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  • Author: Derek M. Scissors
  • Publication Date: 01-2014
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: New data published in the American Enterprise Institute-Heritage Foundation China Global Investment Tracker show that China continues to invest heavily around the world. Outward investment excluding bonds stood at $85 billion in 2013 and is likely to reach $100 billion annually by 2015. Energy, metals, and real estate are the prime targets. The United States in particular received a record of more than $14 billion in Chinese investment in 2013. Although China has shown a pattern of focusing on one region for a time then moving on to the next, the United States could prove to be a viable long-term investment location. The economic benefits of this investment flow are notable, but US policymakers (and those in other countries) should consider national security, the treatment of state-owned enterprises, and reciprocity when deciding to encourage or limit future Chinese investment.
  • Topic: Security, Foreign Policy, Development, Economics, Emerging Markets, International Trade and Finance, Foreign Direct Investment, Sovereign Wealth Funds
  • Political Geography: United States, China, Asia
  • Author: Aparna Mathur, Sadanand Dhume, Julissa Milligan, Hemal Shah
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Two decades after the end of the Cold War, US–India relations stand at a crossroads. Not so long ago, many in Washington viewed the signing of the historic US–India civil nuclear deal as the advent of a dynamic partnership with the potential to transform Asia and the world. Today US–India ties are just as often characterized as unrealistic or oversold.
  • Topic: Democratization, Development, Diplomacy, Emerging Markets, International Trade and Finance, Treaties and Agreements, Bilateral Relations
  • Political Geography: United States, South Asia, Washington, India
  • Author: Bruce E. Bechtol
  • Publication Date: 11-2013
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: South Korea is in a unique position. It is an economic powerhouse and a thriving democracy that faces the most ­ominous and imminent threat on its borders of any democracy in the world. Moreover, this is a threat that continues to evolve, with increasing missile, cyber, special operations, and nuclear capabilities and a new leader who shows no signs that he will be any less ruthless or belligerent than his father. To meet this threat, Seoul has undertaken a number of efforts to better deter and defend against North Korean capabilities and provocations, including increasing the defense budget, upping training with US forces, creating new command elements, and establishing plans for preemptive strikes against imminent North Korean missile launches. However, in part because of administration changes in Seoul, the South Korean effort has been uneven. And decisions remain to be made in the areas of missile defense, tactical fighter aircraft, and command-and-control arrangements that will be significant for not only South Korea but all states that have an interest in Northeast Asia's peace and stability.
  • Topic: Conflict Resolution, Security, Democratization, Development, Emerging Markets, Nuclear Weapons, Bilateral Relations, Territorial Disputes
  • Political Geography: United States, East Asia, South Korea, North Korea
  • Author: Nicholas Eberstadt
  • Publication Date: 04-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: As the leadership of the Democratic People's Republic of Korea (hereafter DPRK, or North Korea) looks to the future, economic development figures centrally in its officially proclaimed agenda. This year, as it has done every year over the past decade, the government's joint New Year editorial stressed the imperative of economic construction, broadly outlining the sorts of improvements that are to be achieved over the remainder of the current calendar year, and intoned that "The present grand onward march for the improvement of the people's standard of living demands that a full-scale offensive be launched in the overall economic front." But economic growth and development has just taken on a whole new importance in North Korean policy, one that extends beyond rhetoric: this past January, for the first time in over two decades, Pyongyang has formally unveiled a new multi-year economic plan: a 10-year "strategy plan for economic development" under a newly formed State General Bureau for Economic Development. The new economic plan is intended not only to meet the DPRK's longstanding objective of becoming a "powerful and prosperous country" [Kangsong Taeguk] by 2012 (the 100th anniversary of the birth of Kim Il Sung), but also to promote North Korea to the ranks of the "advanced countries in 2020."
  • Topic: Development, Economics, Foreign Aid
  • Political Geography: Israel, South Korea, North Korea
  • Author: Nicholas Eberstadt
  • Publication Date: 02-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: This paper examines global demographic prospects to the year 2030 and assesses the influence that impending population trends may have upon economic performance in coming years for the world as a whole and the major regional economies. A reasonably reliable assessment of prospective global trends to 2030 is feasible today because the overwhelming majority of people who will be living in that future world are already here, alive today. This includes all of that future world's senior citizens and almost its entire workforce. Major changes in global population trends are in the offing--among these, a sharp slowdown in the growth of available manpower, with impending declines of manpower for some regions, and pervasive population aging. Furthermore, in many of today's important "emerging markets" demographic pressures may constrain economic growth more significantly than is currently appreciated. Coping with these looming demographic realities will require far-reaching reforms and innovations if we hope to maintain the pre-crisis tempo of global economic growth (much less accelerate it).
  • Topic: Demographics, Development, Economics, Emerging Markets, Poverty
  • Author: Apoorva Shah
  • Publication Date: 09-2011
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In a country where two out of five citizens, about 450 million people, live in poverty, it is no exaggeration to say that the development experience of Kerala – a coastal state on the southwestern tip of India – stands out as extraordinary. Despite a history of anemic economic growth, this state of 32 million boasts effectively universal literacy rates and life expectancy levels close to many Western societies. Because of this, the “Kerala model” has been hailed by NGOs, development experts, and Western academics as an alternative path for human development in which a robust welfare system rather than economic growth drives social progress.
  • Topic: Development, Economics, Emerging Markets, Poverty
  • Political Geography: South Asia, India, Kerala
  • Author: Robert Klitgaard
  • Publication Date: 03-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In the aftermath of the disastrous earthquake of January 12, 2010, Haiti will receive unprecedented aid for reconstruction and for its promising economic strategy. But given the country's legacy of corruption, massive aid could simply result in another massive Haitian failure. Success hinges on facing corruption squarely and developing a hard-headed, politically sensitive anticorruption strategy. How this could be done, given Haiti's realities and lessons from fighting corruption around the world, is the subject of this paper.
  • Topic: Corruption, Development, Foreign Aid, Governance
  • Political Geography: Caribbean, Haiti
  • Author: Amy E. Gadsden
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Fifteen years ago, international aid agencies interested in doing development projects in China would begin their efforts with a fairly predictable series of meetings. A delegation from the organization would arrive in Beijing to meet with embassy officials, Chinese ministry officials, and the same small band of Chinese and foreign development experts who pioneered work in the late 1980s and 1990s in areas such as commercial law reform and rural development.
  • Topic: Development
  • Political Geography: China, Beijing
  • Author: Michael Auslin
  • Publication Date: 12-2010
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Ensuring security in the Indo-Pacific region will be the primary foreign policy challenge for the United States and liberal nations over the next generation. Doing so successfully will provide the greatest economic and political opportunities for the next quarter century. Conversely, a failure to maintain stability, support liberal regimes, create cooperative regional relations, and uphold norms and standards of international behavior will lead to a region, and world, of greater uncertainty, insecurity, and instability. Due to its economic strength, military power, and political dynamism, the Indo-Pacific will be the world's most important region in coming decades, and its significance will be felt throughout the globe. Since the end of World War II, it has transformed itself into the world's economic powerhouse, yet has also witnessed a struggle between tides of liberalism, authoritarianism, and even totalitarianism. It remains riven by distrust, territorial disputes, ethnic tensions, and painful historical memories. The Indo-Pacific's unique geography makes the balance of regional security most vulnerable in its "commons": the open seas, air lanes, and cyber networks that link the region together and to the world.
  • Topic: Security, Development, Emerging Markets, Governance
  • Political Geography: United States, China, India, Australia/Pacific
  • Author: Philip I. Levy
  • Publication Date: 03-2008
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Contrary to the common approach in the literature, the economic and other forces that push countries toward democratization are continuous rather than discrete. This paper argues that failure to account for the latent variable of "incipient democracy" can bias estimates of democracy's determinants. The paper presents a new avenue by which economic integration can foster democracy, one that focuses on the means for democratization rather than the motive. This strengthening of civil society is identified as a necessary component of economic integration with modern distributed production, though we would not expect to see it in autocracies dependent on natural resource trade. The arguments are applied to the case of China.
  • Topic: Democratization, Development, Economics, Emerging Markets
  • Political Geography: China, Asia
  • Author: Megan Davy
  • Publication Date: 05-2008
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Latin American and Caribbean (LAC) economies, usually susceptible to international financial turmoil, are especially vulnerable to even minor tremors in U.S. markets. Regional policymakers and entrepreneurs, therefore, have been closely watching the current U.S. subprime credit crisis. Here is the good news: all signs point to relatively minor symptoms in LAC countries—despite a rocky financial history during the 1980s and 1990s—thanks in large part to reforms undertaken in response to previous financial crises, as well as continued high commodity prices that will likely buoy export markets. Although the economic downturn in the United States and other global markets will likely expose lingering weaknesses in the region's economy, this latest crisis can provide an impetus to complete the unfinished business of building more modern, resilient economies.
  • Topic: Development, Economics, Emerging Markets
  • Political Geography: United States, South America, Latin America, Central America
  • Author: Roger F. Noriega
  • Publication Date: 01-2008
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: If Time magazine had wanted to recognize a true democrat and reformer as the 2007 Person of the Year, they would have chosen Brazil's president Luiz Inacio "Lula" da Silva over Russia's Vladimir Putin. Working within Brazil's free, pluralistic democratic system, Lula has focused on economic growth and social justice, getting tangible results with his new anti-hunger and poverty programs. Unlike Putin, Lula is also strengthening key institutions and the rule of law.
  • Topic: Democratization, Development
  • Political Geography: South America, Latin America
  • Author: Roger Bate, Kathryn Boateng
  • Publication Date: 04-2007
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Funding for malaria control has increased significantly over the past decade, but it is still unclear whether that funding is actually saving lives. Setting targets has emerged in recent years as a key fundraising tool for disease-control programs. However, available evidence shows that most health targets are immeasurable or not measured. Unless performance is measured in a meaningful way and successful policies followed thereafter, current and future malaria funding may not help to save lives and may even be counterproductive. It is time to stop setting meaningless targets.
  • Topic: Development, Health, Human Welfare
  • Political Geography: Africa
  • Author: Frederick M. Hess, Bryan C. Hassel
  • Publication Date: 06-2007
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: In October 2006, the American Enterprise Institute convened a meeting in Washington, D.C. to discuss what might be done to grow the human capital pipeline to support entrepreneurship in K–12 education. Participants included foundation officers, educational entrepreneurs, and policy analysts. While the gathering did not seek to formulate any grand consensus or blueprint, the authors hope that the following summary will spark further discussion and action on this critical issues in education reform.
  • Topic: Development, Economics, Education, Markets
  • Author: Aparna Mathur, Kevin A. Hassett
  • Publication Date: 01-2007
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Every year the Census Bureau reports data on income inequality and poverty, based on income estimates derived from the Current Population Survey. Our analysis suggests that the data may not be presenting an accurate picture. By under-reporting incomes, leaving out certain sources of income, and not making equivalence adjustments that are now standard among researchers, the reports present an imperfect picture of overall welfare. We develop an alternative that relies on data from the National Income and Product Accounts. Our data reveal that real median incomes have been increasing in the recent period, albeit at a slower rate than the long-term average. Using the same methodology for consumption, we find that consumption for all income groups, including the middle, has been growing robustly in recent times. This is in contrast to statistics reported by the Consumer Expenditure Survey, the most often cited data for all consumption analysis, which show middle class consumption declining.
  • Topic: Development, Economics, Human Welfare
  • Political Geography: United States
  • Author: Robert F. Noriega
  • Publication Date: 02-2007
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: As Fidel Castro shuffles off the world stage, many non-Cubans are pondering the future of a nation that has spent nearly fifty years trapped under the rubble of the dictator's demented experiment. Too many outsiders, however, are disoriented by the myths that the regime has spun over the past five decades to make the island seem complicated, bedeviled, dangerous, and unapproachable. Castro realized that if the world came to comprehend Cuban reality, then even the intelligentsia might notice something wrong with the way he ran the place.
  • Topic: International Relations, Development, Politics
  • Political Geography: Cuba, Central America
  • Author: John H. Makin
  • Publication Date: 03-2007
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: To the dismay and amazement of optimistic market players, not to mention Federal Reserve chairman Ben Bernanke, early in March former Fed chairman Alan Greenspan publicly assessed the probability of a recession this year to be one in three. This was a shock to those who had been carefully avoiding use of the “r word” while intensifying problems in the subprime mortgage market heralded the news that the housing correction, which had been declared “over” in January, was instead moving into a second, more intense, and unpleasant phase. Weaker investment (capital spending was actually a drag on fourth quarter growth) and an 8.7 percent drop in January durable goods orders further undercut hope for sustained general growth. The Fed's own economic outlook has looked to firmer capital spending as part of an economic recovery scenario.
  • Topic: Development, Economics, Government, Markets
  • Author: John H. Makin
  • Publication Date: 02-2007
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The slowdown in the housing sector that began early in 2006 subtracted over a percentage point from GDP growth during the second half of last year. Now, in 2007, analysts have declared that the worst of the housing slowdown is over. However, early in February, more serious problems emerged in the subprime mortgage market, the rapid growth of which supported the later stages of the housing boom in 2005 and 2006. Subprime mortgages are risky loans to weak borrowers who usually have to borrow the down payment on a home purchase, leaving them with mortgage obligations equal to 100 percent of the purchase price.
  • Topic: Development, Economics, Markets
  • Author: Michael Rubin
  • Publication Date: 03-2007
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The following article is the second of two installments by Michael Rubin in AEI's On the Issues series. The two articles originally appeared as a review essay in the Spring 2007 edition of Middle Eastern Quarterly.
  • Topic: Civil Society, Development, Education
  • Political Geography: Iraq, Middle East
  • Author: Michael Rubin
  • Publication Date: 03-2007
  • Content Type: Policy Brief
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: The following article is the first of two installments by Michael Rubin in AEI's On the Issues series. The two articles originally appeared as a review essay in the Spring 2007 edition of Middle Eastern Quarterly.
  • Topic: Civil Society, Development, Education
  • Political Geography: Iraq, Middle East