In The News

War on Iraq Could Be Disastrous for Philippines

Al Labita October 7, 2002
If conflict breaks out in Iraq, a million Filipino workers living in the Middle East may have problems trying to send money back home. Foreign exchange remittances from overseas workers bring almost US$10 billion into the Philippines each year, and the country's economy might be devastated if that flow is suddenly halted. The Philippine government must also prepare to call in favors from...

Stable Oil Prices Likely to Become a War Casualty, Experts Say

Neela Banerjee October 2, 2002
The current conflict between the US and Iraq, should it escalate to outright war, would have major de-stabilizing effects on the world oil market. A variety of scenarios exist, including short-term price spikes, long-term price decreases, and increases or decreases in Saudi Arabian political and economic influence. Whatever changes may ensue, one thing is clear – oil is the blood that pumps...

A Valuable Stick

October 1, 2002
Private creditors who hold the sovereign debt of nations argue that collective action clauses are the best way to deal with countries on the brink of loan default. Collective action clauses entail a majority decision among creditors that will prevent individual creditors from blocking debt restructuring. When a country faces a cash-flow problem, creditors tend to withdraw funds or block debt...

A Free World

Martin Wolf September 3, 2002
Martin Wolf believes that the current era of globalization is better positioned to maintain its momentum than was the globalization wave of the late 19th and early 20th century. The earlier period’s economic integration collapsed between 1914 and 1945 due to 4 factors: 1) the rise of militarism, imperialism, nationalism, communism, and fascism; 2) the rise of protectionism, particularly in the US...

A Second Chance for Brazil and the I.M.F.

Joseph E. Stiglitz August 14, 2002
In this opinion piece, former World Bank economist Joseph Stiglitz writes that the success—or failure—of the I.M.F. rescue package announced this past weekend will likely settle the fate of I.M.F., Brazil, and the rest of Latin America. The I.M.F.’s loan history is making many question the Fund’s latest package; a closer look at Brazil, however, may brighten one’s outlook. Sound monetary and...

Brazil Relief Rests on Hopefuls' IMF Stances

Raymond Colitt August 14, 2002
After the 1998 Russian financial crisis and Argentina's economic collapse, the International Monetary Fund's latest target for support is Brazil’s struggling economy, lending that country 30 billion US dollars last week. This seemed like good news for Brazil which hoped that the IMF loan would attract international investment. However, despite the IMF's support, international...

Baffled by Brazil

Ricardo Hausmann August 14, 2002
Emerging markets such as Brazil and Uruguay need stability in order to sustain growth. The goal behind IMF and US foreign aid should thus be to provide stability. However, Paul O’Neill (US Treasury Secretary), the IMF, and US foreign aid serve more to hurt than to help economic stability, argues Harvard Government Professor Ricardo Hausmann. In order to protect emerging markets when financial...