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8461. Individual Development Accounts: Policies to Build Savings and Assets for the Poor

Author:
Ray Boshara
Publication Date:
03-2005
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Individual Development Accounts (IDAs)—matched savings accounts for low-income households—are a relatively new means of improving the lives of the poor. Advocates of IDAs argue that those with assets are more economically secure, have more options in life, and can pass on status and opportunities to future generations. They further argue that assets have positive social, psychological, and civic effects that are independent of the effects of income. Over the last decade, research and demonstration projects have been initiated to address these claims; some of the key findings are that IDAs do lead the poor to save or acquire assets, but do not necessarily increase their net worth (assets minus debt). While costs are declining, IDAs are expensive to administer and are often used by the poor as checking and savings accounts as well as a means to accumulate wealth, reflecting in part the dearth of savings products aimed at the poor.
Topic:
Foreign Policy, Development, Economics, and Government

8462. Thinking About Political Polarization

Author:
Pietro S. Nivola
Publication Date:
01-2005
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
American politics are said to have become bitterly polarized. Journalistic accounts speak frequently of culture wars, and of a chasm between "red" and "blue" states. The defining issue in last November's tightly contested election was reported to be a deep divide over something called "moral values." Senator John F. Kerry's defeat was imputed to his party's alleged deficit in moralists. George W. Bush's victory was attributed to a mobilization of religious zealots. The passions and polemics of maximalists, we are told, are crowding out the preferences of moderates. The country's traditions of pragmatic accommodation and centrist policymaking are supposedly at risk in this hardened political landscape.
Topic:
Foreign Policy, Economics, Government, and Politics

8463. Simmering Fire in Asia: Averting Sino-Japanese Strategic Conflict

Author:
Michael Swaine and Minxin Pei
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
The rapid deterioration in Sino-Japanese relations in recent years has raised geopolitical tensions in East Asia and could embroil China and Japan in a dangerous strategic conflict that could be threatening to U.S. interests. China's rise, Japan's growing assertiveness in foreign policy, and new security threats and uncertainties in Asia are driving the two countries increasingly further apart. Political pandering to nationalist sentiments in each country has also contributed to the mismanagement of bilateral ties. But Japan and China are not destined to repeat the past. Their leaders must ease the tensions, restore stability, and pursue a new agenda of cooperation as equals. For its part, the United States must play a more positive and active role.
Topic:
Conflict Resolution and International Relations
Political Geography:
United States, Japan, China, Israel, East Asia, and Asia

8464. Back From the Brink: A Strategy for Iraq

Author:
Marina S. Ottaway
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
The approval of the Iraqi constitution in the October 15 referendum does not put Iraq on the path to stability and democracy but pushes it toward division into largely autonomous regions. And this new momentum is probably irreversible. Whether it will lead to a catastrophic descent into greater violence or even ethnic cleansing, or to a managed transformation into a loose federation of regions enjoying extreme autonomy, depends on whether it becomes possible for Sunni Arabs to form their own region, as Kurds already have and Shias are bound to do once the constitution is in effect. The central thrust of U.S. policy in Iraq must now be to help Sunnis organize an autonomous region and to convince Shias and Kurds that it is in their interest to make this possible. Paradoxically, announcing now a timetable for the inevitable withdrawal of U.S. troops from Iraq could give Washington additional leverage in influencing all sides to accept the necessary compromises.
Topic:
International Relations, Democratization, and Government
Political Geography:
United States, Iraq, Washington, Middle East, and Arabia

8465. Reading Russia Right

Author:
Dmitri V. Trenin
Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
After the fall of Communism, Russia reverted to czarism. But more importantly, Russia embraced capitalism. Although not democratic, Russia is largely free. Property rights are more deeply anchored than they were five years ago, and the once-collectivist society is going private. Indeed, private consumption is the main driver of economic growth. Russia's future now depends heavily on how fast a middle class—a self-identified group with personal stakes in having a law-based government accountable to tax payers—can be created. The West needs to take the long view, stay engaged, and maximize contacts, especially with younger Russians.
Topic:
Economics and Government
Political Geography:
Russia, Europe, and Asia

8466. Putin's Decline and America's Response

Author:
Anders Åslund
Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
Russia's regime has gone through a major aggravation during the first year of President Vladimir Putin's second term. The regime suffers from serious overcentralization of power, which has led to a paralysis of policy making. Putin's power base has been shrunk to secret policemen from St. Petersburg. Although his popularity remains high, it is falling. Neither unbiased information nor negative feedback is accepted. As a result, the Putin regime is much more fragile than generally understood. Russia's current abandonment of democracy is an anomaly for such a developed and relatively wealthy country, and it has made Russia's interests part from those of the United States. The United States should not hesitate to promote democracy in Russia, while pragmatically pursuing common interests in nonproliferation and energy.
Topic:
International Relations, Democratization, and Government
Political Geography:
Russia, United States, America, Europe, and Asia

8467. The Key to Arab Reform: Moderate Islamists

Author:
Amr Hamzawy
Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
Before any significant political reform can take place in the Arab world, the United States and Europe need to begin engaging moderate Islamists, an action less thorny than it might seem because Islamists have embraced democratic procedures and have shown a strong commitment to the rule of law. For a long time Arab regimes have frightened the United States and Europe into supporting regimes' repressive measures toward Islamist movements by invoking the nightmare of anti-Western fanatics taking power through the ballot box. However, today's moderate Islamists—while illiberal in many important respects—no longer match the nightmare. Excluding them from the political sphere weakens the chances of democratic reform and increases the likelihood that eventually they will resort to violence.
Topic:
International Relations, Politics, and Religion
Political Geography:
United States, Europe, and Arabia

8468. China's Currency: Not the Problem

Author:
Albert Keidel
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
In Washington, politicians and pundits have settled on a single magical solution for the country's economic ills: getting China to revalue its currency, the RMB. By any reasonable economic measure, however, the RMB is not undervalued. China does have a trade surplus with the United States, but it has a trade deficit with the rest of the world. And China's accumulation of dollar reserves is not the result of trade surpluses, but of large investment inflows caused in part by speculators' betting that China will yield to U.S. pressure. Focusing on China's currency is a distraction. If the United States wants to improve its economy for the long haul, it had best look elsewhere beginning with raising the productivity of American workers.
Topic:
Economics and Government
Political Geography:
United States, China, America, Washington, and Asia

8469. Lessons Not Learned: Problems with Western Aid for Law Reform in Postcommunist Countries

Author:
Wade Channell
Publication Date:
05-2005
Content Type:
Policy Brief
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:
International Relations and Economics
Political Geography:
Eastern Europe, Soviet Union, Portugal, and Berlin

8470. South Asian Seesaw: A New U.S. Policy on the Subcontinent

Author:
Ashley J. Tellis
Publication Date:
03-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
The widely noted decision to resume F-16 sales to Pakistan and, even more, the largely ignored commitment to assist India's growth in power represent a new U.S. strategy toward South Asia. By expanding relations with both states in a differentiated way matched to their geostrategic weights, the Bush administration seeks to assist Pakistan in becoming a successful state while it enables India to secure a troublefree ascent to great-power status. These objectives will be pursued through a large economic and military assistance package to Islamabad and through three separate dialogues with New Delhi that will review various challenging issues such as civil nuclear cooperation, space, defense coproduction, regional and global security, and bilateral trade. This innovative approach to India and Pakistan is welcome—and long overdue in a strategic sense—but it is not without risks to the United States, its various regional relationships, and different international regimes.
Topic:
Foreign Policy and Peace Studies
Political Geography:
Pakistan, United States, South Asia, India, and Islamabad