Search

Begin New Search Topic Economics Content Type Working Paper Publishing Institution Carnegie Endowment for International Peace

41. Brazil in the Global Economy: Measuring the Gains From Trade

Author:
Sandra Polaski, Dirk Willenbockel, Eduardo Zepeda, Scott McDonald, Joaquim Bento de Souza Ferreir, Janine Berg, and Karen Thierfelder
Publication Date:
03-2009
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Brazil's economic growth rate has been positive for the past eight years, after two decades of setbacks and extreme volatility. The country has once again been growing—for a sustained period—at rates that exceed its population growth, with average gross domestic product (GDP) growth per capita averaging 1.63 percent from 2000 to 2007. This exceeds average per capita GDP growth of 0.83 percent from 1980 to 1989 and 0.28 percent from 1990 to 1999, although it still falls well short of the 5.92 percent per capita growth rate from 1970 to 1979.
Topic:
Economics, International Trade and Finance, Labor Issues, and Governance
Political Geography:
Brazil and South America

42. Recovery: The Global Financial Crisis and Middle-Income Countries

Author:
Alejandro Foxley
Publication Date:
07-2009
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
No country has proved immune to the devastating effects of the current global financial crisis. But the middle-income countries of Eastern Europe, Latin America, and East Asia, which previously had achieved significant progress—economically and socially—have shown themselves to be particularly vulnerable. The crisis has highlighted important lessons for these countries, which inhabit a twilight zone between the developed and developing worlds?and those that aspire to join their ranks—as they rebuild.
Topic:
Economics, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:
Europe, East Asia, and Latin America

43. The Impact of the Doha Round on Kenya

Author:
Eduardo Zepeda, Mohamed Chemingui, Hedi Bchir, Christopher Onyango, and Bernadette Wanjala
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
As the first decade of the twenty- first century comes to an end, Kenya's economy is being confronted with a number of challenges that call for carefully crafted, well- informed policies. After fifteen years of stagnation—when the country witnessed zero increase in its gross domestic product (GDP) per capita and investment at levels below 20 percent of GDP—it has risen to become one of Africa's fast growing economies (see Arbache and Page 2008). Between 2004 and 2007, Kenya's economy showed signs of revitalization, and the average annual growth rate climbed above 5 percent, allowing Kenyans to finally enjoy an increase in GDP per capita. However, the political turmoil of 2008 slowed growth, and the current global financial and economic crisis has made it difficult to return to high growth rates. Thus, Kenya now faces shrinking export markets, rising protectionist measures worldwide, and meager financial flows.
Topic:
Agriculture, Economics, International Trade and Finance, and Treaties and Agreements
Political Geography:
Kenya and Africa

44. Market Versus State: Postcrisis Economics in Latin America

Author:
Alejandro Foxley
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The global financial crisis has reignited the fierce debate about the roles of the market and the state in modern economies. Latin America, in particular, revisits this debate every time it suffers an external shock. While some blame unregulated markets, others fault states' inability to design institutions or implement policies capable of neutralizing the negative impact of these shocks on output, employment, and social welfare.
Topic:
Economics, International Trade and Finance, and Financial Crisis
Political Geography:
Latin America

45. International Labor Migration in a Globalizing Economy

Author:
Robert Lucas
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Although migration has expanded less rapidly than either trade or direct investment, migration has become increasingly contentious. The immediate labor market impacts on host countries appear small and dynamic gains from induced technical progress remain undocumented. Circular migration from low-income countries offers a key safety valve where the home state fails to provide employment and security, but there are dangers from over-dependence on the migration–remittance nexus. The least-developed countries benefit only through south–south migration and are probably harmed by a rapidly expanding brain drain. Impact on sending countries: Remittances from migrants back to their home countries can promote rapid growth in developing regions, and the withdrawal of laborers can induce higher wages or less underemployment for those left behind. However, remittance flows can decline quickly and unexpectedly, as currently observed in Mexico. Migration of highly skilled workers can become problematic through "brain-drain" of talented healthcare workers and educators in developing regions.   Relationship between trade and migration: Subsidies in many industrialized countries often protect the sectors in which migrants seek work. There is little or no coherence between the trade and migration policies adopted by higher-income countries. Better internal coordination is necessary to reconcile the two agendas.   Policy implications: Many countries prefer a policy of temporary migration, in which migrants contribute to the local economy but depart before they become dependents. But such programs should be better managed, as reports of abuse and exploitation by recruiters and intermediaries become more common. Effective contracting schemes will require better oversight to improve worker conditions, increased transparency, and bilateral cooperation between the host and recipient nations. Lucas concludes:   "The net potential gains to migrants entering the industrialized countries are extremely high. Yet the impacts of any additional migrations on the incomes of those left at home and of natives in the host countries are more ambiguous. While migrants are clearly the big winners, others may even lose." Robert Lucas is a professor of Economics at Boston University. His research has included work on internal and international migration, employment and human resources, income distribution and inter-generational inequality, international trade and industry, the environment, and sharecropping.  He has served as chief technical adviser to the Malaysia Human Resource Development Program, and director of undergraduate studies and the M.A. program in Economics at Boston University. He is also a Research Affiliate at the MIT Center for International Studies. His latest book, International Migration and Economic Development: Lessons from Low-Income Countries, was published by Edward Elgar Press in 2005.
Topic:
Economics, Globalization, and Migration

46. When Money Talks: Arab Sovereign Wealth Funds in the Global Public Policy Discourse

Author:
Sven Behrendt
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In recent years, Arab and other emerging economies' sovereign wealth funds (SWFs)—government-controlled pools of assets designed to engage primarily in foreign investments—have grown into a relevant class of investors in global financial markets. Their past and projected growth has triggered an intense debate about their impact on the structure and architecture of the global financial system.
Topic:
Economics and International Political Economy
Political Geography:
Arabia

47. China's Economic Fluctuations: Implications for its Rural Economy

Author:
Albert Keidel
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Since market reforms began in 1978, China's economy has shown cyclical fluctuations. These cycles of change appear in obvious statistical patterns-faster growth and then slower growth, higher price inflation and then lower inflation, stronger investment flows and then weaker investment-and all are accompanied by other cyclical fluctuations in a range of variables and policy initiatives. Most of these fluctuations tend to move together. Their beauty is that they allow analysis of which fluctuations influence others and, by extension, which policies might make a difference in managing China's economy. In this regard, the cyclical interaction between China's formal urban economy and its rural economy is particularly relevant for the issues facing Chinese policy makers today.
Topic:
Economics, International Trade and Finance, and Governance
Political Geography:
China and Asia

48. India's Trade Policy Choices

Author:
Sherman Robinson, Sandra Polaski, Scott McDonald, Manoj Panda, and A. Ganesh-Kumar
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
India's economic growth has accelerated in recent years, and its share of world trade has expanded. These are welcome developments for the country and, given India's large share of the world's population, for the global economy. Yet, despite these recent positive trends, India faces daunting challenges and policy decisions if it is to maintain high economic growth rates, employ its burgeoning population, and raise incomes across the full range of households, skill levels, sectors, and regions. India remains the largest reservoir of poverty in the world. Its recent high growth has been driven mainly by its modern services sector, which accounts for only a small proportion of overall employment and household incomes. Its agricultural sector is in a deep crisis, whether measured by slow growth rates, persistent rural poverty, or widespread farmer suicides.
Topic:
Agriculture, Economics, International Trade and Finance, and Treaties and Agreements
Political Geography:
India

49. The Challenge of Economic Reform in the Arab World: Toward More Productive Economies

Author:
Sufyan Alissa
Publication Date:
05-2007
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The issue of economic reform in the Arab world is surrounded by many key questions. How do we define meaningful economic reform and what does it entail? To what extent has such economic reform advanced in the region? What is needed to accelerate the process? Are ruling elites motivated to undertake real economic reform and are they capable of doing so? Are state institutions able to implement economic reform and handle its consequences? Is it possible to have economic transformation without political reform? Furthermore, in individual countries, what can we say about the timing of reform-has it been planned out and phased in or pushed through quickly in response to crises? Who have been the winners and losers? What has been the interplay between economic and political reform-have they proceeded independently or can we detect a direct connection? What has been the role of external rents-whether oil revenues, remittances, or bilateral aid-in the speed or slowness, the depth or shallowness, of the process?
Topic:
Development, Economics, and Government
Political Geography:
Arabia

50. China's Economic Prospects 2006-2020

Author:
Sandra Polaski, Jianwu He, and Li Shantong
Publication Date:
04-2007
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
China's economic growth during the past twenty-five years has been remarkable, averaging more than 9 percent a year. While there have been earlier episodes of comparable growth rates in countries such as Japan and South Korea, there is no precedent for such rapid growth in a country the size of China, whose population of 1.3 billion is thirteen times that of Japan when that nation began its rapid growth. The impact on the rest of the world of economic dynamism on this scale is already being felt. If China continues its rapid growth in the coming decades, it will take the global economy into uncharted terrain.
Topic:
Demographics, Development, and Economics
Political Geography:
Japan, China, Asia, and South Korea

51. Illusive Reform: Jordan's Stubborn Stability

Author:
Julia Choucair
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Since independence in 1947, Jordan has shown a remarkable ability to survive as a political entity. Surrounded by regional conflict and starved of resources, it has endured a massive influx of Palestinian refugees and numerous coup attempts. For decades, the Hashemite monarchy has overcome these political and economic storms by weakening institutionalized opposition to its rule and relying on the distribution of benefits and privileges to create a cohesive support base and a security establishment loyal to the existing political order. The regime has been able to sustain this situation by capitalizing on Jordan's geographic centrality. Benefiting from Jordan's image as an oasis of stability in a deeply troubled region, the monarchy has been able to secure a flow of external assistance that has helped counteract the lack of natural resources and maintain domestic political stability. But the balance has always been precarious. The contemporary process of political reform in Jordan must be understood in this context.
Topic:
International Relations, Security, Democratization, and Economics
Political Geography:
Middle East and Jordan

52. Intellectual Property Rights as a Key Obstacle to Russia's WTO Accession

Author:
Matthew Ocheltree and Sherman Katz
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Russia has been in the process of seeking membership in the World Trade Organization (WTO) since June 1993. Currently, the United States is the only major economic power that has yet to finalize a bilateral market access agreement with the Russian Federation. Most observers of the situation concur that the enforcement of intellectual property rights laws remains, along with agriculture, one of the two major hurdles to Russian accession to the World Trade Organization.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
Russia, United States, Europe, and Asia

53. Why Did the Poorest Countries Fail to Catch Up?

Author:
Branko Milanovic
Publication Date:
10-2005
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
DURING THE PAST TWENTY YEARS, THE POOREST COUNTRIES of the world have fallen further behind the middle-income and rich countries. The median per capita growth of the poorest countries was zero. This is an unexpected outcome because, from the perspective of economic theory, both globalization and economic-policy convergence imply that poor countries should grow faster than the rich. The main reasons why this has not happened lie in poor countries' much greater likelihood of being involved in wars and civil conflicts. This factor alone accounts for an income loss of about 40 percent over twenty years. Slower reforms in poor countries compared with faster reforms in middle-income countries played some, albeit a minimal, role. Increased flows from multilateral lenders did not help either because the net effect of the flows on growth rates is estimated to have been zero. Finally, neither democratization nor better educational attainment of the population can be shown to have had any notable positive impact on poor countries' growth. Reducing the prevalence of conflict seems to be the first and most important step toward restoring growth.
Topic:
Development, Economics, Globalization, Poverty, and Third World

54. Cambodia Blazes A New Path To Economic Growth and Job Creation

Author:
Sandra Polaski
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
A UNIQUE AND SUCCESSFUL INTERNATIONAL POLICY EXPERIMENT has been under way in Cambodia for the last six years. In the country's export apparel factories, working conditions and labor rights are monitored by inspectors from the International Labor Organization (ILO), an international public organization. The results of the inspections are published in credible, highly transparent reports that describe in detail whether the factories are in compliance with national labor laws and internationally agreed basic labor rights. These reports are published on the Internet, and a range of Cambodian and international actors use them. The U.S. government uses the reports as a key input for decisions under an innovative scheme that allows Cambodian firms to sell more apparel in the U.S. market if they improve working conditions and respect workers' rights. Private retail apparel firms that buy from Cambodian factories also use the reports. These buyers, conscious of their brand reputations, use the reliable information they find in the reports to steer orders toward compliant factories and away from noncompliant ones.
Topic:
Foreign Policy, Development, Economics, and Government
Political Geography:
United States, Cambodia, and Southeast Asia

55. Lessons Not Learned: Problems with Western Aid for Law Reform in Postcommunist Countries

Author:
Wade Channell
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
THE FALL OF THE BERLIN WALL IN 1989 and the subsequent breakup of the Soviet Union presented an unparalleled opportunity for fundamental political and economic change in more than two dozen countries. As postcommunist countries sought to attain the economic development of their Western neighbors, it became clear that the existing framework of laws and institutions would not support the desired growth. Reformers and development experts soon identified a panoply of gaps and shortcomings in financial resources, human resources, and organizational capacity, all of which appeared ripe for outside assistance.
Topic:
Democratization, Development, Economics, and International Political Economy

56. Promoting the Rule of Law Abroad: The Problem of Knowledge

Author:
Thomas Carothers
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Although the current rule-of-law promotion field is still expanding as it approaches the end of its second decade, it still faces a lack of knowledge at many levels of conception, operation, and evaluation. There is a surprising amount of uncertainty, for example, about the twin rationales of rule-of-law promotion—that promoting the rule of law will contribute to economic development and democratization. There is also uncertainty about what the essence of the rule of law actually is—whether it primarily resides in certain institutional configurations or in more diffuse normative structures. Rule-of-law promoters are also short of knowledge about how the rule of law develops in societies and how such development can be stimulated beyond simplistic efforts to copy institutional forms. And the question of what kinds of larger societal effects will result from specific changes in rule-of-law institutions is also still open. Although aid institutions engaged in rule-of-law assistance do attempt some—lessons learned—exercises, many of the lessons produced are superficial and even those are often not really learned. Several substantial obstacles to greater knowledge accumulation in this field persist, including the complexity of the task of promoting the rule of law, the particularity of legal systems, the unwillingness of aid organizations to invest sufficient resources in evaluations, and the tendency of both academics and lawyers not to pursue systematic empirical research on rule-of-law aid programs. Whether rule-of-law aid is on the path to becoming a well-grounded field of international assistance remains uncertain.
Topic:
International Relations, Democratization, Development, and Economics
Political Geography:
Latin America

57. Russia's Decline and Uncertain Recovery

Author:
Thomas E. Jr. Graham
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
For much of the first decade after the collapse of the Soviet Union, the issue of reform—of transition to free-market democracy—dominated discussions of Russia in Russia itself and in the West. Russian president Boris Yeltsin advocated reform; Western governments declared their support and offered their assistance. This was particularly true of the U.S. government. President Clinton's administration came into office in 1993 determined to assist Russia in its transformation into “a normal, modern state—democratic in its governance, abiding by its own constitution and by its own laws, market-oriented and prosperous in its economic development, at peace with itself and the rest of the world,” as deputy secretary of state Strobe Talbott, the chief architect of the U.S. administration's Russia policy, was wont to put it.
Topic:
Economics and Government
Political Geography:
Russia, United States, Europe, Asia, and Soviet Union

58. Revisiting the 12 Myths of Central Asia

Author:
Martha Brill Olcott
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
NEARLY TEN YEARS HAVE PASSED since the countries of Central Asia received their independence. This impending anniversary is a good opportunity to look at how these states are managing the state-building process, and in particular what symbolic or ideological defenses they are offering for their actions. States need little protection from their successes but are always seeking ways to explain away their various failures. This paper looks at the “myths” that the leaders of the five Central Asian states are using to explain away the very disappointing results in both economic and especially political reforms and shows how U.S. policy makers have bought into some of these myths as well.
Topic:
Security, Economics, and Politics
Political Geography:
United States, Central Asia, and Asia

59. Pitfalls on the Road to Fiscal Decentralization

Author:
Vito Tanzi
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
IN PAST YEARS, the subject of fiscal decentralization interested mainly specialists—even though several countries, including the United States, came into existence through the political and economic integration of already existing political entities, such as states or principalities. Recently, however, fiscal decentralization has been attracting more general attention, largely because of pressures for greater fiscal decentralization in many countries around the world. The purpose of this paper is to discuss a range of issues related to fiscal decentralization, focusing in particular on possible alternatives to decentralization and various pitfalls that may be associated with it. Unlike much of the previous literature on the subject, therefore, this paper will pay less attention to the actual processes of decentralization and more on whether decentralization is the right direction for a country to choose.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States

60. The Myth of Output Collapse after Communism

Author:
Anders Åslund
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
According to official statistics, output plunged in almost all Soviet-type countries toward the end of communism. Then in the first year of transition, the plunges turned even more dramatic, continuing for years. The total registered declines in GDP range from 13 percent in the Czech Republic from 1989 to 1992 to 77 percent in Georgia from 1989 to 1994. This collapse has been widely proclaimed as the worst depression in the industrialized world, exceeding the Great Depression of 1929–33. Both communist and post-communist statistics are deeply flawed, however—and in different ways.
Topic:
Communism and Economics
Political Geography:
Eastern Europe