News & Commentary:

June 2005 Archives


A Global Answer to Global Problems
Paul Martin (Foreign Affairs) May/Jun 2005
The G-20 has helped the world's economic leaders go from simply managing crises to making long-term improvements in the international economy. Now a new leaders' forum -- call it the L-20 -- could do something similar for political problems.

Saving the World Bank
Sebastian Mallaby (Foreign Affairs) May/Jun 2005
The next World Bank president will confront a nearly impossible challenge: saving the institution from a curious alliance of conservatives and radical activists that threatens to undercut its financial viability and effectiveness. Failure to head off the danger will mean the gradual decline of the best tool the world has for managing globalization, just when that tool is more needed than ever.

Down to the Wire
Thomas Bleha (Foreign Affairs) May/Jun 2005
Once a leader in Internet innovation, the United States has fallen far behind Japan and other Asian states in deploying broadband and the latest mobile-phone technology. This lag will cost it dearly. By outdoing the United States, Japan and its neighbors are positioning themselves to be the first states to reap the benefits of the broadband era: economic growth, increased productivity, and a better quality of life.

China abruptly cancels new textile export tariffs
AT Jun 1, 2005
In response to the recent imposition of quotas on Chinese textile imports by the US and the EU, the Chinese government has revoked the textile export tariffs it had imposed earlier in an unsuccessful, voluntary attempt to avert new trade restrictions by its trade partners.

Debt cancellation: Victories, new challenges
AT Jun 1, 2005
Full debt cancellation for poor countries has been transformed from an implausible demand into a winning issue. But debt relief, as an example of an alternative economic course defying Washington orthodoxy, will not be an end in itself, but a means of confronting the broader issues shaping the course of international development.

Why Can't the World Bank Be More Like a Bank? Wall Street Journal Subscription Required
James S. Henry & Laurence J. Kotlikoff (WSJ) Jun 1, 2005
A thought for Mr. Wolfowitz, on his first day at the office.

Trade Wars Wall Street Journal Subscription Required
WSJ Jun 1, 2005
The U.S., Europe and China are locked in an increasingly nasty three-way trade battle.

A Role for Asia in the World Economy
David Burton (IMF) Jun 1, 2005
The recently concluded Spring Meetings of the International Monetary Fund focused on several key questions of concern to the international community-the prospects for sustaining global economic growth; reducing vulnerabilities in the international financial system; achieving poverty reduction in the world's poorest nations; and the future direction of the Fund itself. In the discussions, various issues were raised, and not least were concerns voiced by Asia: one of the world's most economically vibrant regions. These issues have since been echoed at the meetings of the ASEAN + 3 Finance Ministers and other international fora.

Trade disputes call for cool heads
FT Jun 1, 2005
These are worrying times for the global trading system.

Textiles Row Deepens As China Revokes Export Tariffs
BRIDGES Weekly Trade News Digest - Vol. 9, Number 19 Jun , 2005
The Chinese government on 30 May revoked export tariffs on several categories of textile and clothing products in retaliation against import restrictions imposed by the US, as well as an EU move to impose similar restrictions. The Chinese move came just ten days after it announced that it would raise export tariffs five-fold on 74 categories in an attempt to prevent the US and EU from restricting imports. The government had said at the time that it would remove export tariffs from any categories subject to import restrictions.

Pascal Lamy Confirmed As Next WTO Director-General
BRIDGES Weekly Trade News Digest - Vol. 9, Number 19 Jun , 2005
WTO Members formally appointed former EU Trade Commissioner Pascal Lamy to be the next Director-General of the WTO at a 26 May meeting of the organisation's General Council. The Frenchman will start his four-year term on 1 September 2005.

Talks On Small Economies Move Towards Solutions
BRIDGES Weekly Trade News Digest - Vol. 9, Number 19 Jun , 2005
WTO Members on 25 May considered a new paper that proposes solutions to the problems faced by small economies as well as a process for these solutions to be adopted into ongoing negotiations. The paper was submitted to the meeting of the Committee on Trade and Development Dedicated Session -- Small Economies (CTD-DS) by a group of 20 Members, many of which were the original proponents of a special work plan for small economies in the Doha Round. The sponsors of the paper had consulted extensively with other countries before putting it forward. Nonetheless, some Members raised concerns about the feasibility of giving concessions to small economies without creating a new category of developing countries, as well as the appropriate forum to consider such concessions.

A Full Trade Agenda Wall Street Journal Subscription Required
WSJ Jun 2, 2005
Will Hong Kong become an Asian Seattle?

China quotas 'temporary,' U.S. says
IHT Jun 3, 2005
The U.S. quotas imposed last month on some Chinese textiles did not amount to protectionism and were a temporary step while the American textile industry "finds new ways of competing," Carlos Gutierrez, the U.S. secretary of commerce, said Thursday.

It's crunch time at the United Nations
IHT Jun 3, 2005
UN members must reinvigorate the United Nations for the 21st century, or they will become yesterday's men.

The Price of Gold
NYT Jun 3, 2005
It is disturbing to see gold producers strong-arm Congress and the White House into blocking a measure that could help poor countries with debt relief.

Out of Touch Wall Street Journal Subscription Required
WSJ Jun 3, 2005
The EU is an unaccountable, out-of-touch organization with little regard for the opinions of Europe's citizens.

Bush opposes UK Africa debt plan
BBC Jun 3, 2005
The UK's proposals to write off the debts owed by African countries are facing opposition from the US.

China Does Not Determine U.S. Interest Rates
Frank Shostak (Mises Daily) Jun 3, 2005
Most experts hold that China's reluctance to allow its currency the Yuan to appreciate against the US dollar is the key factor behind the low interest rate structure in the US. This is incorrect, for reasons I explain below. It is important to understand the causal factors now, before the US falls back into recession and China, rather than the Federal Reserve, catches the blame.

The Doubling of the Global Workforce
Richard Freeman (Globalist) Jun 3, 2005
How are workers from emerging markets changing the global economy?

Europe's awkward single currency: Can this union be saved? Recommended! Economist Subscription Required
Economist Jun 3, 2005
The French and Dutch referendums have dashed hopes of political union in Europe. As criticism of the euro grows louder, there are fears that monetary union, too, might be in peril.

A Race to the Top Recommended!
Thomas L. Friedman (NYT) Jun 3, 2005
It was extremely revealing traveling from Europe to India as French voters (and now Dutch ones) were rejecting the E.U. constitution - in one giant snub to President Jacques Chirac, European integration, immigration, Turkish membership in the E.U. and all the forces of globalization eating away at Europe's welfare states. It is interesting because French voters are trying to preserve a 35-hour work week in a world where Indian engineers are ready to work a 35-hour day. Good luck.

Three Billion New Capitalists: The Great Shift of Wealth and Power to the East Recommended!
Clyde Prestowitz (YaleGlobal) Jun 3, 2005
Things That Can't Go On, Don't.

The dollar: Time for a change
AT Jun 4, 2005
First the dollar was a certain amount of silver, then gold, then came redeemable and irredeemable dollars, followed by petro, Euro and Japan dollars - all at intervals of 20-40 years. Following the same cycle, the stage is set for another round of change as Europe now holds over $200 billion and Asia over $1 trillion. - David Champeau

IEO report on capital account liberalization Adobe Acrobat Required
IMF Survey Jun 6, 2005
Plus: Colombia; De Rato in Niger; Cotton conference; Structured finance; Cost of reserves; New Zealand; Quality of public investment; HIPC debt relief; Mandela at Brookings.

Global: The New Macro of Globalization
Stephen Roach (MSDW) Jun 6, 2005
Globalization is rewriting the script of some of our most time-honored macro relationships. That’s true of the forces shaping employment, real wages, income generation, inflation, and trade and capital flows. On all of those counts, the rich countries of the industrialized world are under pressure as never before, as globalization spreads wealth and prosperity from the developed to the developing world. Courtesy of IT-enabled connectivity, this diffusion of economic activity is now occurring at hyper-speed. Economists, policymakers, workers, investors, and politicians don’t comprehend these seismic shifts. This underscores the risk of a potential backlash against globalization.

Currencies: My Thoughts on the European Referendums
Stephen L Jen (MSDW) Jun 6, 2005
Bottom line: Though the recent rally in the USD is consistent with my medium-term call on the USD, the market is too bearish on Europe and the EUR as it was too bullish in Q4. EUR/USD is unlikely to sell off substantially. EUR/USD could remain in the 1.20-1.25 range in the coming weeks. Q4 should be seen as a temporary undershoot in the USD. In the near term, I see some consolidation, and perhaps even a small bounce in EUR/USD if the data from the US are not that good. The European referendums are an intrinsically emotional topic. Debates on Europe, the EUR, and the EU constitution are emotional, because the European Union is as much an emotional and ideological matter, as subject to logical argument.

The Blair Debt Project Wall Street Journal Subscription Required
WSJ Jun 7, 2005
Why the U.S. is right to resist the 'free gold' illusion.

Why China Loves Globalization
Hu Jintao (Globalist) Jun 7, 2005
Why is China's President Hu Jintao upbeat about future economic and poltical reform?

IMF's gold-for-debt plan hits industry hurdle
AT Jun 8, 2005
According to the IMF's calculations, selling just 15% of its vast and idle gold reserves could fetch as much as US$7 billion, enough to write off the debt of some of the most indebted countries. But the gold industry and US lawmakers will have none of it; they believe such a move would bring down gold prices.

Will It Take a Tariff to Free the Yuan?
Charles E. Schumer & Lindsey O. Graham (NYT) Jun 8, 2005
Since China artificially keeps the value of its currency low, American companies are placed at a competitive disadvantage.

The Copenhagen Solution
WSJ Jun 8, 2005
Blair and Bush need a better approach to thinking about development.

Are China Tariffs Smoot-Hawley of Our Day?
William Pesek Jr. (Bloomberg) Jun 8, 2005
In the battle between the U.S. and China over the yuan, all eyes are on Beijing. It may make more sense to look to Iowa -- more specifically, to the U.S. state's Republican senator, Charles Grassley.

Busy Agriculture Week Focuses On Market Access
BRIDGES Weekly Trade News Digest - Vol. 9, Number 20 Jun 8, 2005
With the end-July target for "first approximations" of an eventual agriculture deal rapidly approaching, Members spent the latest week of agriculture talks focusing principally on market access issues, the area in which it is proving toughest to forge agreement. The Committee on Agriculture (CoA) Special (negotiating) Session met from 30 May - 3 June, mainly in informal meetings chaired by Tim Groser.

Biosafety Protocol: Labelling Talks Break Down Over Trade Concerns
BRIDGES Weekly Trade News Digest - Vol. 9, Number 20 Jun 8, 2005
After long and difficult discussions, negotiations on documentation requirements for shipments of living modified organisms for use as food, feed, or for processing (LMO-FFPs) finally broke down on the last day of the second Meeting of the Parties to the Cartagena Protocol on Biosafety (MOP-2), gathering from 30 May - 3 June in Montreal, Canada. The more hard-line positions were clearly based on concerns about the impacts of such requirements on international trade.

NAMA Week: APEC Declaration Said To Indicate "Some Convergence"
BRIDGES Weekly Trade News Digest - Vol. 9, Number 20 Jun 8, 2005
A small degree of convergence started to become evident in several Members' negotiating positions during the first two days of a week of talks on non-agricultural market-access (NAMA) at the WTO, according to Geneva-based sources. A recent joint statement on the WTO NAMA negotiations by Asia-Pacific Economic Cooperation (APEC) countries (see related story, this issue) featured prominently during the discussions, with many delegations welcoming it as a useful boost to the faltering talks.

Outsourcing at crossroads
AT Jun 9, 2005
A new study has revealed surprising findings about outsourcing. Many buyers of outsourcing services are dissatisfied with their service providers, and cost savings is not the main benefit companies perceive from outsourcing. But China has become a favored outsourcing destination.

EU worries grow over China goods
IHT Jun 9, 2005
The European Commission said it was worried about a sudden rise in imports of Chinese shoes.

Whose Asian Century?
WP Jun 9, 2005
China prepares to head a great manufacturing empire. But empires unravel, usually from within. The forces that will determine which nations will dominate the 21st century may yet favor India's emerging reach for global power status more than China's determined grasp for that prize.

A Brief Survey of Global Economic Developments
A Brief Survey of Global Economic Developments Jun 9, 2005
Global economic growth was very strong in 2004, with the rate of expansion being the highest in nearly 30 years. The expansion was underpinned by accommodative macroeconomic policies, improving corporate balance sheets, and supportive financial market conditions. Importantly, last year's economic performance was recorded not just in growth, but also in a significant rise in per capita incomes in all regions of the world. Sub-Saharan Africa, in particular, posted its highest GDP increase in a decade. These encouraging results were due partly to strong global demand and prices for commodity exports, but they also point to better policies in a number of countries.

China looks at linking yuan to currency pool
IHT Jun 10, 2005
The standing committee of the Chinese Communist Party's Politburo is actively considering breaking the 11-year link between the country's currency, the yuan, and the U.S. dollar.

U.S. and Britain Agree on Relief for Poor Nations
Elizabeth Becker and Richard W. Stevenson (NYT) Jun 10, 2005
The plan would free 18 countries from any obligation to repay the estimated $16.7 billion they owe international lenders.

Yuan Answers? Wall Street Journal Subscription Required
Phillip Swagel (WSJ) Jun 10, 2005
Why is the U.S. pushing China to revalue the yuan against the dollar?

Don't Shoot the Unit of Account Wall Street Journal Subscription Required
WSJ Jun 10, 2005
The Continent's woes can't be pinned on the euro.

African poverty deal in balance
BBC Jun 10, 2005
Finance ministers from the world's richest countries are meeting in London to try and hammer out a deal to reduce the debts of poor countries.

The cloud over the euro
David Champeau (AT) Jun 11, 2005
The tables have turned in the currency market: the euro, with 8-9% growth in the money supply, 1% economic growth and 2% interest rates, is suddenly looking feeble compared to the US dollar's 4% money supply growth, 3-4% economic growth and 3%+ interest rate. It'll soon be evident what the euro is really made of.

Washington moves to pre-empt 'Asian IMF'
AT Jun 11, 2005
The United States is pushing the International Monetary Fund to change its voting system to include rising economic powers in Asia. Some observers say this is a US bid to keep increasingly independent Asian nations tied to the IMF, where Washington has the dominant voice.

China averts clash with EU on textiles
IHT Jun 12, 2005
China agreed early Saturday to place voluntary limits on the growth of its textile and apparel exports to Europe.

G-8 moves closer to global debt deal
IHT Jun 12, 2005
An effort to relieve Africa's debt burden is at the head of the G-8 agenda.

G8 'reach deal for world's poor'
BBC Jun 12, 2005
The world's eight richest countries reportedly reach a deal on relieving the debt of the poorest countries.

Pro-Trade Democrats Go AWOL
NYT Jun 13, 2005
By supporting the Central American Free Trade Agreement, New Democrat Coalition of House lawmakers could help improve the economy and cut the trade deficit.

Debt deal: A complicated victory
IHT Jun 13, 2005
Some of the richest countries reached a deal to cancel $40 billion of debt owed by 18 of the poorest nations.

Whose Asian Century? Wall Street Journal Subscription Required
Jim Hoagland (WSJ) Jun 13, 2005
Projections of China's rise to power neglect developments in other Asian countries, particularly India and Japan.

Global: Re-Sequencing
Stephen Roach (MSDW) Jun 13, 2005
A lopsided world economy continues to be dominated by two growth engines -- the American consumer on the demand side of the equation and the Chinese producer on the supply side. Both of these engines are overheated and in need of cooling off. I had long thought the American consumer would be the first to slow. But now the sequencing looks different -- with China likely to lead the way. This could keep the US growth engine in high gear for a while longer -- but at a cost that could make for an even more treacherous endgame than might have otherwise been the case.

Free trade for Thailand, free fall for India
Debasish Roy Chowdhury (AT) Jun 14, 2005
While taking bilateral trade to new highs, a limited free trade agreement with Thailand has so far done Indian industry more harm than good, finds a survey. If the problems are not tackled before a full-fledged FTA is reached, Indian manufacturers might end up outsourcing from Thailand or shifting there.

Helping Africa: Agreeing on Africa, up to a point
Economist Jun 13, 2005
George Bush and Tony Blair have agreed that America will funnel more money towards Africa, and the G8 has reached a deal on broad-based debt relief. But if rich countries are really serious about poverty reduction, they should also curb subsidies that keep out products from the poor world.

A First Step on African Aid
NYT Jun 14, 2005
President Bush must move beyond platitudes and step up to the plate in a meaningful way on increased aid to Africa.

IMF Lending Faces an Uncertain Future Wall Street Journal Subscription Required
George Melloan (WSJ) Jun 14, 2005
G-8 ministers are not encouraging the IMF's latest ambition to become an international aid organization.

East Asia needs overhaul Financial Times Subscription Required
Guy de Jonquières (FT) Jun 14, 2005
The mercantilist model has become as much of a handicap for east Asia as Europe’s discredited ‘social’ model has for that continent.

Agriculture Update: G-33 Meeting In Jakarta; Proposals For Tighter Green Box
BRIDGES Weekly Trade News Digest - Vol. 9, Number 21 Jun 15, 2005
Ministers from the G-33 countries -- developing countries that support the concepts of special products (SP) and a special safeguard mechanism (SSM) -- met from 11-12 June in Jakarta to develop synergies and coordinate positions with a view to the WTO Hong Kong Ministerial meeting in December. Meanwhile, the last agriculture week, which ended on 3 June, saw detailed proposals by the G-20 and Canada for how to reform the Green Box.

EU, China Reach Textiles Agreement
BRIDGES Weekly Trade News Digest - Vol. 9, Number 21 Jun 15, 2005
European Trade Commissioner Peter Mandelson and Chinese Commerce Minister Bo Xilai on 10 June agreed to a deal that will limit ten categories of Chinese textiles exports to the EU to between 8 and 12.5 percent growth above a specified base period for the next three years. Under the agreement, which came at the end of ten-hour marathon talks, the EU will drop its case at the WTO that sought to impose import restrictions on two categories of Chinese exports using the textile-specific safeguard clause of China's accession agreement to the WTO. The deal increases pressure on the US, which has already imposed import restrictions, to initiate talks on the issue.

The coming trade war and global depression
Henry C K Liu (AT) Jun 16, 2005
Trade protectionism is re-emerging, but the irony is that it is being driven not by the poor economies that have been hurt the most by the globalized neo-liberal trade regime, but by the wealthy economies, especially the US.

China's other exchange rate
Gary LaMoshi (AT) Jun 16, 2005
The watchdog over Hong Kong's pegged currency has set a new policy that is protecting speculation and promoting uncertainty about the exchange rate, precisely the afflictions the peg was supposed to eliminate.

Sugar for Trade
WP Jun 16, 2005
After a long period of gloomy trade news, things may be looking up. On Tuesday the Senate Finance Committee signaled its approval of a free-trade deal with the Dominican Republic and five nations of Central America, and yesterday the House Ways and Means Committee followed suit.

Whose Trade Rainbow?
WP Jun 16, 2005
CAFTA's Shaky Prospects Reflect Economic Unease.

Don't Doubt the Euro Wall Street Journal Subscription Required
Karl-Heinz Grasser (WSJ) Jun 17, 2005
Doubts about the future of the euro are not supported by sound economic reasoning.

G-8 debt relief proposal Adobe Acrobat Required
IMF Survey Jun 20, 2005
Plus: ECLAC seminar; IMF strategic review; De Rato in Chad; Rebuttal to "The Lancet"; Ghana's banking sector; Central America seminars; IMF-supported programs; World Bank "to do" list.

Bush supports Vietnam on effort to join WTO
IHT Jun 22, 2005
President George W. Bush told the Vietnamese prime minister, Phan Van Khai, on Tuesday that he supports Hanoi's effort to join the World Trade Organization.

Geneva Negotiations Intensify As Dalian Mini-Ministerial Nears
BRIDGES Weekly Trade News Digest - Vol. 9, Number 22 Jun 22, 2005
Informal discussions among WTO Members continued over the last week, with the EU hosting talks among senior delegates from 20-21 June covering issues such as agriculture, non-agricultural market access (NAMA) and services. A meeting of the Trade Negotiations Committee (TNC), scheduled for 21 June, was put off and will reconvene later as progress is made in the negotiations. Informals are ongoing, with, inter alia, a range of agriculture topics being covered in smaller group. The agriculture Chair, Tim Groser, is preparing specific negotiation-related questions for delegates to respond to, providing him guidance as he sets out to prepare a first draft of the "July approximations" towards the end of the next agriculture week, scheduled for 4-8 July. The "July approximations" will serve as a limited version of the full modalities for negotiations, which Members hope to agree on at the Hong Kong Ministerial meeting in December this year. Initial drafts, or stock-taking exercises across negotiating areas, are set to be debated at a mini-ministerial meeting in Dalian, China, from 12-13 July.

S&D Proposals Need Redrafting, Clarification, Members Say
BRIDGES Weekly Trade News Digest - Vol. 9, Number 22 Jun 22, 2005
The WTO Committee on Trade and Development Special (negotiating) Session (CTD-SS) met in informal mode on 16 and 17 June and looked at revised versions of agreement-specific proposals from least-developed countries (LDCs) as well as all the remaining agreement-specific proposals from other Members. Although the LDC revisions were welcomed, many Members expressed concerns that the agreement-specific proposals on the table needed work to clarify and update the proposals and ensure that the text addresses the stated needs of developing countries.

Farm subsidies: Farm support's deep roots
Economist Jun 22, 2005
A new report from the OECD indicates that progress on reducing agricultural subsidies in the rich world has been glacial. Unless governments get tough with their powerful farming lobbies and cut their supports, farm subsidies could stymie further progress on world trade liberalisation.

A bittersweet reversal on subsidies
IHT Jun 23, 2005
The European Commission announced an unprecedented overhaul of its sugar subsidy system, cutting prices by 39 percent.

Don't prod China, say U.S. chiefs
IHT Jun 23, 2005
Alan Greenspan warned that using sanctions to prod Beijing into revaluing its currency would hurt the American economy.

The Coming Trade War, Part 2 : Dollar hegemony against sovereign credit
AT Jun 24, 2005
Twentieth-century history showed that economic fundamentalism can have devastating results. Early in that century, rigid adherence to the gold standard was exacerbated by sterling hegemony, ultimately leading to the Great Depression and World War II. Now a new bunch of fundamentalists are in charge. - Henry C K Liu

We Are All French Now?
Thomas L. Friedman (NYT) Jun 24, 2005
The French economic instinct of shutting the door on free trade is not one we want to start emulating now, just as the global playing field is being flattened.

Farm Support's Deep Roots
Economist/YaleGlobal Jun 24, 2005
OECD report indicates that progress on reducing agricultural subsidies in the rich world has been glacial.

Yuan revaluation controversy rages on in Washington
AT Jun 25, 2005
The US seems to be moving toward stronger action to pressure China to revalue its currency, with four congressmen introducing the so-called 'CHINA Act' to that end. But others, including Federal Reserve chairman Alan Greenspan, have warned that high tariffs may be counterproductive.

Educating Girls
NYT Jun 25, 2005
When officials of the richest countries meet next month at the Group of 8 summit, they should strongly consider a large investment in schooling for girls.

Four Easy Pieces
Jeffrey D. Sachs (NYT) Jun 25, 2005
By joining the new worldwide effort to support Africa, President Bush would honor our security interests and our nation's generosity.

Liberals, Conservatives and Aid
David Brooks (NYT) Jun 26, 2005
Grand plans alone will not end poverty.

Malaysia works to sell Islam on trade benefits
IHT Jun 27, 2005
In the Malaysian capital, the government is using the 30th meeting of the OIC's Islamic Development Bank to push an agenda that would give the organization a more direct role in economic integration and development.

Reactionary Liberalism Wall Street Journal Subscription Required
Charles Krauthammer (WSJ) Jun 27, 2005
CAFTA is in great jeopardy because Democrats have turned against it.

BIS warns on domestic and international debt
Chris Giles (FT) Jun 27, 2005
Growing domestic and international debt has created the conditions for global economic and financial crises, the Bank for International Settlements warned on Monday.

The emperor strikes back with outsourcing sting
Indrajit Basu (AT) Jun 28, 2005
Giving anti-outsourcing crusaders more ammo, Britain's Sun tabloid has pulled off a sting operation in which it has bribed out the personal details of 1,000 British customers from an Indian call center executive. Though a blow to the local sector, it still is puny compared to recent global scams.

The War on African Poverty Recommended!
Jacog Weisberg (Slate) Jun 28, 2005
Tony Blair's LBJ problem.

China said to be preparing for currency moves
AT Jun 29, 2005
Mixed signals continue on a potential yuan revaluation, with some US experts arguing that a revaluation would not help the US economy, and a senior Chinese economist claiming that waiting longer will only increase the cost. A more flexible currency regime appears inevitable, but the exact timing and magnitude continue to be hotly debated.

Falling euro is no boon amid record oil prices
IHT Jun 29, 2005
Not long ago, a strong euro and stable oil prices were a boon for Lufthansa. But these days, precisely the opposite combination has dealt the flagship German carrier another economic setback.

For Chinese brands, and effort to 'go global'
IHT Jun 29, 2005
Never heard of brand names like Great Wall, Hisense, Konka, Amoy and Panda? Outside China, few have.

Mutual Interdependence: Asia and the World Economy
Anne O. Krueger (IMF) Jun 30, 2005
I want to examine how the economic transformation of Asia came about, and then to consider the implications for Asia's future role in the world economy. I will argue that this role is one that permits Asian countries legitimately to make demands on the rest of the world, but it is also one that brings obligations for Asian countries too.

EU Releases Reform Plan For Sugar
BRIDGES Weekly Trade News Digest - Vol. 9, Number 23 Jun 29, 2005
On 22 June, the EU's executive European Commission released a new market reform plan for the sugar sector, which is set to significantly change a system that has been in place for 40 years. The proposal includes a two-step, 39 percent cut in the guaranteed price of white sugar; compensation to EU farmers for 60 percent of the price-cut in the form of a decoupled subsidy linked to environmental and land management standards; and a restructuring scheme encouraging less competitive producers to move out of sugar farming as well as supporting factory closure. The reform also offers assistance to the African, Caribbean and Pacific (ACP) countries that currently enjoy preferential access to the EU sugar market.

Services Cluster Underway, Talks On Benchmarks Forthcoming
BRIDGES Weekly Trade News Digest - Vol. 9, Number 23 Jun 29, 2005
A two-week 'cluster' of services meetings got underway at the WTO on 20 June with the regular meetings of the Council for Trade in Services and its subsidiary bodies. Sources report that despite many developing countries' continued advocacy for more emphasis on the rule-making aspect of the services negotiations -- which are the primary focus of at least two of the subsidiary bodies -- little was achieved in the course of the formal meetings.

LDCs Adopt Common Position For Hong Kong
BRIDGES Weekly Trade News Digest - Vol. 9, Number 23 Jun 29, 2005
Least-developed countries (LDCs) recently adopted a common negotiating position in the Doha round WTO talks ahead of the global trade body's December Ministerial Conference in Hong Kong. LDC trade ministers met in Livingstone, Zambia, on 27 June, to deliberate on bargaining positions and strategy in the ongoing multilateral trade negotiations. The 'Livingstone Declaration' articulates a shared LDC position on the Doha round. It also calls for rich countries to grant immediate, non-reciprocal and binding commitments on duty- and quota-free market access for all products from LDCs.

For farmers in France, no unity onsubsidies
IHT Jun 30, 2005
Hervé Thomas, a tomato farmer inside his greenhouse in Guimaec, does not receive a single cent of subsidies. For years, farm subsidies have been one of the most bitterly contested topics in Brussels.

As Live8 pushes G-8, who benefits?
IHT Jun 30, 2005
In anticipation of the annual summit meeting of the G-8, there are to be demonstrations and free concerts under the title Live8.

World Bank's New Procurement Policy Raises Concerns Wall Street Journal Subscription Required
Greg Rushford (WSJ) Jun 30, 2005
Loosening the present stringent procurement controls may have risky ramifications.

Growth Aids Wall Street Journal Subscription Required
Keith Marsden (WSJ) Jun 30, 2005
Rapid poverty reduction requires fast growth of incomes, not redistribution.

Countdown to the G-8 Summit: A Preview of the Challenges and Opportunities
Brookings Jun 30, 2005
This is the first time I think since 2001 that the G-8 leaders will have the luxury of focusing on the kind of core globalization agenda rather than being preoccupied with the security crisis du jour, which has really been the main preoccupation of the last few years.

Home | Economics | Business & Finance | Politics | Law | ICT | Development | News | Research