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1. How to Make Fuel Subsidy Reform Succeed

Author:
Isobel Coleman
Publication Date:
08-2014
Content Type:
Policy Brief
Institution:
Council on Foreign Relations
Abstract:
Fossil fuel subsidies are a global scourge. They distort markets, strain government budgets, encourage overconsumption, foster corruption, and harm the environment while doing little to remedy inequality or stimulate development. Yet despite compelling arguments for reform, fossil fuel subsidies remain deeply entrenched. Citizens have yet to be convinced that fuel subsidies can and should be replaced with more efficient poverty alleviation programs. As a result, governments refrain from phasing out fuel subsidies for fear of triggering a public backlash, and even civil unrest. To bolster the prospects for subsidy reform, the United States should support the creation of a new public-private partnership within the World Bank, the Global Subsidy Elimination Campaign (GSEC), to work with governments to execute country-specific communication programs that would build the case for fossil fuel subsidy reform among citizens. The GSEC would start with pilot programs in select countries, and on the basis of these efforts, expand its work to other countries interested in fuel subsidy reform. If the GSEC help s generate just a 5 percent reduction in the more than half a trillion dollars that governments now spend on fossil fuel subsidies, it would free up billions of dollars for more effective anti-poverty initiatives.
Topic:
Economics, International Cooperation, International Political Economy, International Trade and Finance, and Natural Resources
Political Geography:
United States

2. Global Imbalances and the Financial Crisis

Author:
Steven Dunaway
Publication Date:
03-2009
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The current economic and financial crisis has brought about a significant change in global economic governance as the international forum for discussions on the crisis has shifted from the small group of advanced countries in the Group of Seven (G7) to the Group of Twenty (G20), a broader group including important emerging market countries. The G20 summit held in Washington, DC, on November 15, 2008, dealt with the immediate concerns fostered by the crisis and focused on both macroeconomic policy actions needed to support global growth and ideas for implementing financial market reforms. Follow-up G20 summits are expected, starting with a gathering in the United Kingdom in April 2009. However, for these discussions to have a substantial impact, the agenda will have to be broadened beyond economic stimulus and financial market regulation. If not, global policymakers will miss a critical chance to make the world economy and financial markets more stable, as then U.S. treasury secretary Henry M. Paulson Jr. pointed out: If we only address particular regulatory issues—as critical as they are—without addressing the global imbalances that fueled recent excesses, we will have missed an opportunity to dramatically improve the foundation for global markets and economic vitality going forward. The pressure from global imbalances will simply build up again until it finds another outlet.
Topic:
International Relations, Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States and China

3. China's $1.5 Trillion Bet: Understanding China's External Portfolio

Author:
Brad W. Setser and Arpana Pandey
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
This paper was originally published in January 2009. The May update incorporates quarter one 2009 data on China's foreign reserves, the Treasury International Capital (TIC) capital flows data for December, January, and February, and the results of the June 2008 survey of foreign portfolio investment in the United States. The June 2008 survey indicated that China bought fewer Treasury bonds and more equities than the authors estimated in the January paper.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States and China

4. Sovereign Wealth and Sovereign Power: The Strategic Consequences of American Indebtedness

Author:
Brad W. Setser
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
In the 1870s, the scope of Great Britain's financial empire exceeded the scope of its political empire. Dependence on British investors sometimes was a precursor, though, to informal—or even formal— political control. When Egypt's khedive needed to raise cash to cover his personal debt to private British banks, he sold his large personal stake in the Suez Canal to the British state. Egypt's ruler did little better managing Egypt's public debt: difficulties making payments led Britain and France to assume control over Egypt's treasury and, by 1882, to full British political control.
Topic:
Economics, Government, International Political Economy, and International Trade and Finance
Political Geography:
Britain, United States, America, and Egypt

5. Foreign Investment and National Security: Getting the Balance Right

Author:
David M. Marchick and Alan P. Larson
Publication Date:
07-2006
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Despite the significant benefits that foreign investment brings to the U.S. economy, a recent poll by the Pew Research Center for the People and the Press found that 53 percent of Americans believe foreign ownership of U.S. companies is “bad for America,” a sentiment that reached a boiling point with the proposed acquisition of the U.S. port operations of P Steam Navigation Company by Dubai Ports World (DPW). The DPW case brought to the public's attention the little-known executive committee charged with reviewing the security risks of foreign investment—the Committee on Foreign Investment in the United States (CFIUS)—and ignited a flurry of congressional activity to change its mandate and operations under the Exon-Florio Amendment to the Defense Production Act of 1950.
Topic:
Security, International Political Economy, and International Trade and Finance
Political Geography:
United States, America, and Dubai