Trade & Globalization

All Talks, No Action

  • By
  • Charles Kenny,
  • New America Foundation
April 19, 2011 |

The Doha round of World Trade Organization talks is teetering once again on the edge of total collapse, about to miss yet another absolute and final deadline for an agreement.

The Quake, the Economy, and the Markets

March 22, 2011
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-- This is a guest post by Jay Pelosky, Principal, J2Z Advisory, LLC --  Japan’s massive earthquake, follow on tsunami and subsequent nuclear power plant upheaval have reinforced uncertainty regarding the strength of global economic activity and the appropriate financial assets prices to reflect that activity. The Arab Spring and EU debt crisis meant such uncertainty was already in the air in the weeks preceding the March 11th earthquake.

The Main Cause of China’s High Savings: Income Suppression for High Investment

March 21, 2011

As was suggested in an earlier post, China has an unusual low level of consumption and unusual high level of investment and savings.  The high level of savings is not, as is often assumed, attributable only to an increase in household savings, but to a rise in savings in the corporate and government sectors.  From 2000 to 2008, 80% of the increase in China’s gross national savings took place in the government and corporate sectors, not among households.  (The savings rate data for this post is based on the

Putting China’s Low Household Consumption in Perspective

March 15, 2011
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It is widely known that China needs to rebalance its economy to rely more on consumption, but the extent of China’s imbalance between consumption and investment is not fully appreciated.  Comparisons to other emerging markets and countries like Japan, Taiwan, and Korea that pioneered the East Asian growth model show that China’s low levels of consumption are unparalleled.

U.S. Can't Be at the Whim of Rising Oil and Food Prices

  • By
  • Patrick C. Doherty,
  • New America Foundation
March 8, 2011 |

Last Friday, oil contracts traded in New York closed at $104.42 per barrel, levels not seen since September 2008. This second spike in as many weeks comes after fierce fighting in Libya has raised fears of an extended civil war and the shutdown of what the International Energy Agency estimates might be more than 1 million barrels of oil production per day.

Reuters is also reporting that hedge funds and big speculators have weighed into the market, seeing the real possibility of sustained high prices for petroleum.

Is China an Engine or Drag on Growth?

March 3, 2011

China has grown rapidly for over a few decades but the engine of China's recent growth may be reaching its limit. Are the rapid GDP gains from its fixed investment and export model coming to an end?  And what, if anything, will replace it, and with what consequences for the world economy?

Inflation - The Double Edged Catalyst?

March 4, 2011
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-- This is a guest post by Jay Pelosky, Principal, J2Z Advisory, LLC --

I recently attended a very interesting roundtable on China’s future growth path, led by The New America think tank and the World Policy Institute.

While listening to the debate over China’s need/ability to change its economic model, it struck me that the catalyst for such change could be developing right before our eyes – namely, inflation.

A ‘Jobs First’ Growth Strategy

  • By
  • Leo Hindery,
  • New America Foundation
March 1, 2011

The opening theme of the 2011 State of the Union address, and the theme that the President has carried forward since then, was his insistence that the nation has at long last emerged from economic crisis.  He said: “Two years after the worst recession most of us have ever known, the stock market has come roaring back.  Corporate profits are up.  The economy is growing again.  And after two years of job losses, we’ve added private-sector jobs for 12 straight months -- more than 1 million in all.”

Mickey Mouse, Villain

  • By
  • Charles Kenny,
  • New America Foundation
February 22, 2011 |

Everybody loves Disney. Last year, Walt's empire was the No. 1 entertainment business in Fortune's annual ranking of the most admired companies in the world, and it's regularly a star performer in corporate-responsibility ratings. And why not? Global comity has been central to Disney's image ever since EPCOT Center, with its pavilions honoring the local traditions of countries from Canada to China, opened its gates.

The Burned Generation

  • By
  • Afshin Molavi,
  • New America Foundation
January 21, 2011 |

Mohammed Bouazizi was the young man who set himself alight in protest against the lack of economic opportunities available in Tunisia. This young man’s act of desperation may have sparked a revolution in his own country, but what of the millions of unemployed youth in the Arab world? Already others have copied his act in protest. What must be done to prevent a whole generation from becoming burned?

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