In The News

Industrialization in Saudi Arabia: A New Paradigm

Jean-Francois Seznec October 2, 2006
In the 20th century, Saudi Arabia embraced crude oil and the Western powers demanding it. For the 21st century, Riyadh is turning away from both, as the government hopes to translate its wealth of raw resources into lasting industrial development. The plan is for the Saudis to use their cheap energy and become the world’s leading producer of petrochemicals. The emphasis on manufacturing over...

Making Globalization Work

Joseph Stiglitz September 8, 2006
Joseph Stiglitz, winner of the Nobel Prize for economics in 2001, complains about unfair trade, excessive debt and poverty, yet still argues that globalization offers enormous potential if managed properly by nations. He compares complaints about globalization to complaints about unemployment during the Great Depression of the 1930s: If governments had ignored economist John Maynard Keynes’ call...

When Labor Loses Out to Trade

Gustav Ranis August 10, 2006
International trade raises the standard of living for most people in any country, but inevitably results in a loss of jobs for a few. The challenge for governments is identifying and implementing policies that support readjustment of those few workers at a reasonable cost. International trade accounted for about 4 percent of layoffs in Canada, the US and the EU in 2000, according to the...

Managing Globalization: A New Trade Bandwagon – Are Rich-Poor Pacts Fair?

Daniel Altman August 8, 2006
Following in the wake of the failed Doha Round trade talks, negotiators turn their energy to bilateral trade agreements, which usually pair rich and poor countries. The US is eager to participate in bilateral agreements, recently making deals with Chile, Jordan and Singapore. In addition to creating more employment opportunities, the agreements also increase exports from each country. Less...

Managing Globalization: Why Trade Talks Do Little for the Poorer Countries

Daniel Altman July 31, 2006
With failure of the Doha Round talks, many ask whether free trade really benefits developing countries. Two studies suggest no, though each differ on the root cause of such a global dilemma, according to “International Herald Tribune” columnist Daniel Altman, and that reveals the complexities of trade. Sandra Polaski of the Carnegie Endowment for International Peace argues that lowering tariffs...

US Shares Blame for Trade Talk Collapse

Lael Brainard July 28, 2006
An unsatisfactory end to the Doha Round of trade talks also signals the end of a US policy of “competitive liberalization,” writes economist Lael Brainard. Until now, this policy included pursuing bilateral and regional trade agreements with the hope of unlocking worldwide multilateral negotiations. The failure of Doha, with midterm elections approaching in the US, makes it unlikely that...

Pascal Lamy: What Now Trade Ministers?

Pascal Lamy July 27, 2006
The stalemate in the Doha Round could yet be overcome, suggests Pascal Lamy, director-general of the World Trade Organization. Disputes over subsidies for agriculture and rich nations stalled the trade agreement. According to Lamy, the strongest advocates for slashing subsidies balk at opening markets and vice versa. As a result, poor nations will feel the brunt of unequal trade policies. As a...