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April 2006 Archives


Two Cheers for Expensive Oil
Leonardo Maugeri (Foreign Affairs) Mar/Apr 2006
Prices of crude oil are high these days not because oil reserves are waning -- in fact, they are plentiful -- but because inadequate refining capacity has limited the quantity of crude available on the world market. And high prices come with an upside: they could convince the oil industry to invest in new capacity.

Offshoring: The Next Industrial Revolution? Recommended!
Alan S. Blinder (Foreign Affairs) Mar/Apr 2006
Economists who insist that "offshore outsourcing" is just a routine extension of international trade are overlooking how major a transformation it will likely bring -- and how significant the consequences could be. The governments and societies of the developed world must start preparing, and fast.

The Man Without a Plan
Amartya Sen (Foreign Affairs) Mar/Apr 2006
In "The White Man's Burden", William Easterly offers important insights about the pitfalls of foreign aid. Unfortunately, his overblown attack on global "do-gooders" obscures the real point: that aid can work, but only if done right.

The Return of Patriarchy
Phillip Longman (Foreign Policy) Mar/Apr 2006
Across the globe, people are choosing to have fewer children—or none at all. Will some societies become extinct? Hardly. It’s more likely conservatives will inherit the Earth. Like it or not, a growing proportion of the next generation will be born into conservative households that believe father knows best.

The FP Memo: Saving Free Trade Foreign Policy Subscription Required
Bruce Stokes (FOreign Policy) Mar/Apr 2006
To keep trade talks from flying off the tracks, WTO chief Pascal Lamy must enforce deadlines, sidestep European bureaucrats, and persuade U.S. politicians to put up or shut up.

The Coming Natural Gas Cartel
Michael J. Economides (Foreign Policy) Mar/Apr 2006
Oil is not America’s only energy addiction. With domestic gas production in decline, the United States and many of its allies will grow more dependent on imports to generate electricity and heat homes. Gas suppliers will band together in response to the growing global demand, just as oil producers did decades ago. Few people talk about the looming U.S. dependency on imported natural gas, but it could be painful.

The World Bank weeds out corruption: Will it touch the roots?
Bretton Woods Update No. 50 Mar/Apr 2006
Plus: Where did the Inspection Panel go?; Why have Bank-CSO dialogues on water faltered?; IFC safeguard review finished: client risk over protecting rights; and more.

Commitment to Development Index
CGD Apr 2006
The Commitment to Development Index reminds the world that reducing poverty in developing countries is about far more than giving money. Trade, investment, migration, security, environment, and technology policies matter, too. Now in its third year, the CDI ranks 21 of the richest nations on their performance in each policy area, giving you the big picture. View the rankings in charts, learn what the Index rewards and penalizes, compare country report cards, and post comments or suggestions.

Learning Globalization From Football
Branko Milanovic (Project Syndicate) Apr 2006
The game's organizers know how to impose rules and manage globalization.

The Case for Economic Growth
WP Apr 2, 2006
It may not lift all boats as it used to, but it's still essential.

China's Trade Tiffs Wall Street Journal Subscription Required
WSJ Apr 4, 2006
Trying to play by different rules and failing -- so far.

On the up and up Economist Subscription Required
Economist Apr 4, 2006
Things have never been better.

Don't Give Up on WTO, Fix It
Richard G. Lipsey (YaleGlobal) Apr 4, 2006
The WTO may not be perfect, but its elimination is a recipe for trade chaos.

World Bank should link loans to press freedom
IHT Apr 5, 2006
If Wolfowitz and the World Bank are to attack corruption effectively, they would also be well advised to make media freedom a precondition for future loans.

Sanity, At Last Wall Street Journal Subscription Required
WSJ Apr 5, 2006
Renminbi volatily isn't in anyone's best interests.

Yuan Compromise? Wall Street Journal Subscription Required
Lawrence B. Lindsey (WSJ) Apr 6, 2006
The Bush-Hu currency conversation.

A Vital Task for The IMF
David Ignatius (WP) Apr 7, 2006
Unless we quickly reform the International Monetary Fund, large American deficits and Chinese surpluses could lead to a worldwide economic catastrophe.

The good in globalization
Richard W. Fisher and W. Michael Cox (IHT/NYT) Apr 10, 2006
Globalization prompts a race to the top by pushing countries to abandon policies that burden their economies.

The Role of the International Monetary Fund in a Changing World
Raghuram G. Rajan (IMF) Apr 10, 2006
There are many questions being raised about the future of the International Monetary Fund. I will argue in today's talk that the Fund has a clear and important role to play. The IMF offers a legitimate venue where multilateral dialogue can take place. But there has to be a strong desire for that dialogue. Unfortunately, even as rapid globalization has increased the economic need for multilateral dialogue in the world today, the forces of reaction, of economic patriotism as protectionism is now called, are gaining strength. People tend to dismiss these forces as minor frictions — sand in wheels of the globalization juggernaut. History, however, suggests the distance from economic patriotism to unbridled nationalism is a short one. This is why it is critically important for us to revive the quality of multilateral dialogue, and support multilateral organizations like the IMF, so that we can all continue to benefit from globalization in an atmosphere of mutual responsibility and shared destiny.

Globalization's second death?
LAT Apr 10, 2006
U.S. protectionist measures helped wreck the world economy in the '30s. We can't let that happen again.

Trading up in China
IHT Apr 11, 2006
The better off China is, the better off the rest of the world is.

The World Cup and the johns
IHT Apr 11, 2006
The global sex industry has its eye on Germany, where promotion of prostitution seems to be as much a part of the preparations for the upcoming World Cup as anything to do with soccer.

Emerging markets less vulnerable to crises, says IMF
FT Apr 11, 2006
Stability in financial markets is currently “as good as it gets” with “sharply improved resilience” to sudden crises, particularly in emerging market economies, the International Monetary Fund said on Tuesday.

Amid Tension with US, China Faces Protectionist Surge at Home
WSJ/YaleGlobal Apr 11, 2006
When Chinese President Hu Jintao visits the U.S. in mid-April, he is sure to field tough questions about Beijing's trade and economic policies amid a wave of rising protectionism. But he also is grappling with a similar backlash at home.

Climate of Fear
Richard Lindzen (WSJ) Apr 12, 2006
Debasing climate science into a triangle of alarmism.

Mr Hu finally goes to Washington Economist Subscription Required
Economist Apr 12, 2006
A state visit in Chinese eyes, but not in America's. Don't expect a love-in.

Could Globalization Fail?
Thomas Palley (YaleGlobal) Apr 13, 2006
Policies that spawn economic inequality rather than free trade could bring about an economic crisis.

Protecting intellectual property in China
McKinsey Quarterly Apr 14, 2006
Despite new intellectual-property legislation, multinational companies doing business in China will need more than legal measures to protect their IP.

Counting Aid Dollars
WP Apr 16, 2006
A half-successful attempt to improve the U.S. standing.

2006 spring meetings preview
IMF Survey Apr 17, 2006
Plus: Reform at the IMF: Medium-Term Strategy; Global Financial Stability Report; World Economic Outlook: Oil and imbalances; Globalization and inflation; Puzzle of corporate saving; Profitable investment in Africa.

Embrace Globalism Wall Street Journal Subscription Required
Jim Owens (WSJ) Apr 17, 2006
Protectionism is for losers.

Oil leaps above $70 on anxiety over supply
IHT Apr 18, 2006
The price of crude oil futures rose to the highest level in nearly eight months, fueled by the diplomatic row over Iran's nuclear program, production shortages in Nigeria and concerns about tight gasoline supplies in the United States.

China's Money Maneuvers Wall Street Journal Subscription Required
WSJ Apr 18, 2006
Slowly cracking open the capital account.

The Death Of the G-8
WP Apr 18, 2006
Does Russia really belong in the Group of Eight -- the assembly of the world's leading industrialized democracies? As things stand today, it meets only one criterion for membership: the size of its economy. So far as political rights are concerned, Russia ranks 168th out of 192 countries, according to Freedom House. In terms of corruption, the organization Transparency International ranks Russia 126th out of 159 countries. The World Economic Forum calculates that when it comes to favoritism in governmental decisions, Russia rates 85th of 108 countries, in protection of property rights 88th of 108 and in independence of the judicial system 84th out of 102.

U.S. step stirs doubt on global trade talks
IHT Apr 19, 2006
Susan Schwab was picked to take over the job of chief trade negotiator from Rob Portman.

Awaiting Hu in U.S. is unavoidable topic: Oil
IHT Apr 19, 2006
One of Washington's fears is that China's soaring demand is helping drive prices to more than $70 a barrel.

U.S. pushes to limit generic-drug rights in trade pacts
IHT Apr 19, 2006
Thailand is the latest target of a quiet worldwide campaign to extend monopolies in exchange for improvements in trade.

Managing Globalization: Back to school in the Rust Belt
IHT Apr 19, 2006
As manufacturing plants shrink and disappear across the American Midwest, one thing is clear: The next generation of workers will need a new set of skills.

Loan Rangers Wall Street Journal Subscription Required
John B. Taylor (WSJ) Apr 19, 2006
The IMF embraces market reforms. Will they stick?

How to Weather The 'Red Storm'
WP Apr 19, 2006
The global economic structure will either adapt or break as the economically prosperous China consumes more commodities.

Hopes for Trade Talks Dim After Personnel Switch
WP Apr 19, 2006
By switching his chief trade negotiator yesterday, President Bush sent a gloomy signal to many trade experts and policymakers about the prospects for achieving significant gains in trade talks with foreign countries anytime soon.

What the IMF can do
Rodrigo de Rato (IHT) Apr 19, 2006
The IMF must address the growing global imbalances that could lead to an worldwide economic crisis.

Hu charms a U.S. governor and stresses trade
IHT Apr 20, 2006
President Hu Jintao has already shown flashes of humor and flexibility on his U.S. visit that have warmed his reception.

The Long China View
WSJ Apr 20, 2006
The China challenge: how to manage an emerging power without a crisis.

Currency Manipulator? Wall Street Journal Subscription Required
Ronald I. McKinnon (WSJ) Apr 20, 2006
Don't blame the Chinese for our own deficiencies.

A stronger Chinese currency might prove painful for America Recommended!
Economist Apr 18, 2006
Should Americans really want China’s currency to rise?

The US and China: Friends or Foes? - Part I Recommended!
David Shambaugh (YaleGlobal) Apr 18, 2006
Confronting a long list of major issues, the presidents might go beyond cant at Washington summit.

Mandelson accuses U.S. of making empty promises on trade
IHT Apr 20, 2006
The European Union trade commissioner accused the United States of being disingenuous in global trade negotiations by making unrealistic promises to cut its own agriculture subsidies to increase pressure on European countries to do more.

The US and China: Friends or Foes? - Part II
Daniel H. Rosen (YaleGlobal) Apr 20, 2006
With a booming economy, China takes steps to spread its wealth.

Political Clout in the Age of Outsourcing
David Leonhardt (NYT) Apr 21, 2006
White-collar workers may find less public support for protecting jobs and high salaries with training and certification regulations.

Power Shift
WP Apr 22, 2006
The IMF and World Bank must adapt to the rise of Asia.

Avoiding Political Talk, Saudis and Chinese Build Trade
NYT Apr 23, 2006
President Hu Jintao of China signed a series of trade agreements with Saudi Arabia in his first state visit there.

CSI: Trade Deficit
Paul Krugman (NYT) Apr 24, 2006
It's a mystery how we've been able to run huge deficits, year after year, with so few visible adverse consequences.

Why Globalization Has Stalled
Sebastian Mallaby (WP) Apr 24, 2006
A few years ago, anti-globalization rioters were clogging the streets, disrupting the meetings of the world's multilateral organizations. Today, something more serious is afoot. The protesters have mercifully vanished, but international institutions are in disarray. Anti-globalization may have lost its voice, but so has globalization.

A darkening mood
Economist Apr 24, 2006
Efforts to liberalise world trade have suffered a setback, after large trading powers admitted that a self-imposed deadline of April 30th for preparing a deal on farm and industrial goods will be missed. Ministerial talks planned for this weekend have been called off. Although more negotiations are expected in May and June, and there will be renewed efforts to get a deal by the end of July, there is every reason to be gloomy about the Doha round.

Trade talks to miss key April 30 deadline
IHT Apr 25, 2006
The WTO chief abandoned another deadline for world trade talks, but insisted they were not dead.

The Impact of Immigration Wall Street Journal Subscription Required
Pia Orrenius (WSJ) Apr 25, 2006
What do immigrants cost? How much do they contribute?

WTO arrives down on the farm in U.S.
IHT Apr 26, 2006
American farmers and their influential lobby find themselves in a strong position to determine whether the current round of global trade talks is a success.

WTO Members To Miss April Deadline For Modalities
BRIDGES Weekly Trade News Digest - Vol. 10, Number 14 Apr 26, 2006
The WTO's beleaguered Doha Round negotiations suffered another blow this week, when trade diplomats had to acknowledge that they would fail to meet a key end-April deadline for a framework deal on cutting agricultural tariffs, farm subsidies, and duties on industrial goods.

Ag: Modalities Deadline Will Be Missed; Six Weeks Of Continuous Negotiations Launched
BRIDGES Weekly Trade News Digest - Vol. 10, Number 14 Apr 26, 2006
WTO Members will not meet the month-end deadline for agreeing 'full modalities' for farm subsidy and tariff cuts, the chair of the Doha Round agriculture negotiations finally acknowledged on 21 April. "We have not achieved full modalities... clear and simple" Ambassador Crawford Falconer of New Zealand said at the end of an 'agriculture week,' adding "I don't think that can be done by the end of April." Instead, he proposed six weeks of continuous negotiations without any formal deadlines to enable Members to move towards consensus.

Ag Week Makes Incremental Progress On Export Competition, Domestic Support
BRIDGES Weekly Trade News Digest - Vol. 10, Number 14 Apr 26, 2006
Although WTO Members did not made enough progress during a recent week of agriculture talks to put an agreement on tariff and subsidy cuts within their grasp by the end of April (see related story, this issue), the negotiations did move forward slowly on technical issues related to export competition and domestic support. Trade delegates in Geneva reported that some progress was indeed being made, and emphasized that the six upcoming weeks of intensive negotiations would be critical to the final shape of any Doha Round agriculture deal.

NAMA: Chair Calls For Non-Stop Negotiations To Bring Modalities Within Reach
BRIDGES Weekly Trade News Digest - Vol. 10, Number 14 Apr 26, 2006
WTO Members have acknowledged that they will fail to meet a key end-April deadline for agreeing on Doha Round modalities for cutting industrial tariffs. At the end of an 18-21 April week of non-agricultural market access (NAMA) discussions, they remained profoundly divided on the central issues in the talks -- so much so that many were unwilling to even discuss potential values for coefficients to plug into the tariff reduction formula. "We did not have a good week," said Chair Ambassador Don Stephenson (Canada) when summing up the talks on 21 April.

The Global Delusion
John Gray (NY Review Books) Apr 27, 2006
Though the world's diverse societies are continuously interacting, the process is producing a variety of hybrid regimes rather than convergence on a single model. Yet a belief that a universally accepted type of society is emerging continues to shape the way social scientists and public commentators think about the contemporary condition, and it is taken for granted that industrialization enables something like the way of life of rich countries to be reproduced everywhere.

Job Wanted Wall Street Journal Subscription Required
WSJ Apr 27, 2006
The IMF looks for new ways to cause trouble.

Doha Can Still Be Won Wall Street Journal Subscription Required
Mauicio Botelho, Jean-Rene Fourtou, Marcus Wallenberg, Jeffrey R. Immelt, Mikio Sasaki & Ratan N. Tata (WSJ) Apr 27, 2006
Six CEOs urge the world's leaders to refuse to let these talks fail.

The Organization of Debt into Currency: On the Monetary Thought of Charles Holt Carroll
Robert Blumen (Mises Daily) Apr 27, 2006
Charles Holt Carroll defended sound money in a blazing series of essays appearing in the latter decades of the 19th century. They are collected in the book, Organization of Debt into Currency and Other Papers.

The Dollar at Home -- and Abroad Wall Street Journal Subscription Required
Martin Feldstein (WSJ) Apr 28, 2006
The dollar must be more competitive.

Rescuing Trade
WP Apr 30, 2006
Today was supposed to be the deadline for a breakthrough in the Doha round of global trade talks. But since setting this target at their Hong Kong meeting in December, trade ministers have made virtually no progress, and they seem ready to give up. That would be an awful error. A trade deal would secure important gains, and the negotiating obstacles are surmountable. The key is for a coalition of pro-trade governments to isolate France.

Commodity trading fueling price of oil
IHT Apr 30, 2006
A global economic boom, sharply higher demand, extraordinarily tight supplies, and domestic instability in many of the world's top oil producing countries ? in that environment higher oil prices were inevitable.

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