002 are illegal. The WTO Appellate Body is all but certain to confirm the panel's judgment, probably by December 2003. Then the Bush administration will face an important choice. It can keep the safeguards in place, pleasing steel producers and important constituencies in West Virginia, Pennsylvania, and Ohio. However, doing so would further anger steel users, who have probably lost more business and jobs as a direct consequence of the safeguards than steel producers have gained. Maintaining the safeguards would also send a signal to the world's trading nations that the United States is not prepared to endure the political cost of eliminating steel protection. Furthermore, the administration would run the risk that, in the middle of a presidential election season, foreign countries will exercise their rights under the WTO to retaliate.
Topic:
Government and International Trade and Finance
Political Geography:
United States, Pennsylvania, Ohio, and West Virginia

669. EU Accession and the Euro: Close Together or Far Apart?

Author:
Peter B. Kenen and Ellen E. Meade
Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In May 2004, ten countries are due to join the European Union. They are therefore obliged to join the European Monetary Union (EMU) and adopt the euro as their national currency. Most of them, moreover, have been eager to do that. None of them sought an opt-out of the sort that Britain and Denmark obtained in 1991, when the Maastricht Treaty was drafted. Membership in EMU is not automatic, however, because the accession countries must first satisfy the preconditions contained in the Maastricht Treaty. Although those preconditions are rigorous, and some of the accession countries are still far from meeting them, most of those countries have indicated that they want to enter EMU at the earliest possible date.
Topic:
Economics and International Trade and Finance
Political Geography:
Britain, Europe, and Denmark

670. More Pain, More Gain: Politics and Economics of Eliminating Tariffs

Author:
Gary Hufbauer and Ben Goodrich
Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
A good proposal to eliminate tariffs must take into account both the pain and gain that developing countries are likely to experience. The authors take the measure of these costs and benefits and urge rich countries to maximize the benefits to developing countries while giving them ample time to accept, and adjust to, the changes that trade liberalization will require. But trade liberalization should not stop with tariff proposals. The United States and other industrial countries should generously reduce subsidies to farmers and eliminate nontariff barriers on agricultural imports. The United States should offer more concessions on services trade, particularly in its allowances for temporary foreign workers. Unless rich countries put more on the table, a WTO agreement to eliminate tariff barriers may be postponed for years.
Topic:
Economics, International Trade and Finance, Political Economy, and Third World
Political Geography:
United States

671. Rules Against Earnings Stripping: Wrong Answer to Corporate Inversions

Author:
Gary Hufbauer and Ariel Assa
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The tax-driven expatriation of US corporations is a troubling phenomenon. In a “corporate inversion,” a new foreign corporation, typically located in a low-tax or no-tax country, replaces the existing US parent corporation of a multinational enterprise (MNE). The US corporation then becomes a subsidiary of the new foreign parent. Since the US tax treatment of an MNE operating in the United States is significantly less favorable when the top-tier parent corporation is a domestic rather than a foreign corporation, the inversion transaction averts a substantial amount of US tax. Inversions have attracted adverse attention from tax specialists, media, the US Treasury Department, and Congress. In the wake of September 11, it seemed downright unpatriotic for US firms to invert as a way of skimping on their tax payments.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States

672. The Strategic Importance of US-Korea Economic Relations

Author:
Marcus Noland
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Despite the passage of 50 years since an armistice ended military hostilities, the Korean peninsula remains divided, a Cold War vestige that seemingly has been unaffected by the evolution that has occurred elsewhere. If anything, US confrontation with North Korea—a charter member of its “axis of evil”—has intensified in recent years. Yet today, increasing numbers of South Koreans, accustomed to living for decades in the shadows of the North's forward-deployed artillery, do not regard the North as a serious threat. Growing prosperity and confidence in the South, in marked contrast to the North's isolation and penury, have transformed fear and loathing into pity and forbearance. Instead, it is the United States, an ocean away, that regards the North and its nuclear weapons program with alarm. As the United States has focused on the nuclear program, its ally, South Korea, has observed the North Koreans' nascent economic reforms and heard their talk of conventional forces reduction, and the gap in the two countries' respective assessments of the North Korean threat has widened dangerously, threatening to undermine their alliance.
Topic:
Security and International Trade and Finance
Political Geography:
United States, Israel, East Asia, Asia, South Korea, North Korea, and Korea

673. The Impact of Economic Sanctions on US Trade: Andrew Rose's Gravity Model

Author:
Gary Clyde Hufbauer and Barbara Oegg
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
With the end of the Cold War, the focus of US foreign policy changed—and so did that of economic sanctions. Partly because of increased cooperation within the UN framework, economic sanctions were imposed so routinely in the early 1990s that scholars called that period the sanctions decade. This proliferation sparked intense debate about the effectiveness of sanctions as a policy tool and moved US sanctions policy to the center of public discourse.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
United States

674. Economic Leverage and the North Korean Nuclear Crisis

Author:
Kimberly Ann Elliott
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Almost a decade ago, as the last nuclear crisis with North Korea was reaching a peak, I concluded the following about the potential utility of economic sanctions: The debate over US policy toward North Korea boils down to one deceptively simple question: what does Kim Il-sung want? No one can be sure of the answer and different interpretations have quite different policy implications. If the Great Leader views a nuclear weapons option as important to the survival of his regime, economic sanctions are unlikely to force him to give it up. But if he views the threat of developing nuclear weapons as a bargaining chip, some combination of carrots and sticks may induce him to trade it away.
Topic:
Diplomacy, Economics, and International Trade and Finance
Political Geography:
Israel, East Asia, and North Korea

675. Steel Policy: The Good, the Bad, and the Ugly

Author:
Gary C. Hufbauer and Ben Goodrich
Publication Date:
01-2003
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
While the US steel industry has been in distress for decades, the “steel crisis” of 1999-2001 was particularly acute. More than 30 steel producing and steel processing firms fell into bankruptcy between 1997 and 2001, and most of the failures occurred after President Bush took office. During his presidential campaign, Bush promised steelworkers that he would not neglect them. As the crisis worsened, the steel industry and the United Steel Workers of America (USWA) pressed the Bush administration to make good on its campaign promise.
Topic:
Government, Industrial Policy, and International Trade and Finance
Political Geography:
United States and America

676. Civil Society and the OECD - update November 2002

Publication Date:
11-2002
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The OECD recognises the valuable contribution that civil society can make to the public policy-making process, and attaches great importance to the Organisation's own consultation and dialogue with civil society organisations (CSOs). This continuing dialogue builds trust in public institutions and promotes public understanding of the benefits and challenges of global economic and social change.
Topic:
Development, Economics, International Trade and Finance, and Non-Governmental Organization

677. Territorial Review on Helsinki, 2002

Publication Date:
11-2002
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The on-going structuring of the Greater Helsinki Region (GHR) should be encouraged by the central government. Managing the growth of the Helsinki region is crucial to avoid urban sprawl and the waste of resources, especially in the long run. With priorities for the Greater Helsinki Region identified, there is room to negotiate a general agreement between the central government and municipalities of the GHR. This agreement should receive large publicity and raise a debate in Parliament as the goal is to reassess both the role and the dependence of Helsinki upon the rest of the country, i.e. how can Finland develop as a whole by making better use of the motor, Helsinki.
Topic:
Development, Economics, and International Trade and Finance

678. China — Securities Opening

Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The China Securities Regulatory Commission issued rules on June 3 outlining the participation of foreign firms in fund management and securities business. Issued earlier than expected, the rules re-state concessions made in the trade and investment agreement China signed with the United States in November 1999. Modernisation and liberalisation of the sector is a prerequisite to channelling more of China's 1 trillion dollars of private savings to equity investment.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
United States and China

679. International — Auto Consolidation

Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
Fiat announced a sharp fall in May car sales in Italy on June 5 and its debt is under review for a possible ratings downgrade. The world's sixth-largest car maker is one of many manufacturers facing difficult profitability conditions. Global sales volumes in the industry have remained high, but profits have not followed suit. Mergers, the most rational panacea, are confounded by bitter experience.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United States and Europe

680. International — Weak Dollar

Publication Date:
05-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece is on the international implications of a weaker US dollar. Seventeen weeks of dollar weakness raise the questions of whether the dollar is on a sustained path of decline, and what the implications are internationally. The 6% nominal effective decline in the dollar since January 31 might be sustained due to US financial and macroeconomic factors. Overall, the effect would be positive for Europe and the United States, and might encourage domestic demand growth in export-oriented Asian economies.
Topic:
Economics and International Trade and Finance
Political Geography:
United States and Europe

681. East Asia: Currency Cooperation

Publication Date:
05-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
Former IMF First Deputy Managing Director Stanley Fischer expressed support for regional currency arrangements in a speech at the Hong Kong Monetary Authority on May 21. East Asian nations continue to discuss swap arrangements and other forms of cooperation in the hope of defending local currencies. Fischer endorsed the swap plans while throwing critical light on currency 'management' schemes. Such schemes could result in perverse consequences for regional economies.
Topic:
Economics, International Organization, and International Trade and Finance
Political Geography:
Asia and Hong Kong

682. European Union — FSAP Progress

Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece is on the progress towards completing the Financial Services Action Plan (FSAP). Amid continuing difficulties in key areas, pressure is growing for further advances in completing the single market for capital and financial services.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Europe

683. International — Steel Glut

Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
OECD members meet in Paris today and tomorrow in the fourth high-level forum on reducing global steel production capacity. The world steel trade is more unsettled than at any time in the last twenty years. Surplus capacity is holding prices down and harming otherwise competitive manufacturers.
Topic:
Industrial Policy, International Political Economy, and International Trade and Finance

684. International — Global Economy

Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
A textbook approach to economic growth suggests the world is in for a difficult period. However, there are reasons to believe that the global economy will defy convention. The global economy will continue to support US external imbalances for the medium term, barring marked deterioration in certain areas of US weakness. However, European integration and Asian development could provide alternative sources of global demand, relieving the current imbalance of global dependence on the US economy.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States and Europe

685. International — Pension Funding

Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece is on policy options for pension funding from an intergenerational risk-sharing perspective. Demographic and business-cycle trends point to a shortfall in pension provision for retiring generations over the medium term.
Topic:
Demographics, Economics, Government, and International Trade and Finance

686. Eastern Europe — Monetary Integration

Publication Date:
03-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece focuses on the role of ERM II in the East European accession candidate countries. The EU's Exchange Rate Mechanism has emerged as the primary vehicle for the integration of the CEEC-10 accession countries into the European Monetary Union.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Europe

687. Argentina — Beleaguered Banks

Publication Date:
03-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece examines the impact of the economic crisis on the Argentine banking sector. The collapse of the peso-dollar peg dealt a serious blow to the already weakened Argentine banking system, which now faces a significant restructuring process.
Topic:
International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Argentina and Latin America

688. European Union — Insecure Recovery

Publication Date:
03-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece examines the outlook for euro-area economic performance. Despite some indications of improvements in the global and euro-area economies, it is too early to assume that these signify a lasting recovery.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Europe

689. International — Steel Fortress

Publication Date:
03-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The United States on March 5 announced tariffs on the vast majority of US steel imports. Despite rumours that he would impose moderate duties, US President Bush levied 30% tariffs on the types of steel accounting for about three-quarters of steel imports. Given that these duties follow hundreds of anti-dumping duties imposed on steel products over the past three years, the decision means that virtually no foreign steel will be sold in the United States. It will also have a host of unforeseen international consequences.
Topic:
Foreign Policy, Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States

690. International — Market Screening

Publication Date:
02-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The largest US-based pension fund last week listed 13 emerging markets that its fund managers will be allowed to invest in. Investment firms appointed by the California Public Employees' Retirement System (CalPERS) will actively manage up to one billion dollars in equity investments in 13 countries and unwind CalPERS' equity positions in markets outside them. As a large institutional investor, CalPERS' decisions have an important signalling role for a variety of institutional funds.
Topic:
Economics, Government, International Trade and Finance, and Political Economy
Political Geography:
United States

691. South-East Asia — Investment Lessons

Publication Date:
02-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece focuses on mixed successes of intra-regional mergers and acquisitions in South-east Asia. Large South-east Asian firms have been enthusiastic investors within the region, with mixed results. Successful intra-regional investment is important for developing a greater domestic demand structure in the region and reducing reliance on external demand.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
South Asia, Asia, and Southeast Asia

692. United States/European Union — WTO Sanctions

Publication Date:
02-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
US trade officials said last week that EU estimates of damages arising from US export subsidies were exaggerated. EU trade officials have asked the WTO to approve 4 billion dollars worth of trade sanctions against the United States, after the latter lost an appeal before the WTO on the tax treatment of foreign-source income — judged to be illegal export subsidies. Washington must amend its tax laws or face the prospect of retaliatory trade restrictions.
Topic:
Economics and International Trade and Finance
Political Geography:
United States, Europe, and Washington

693. United States — Productivity Surprise

Publication Date:
02-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
The government announced yesterday that productivity increased at a 3.5% annual rate in the fourth quarter of 2001. The figure, previously available in its component form, has been interpreted as evidence of underlying improvement in productivity in the post-1995 period. Sustainability of productivity growth determines the reliability of fiscal forecasts, growth, inflation and unemployment.
Topic:
Economics and International Trade and Finance
Political Geography:
United States

694. International — Development Davos

Publication Date:
02-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece examines the World Social Forum that opens today in Porto Alegre, Brazil. The forum is the 'anti-globalisation' counterpart to this week's World Economic Forum being held in New York. The outcome of this year's meeting will set the theme for the anti-globalisation movement and may include aggressive lobbying for a cross-border currency tax.
Topic:
Globalization, International Cooperation, International Organization, and International Trade and Finance

695. International — Socially Responsible Investment

Publication Date:
01-2002
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week's piece examines the impact of strong growth and low volatility in socially responsible investment. Current trends suggest that fund managers and stock index compilers will introduce more socially responsible investment products in 2002. Of all the developments within the SRI (socially responsible investment) industry the high persistency rates of social investors stand out. If the growth of this asset class continues and if financial returns continue to be deprioritised among investors, gradual changes in the style and approach of corporate boards of directors, operations and accounting and disclosure will occur.
Topic:
Economics and International Trade and Finance

696. The IMF's Dilemma in Argentina: Time for a New Approach to Lending?

Author:
Carol Graham and Paul Robert Masson
Publication Date:
11-2002
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
In recent years, the international financial system has faced tremendous challenges, from the Asia, Russia, and Brazil crises in the late 1990s, to Argentina's default and ensuing economic collapse in 2002 to new worries about a possible default in Brazil. An increasing number of observers are questioning the way the international financial institutions manage these crises. An alternative approach that is endorsed in principle by many—including Horst Köhler, the new managing director of the International Monetary Fund (IMF)—is a move toward more selective lending with fewer conditions, with the decision to lend based on a more general and ultimately political assessment of the recipient government's capacity to deliver on its promises. Argentina provides a potential test bed for this approach.
Topic:
International Organization and International Trade and Finance
Political Geography:
Russia, Asia, Brazil, Argentina, South America, and Latin America

697. Strengthening Financial Sector Governance in Emerging Markets

Author:
Robert Litan, Michael Pomerleano, and V. Sundararajan
Publication Date:
07-2002
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Policymakers and analysts are still sifting through the wreckage of the Asian financial crisis of 1997 and the subsequent crises in Russia, Turkey, and Argentina to discern key lessons so that similar crises will not recur. Some lessons are by now well understood. Pegged exchange rates can encourage excessive borrowing and expose countries to financial collapse when foreign exchange reserves run dry. Inadequate disclosures by both private companies and public bodies can lead to similar dangers. Although many factors undoubtedly contributed to these crises, it is now widely recognized that each suffered from a failure in “governance,” and in particular a failure in governance in their financial sectors. Accordingly, the World Bank Group, the International Monetary Fund (IMF), and the Brookings Institution devoted their fourth annual Financial Markets and Development Conference, held in New York from April 17-19, 2002, to the subject of financial sector governance in emerging markets. This conference report summarizes some of the highlights of the conference, whose full proceedings will be published as a Brookings book in the fall of 2002.
Topic:
Economics, Emerging Markets, Government, and International Trade and Finance
Political Geography:
Russia, New York, Turkey, Asia, and Argentina

698. The Trezise Symposium on the Japanese Economy

Author:
Edward J. Lincoln
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The Japanese economy has undergone a decade of sluggish growth marked by three recessions, including the current one. This time, recession is accompanied by general price deflation, a situation unprecedented among industrialized nations since the Great Depression of the 1930s. Meanwhile, the financial sector sits on a rising mountain of bad loans. A serious financial crisis and deeper recession are real possibilities.
Topic:
Economics and International Trade and Finance
Political Geography:
Japan, Israel, and East Asia

699. New Role in U.S. Trade Policy

Author:
John Audley
Publication Date:
09-2002
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
On a hot day in August, President George W. Bush signed into law the Trade Act of 2002. Months of debate between the administration and members of Congress, their constituencies, and other governments were over; with the stroke of his pen President Bush became the first president in almost a decade to enjoy the benefits of trade promotion authority (TPA).
Topic:
Economics, Environment, International Trade and Finance, and Political Economy
Political Geography:
United States

700. Managing Asia Pacific's Energy Dependence on the Middle East: Is There a Role for Central Asia?

Author:
Kang Wu and Fereidun Fesharaki
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
The Middle East is Asia Pacific's largest energy supplier, satisfying a demand for oil that must keep pace with the region's continued economic growth. This dependence on the Middle East has caused Asia Pacific to join the United States and other Western nations in the hunt for alternative suppliers. Central Asia, located between the Middle East and Asia Pacific and already an oil and gas exporter, is an attractive possibility. With energy production projected to rise rapidly over the next decade, Central Asia is poised to become a major player in the world energy market. But the land-locked region's options for transporting oil and gas to Asia Pacific markets are limited and problematic. Passage via pipeline east through China presents construction challenges; south through Iran, or through India and Pakistan via Afghanistan, is fraught with political difficulties. Not until geopolitics become more favorable to the south-bound options, or technologies make the China route possible, will Asia Pacific be able to tap the energy resources of Central Asia.
Topic:
Security and International Trade and Finance
Political Geography:
Pakistan, Afghanistan, United States, China, Iran, Middle East, and Asia